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December 27, 2016 | Young and Old Debilitated by Debt-Dependent Education Mode

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

This is what happens when a system becomes all about enriching executives and lenders, and leaves the rest of the population dependent on debt to try and stay afloat.  The cost to the economy in lost savings, investment and spending power for everything else is massive, and the deficits and shortfalls compound for years into the future.

The answer is not more loans, and lower rates and more government subsidies to for-profit-corporations; the answer is more affordable, efficient programs and systems that cost less and enrich the masses with better health, education and self-sufficiency.  Investments in the present, pay it forward for a stronger future.  But investment requires lower profits and consumption in the short-run.

Note to status quo:  you don’t empower the future by taking advantage of the vulnerable when they are looking for help to get started.  See The next victims of student debt crisis: mom and dad:

In 2016, more than 3.3 million borrowers held $74.5 billion in parent PLUS loans used to pay for their children’s education, according to the U.S. Department of Education. That implies the average parent PLUS borrower had a balance of more than $22,000.

The College Board found that annual parent PLUS loan volume has increased nearly fivefold over the past decade.

As long as parents do not have poor credit, they can borrow as much as they need in parent PLUS loans to cover their children’s tuition, room, board and books minus the financial aid the student receives.

“The biggest issue with parent PLUS loans is the underwriting doesn’t take into account affordability,” said Nick Clements, co-founder of, a loan comparison website.

Here is a direct video link.

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December 27th, 2016

Posted In: Juggling Dynamite

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