On Scripture: A Sinkhole of Debt

Debt hole, Andrej Vodolazhskyi /

Debt hole, Andrej Vodolazhskyi /

In January, I received a phone message from a friend of ours. She needed to talk with me, she said. About something.

Not long after, I got an e-mail from Cordera (not her real name), our friend’s daughter:

“I am writing to you because my family and I have run into a problem. This summer President Obama passed the Deferred Action for Childhood Arrivals [of undocumented immigrants]. Over a long course of paperwork and appointments with the USCIS, I was able to receive a work authorized social security card and employment card. [But] without a student visa, I was not able to file for a loan. A few weeks after my first attempt, I found a bank that would be able to grant me a student loan with a US citizen or permanent resident as the co-signer. My father's uncle offered to help but . . . he was denied the credit.”

She wanted us to co-sign for a private loan in the amount of $35,000 to cover her first year of college. My heart sank. We couldn’t co-sign. Or we wouldn’t. I wanted to discourage her because of unfavorable and variable rates, immediate repayment, and long-term consequences of excessive indebtedness. I spoke with her university’s financial aid officer who intoned piously that the cost of the university experience was but one factor to consider: Cordera needed to hold onto her dreams, despite the crippling price tag of those dreams.

Is Our Debt to China the Key to Global Peace?

China debt illustration, vespar5 /

China debt illustration, vespar5 /

We’ve been hearing an awful lot about the national debt lately – particularly during the current election cycle – and specifically, we’ve gotten an earful about the problem of our enormous debt to China. Though some mistakenly believe we borrow all of our money to finance our upside-down economy from China, the truth is that they hold only about one-tenth of our total debt, which is about the same amount as we owe to Japan.

What’s staggering is that, even at 10 percent of our total indebtedness, that still amounts to well over one trillion dollars. That, in itself, is close to $3,700 for every man, woman, and child in the United States, plus interest. And if you consider that we owe ten times that much, it’s nothing short of depressing.

Is There No Good Economic Reason To Get A Ph.D.?

Maybe someone pursuing a Ph.D. in Liturgical Theology and Ethnomusicology is shouldn't be the one to offer this reflection.

Heck, maybe a Ph.D. in Mechanical Engineering or in Astrophysics would be a wise economic choice. I can't say.

I've been mulling over some of the news stories out there hyping either end of the (political?) reality of spending more money (and time, let's not forget time) on higher education. It leads me to a couple of questions:

Does the present rate of student debt have a snowball's chance in Tartarus in being repaid? Will the students, especially the so-called "nontradtional student" like myself, actually see a return in their investment?

If you believe NPR, the answer may be "no."

The Afternoon News: Friday, Nov. 18, 2011

Top 10 Reasons Alabama’s New Immigration Law Is A Disaster For The State’s Economy; Undocumented Immigrants Facing Deportation: Caught Up In Confusion, Lost Records, Inconsistent Policy Enforcement, And Difficult Choices; A Deeper Look At Income Inequality; Why The Debt Panel Is In Trouble; How Congress Occupied Wall Street (OPINION – Sarah Palin); 68 Percent Of The Sons Of The 1 Percent Work At Their Dad's Company; More Than 1 In 5 U.S. Children Poor, Census Says.

Chris Hedges' Occupy Wall Street Statement

Chris Hedges. Image via Wiki Commons.

Chris Hedges. Image via Wiki Commons.

Chris Hedges' statement on Occupy Wall Street read in part:

As part of the political theater that has come to replace the legislative and judicial process, the Securities and Exchange Commission agreed to a $550 million settlement whereby Goldman Sachs admitted it showed "incomplete" information in marketing materials and that it was a "mistake" to not disclose the nature of its portfolio selection committee. This fine was a payoff to the SEC by Goldman Sachs of about four days' worth of revenue, and in return they avoided going to court. CEO Lloyd Blankfein apparently not only lied to clients, but to the subcommittee itself on April 27, 2010, when he told lawmakers: "We didn't have a massive short against the housing market, and we certainly did not bet against our clients." Yet, they did.