As has been highlighted countless times before – our modern day college education system is nothing but a coordinated scam by colleges to generate as much revenue as possible and for the bankers financing the loans to enslave unsuspecting borrowers for decades.
Most college graduates assume that once they’ve completed their higher education studies and earned their degree no one can ever take it away from them. Unfortunately, the US Department of Education and most colleges in America take a different position. Their official policies dictate that if your student loan is in default they do not have to provide you, prospective employers or other universities with your official transcript if requested to do so.
By the end of college, he was $62,000 in debt but was making payments regularly until Temple laid him off, allegedly because of budget cuts. That’s when his problems began. (Pedro Rodriguez is a pseudonym to protect his identity.)
Unable to find a job as a music teacher in the current economic crisis, he eventually went into default on his loans, which included Stafford, Perkins and private bank loans. Then this year, he decided to go on to earn a PhD, which would make it possible for him to get hired in his field. He applied to a top-rated university in the Northeast, but when it was time to send his school transcripts, Temple froze him out. “They said as long as I was in default on my loans, they would not issue a transcript!” says Rodriguez.
A spokesman from Temple confirms that it is school policy to withhold official transcripts from graduates who are in default on their student loans. As it turns out, the school is not alone; this is the position taken by most colleges and universities, though there is no law requiring such an extortionate position. They do this despite the fact the colleges themselves are not out the money. They have received the students’ tuition payments in full and are in effect simply acting as collection agencies for the federal government.
The US Department of Education says only that it “encourages” colleges to withhold transcripts, a tactic which the department, in a letter to colleges, claims coldly “has resulted in numerous loan repayments.”
Source: The Nation
With the unemployment rate in America for those in the 18 to 24 year old age group at 46%, and the broader unemployment rate above 20%, the entire system is destined for failure. It’s difficult enough for those graduating from school to find a job in today’s economic climate, as evidenced by the 85% of graduates who have been forced to move in with mom and dad once they complete their studies because there are simply no meaningful jobs to be had. Now, the one advantage these individuals believe they have in their pursuit of a job – the college degree they were told they earned – doesn’t exist if they have fallen on hard times and have failed to make their loan payments.
By all accounts, these policies (not legal statutes) are akin to organized crime:
Karl Denninger opines at The Market Ticker:
Ah, so it’s not your degree. It’s theirs.
Even though they suffered no loss and no injury if/when you default, they reserve the right to retroactively add terms and conditions to that degree after the program of study is completed.
This would be considered fraud were we to live in a land with the rule of law, and if undertaken in concert with others (like The Department of Education, which “encourages” this practice) Racketeering.
While colleges may make it seem as if the sole purpose for their existence is to help you succeed and prosper after you’ve left their benevolent campuses, these policies of retroactive indentured servitude make it clear that they are interested in one thing and one thing only: Your Money. This isn’t about making the world a better place or developing a skilled workforce. It’s about how much money they can make, you’re future be damned.
Fully 25% of student loans in America are currently in default – that’s $270 billion in loans that are not getting paid. Based on these industry-wide policies, what this suggests is that for 25% or more of college graduates there exists no official evidence that they ever even attended school, except, of course, for the remaining loan balance owed to their bank.