A solution to student debts in America | Sajay Samuel | TEDxPSU

With college incomes dropping, millions in America carry the burden of unpayable student debts. Only university administrators can effectively control this untenable situation. In this talk, Professor Samuel suggests that college tuition should be linked to the expected income earned from a major. Prospective students need this information to make informed decisions. Income based tuition will also make the humanities as economically attractive as technical fields of study.
Sajay Samuel has taught Management Accounting and related subjects to undergraduates, MBA's and Executives over assignments that included stints at Bucknell University and the University of Connecticut. His research published in scholarly journals aims at clarifying some of the foundational assumptions of management thought and practice. Parallel to these researches on management and accounting he also studies political philosophy and history. He has presented the early fruits of this work in France, Italy, Germany and England. Professor Samuel is working on the political significance of administrative agencies (e.g, SEC) and professional associations (e.g, Accounting Profession) in liberal democratic polities.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at ted.com/tedx

[@MrWolf-qv4rn]

I would love to see it be taken one step further and make a high school diploma worth something by teaching high school students trades or skills they can actually use in the real world.

[@thomasjbraun1]

First lesson in economics for kids. Cost vs return

[@guillaumelafleche9477]

Well said! Just what I was thinking of the situation. And brilliant solutions!

[@maged.william]

Why not give this man a place of authority where he can actually do what he preach?

[@alexstrigs]

Amén!😂

[@susheeltm]

Thanks Sajay for a talk that was straight to the point.

[@robertmitchell8630]

He is spot on Salle Mae is just another financial machine Rising cost can easily be financed by Salle Mae

[@patfuller6127]

My children and grand children came to me for advice. I said that nursing was a good choice, but it is a very demanding job, and I said the trades were good. All who took these options now make over 100 thousand a year and with overtime can make thousands more a year.

[@thomaspiper8727]

my school is charging me 15 dollars to take their mandatory writing exam. That's the real scam here

[@monicadiaz-serrano3322]

same :/

[@KKuddaMuzic]

I'm taking it right now

[@hodlatodla5364]

I strongly disagree with this man. How about telling the Federal government to stop creating artificial demand for college degrees by stopping to keep interest rates artificially low.

[@thegroovee]

Wow, what a great video

[@studentdebtcommunity4181]

Great presentation.

[@LanceWinslow]

I listend to this talk and disagree with much of it, but I think that thinking here and his comments are a good start to finding the right mix to solve this crisis, and it is a huge crisis.

[@miketracy9256]

Is it possible, that much of this student loan lunacy would be reduced, if our HS students were taught basic financial planning and learned, that most debt is toxic to your future security?

[@dancerjim]

Simple solution: federal government gets out of the loan process entirely. Let the market decide.

[@bricemacaluso8361]

I like the idea of ISA's, where investors give money to colleges in return to give loans to students to study in fields beneficial to that investor. Once that student graduates, a percentage of their income goes towards paying off their loan whether they look for careers in their field or not.

[@mboaz4730]

This doesn't address the issue of those already stuck in debt, only plans for a future. The whole system will have to be changed, and there is no way that those involved want that change to happen. Those stuck with the loans should revolt and overthrow the government. Too many of our leaders make money off of their misery.

[@terryeffinp]

Went to a trade school for 35k I was done in less than two years got a (useless) degree in business. Walked out earning 50k a year. Now 6 years later I am earning about 100k a year as a diesel technician. With my student loans paid off as of last year, and I cash flowed a truck and 100k in tools. There are other paths to earn a middle/upper middle class living. I do like your idea on income based tuition. I think if we went back to privatized loans and young people were put under a microscope for the degree they would like to get the same way a bank looks at an individual wanting to buy a home, we would see a lot less people in universities and a deflation in the price of higher education. Put the risk of lending in the hands of banks so that people wanting a loan for 50k for underwater basket weaving will be told NO. The government absorbing the risk of the loan is the same thing that happened in the housing bubble, the big difference is a home is a tangible resalable asset, an education is not.

[@alexstrigs]

Thats because you are less smart😂

[@pranavpillai7778]

Bankruptcy is the solution. Banks will stop unscrupulous lending. Also, they should stop expanding higher education.

[@Eric345]

We need to stop letting government guaranteeing student loans. Yes, that will result on less people going to College. But it will also make College affordable again. People will be able to work through college and graduate with little debt or no debt at all!

[@TheBlackSoldier6]

Work through college? With tuition increasing the way it is no one can afford right than and there.

[@indiannotproudofbeingpunja217]

Who left urge after reading comments here

[@alexstrigs]

Me. We all want to know if there is more people struggling like us in the comments😂😂😂

[@reality6522]

If they don't forgive student loans, can they at least provide jobs in train field of study alone with expected salary which prompted taking the loans.

[@aspamaccountbutforyoutube-2878]

Many of my friends are considering military jobs just to be free from this overwhelming debt. That could cost their life if they get deployed! These are young people! This debt is so unfair.

[@tylergordon1452]

The problem with student loans is the ease at which anyone can get the loan. It takes more effort to get a credit card then it does to get a student loan. The solution isn’t to make college free however we need to find a way to make college affordable, that doesn’t mean free but that does mean you shouldn’t have six figure debt though.

[@carloconopio6513]

1st solution , in high school teach the kid basic financial literacy. 2nd lower or zero the interest. 3rd encourage kids to go in community college then after that go to private college. 4th they need to pass a law that the schools should increase too much tuition fee

[@MgtowRubicon]

The solution to student debt is to eliminate ALL student loans. Repeal the non-bankruptible status for student loans. A loan is a loan; no distinction without a difference. Prices always rise to consume subsidies; student loans are the easiest subsidy to obtain. Scholarships and grants were functioning just fine with ZERO obligation to repay. Only people who have the aptitude for their chosen higher education can qualify for scholarships and grants. Pain is the best teacher; do not forgive student loans, because that will only encourage continued bad behavior.

[@whitetigr8337]

Nothing is stopping you from doing/studying what you truly love. Nothing, that is, except for you.

[@thomasjbraun1]

Want to screw something up? Just add government

[@JessicaHicks]

Student loans cause 🤕🤧😷

[@jhawk5114]

GI bill still pays for school....

[@alexsikonisky]

Why not control the costs of higher education? Most of the increased cost of higher education is the result of ever-increasing administrative costs. In many states, the highest paid state employees are the state university president and football coach.

[@ddskimmer]

Awesome! Just watch an RT video where they present the Presidential Candidate Bernie Sanders proposing to do away with the 1.26Trillion student loan debt...bail out! A great idea, He's got my vote!

[@cogitoergosum7891]

What if what I love to study doesn't make that much money? For example, if I wanted to become a teacher because I want to help people, but learning to be a teacher is resource heavy and therefore quite expensive so it incurs a lot of debt. But the pay for a qualified teacher is quite low. Therefore I should abandon my dream to be a teacher because its simply not economically viable? I know we talk a lot about "useless degrees", but it does occur to me that using this system will lead to turning the whole education system into a commodity faster. If I don't get the income I want after I graduate can I sue the school? Why shouldn't I? What do we do if thousands of people decide to become lawyers because that's the most economically viable degree on paper and then in 5 years time there's a huge glut of lawyers in the market who can't find work? I'm sure that would never happen. What is school actually for?

[@jacobhinsey]

Will you pay to finance my dream?

[@Joe-nh8eq]

"How to increase student debt in America" There...fixed your title. Maybe instead of telling the philosophy student that he is subsidizing the engineering student, which by the way is completely false anyways. Engineering students pay lab fees. Also engineering graduates donate more money to the school. But maybe we to give the philosophy major some hard truth, that his degree might not be financially worthwhile.

[@trooper8464]

Actually it's not false what he is saying because in my university that Philosophy student is actually paying the same cost as an engineer without having to use the luxuries of using labs and stuff. Yeah It's there and he can surely use the labs but for philosophy or other non sciences its not mandatory which it's another story. The harsh truth is that I have been realizing from observations at my uni is that non science mayors tend to fall into the debt trap much more easier than stem mayors. Ha must be math thing

[@Joe-nh8eq]

but thats not true. If you are an engineering student you have to pay lab fees. You have to pay to use those labs. Believe I know cause I paid them every semester...

[@trooper8464]

The lab fee is like 10 dollars at my school compared to tuition wise that's chump change. Similarly at other schools are relatively the same unless your attending IV league. What this man is stating in his argument is that non stem mayors should pay different tuition than let's say engineers or doctors. More for engineers less for philosophy majors. I am an engineer and have no debt why because when you simply understand the mathematics of percentages, time, and money you tend to get very afraid of paying things through debt. I think the lack of mathematical reasoning on non stem majors behalf places them in the hole their in enough said.

[@Joe-nh8eq]

my lab fees were definitely not $10... But different schools and slightly different majors.( I majored in neuroscience btw) But this is besides the point. His entire idea is that tuition should be based on the potential income. The comparative resource use was used anecdotally. Not to mention majority of tuition increases have gone to administrative cost. You know like football stadiums, college dorms, campus activities. All the things someone who spends 100 hrs a week between work and studying science really cares about right? The increased tuition is largely due to low interest loans (currently at real -2.6%. NEGATIVE 2.6%), and the increase in administrative fees trying to chase after this money supply. Literally every other Ted talk on this subject besides this one discusses this in some way or another. HIs ideas of linking tuition to potential income would cause tuition rates to sky rocket. He's a sociologist. Research this from an economists view. Negative correlation between interest rates and price inflation would be a great place to start. I can share links if you'd like. And not to mention that liberal arts majors generally value aspects of university differently. I wasn't exactly attending our football games every saturday in our brand new stadium. I wasn't living at the hotel priced dorms. I wasn't using all the student events and going to concerts or having drinks at the university bar. But I still had to share the cost. Generally, science majors value universities based on their library, their professors, and success rates. Liberal arts majors tend to value sports and amenities higher. Its why winning the NCAA championship substantially increases application rates.... His scenario would allow students who generally judge universities based on expensive amenities to pay less tuition because "fairness". But what do you think would happen to tuition costs?

[@trooper8464]

Indeed what you are mentioning is a systemic problem of colleges subsidizing expensive infrastructure, extra faculty costs with student debt. It's funny but the state university I chose to attend I value it not because of it's sports but because it is one of the best in the country for the applications of science. We don't even have a football team which those savings are passed on to the students. But it still throws a hook to those students that want to subsidize stuff with debt. Interest rates are so low and so little barriers to obtain a loan that it is allowing anyone to attend college which is frightening. Potential income is a joke and I don't understand why politicians or critics even take this into consideration. There are so many life obstacles for a person to actually achieve that said potential income that really it shouldn't be taken into account. I think that we as a society should stop tying academia with the notion of buying your way into the middle class or higher. But yes fairness usually ends up turning into a ponzi scheme / pyramid scheme but at a government level.

[@fantastic180]

I think it is simple to solve. Make college tuition cheaper. And make it hard way for student to apply financial aid.

[@tee5634]

Solutions; make being a Billionaire against the law and poverty against the law by having a guaranteed income.

[@seenvideos6828]

just cancel all of it lmao

[@midnightcaptain8344]

The concept of “pay your debt” is at a loss for so many people. I have a solution for student loan debt: “pay it..” You guys aren’t special or better than the average American with a mortgage or car note who pays their bills.

[@airman122469]

Here's a thought: get a useful degree. Engineering (nuclear, chemical, material, computer, mechanical, aerospace, etc.), medicine, law, biology, or any of the hard sciences are all worth the degree. Philosophy, communications, and other fine arts are not.