As the hidden hand moves forward in attempting to establish America as the seat of the new world order, education will no longer be a choice, especially for the less than wealthy. The cost of student loans will double July 1 from 3.4 percent to 6.8 percent, more than what the big banks pay on their loans – 0.75 percent; the same culprits responsible for plunging the economy into a recession a few short years ago. The federal government has made drastic cuts in funding higher education, while raising the cost of burdensome student loans. Only a select few will be able to attend a college or university.
State colleges and universities have serviced the middle to low income students in their pursuit of a higher education after high school; these institutions have had a significant role in the dynamism that has long made America distinctive. The very same institutions are the target of federal government cuts, with an approval of a loan rate hike that American families will have to bear the brunt of the burden, making the price of education unaffordable for a certain socioeconomic group.
State and local spending for public university students dropped to a 25-year-low in 2011. Tuition and fees at public four-year colleges have jumped by more than 70 percent on average over the last decade. Costs increased to $8,240 in 2011-12, up from $4,790 in 2001-02, according to The College Board. Between 2008 and 2010 costs climbed by 15 percent due to state budget cuts, according to the data released in June by the Department of Education.
Some of the biggest cuts have come since the 2007-2009 recession. In order to compensate, some of the state colleges and universities have begun to aggressively recruit wealthy out-of-state and foreign students, creating another challenge for middle to lower income students – competition for admission.
It is reported the Obama administration is forecast to turn a record $51 billion profit this year from student loan borrowers, a sum greater than the earnings of the nation's most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets.
The increase on the cost of student loans will not only wedge out a certain economic group from continuing their education, there is potential to create havoc on the economy. Regulators and officials at agencies that include the Federal Reserve, Treasury Department, Consumer Financial Protection Bureau and Federal Reserve Bank of New York have all warned that student borrowing may pose a threat to financial stability.
Middle to low income college students facing rising costs and having to compete against the wealthy have taken on more and more debt in pursuit of higher education, at the same time becoming disenfranchised. Very soon attending college will be priced unaffordable.
