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How university financial loans exploit students for profit | Sajay Samuel





“As soon as on a time in The united states,” says professor Sajay Samuel, “going to university did not necessarily mean graduating with personal debt.” Currently, bigger instruction has become a client product — expenditures have skyrocketed, saddling students with a mixed personal debt of over $1 trillion, although universities and loan providers make large earnings. Samuel proposes a radical answer: website link tuition expenditures to a degree’s envisioned earnings, so that students can make educated decisions about their potential, restore their adore of learning and add to the world in a significant way.

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44 comments

  1. These Ted Talks are having no effect on society.

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  2. No debt for me. Sorry everyone else.

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  3. I know it's a trap because I'm in it now. But all I can think about are my 2 younger sisters in 11th and 12th grade….I don't want them to feel as trapped as I feel.

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  4. Had to drop college to take care of my dad who had Alzheimer's and my mom who had cancer now that they both past away I cant go back because of my withdrawals and I'm stuck with over 30 thousand in loans and no excuses.

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  5. Zenn Exile. I agree, it's the way our system is set up.

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  6. PLAY THE LOTTERY! Man, why doesn't anybody discuss this? I know the odds are terrible, but if you win you can not only wipe out your college debt but enter early retirement. When you can't find a job, when you are underemployed, and everything skill based you do fails, your only hope is dumb luck! All you need is a $1 mega millions ticket to change everything, and $1 can easily be picked up lying on a busy sidewalk/parking lot. Any homeless person could play and win it, so don't ignore all your options. The lottery is the last line of defense against financial failure!!!!!!!!

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  7. Is there a spread sheet to show if I paid blank for this month and blank for this month on how long it will take and how much I'm just paying interest rates on?

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  8. The speaker has an interesting concept in income based tuition, but he never blames the colleges themselves for out of control tuitions and student fees that have exceeded the rate of inflation for decades. Where's the innovation in providing education at a lower rate in college educations?

    Perhaps college loans should be made by the universities themselves – have loans converted into colleges get 5% or 10% of a student's salary for the 15 years after graduation, fully paying off the loan. If colleges lost money on major A and made money on major B, I'm betting you would see colleges become much more efficient.

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  9. Take loans to buy Businesses instead.

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  10. "The worst of times can be the best of times, because certain truths flash up in ways that you can't ignore". 

    My friends, this is spot on. The housing crisis was first, the student loan crisis is next.  If too big to fail Wall Street can get a bailout, what about the 50 million Americans laden in student loan debt, and over 10 million of them in default. Where is the line drawn here? Does this country not see why the economic conditions are sour? Housing market remains down because Millennials cannot afford it.  Some are paying a mortgage in student loan debt!  We are doomed!

    If only we can put a human face on capitalism like the Australians do with their Student Loan programs, we could have a much better America!

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  11. If Hillary makes college tuition free companies like Sallie Mae will go out of business

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  12. Please ask Paul why he got a degree in English LMAO

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  13. NEWSFLASH:AMERICANS AREN'T OBLIGED TO GO TO COLLEGE,THEY MAKE RETARDED DECISIONS OUT OF THEIR OWN WILL,UNABLE TO THINK ABOUT WHAT ACTUALLY CONTRIBUTES TO HIGHER INCOME.

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  14. if only this would work, colleges are so secretive about everything it's quite shady

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  15. BTW, I'm getting tired of TED's "Brownsplaining": Where they have some "person-of-color" come and give a talk on something that's not new and has been around for decades.

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  16. There was a Cuban dude on youtube, who commented and scoffed at a point I was making: Cuban students can get a masters or doctorate degree — all paid for by their government (because they actually invest in their people). The state has a very high-level of medical education. He finally admitted the western/American system wasn't perfect. And it isn't. He emigrated from Cuba, and is now in the U.S. He simply jumped from what he thought was the frying pan, and hopped into the fire.

    Western countries no longer have to invest in their people — because they simply cherry-pick and immigrate any kind of workers they want — STEM workers, low-wage low-education, nurses, etc., like they are picking and choosing them off a restaurant menu. That's the new economy. It's ugly. It treats workers like disposable garbage. It destroys communities. It's focused on profit over ethics. It sees only borderless markets and quashes nations.
    Until our economy changes, nothing else will be changing either.

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  17. https://play.google.com/store/apps/details?id=com.vestedfinance.student

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  18. Brilliant , education is Now a consumer product!
    Income based tuition , dang it that would be the best app

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  19. Universities are an experiment in socialism.

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  20. ted x – psu? more like ted x – india! lol

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  21. This is so depressing because my parents made this mistake and then kept telling me to take out student loans. I had to lie and say I couldn't take out more after $42,000 because it was making me sick. I was young and didn't realize how serious this was. of course I was loaning them money… dont know how I could have been so stupid. I bought thrift store clothes and wouldn't buy a car. I had 2 jobs and walked alot….

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  22. That was an excellent talk

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  23. It's definitely a conspiracy, shackles to put on the young generations. Some materialistic kids are not even aware they're like guinea pigs on a never=ending wheels. And because they're so tied up in the pursuit of physical living, they don't have time to pursue the deeper meaning in life, the equality of beings and the dream of freedom., That's the ultimate goal of the aristocracy ruling class, Creation of modern serfdom, voluntary slave system.

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  24. this is great

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  25. Okay, but the prices seem to be inflated to a ridiculous level in the first place. Also, there are majors that simply have no jobs. Would people stop offering those because it would seem to be a poor investment? What would then happen to all the jobs that don't exist now, but will play roles in the future? What would happen to the surprising uses for knowledge that may be some genius idea we all benefit from twenty years later? And does putting all the responsibility into student hands to choose wisely even make sense given the issues outlined in this talk? It seems to me that whatever we can do for ourselves to protect ourselves at the moment has value, but where we need to go with this information is a system of collective investiture that is capable of securing a decent quality of life for everyone, failed academic purchase not withstanding, or poor health, or any other factor that unavoidably prevents us from having decent security now. It should be an honor to work for collective

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  26. College should cost less. Taxes should go up, not just for the wealthy, all classes should have an increase in tax. That's called being fair

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  27. Are you serious? There really needed to be a ted talk over something this obvious? Can someone do a ted talk on why we breathe?

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  28. great talk

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  29. This is know as the Obamaconomy and hurts everyone.

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  30. I wouldn't go to college if my parents didn't make me. I have self learned 6 different coding language with mixed experience in each and 3 verbal languages. My parents won't co sign on my student loans because they say it's "my thing", yet I don't have a choice to choose whether of not to go.

    I pay for my car, phone, and insurance with money from job and freelancing with web design/software engineering.That's not good enough for them. Not until I have a piece of paper saying that I know what I am doing even though more then most then some college graduates in some areas of study.

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  31. When you go to college or university you are paying to gain knowledge, to gain wisdom, to become more educated. You are not paying for a potential job that you may get after graduating. That is not what educational institutions are responsible for. They're only responsible for educating you, nothing else. You need to have more insight and knowledge than others' in your interview panel to get a job. The university has nothing to do with that. I hope you can understand.

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  32. It's not like we have an option.

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  33. communism will prevail

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  34. American universities are not for undergraduate education. They are for sports and world-class research. The best professors and researchers in every field from every country in the world including those in Europe are all working in the US. As the famous physicist John A Wheeler said, the purpose of a university is to educate the professors.

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  35. Same situation in Russia.

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  36. I would like to hear Sajay speak more on the idea that high school graduates pay the ultimate cost. I feel it's a type of inflation effecting almost every level of work. Construction is my trade and the regulators love to come up with new licenses and categories and I suspect it devalues the old licenses and gives more power to the large corporations. If you have a very specialized degree or trade license you have a limited "usefulness" in the work place. This gives the leverage to the large corporations or regulating bodies. With leverage comes money. The people who make it all happen end up taking the hit. Thoughts? THanks for the talk Sajay, I have 5 young ones and their future is on my mind.

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  37. When looking at income based tuition, education comes out really unwise. Cost:Benefit::Ed Major:net lifetime loss. The only viable reason for ed degrees is because one is pathologically drawn to being an educator. And currently, almost all states require a masters degree for initial certification as a teacher; further, many require dual masters for secondary (high-school) education teachers – one in subject, one in teaching. And yet, the pay is still largely in the realm of an Associate's or Bachelor's Degree in more employable fields. On the undergraduate level, while the education bachelor's degrees are often still offered, they no longer lead to certification to teach, and only admit one to paraprofessional roles – Teaching Assistant, in-school Tutor, or administrative assistant (Where the ed background comes in handy for knowing PA1964, FERPA, NCLB, and Title I, Title VII, and Title 9 rules).

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  38. Salaam (Peace)! This video was one of the best Ted Talks I've seen, mainly because of the subject matter. Debt enslaves the borrower to the lender… And most students, inclusive of myself, spend a lot of time and of course money trying to free ourselves. May the Creator provide us all the means, the opportunity, and the courage to pay our debts off, and take preventative measures to assure avoidance of such circumstances for ourselves, our families and our loved ones. Ameen. #debtfreeisthegoal

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  39. what he said about the purpose of higher education as a label for employers to know what they want to buy on the labor market (people market) has been true for state education of all kind ever since the very inception of public education. why else was the concept of compulsary schooling enforced in so many places? this was always simply a service to business owners to produce and taylor tools of labor (the "free" citizens of society) to their own needs. it's time people become revolted and disillusioned by these institutions, begin to see their true colors and reject an organization of society in which the purpose of their lives is nothing but to become the perfect consumer product to be sold, bought and used, and eventually thrown away and replaced, by an elite class who sees the people it "consumes" as nothing but useful tools at their disposal.

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  40. Income based tuition would further income inequality nationwide by keeping high paying majors out of the reach of the less privileged. In theory it makes sense, in practice it destroys the American dream that it would be meant to protect

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  41. Sajay I couldn't agree more with you.
    At 6figr.com, for the past two years this is what we've been striving for: Open salaries of all degrees, colleges, skills, experiences etc for people to make informed career choices.

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  42. I'm aiming to become a doctor but the loans I'm going to have to take for med school look painful. I am already taking classes at a community college to save some money and I worked hard to get an Honors scholarship for high GPA and academic outstanding. I'm going to finish my time here in the Community College with 0$ debt. The thing that scares me though is Universities and Medschool, what can I do to minimize the cost? Anybody have any tips or advice? Please, anything would help! I still have time to avoid falling into this system and not owing $500,000 dollars.

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  43. I was waiting to ear something new… Didn't.

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  44. He makes a good point about the consumer/student not having a way to gauge the return on investment.. he says this is why tuition costs are skyrocketing out of control. Look at the parallel with healthcare.

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