How College Has Become A Racket!

I recently highlighted the Student Servitude Sham operating in America but since then our continuing investigation (which I will summarize below) has forced us to more appropriately label it a "racket"! We define "racket" as a business activity which is misleading, not fully "above board" and takes advantage of those less able or informed to take care of themselves. A "Racket" may or may not be illegal depending on whether our well lobbied legislators have the incentive to make it such.

That said, the harshness of the term pretty well summarizes the $140B/ Year Student Loan, Finance & Servicing industry in America, which like an Iceberg is mostly hidden, below the surface. With student loans now totaling $1.4T this means that an additional 10% of that sum is being grafted annually from unsuspecting students and parents.

There has been an endless amount written in the last decade about the exploding size of the $1.4 Trillion of student loans outstanding. College tuition and expenses has risen at a financially devastating rate for students and their financially trapped families. What few however can answer satisfactorily is: Why has this occurred?

We can see from the chart below that this debt inducing juggernaut began gaining momentum in the mid 1990's but then mysteriously exploded in 2010-2011. What happened in the early part of this post financial crisis decade?

Certainly students didn't suddenly start wanting to go to college? College operating costs on the other hand didn't abruptly get more expensive?

To understand the Student Debt Super Nova -- Post-2010, we need to understand it in the context of a series of ongoing lift-off stages similar to a rocket launch, each stage accelerating the rocket upward towards a well planned trajectory.


The graphic above illustrates that the rocket was successfully placed in the launch gantry after three pivotal events had been successfully staged:

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Disclosure: Information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, ...

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