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Is There a Correlation Between Student Loan Debt and Unquestioning Conformity in the Workplace?
AND IF SO, WHAT ARE WE TO DO ABOUT IT?
By JOHN O. ANDERSEN
April 4, 2003
Question:
Do young people who start their careers saddled with student loan debt, make better teamplayers, i.e. (unquestioning conformists) in the workplace? Do they tow the line better than workers who have no debt, and can afford to walk away from an unpleasant or disagreeable job, or who are free to try out lower paying jobs more suited to their natural inclinations?
I would argue, yes.
Indeed, in a free society, there may be no more effective way to turn creative, and independent-thinking young people into predictable, socialized, and well-trained teamplayers (robots, drones, what have you) than to get them to go to college, and take out a student loan.
Currently in Congress, there is debate over whether to raise the limit for undergraduate borrowing from $23,000 to $30,000. I'm pleased to hear there are some people who feel raising that limit would actually give the higher education industry the green light to keep up their happy, largely unchallenged habit of making annual tuition hikes at a rate higher than inflation. As long as the money from student loans fill their coffers, what's to stop them? Student loan funds are a deep pockets source of moola, and the higher education industry has long since grown accustomed to feeding from that trough.
"Deep pockets" source of revenue the key to "success"
The higher education industry isn't alone in this gravy train discovery.
Take the single family home market, for instance. Nothing increases homeownership rates, and helps drive up housing prices better than making loans available to more people, and loosening the requirements for qualifying.
Don't believe me? Well then make easy credit vanish, and presto, watch homeownership rates and housing prices fall precipitously. If there are no buyers, a home is worthless, isn't it?
Similarly, as long as the higher education industry can rely on funding from deep pocket lenders, they can continue to raise tuition at will. After all, it's not their customers (students) who are footing the bill (directly that is). It's the lenders.
A brilliant concept!
Technical sounding verbiage essential
A few years back, I was in the insurance restoration business; you know, cleaning up homes after a fire or flood. One thing that really bothered me in that industry was how there was a price for insurance work (when the insurance company paid), and a far lower price for the same service when the customer paid out of pocket.
You see, in the restoration industry, the trick is also to find a deep pockets source of income. When you've got that in hand, you can pad the bills at will. And as long as you keep up the image charade (professional service with uniformed "technicians"), you've got it made. Just call it something technical like "cleaning, sanitizing, and odor abatement," and you can charge the insurance company $500. Do the same job with the customer paying directly, and you'll be lucky to get $250.
Higher education industry also uses big words to lure customers
The higher education industry specializes in using big words, and important sounding ideas in its marketing efforts. Predictably, John and Mary Mainstream, frantically fearful of their child's future without the "all-important" diploma, eat it up, hook, line, and sinker. The upshot? Their children take out loans with gleeful, and reckless abandon.
What a deal for the industry!
Debt-saddled graduates more likely to behave like lemmings?
I suppose back in my day when a much higher percentage of us finished college without debt, we felt more free to try out new ideas after college; to stumble and fall, if we needed to on our journey toward eventual success.
These days, with a heavy debt load hanging over their heads from the get-go, perhaps more young graduates feel compelled to tow the teamplayer line, and become cogs in the machinery --true organization men!
This is very sad.
So where does this leave us?
My advice is to avoid student loan debt altogether. Don't decide on a career path just based on feelings alone, or because Uncle Mike does it, and he makes a lot of money. Get some practical, hands-on experience both on the job and in life, before you commit yourself to an expensive degree program that will leave you with debts for many years to come.
If your future must include college, perhaps your employer will help foot the bill. Or you could minimize expenses by spending your first two years at a local community college, and then transfer to the university for the final two years. Or you could live at home with your parents while attending college. Your available choices are only limited by your imagination.
And don't rule out the incredible options available in self-education. With the Internet, public libraries, community mentors, and countless volunteer opportunities, you could actually educate yourself into a great career, or self-employment arrangement. To follow such an unconventional path, however, you do need a good helping of self-confidence, and an open mind.
The higher education industry only has you over a barrel, if you allow them to put you there. Free your mind from their fear-mongering marketing messages, and watch your options grow exponentially.
Who knows, with that sort of mindset, and its practical application in your life, you could actually become a productive, self-sufficient adult without the oppressive mandate to be a teamplayerish clone.
To me that has always been and remains an intriguing thought.
Is There a Correlation Between Student Loan Debt and Unquestioning Conformity in the Workplace?
AND IF SO, WHAT ARE WE TO DO ABOUT IT?
By JOHN O. ANDERSEN
April 4, 2003
Question:
Do young people who start their careers saddled with student loan debt, make better teamplayers, i.e. (unquestioning conformists) in the workplace? Do they tow the line better than workers who have no debt, and can afford to walk away from an unpleasant or disagreeable job, or who are free to try out lower paying jobs more suited to their natural inclinations?
I would argue, yes.
Indeed, in a free society, there may be no more effective way to turn creative, and independent-thinking young people into predictable, socialized, and well-trained teamplayers (robots, drones, what have you) than to get them to go to college, and take out a student loan.
Currently in Congress, there is debate over whether to raise the limit for undergraduate borrowing from $23,000 to $30,000. I'm pleased to hear there are some people who feel raising that limit would actually give the higher education industry the green light to keep up their happy, largely unchallenged habit of making annual tuition hikes at a rate higher than inflation. As long as the money from student loans fill their coffers, what's to stop them? Student loan funds are a deep pockets source of moola, and the higher education industry has long since grown accustomed to feeding from that trough.
"Deep pockets" source of revenue the key to "success"
The higher education industry isn't alone in this gravy train discovery.
Take the single family home market, for instance. Nothing increases homeownership rates, and helps drive up housing prices better than making loans available to more people, and loosening the requirements for qualifying.
Don't believe me? Well then make easy credit vanish, and presto, watch homeownership rates and housing prices fall precipitously. If there are no buyers, a home is worthless, isn't it?
Similarly, as long as the higher education industry can rely on funding from deep pocket lenders, they can continue to raise tuition at will. After all, it's not their customers (students) who are footing the bill (directly that is). It's the lenders.
A brilliant concept!
Technical sounding verbiage essential
A few years back, I was in the insurance restoration business; you know, cleaning up homes after a fire or flood. One thing that really bothered me in that industry was how there was a price for insurance work (when the insurance company paid), and a far lower price for the same service when the customer paid out of pocket.
You see, in the restoration industry, the trick is also to find a deep pockets source of income. When you've got that in hand, you can pad the bills at will. And as long as you keep up the image charade (professional service with uniformed "technicians"), you've got it made. Just call it something technical like "cleaning, sanitizing, and odor abatement," and you can charge the insurance company $500. Do the same job with the customer paying directly, and you'll be lucky to get $250.
Higher education industry also uses big words to lure customers
The higher education industry specializes in using big words, and important sounding ideas in its marketing efforts. Predictably, John and Mary Mainstream, frantically fearful of their child's future without the "all-important" diploma, eat it up, hook, line, and sinker. The upshot? Their children take out loans with gleeful, and reckless abandon.
What a deal for the industry!
Debt-saddled graduates more likely to behave like lemmings?
I suppose back in my day when a much higher percentage of us finished college without debt, we felt more free to try out new ideas after college; to stumble and fall, if we needed to on our journey toward eventual success.
These days, with a heavy debt load hanging over their heads from the get-go, perhaps more young graduates feel compelled to tow the teamplayer line, and become cogs in the machinery --true organization men!
This is very sad.
So where does this leave us?
My advice is to avoid student loan debt altogether. Don't decide on a career path just based on feelings alone, or because Uncle Mike does it, and he makes a lot of money. Get some practical, hands-on experience both on the job and in life, before you commit yourself to an expensive degree program that will leave you with debts for many years to come.
If your future must include college, perhaps your employer will help foot the bill. Or you could minimize expenses by spending your first two years at a local community college, and then transfer to the university for the final two years. Or you could live at home with your parents while attending college. Your available choices are only limited by your imagination.
And don't rule out the incredible options available in self-education. With the Internet, public libraries, community mentors, and countless volunteer opportunities, you could actually educate yourself into a great career, or self-employment arrangement. To follow such an unconventional path, however, you do need a good helping of self-confidence, and an open mind.
The higher education industry only has you over a barrel, if you allow them to put you there. Free your mind from their fear-mongering marketing messages, and watch your options grow exponentially.
Who knows, with that sort of mindset, and its practical application in your life, you could actually become a productive, self-sufficient adult without the oppressive mandate to be a teamplayerish clone.
To me that has always been and remains an intriguing thought.
no subject
Date: 2003-07-18 09:45 pm (UTC)no subject
Date: 2003-07-18 10:04 pm (UTC)no subject
Date: 2003-07-18 11:49 pm (UTC)I do have student loans...although they are nothing to some, they are something.
My parents paid for my first degree...but when I choose to return to school after my daughter was born, I did that on my own.
I know that when I start to pay it back...my payments will be less than a small car paymnet......but it still bites. It is difficult to start out that way.
I started an education fund for my daughter when I was five months pregnant. It is a small amount, by todays standards....but, I hope that in time...it will help her in some way...
interesting theory
Date: 2003-07-19 12:14 am (UTC)I'm going to disagree with you. I think debt is enormously empowering. Right now I'm in China doing an MBA internship, and almost all of my colleagues say things like "I wish I could go abroad to study, but it takes too much money." Chinese people don't have the access to money that young Americans have. They have to slave away until they are middle-aged before they can enjoy their lives. My advice to the young people of America: seize your youth, invest in yourself, live for today, pay for it later!
PS: It sounds funny, but I am serious about that.
PPS: Most good universities are non-profit organizations. They use their "profits" for research, community outreach, and other noble things.
Re: interesting theory
Date: 2003-07-19 04:30 am (UTC)I realize a lot of the appeal is actually living in the US but there are many accredited institutions which allow 'remote' study. Maybe a lot of Chinese already study this way.
Re: interesting theory
Date: 2003-07-19 06:50 am (UTC)Re: interesting theory
Date: 2003-07-20 02:30 am (UTC)Re: interesting theory
Date: 2003-07-19 07:45 am (UTC)(and they are comparatively cheap) ;)
Re: interesting theory
Date: 2003-07-19 09:20 am (UTC)Like incredibly high salaries for high-level administrative positions? Or expense accounts for those administrators, or the tens of thousands of dollars that go into redecorating their offices?
Re: interesting theory
Date: 2003-07-20 02:32 am (UTC)Re: interesting theory
Date: 2003-07-20 07:01 am (UTC)Universities - particularly public, research universities - are some of the most corrupt institutions in the country.
Re: interesting theory
Date: 2003-07-20 07:59 am (UTC)I almost certainly won't read the books you recommend, but thanks for the thought. I am a former Disney employee and I like books that make me feel life is wonderful and the world is full of possibility, not books that expose depressing corruption and human flaws.
Currently I am reading "A Dream of Red Mansions" (红楼梦） which is about a rich young man living in a castle with dozens of beautiful easy women to entertain him. It is nearly as long as War & Peace and is a pleasant diversion from reality. I am worried, however, because the back of the book says it has a tragic ending.
Re: interesting theory
Date: 2003-07-20 08:00 am (UTC)no subject
Date: 2003-07-20 03:02 pm (UTC)Tax-subsidized schools _are_ the tool of the devil. Government control and subsidization should end. People should be free to support (or not support, as the case may be) schools as they see fit.
Re: interesting theory
Date: 2003-07-21 10:57 am (UTC)Now there's a criterion I can understand.
I never finished my degree, and I honestly can't think of one important thing in my life I haven't been able to do without it. Unfortunately, I ended up with the loans but not the sheepskin! :)
no subject
Date: 2003-07-19 06:13 pm (UTC)Do you ever censor what you might say because you worry that you might get fired if you say it?
Most of the things that I learned in school, I think I could just as easily have learned on my own. That being the case, aside from meeting legally licensing requirments, I think it's unwise to go substantially into debt for an education.
can i ask?
Date: 2003-07-20 02:51 am (UTC)Before grad school I worked as a Web programmer (also one year as an ESL teacher in China - LOL!) and I was probably the most ornery and belligerent one in the group. But I only disagreed with others and challenged management's assumptions in order to do our work better. Most of my colleagues were of the "it ain't my problem, so let 'em do it wrong if they want to" philosophy, and in fact I got the highest personnel evaluation in the department.
I don't know why you feel you must censor what you say. Unless you mean, you want to yell at the boss for being such a hardass, or complain about the radio station your coworkers voted to listen to, or something. Obviously you're not going to get brownie points for being a pain in the neck.
Most of the things that I learned in school, I think I could just as easily have learned on my own.
Yeah, but college isn't just about fulfilling legal requirements or getting a diploma. It's about finding yourself, becoming independent, making lifelong friends, drinking beer, and so on. So much more fun than working for years and years, and it opens doors. I could not have gotten a work permit to teach ESL in Taiwan, for instance, if I didn't have a college degree.
no subject
Date: 2003-07-20 02:56 pm (UTC)The kinds of self-censorship I was referring to are with respect to a) policies that you think are counter-productive b) co-workers who aren't pulling their weight c) unethical behavior by superiors.
It's about finding yourself, becoming independent, making lifelong friends, drinking beer, and so on. So much more fun than working for years and years, and it opens doors.
Yes, all true. But can't most of these things be achieved without going into debt?
I could not have gotten a work permit to teach ESL in Taiwan, for instance, if I didn't have a college degree.
Yes, it may be necessary to go to college to meet work permit/licensure requirements. I'm against government mandated licensure requirements as well.
However, many of those legal requirements can be met much less expensively than many choose to do, by attending community colleges, getting correspondence degrees, etc.
So you were an ESL teacher--could you be one after you got your MBA? Would you be able to service your debt payments?
no subject
Date: 2003-07-20 05:34 pm (UTC)no subject
Date: 2003-07-20 11:19 pm (UTC)pay
Date: 2003-07-21 07:16 am (UTC)In which case, I would definitely *not* have used it to pay off my student loans. Car loan, maybe.
no subject
Date: 2003-07-21 10:02 am (UTC)no
Date: 2003-07-21 10:06 pm (UTC)if you e-mail me i can try to refer you to my old company or some schools where my friends work, we can see if they have openings.
also
Date: 2003-07-19 12:17 am (UTC)no subject
Date: 2003-07-19 06:17 pm (UTC)Re: also
Date: 2003-07-21 10:54 pm (UTC)no subject
Date: 2003-07-19 07:23 am (UTC)I don't know about that, but in general, the less debt you have, the more options you have.
Nothing increases homeownership rates, and helps drive up housing prices better than making loans available to more people, and loosening the requirements for qualifying.
Same thing with car prices. When loans are easy to get and rates are low, prices skyrocket.
One thing that really bothered me in that industry was how there was a price for insurance work (when the insurance company paid), and a far lower price for the same service when the customer paid out of pocket.
Medical insurance has done the same to medical expenses. In fact, medical insurance was first developed by a group of doctors who were trying to make sure they got paid.
My advice is to avoid student loan debt altogether.
I think it's always a good idea to avoid debt, as well as to seek creative ways of meeting your own needs. That includes education and career choices.
no subject
Date: 2003-07-20 03:19 pm (UTC)I don't think medical insurance pe se, is to blame, but rather a) the subsidization (via Medicare and Medicaid) and b) the preferential tax treatment of pay in the form of medical insurance that has contributed to the increase in medical costs.
Since people can't spend medical insurance on anything but medical care, this tends to increase the demand and therefore, the cost of service.
Other important contributors to the increase in medical costs are a) cartelization of the industry via licensure requirements b) monopolization via drug patents c) regulatory burdens via FDA d) liability lawsuits.
no subject
Date: 2003-07-20 03:32 pm (UTC)And isn't expecting medical insurance to pay for checkups and glasses akin to expecting auto insurance to pay for oil changes and tires?
no subject
Date: 2003-07-21 12:01 am (UTC)That's probably true. But you're not just buying the medical services, you're buying insurance against the risk of catastrophic, though rare, loss. Most people won't need it, so they'll end up paying more than they would have had they just bought the medical care directly. However, they are also less likely to be bankrupted if they need a large amount of medical care.
And isn't expecting medical insurance to pay for checkups and glasses akin to expecting auto insurance to pay for oil changes and tires?
Yes, and I think this is the result of the fact the medical insurance is a "tax-preferred" form of compensation. Since medical insurance can only be used to pay for health related items, you see it used to pay for things that would otherwise be purchased with cash.
Changing university fees in Australia
Date: 2003-07-19 08:44 am (UTC)no subject
Date: 2003-07-19 06:25 pm (UTC)no subject
Date: 2003-07-19 09:20 am (UTC)Taking out loans gave me the freedom to STOP acting like a lemming and be the master of my own destiny. It's the cheapest debt you can ever have and mine had very lenient rules-- I was granted every deferment I requested.
Mine are paid now... I had $25K undergrad & $20K grad... but if I could go back and do it over again with what I know now I'd borrow more and travel... :)
BUT I do remember feeling like they were an awful burden in the beginning :) hehe so it's all perspective.
Life is going to hang a lot of crap on you... debt, accumulated stuff, worn-out sad & sorry twisted relationships... unless you're going to make it your life's work to avoid such things it's going to happen one way or another-- may as well take advantage of opportunities to make that all a little less painful :)
no subject
Date: 2003-07-19 06:28 pm (UTC)no subject
Date: 2003-07-21 02:16 pm (UTC)I think the same thing can be said for people that have mortgages and especially a family to support. This includes workers of all ages, not just the young and recent graduates.
no subject
Date: 2003-07-21 05:33 pm (UTC)Agreed.
yeah
Date: 2003-07-21 10:08 pm (UTC)