Book Trailer The Noble Train

Sunday, May 13, 2012

Why The College of Your Choice is Over

Parents are not rich. Most of them. Yet in the age of ending entitlements, and if you don't know that this is the age we live in then you will soon enough, there are parents who still think they should send their kids to schools they can not afford. The latest NY Times article illustrates this perfectly. Kids coming out with 120k on their head. And there are many. And they are in shock with eight hundred dollar payments and where does this come from? The Age of Entitlement. Where middle class people were told they are rich. They are not.

And we have learned this the hard way. Our houses are still falling and will continue to fall and no they will not come back. The houses will fall to what they are worth in material and stop. The rest will be knocked down. And people will move out with nothing but their own money. And people will be 1099. And insurance will be a bitch. And our kids will not go to the college of their choice. The problem is in this area the assumption it is our right to send our kids to 70k a year or more is still our right. It is not.

Why? Because the economic engine does not support that anymore. The culture doesn't either. You test your way to Princeton and get a scholarship. Fine. Go for it. But if you are rolling to a private college on  100 k in Federally insured loans you have no way or repaying. Don't do it. The degree will not equate to the deniros. And what is more is that the parents and the kids cannot afford it. But this GI bill hangover still persists.

But people are adjusting as their kids move back home. One lady just got a life insurance policy out on her daughter who owes 150k. Just in case anything happens. She probably doesn't know that Federal loans kick off when someone dies. Cold world out there.

Books by William Hazelgrove