One Trillion Dollars, Student Debt and Higher Education: Greg Gottesman at TEDxSeattle

Greg Gottesman is a Managing Director of Madrona Venture Group, a leading venture capital firm based in Seattle. Greg currently serves on the boards of 10 private companies, as a board member of Startup Weekend and the W Fund, and as President of the Evergreen Venture Capital Association. He founded Rover.com, the Web's largest dog sitting marketplace, and teaches Entrepreneurship at the University of Washington. Greg graduated Phi Beta Kappa from Stanford University and with honors from Harvard Business School and Harvard Law School where he was an editor of the Harvard Law Review. When not spending time helping to build startups or trying to be a good father to three children, Greg regularly injures himself playing non-contact sports.
In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual TEDx events are self-organized.* (*Subject to certain rules and regulations)

[@havek23]

High Schools preach that everyone should go to college, but we still need mechanics, HVAC technicians, electricians, plumbers, welders, nursing assistants and things that only need 6 months of training or apprenticeships. When a Bachelor's degree becomes the new high school diploma and everyone has them, they aren't worth anything.

[@troybuckholdt]

There is so much more that you can do without a diploma, The vast majority of people are just afraid to create their own path, figure out a way to give them a path and you will be a wealthy man.

[@davidschlessinger9945]

it's actually worse, because a high school diploma is free, but college is extremely expensive and you go into debt.

[@jaycool9480]

Jeeto reason why entry level jobs ask for 3-5 yrs experience. That makes no sense.

[@utistudent099]

Even a vocational school in 2018 costs $ 45,000 to earn an Associates Of Occupational Studies Degree in Automotive and Diesel Technology. Apprenticeships are hard to find since the Unions are all dead. We killed shop class in High Schools to herd everyone into overpriced Vocational Schools. Skilled labor workers are a dying breed and that is our entire infrastructure at risk

[@toddt6186]

Preach.

[@aceofthemaces]

It's been five years since this talk and unfortunately nothing has changed

[@NathanS2238]

It's been seven and nothing has changed

[@patrickmazzillo9648]

Nate, If nothing changes soon the bubble will burst and guess who will pay for it. Time to raise our voices. These kids are being taken advantage of. Serious alternatives need to be sought out by these kids upon high school graduation over the thought of attending college.

[@AntiMasonic93]

It has now been 9 years, and nothing has changed.😛

[@cayla3830]

@@NathanS2238 9 years now

[@oglincoln2804]

the american dream was never meant to be living as a feudal serf in indentured servitude until you die an old man the day after you're ready to start your life.

[@DerekThomasLirio]

OG Lincoln If that's your life, then YOU failed. See, people like me, who say no to the official way, and instead, find the effective way, we're the future employers of all the employees that are calling us dumb today. That's why, even though people have been telling me I'm dumb, weird, doing things incorrectly, my whole life, I continue doing it my way. Some of the ones who once told me I was doing it wrong, are probably reading this comment, and they've already learned how wrong they were. I've always said, and will continue to say, that I don't make decisions based on the experiences of others, I do what will work, for me.

[@abriyhwh3533]

Derek Thomas Lirio Exactly! I am a college drop out, an entrepreneur, and debt free. I have former friends who talked so much shit, but now, they have tens and hundreds of thousands of dollars of debt to pay off. They are stressed the hell out. It feels crazy when my friends with their master's degrees ask me to borrow money for food to eat. It really does feel weird. I scratch my head and think, DAMN! Some of them are professors.....I figured out that going your own way is the only safe way, and I knew it ever since I was a young teenager. The only reason I ever went to college was because of pressure from my family, but I left to travel and do what I loved. After leaving I ended up following my passion and making more money in three months than most of them made in a year.

[@DerekThomasLirio]

ABRI YHWH Hey, I was just looking at this comment from long ago. If you see this, e-mail email me.

[@LanceWinslow]

$1.3 Trillion now and growing, 45% delinquency rate, right now needs $108 Billion to save it. OMG, WTH?

[@jimbones155]

It's 1.5 trillion now (2018).

[@India19855]

I honestly believe that it is far better to dump thousands of dollars upon community libraries than to dump thousands of dollars on universities. Unlike universities, libraries are open to EVERYONE. Universities tend to favor whites and asians who have access to middle class or upper class wealth. Never, ever underestimate a high-end library.

[@redvisitor9432]

Whoooo! thank goodness I didn't take on student debt. I got tired of college and bounced. Unfortunately, I can't say the same for some of my friends who have 40K or more.

[@binzsta86]

i got tired of the brainwashing and liberal professors

[@duswil3934]

Forgive my ignorance, but why not simply eliminate the prohibition on bankruptcy for loans taken after the first of the new year. Lenders will have to be more cautious which will result in fewer students who can afford going to school. The drop in demand will push the price of education down, and force some universities to shut down useless programs. The sky will be falling for a while, but it will balance out. That and maybe eliminating the first two years of college where you essentially relearn everything you were supposed to have learned in high school.

[@jefferyspicioli9192]

Dus Wil WELL SAID!

[@needsmetal]

Dus Wil To smart of an idea, never happen

[@jumpingjoy20]

+Dus Wil Or eliminate the last two years of high school. So many high school students are just going on to get their associates with community colleges. We'd have students who could enter the workforce earlier.

[@EDTHEWATERGUY]

+Dus Wil Also,in this age of the internet,you could get all the academic (reading,writing,math) parts and some other things done online for free in probably a few months,so there is no need to waste time and money doing that in college.

[@Yobachi2007]

+Dus Wil Or, instead of all the nonsense "solutions" that everyone keeps talking about, how about fix the actual thing that caused the exaggerated spike in tuition which was states cutting the subsidies for college, which led colleges, of course, to push the cost onto students. This is not a hard to figure out thing, or some unknown secret or surprise. What caused most of the rise of tuition above inflation th last 2 and half decades isn't some unexplained phenomena, it was simply a choice. That choice can simply be undone.

[@tee5634]

These students are children who don't know any better. They are being taken advantage of.

[@margaretcabral535]

The answer is to forget college unless your going to become a doctor or lawyer and get scollarships for these much needed professions . Look for blue collar jobs , just better off

[@rsaathoff]

I have to disagree about a lawyer. Too many of them out there. Also doctors are realizing that the amount of debt they accumulate is not worth the ROI under single payer health care and or Obama care.

[@proad4516]

Only in the USA though

[@RB-kh6fo]

Scholarships are nearly impossible to earn. You can count on every $100 scholarship having at least 2,000 applicants. How many scholarships would you need to pay for one textbook (average 3 to 4). What's your chance on winning one at that level? 1 in 2000. The odds are astronomical.

[@davidschlessinger9945]

those blue collar jobs don't exist any more. America 2017

[@roberte.6892]

Doctor. Not lawyer. Trust me. $250k in debt with zero job prospects for many, many, many lawyers.

[@LoveAndPeaceOccurs]

Thank You Greg Gottesman, you seem to really care and if so, please focus more on ending this action that should be a crime (the robbing of those who are merely trying to earn an honest living) ... this talk was 5 years ago ... the changes required are still not forthcoming ... because the required discussions and the required actions are still not happening. Part of the reason is that those who profit (oh so very much) from student debt ... do not want change and they have a lot of influence and power (because they have so much money). Greed is the core problem ... and lack of responsibility when it comes to making money ... students have become a target for exploitation ... and most folks do not care. Many of those directly involved do not even understand how they are involved ... everyone is just so busy, making money. Love & Peace to All

[@captainobvious1415]

How about VR headsets. Virtual classrooms fro everybody, virtual books, advanced Ai professors. Advanced Ai tutors. Virtual student clubs. Pay for it all with high profile ads. Boom Problem solved.

[@hizzaddinno394]

Captain Obvious is the hero we need!

[@wangray9456]

People are talking about their countries and wonder why US can't do the same. It's not because they can't but they won't. They do this so US can have the best universities in the world and attract people around the world who are rich to pay for it. As long as the university keeps its status quo, they won't change it, period.

[@Myrslokstok]

The future belongs to the ones that can mechure relevant knowledge, and the capacity to optain i,t and work with other skilled people. We often talk about education, but never about transformation!

[@decimated550]

6:30 the devastating economic effects of high college debt: cars, housing, marriages, jobs, all of these are affected by debt.

[@nickculpin]

watching this in December 2020 is heart breaking.

[@JustinRCampbell88]

paying off my student loans makes more money than putting money in 401K

[@katelynbendinsky5080]

Yeah today's student loan mess is just going to become tomorrow's retirement mess

[@volvol1]

I like the idea (explained below) of changing the law to allow bankruptcy for any future debt.

[@Zzzsleepzzz]

i go to a u.c. and i enjoy the classwork but honestly if i could go back in time i'd go to cosmetology school to learn to cut hair for a living.

[@janicep1508]

I think there is going to be a counter culture revolution where it's going to be acceptable for women to say "I want to marry a rich guy and stay home and raise wonderful kids". You're very pretty and could lead a happy life focused on family. Volunteer, or take up an art, or help in your husband's business if you need more fulfillment. Working on your feet 40 hours a week for decades will burn you out fast. Stay in school, but look for the guys who have it together who want a good life and happy family. The value of a woman who can lift up her husband and children is priceless! Please listen to Jordan Peterson lecture on why the career path is more geared to men than women. My generation failed women by pushing them into all consuming careers that left most of us unfulfilled. I wish you the best whatever path you choose.

[@wangxu2155]

Lmfao. It’s 2019 sweety.

[@jragon9215]

Or can’t you just find a rich guy to marry like most other women do so your set whether you stay with him or divorce him?

[@robertchavez7272]

the site mentioned below will be up and running by Saturday....

[@davidlamb1107]

Somebody earning $3700/mo should not be spending $1500/mo on rent/utilities. That's way too high. Hard to justify spending more than HALF that amount. You're young; get a roommate/housemate.

[@jaycool9480]

That's the cost of living most places. NY, LA, SEA, SF, Portland, it could 2K+ for a studio and beyond.

[@ErnestOfGaia]

I am curious as a percentage how much of tuition was covered by corporate taxes in the early half of the 20th century compared to now. I believe one of the biggest social contracts broken by banks and corporations is that they no longer use their profits to pay taxes that cover the cost of education instead they use their profits to influence legislation.

[@a2zpromotioninfo]

Thank you for this information but something we have done is to buy time for people by filing a chapter 13 to aid in their cash flow problems but doesn't ultimately solve the problem. For some, this keeps them in their residences.

[@nnamorjiajulu-okeke752]

Well Said!

[@manomir69]

a connection is the next edition of international centre

[@ErnestOfGaia]

I am curious as a percentage how much of tuition was covered by corporate taxes in the early half of the 20th century compared to now. I believe one of the biggest social contracts broken by banks and corporations is that they no longer use their profits to pay taxes that cover the cost of education instead they use their profits to influence legislation that allows them to contribute less to society.

[@tylerhoffman2271]

The real problem is these government subsidized loans. College was affordable 40 years ago because the government wasn't involved, once the government decided to start handing out low interest loans to people who couldn't afford them, thats when the colleges started jacking up tuition prices. People need to start paying for college out of pocket and get the government out of the mess they've created and then maybe college will be more affordable again, not to mention everyone's incomes wont be tied up in debt.

[@reardelt]

Simple answer. The standard for an entry-level job has increased consistently for the past many decades. So, education has to catch up to meet the requirements of the entry-level jobs. Calculus has been taught in the last 2 years of school. This has been the case for over 50 years. Why don't we increase the bar and teach calculus in middle school ?

[@Myrslokstok]

1% realy use it in there work and in Sweden it is important they think.

[@portlandreviewer2143]

Bring back bankruptcy protection for student loans. That's the best way to fix this crisis.

[@aolvaar8792]

It is not how we finance, IT is who we finance. The Petroleum engineer, who takes a job overseas for $175K. The American Dance major making $40K Both pay $1500/mo for 10 Years The government (92% of student loans) Doesn't care. Cure: private loans only, that are dischargeable under bankruptcy Bankers are not going to loan $200K for a PhD in German Polka Music to a 17 yr old

[@MisterTutor2010]

I went to community college for my first two years and my grades would good enough to get a scholarship to pay half of the last two years as an undergraduate. The result is that I got a $80,000 bachelor's degree for $20,000 and everything from freshman to PhD cost me a total of $32,000. With interest that worked out to $51,000 in May 2016. Today August 2019, I have a balance of $12,600. I will reach Zero Balance in 11 months.

[@dannyboy9848]

the central problem is the laziness and outdated thinking of employers. College degree requirements allow them to slash 50,000 applications to 10,000 applications with the snap of the finger. Which is actually costing them too seeing as data science would allow them to analyze ALL applications and no longer miss out on star employees just because they chose not to spend 4 years learning stuff which is really not that more advanced than what they already learned in HS. The irony is an 18 year old kid today choosing not to buy into a bubble is automatically smarter than the rest who can't recognize the trap

[@bat6769]

Love this

[@putikboy]

I think businesses and employers can offer a lot more to contribute to ending crisis. More often, businesses just pretend that college degrees are a necessity to the jobs that are available. They should be allowed to have their own specific standards on job qualifications like perhaps standardize testing for IQ, to know if they are teachable or not and can be trained, or have the employees work on probation for a few years to check if they can do mundane jobs repeatedly, day after day. I think that would phase out a lot of these worthless degrees that students are spending their money on. I've been working online for years now, and I've yet come across a client/employers who asked me what educational attainment was. I think our society put too much value on diplomas considering a lot of skills that are relevant to the economy these days can be learned outside the confines of universities.

[@Myrslokstok]

Society both becomes much moore easy and complex in the same time. It is complicated to say the least. You need a lot irelevant stuff to do some simple stuff. The employer want not to educate you, but still it is important.

[@boldbeauty3499]

This is depressing. 4X the rate of inflation? We are crippling students before they even graduate. We're just hurting ourselves and our economy.

[@ChristAliveForevermore]

My university is going to be raising tuition costs for all current students who are not freshman. It's 2018 and the tuition is being hiked AGAIN. I'm thankful I'm out in a semester, but I'm morose at the fact that I now have a hefty financial shackle 'till the day I die.

[@binzsta86]

what is your major?

[@ChildSupportMadeSimple]

The student loan debt is not the only crisis. When you add child support payments on top then problem is worst. With both programs you cannot discharge in bankruptcy. Why is the government imposing this restriction on our future population? Congress could change both programs within one session.

[@infidelheretic923]

Well one minor reform needs to be interest rates get slashed to near nothing. Between the delinquency rate and the fact that the government is guaranteeing them they should be content with breaking even.

[@sdboyd]

Nothing more captivating than a good train wreck. Even better when it’s in slow motion. A college degree is a waste of money if you want to get into IT.

[@waynewallace9055]

Your degree is only worth what you make when graduate, cost need to be contained, cost of education is a runaway money train, no end in sight

[@DerekThomasLirio]

The banks that profit from student loans, they don't care too much, about what they're doing to students, because if students can't afford it, the banks will bail them out.

[@spunkyspunky666]

If one has a look at the National Center for Education Statistics they cite on their 2011-2012 tables (still waiting on the 2013-2014 numbers) that 32% of the degrees issued were on Humanities and the Social Sciences. Both sure pipelines to unemployment or, even worse, UNDERemployment. Percentage of graduates in STEM careers? only 8%!!!! There you have it, ladies and gentlemen. If you're not willing to do the hard work then be ready to cry dearly when the time comes to reap what you sow. No sympathy here for lazy students who choose easy majors so they can party for 4 years.

[@MichaelSmith-rq8df]

I think you need to check statistics on STEM'S. Chemist and Biologist are at an all time high for unemployment. Big Pharma slashed 300,000 jobs in the last decade. A good portion of Chemist are begging for jobs a lot of them end up in permatemp jobs paying as low as 10/Hr with shit benefits and no PTO. Granted Physicist are doing okay. Other areas like Chemical Engineering is seeing a shrinking in growth as low as 4% yet we are pumping more and more graduates out everyday. STEM degrees are not all the glory you think they are and can be effected by outsourcing. I know I have one. However, my wife has a degree in political science and makes more than I do. She no more qualified when she graduated with internships, location, or research that I was. The difference is her job can't be outsourced. So much for thinking social science is shit.

[@spunkyspunky666]

then I think you're probably doing something wrong because me and my BSc in Statistics/Math are doing quite fine, as you can probably see from my videos (so you know i'm not your typical YT bullshitter). and no one is outsourcing me or my peers anywhere... on the contrary, i have more consulting work than i can handle... and i can't even pass my clients on to them because they're up to their elbows in work! there are no magic bullets and even within the sciences there are the less useful ones (like biology, unless you make it all the way to med school) and the very useful ones (like statistics or anything that has to do with big data).

[@spamking100]

One word H1BVISAS.

[@spunkyspunky666]

noctis lucis caelum yeah, i've used those too when i needed people with certain skills and couldn't find them. if the talent doesn't come to you, you gotta go find it elsewhere...

[@firebrandsgirl]

Those college expenses seem high? Is that for new York?

[@subhashreddysangam]

Yes online education should be the future to cut the cost, but how many recruiting agencies or employers would consider these online degree's. Have to wait and see.

[@ballerboynumber1]

Man this is Sad, and Americans ave the guts to say that they live in the best contrie in the World ...

[@TheChangNetwork]

They need to cap tuition increases to inflation for all state schools. If schools have to start cutting budgets in useless programs, so be it.

[@MichaelWilliamsWMA]

Every single documentary or talk about the student debt,, explains the sad story but have no solutions? Just complaining and offer very little guidance. For the past 4 yrs World Mentoring Academy has offered courses that align with AP/CLEP/DSST/NYU-SCPS/TECEP/ECE .....etc Test Out programs. One student earned a Bachelors from a regionally accredited University in 6 mos for under $5,000(books & test out fees)

[@HumanHealthLink]

Even $5000 is pricey.

[@MichaelWilliamsWMA]

Sadly, textbooks over a 4yr Bachelors is around $5,000. So a State Bachelors and textbooks without taxpayers paying to make education and textbooks free is a deal. Without the government paying, do you know of a cheaper way?

[@HumanHealthLink]

Yes they're actually websites online that you can attend for free and all the books are online as well.

[@MichaelWilliamsWMA]

Which ones, Coursera has 6 courses for Univ Credit @ $150/3 units & Edx, Udacity etc has no University Credit. World Mentoring Academy is completely FREE, Books and Credit-by-Exam ie College Board, DSST & NYU charge for their tests. You can forgo buying Textbooks and use Library books and public domain.With Youngscholar.tv (CSULB) Calif HS students can earn 24 Univ Units for $14. And if you go to Calif Community College you can earn 3 units/semester for $3.50. If you go to military university for free, it may cost your life. Tennessee has a free Jr College program, but no free books. Germany has Free Education but the Gov pays for it. With World Mentoring Academy, Library & Public domain books, Youngscholars, Challenging courses & Work Experience, you could get a Reg Accredited Bachelors for $2k-3k without Tax payer $'s. In the political future, it is unlikely that the Gov will forgive or make Higher Education completely free.

[@janeswitchenko4634]

Why not simply return consumer protections to student loans? If student/Parent Plus loan borrowers have the same rights as all other borrowers--including statutes of limitations, bankruptcy protection, the option to pay off student loan debt with lower-rate loans, honesty in lending practices, etcetera, then lenders will have to be HONEST, fair, and offer negotiable terms. Further--why can't the USA offer low or no interest student loans? WHY are the rates, and terms, so PUNISHING...WHY is Congress standing by while predatory student loan big biz financiers are capitalizing and compounding kids' balances? WHY the loan sharking at this level? Because our kids, and their desperate families, are easy targets? Because Congress is in bed with the lenders and the higher education industry? This is DESPICABLE.

[@armandoguzman3947]

the government, THE GOVERNMENT, the guy never even mentioned the real problem!!! just get the government OUT of education!! Can't believe his solution has to do with on-line courses pfff

[@vlada881]

1.3 now

[@yungtwinkie3958]

i owe 43,092.82 in student loans and im a sophomore but by the time i graduate i can expect 80,000+ and im not even paying it

[@portlandreviewer2143]

It's $1.64 trillion now--May 2020.

[@MrCreativendividual]

Make it free? whoa now, nothing is free... well why isn't it? Progression is the reward, we need to adopt a new way to live. Money has no substance and has only cause problems, money is not a motivator, progression is.

[@iaindennis230]

Far too many young people are going to university - send 5 to 10% to do a degree and finance it from taxation. Everyone else - get a job.

[@MrApplewine]

1:42 I thought $120,000 was her salary when she graduated, not her debt.

[@tamarasstudentloandebtchan5242]

Schools should normalize the idea of going to trade schools as much as they did for college. Choosing to go to trade school over college is a viable option for so many reasons. The cost for trade school is significantly lower than traditional college. Student loan debt is only getting worst, yet nothing much is been done about it. Hey, Nothing is wrong with having a second option, one that will save you from high collge debt!

[@mikefranks4528]

This is why I never got a college education and still have a great job in IT. However, I still want to pursue a degree but will allow College Plus to get me there. Check them out --> collegeplus.org/ And, no, I do not work for them. It just makes sense...since I will be signing up and have my coach starting the process. Check out the videos there. I wish I knew about this in high school. High schoolers are getting their Associates before they graduate or shortly thereafter. That freaked me out. My son is going into the Air Force for Cyber Surety and will be going through College Plus online for his degree. BAM! Affordable and no debt!

[@lankysapien3032]

+Mike Franks Mind if I ask how you got your IT job? like did you go for certifications? etc? Just curious.

[@mikefranks4528]

I currently don't have any certs. Came across someone and spoke to them about what they do so gave my resume, interview, hired and started at the bottom in Tech Support - became one of the best. From there I went into Network Operations and after 16 years I am still in the game. No college nor certs of any kind. Just knowledge.

[@thevashfan12392]

16 years ago is still very different from day, times change and shit hits the fan harder and harder every day! I don't want debt in my life so I'm happy with being in a position where I can live in comfort and just live out what's left of a dwindling "savings" that has been made by my parents because I am one that prefers to enjoy life right now while I can and instead of try to enjoy it when there is no one there for me and I'm all alone..... old and decrepit with no friends or family left.....just a sunset to cry at until the next day

[@Myrslokstok]

+Mike Franks Knowlege is the new true education.

[@DerekThomasLirio]

To begin, education is possible, at home on your computer. I, am far more educated, than any college graduate I've ever met. I know a high school valedictorian, who went to college for political science, and was a political science teacher, until he recently lost his job. I called him recently, and offered him a profit, running a political science website he could profit from. I suppose the fact that I never attended college seems absurd for him, and so he declined. I told him then, that I wish him much luck with his menial labor, helping mom pay the bills. I told him that I may be stuck up, having been a poor student in high school, but he, who was "a success" in school, is unemployed, and living with mom.

[@DerekThomasLirio]

I questioned it when I got my first job, at 16 years old, and 2 months in, was managing the store, setting my own hours already. I was able to give myself sufficient time to manage my independent business. LOL. Then, I graduated high school.

[@DerekThomasLirio]

Zardrell Mcknight That's unfortunate. Luckily, on the internet there is money to be made. Look up Google Ad Sense. Develop a website that will get lots of visitors, and put one or two ads on each page of the site. Update the site at least once a week so people keep coming back to it. Every time someone goes to your page with ads on it, you get paid. Sites usually cost about 20 dollars a month, so that's all the overhead costs you have to worry about. Once you make the first popular website, you make a second one, and advertise it on the first one so it gets lots of people from the very start. LOL. I just gave you a business plan to start a network of websites. Just be sure to give credit to ITMiami, Inc. That's me. LOL

[@MsMikuHatsume]

Derek Thomas Lirio you are right. College is the biggest fraud in the USA. What kind of idiot will pay an exorbitant amount of money learning something in college that you can learn on your own with the Internet and books? If you want an education, read stuff from the Internet or books. I think it is absurd to send more and more people to college, and giving more people more loans is just making the problem worse because you are repeating the same mistake over and over again. Insanity is repeating the same thing and expecting a different result, and this is insanity.

[@DerekThomasLirio]

AmandaNerdBot Apparently, this country has dyslexia. They learned nothing from the real estate bubbles. The older generations are pushing their antiquated mentalities on the younger generations, and then comfort them when they're stuck at home, unemployed.

[@MsMikuHatsume]

Derek Thomas Lirio well more and more people are realizing that college is not worth it.

[@res00sky]

Lots of great points here, but NO, we do not need to push more college even at a lower cost. The vast majority of jobs simply don't need a college degree. We need instead to push kids to complete high school first, and then pursue additional training, certification, etc. We also need to stop telling Johnny & Jane that they have to go to a brand name university to be successful. Enough already! We need to teach that one can be very successful by being a plumber, mechanic or similar, and just b/c someone has a six figure degree doesn't mean they will be successful. We also have to get the gov't out of the student loan business, thereby reducing the overall cost of tuition.

[@Yobachi2007]

Here's the problem with people making the case like this guy; his claims at 4:23. At 45,000 a year you're not in the 25% tax bracket. And he called that conservative. That's not only not conservative it's extremely liberal to the point that its a majorly distorting lie. The effective tax rate for somebody making 45,000 a year, not counting any deductions for dependents, is about 17%, which would be about 725 dollars a month. He doesn't understand taxes and looked at a tax rate sheet that said your taxed at 25% for income between approximately 36,000 and 89,000; but that's just on that portion of the income that's in that range. You have personal deduction of about 6,000 dollars that's subtracted from your income before the tax rate is applied, and then income under 36,000 dollars is taxed at 15 and 10 percent at different levels, leaving the actual rate you pay around 17 percent. Now in the end maybe this doesn't substantially change his overall point; but when you give information on facts, it guts the credibility of anything else you say. And if you just don't know what you're talking about then you shouldn't be talking about it. There is a big difference in having $78 left at the end of the month versus $278, and that's the disparity between what he claimed and the actual math. And that's just on this one point.

[@Just..K]

As well as claiming that one student was paying off 1,000 per month. Not to mentionin that this is outrageous and extremely rare and based off her poor choices.

[@firebrandsgirl]

And what was 500 in other.

[@janicep1508]

I thought the same thing, but thought maybe he added in extra tax for State income taxes (I live in a high tax state) and sales taxes.

[@beevict9537]

Yobachi2007 Maybe he’s including 7.45% FICA + the 17% fed inc tax you note

[@Yobachi2007]

@@beevict9537 Yeah, that still wouldn't be accurate, because as I said, I was just showing one point of error. That 17% is if he had no other deductions on his income but the personal deduction. That's if he has no dependents, no home owners deduction, no college loan interest, no charitable deduction, no a number of other things, and then just refused to take his state tax deduction which lowers your taxable income. There's no way he didn't pay thousands in state taxes, whether income tax or sales tax. You can deduct either. He just refused to take the deduction and still ended up at 17% effective tax rate?

[@tarawhite4419]

When college sees me less I'm doing more

[@Dandeeman26]

Let's talk about the corruption of the universities 1st.

[@trackman2300]

how about we make collages free for ever one and changes act as sat as a place meant test

[@codacreator6162]

William Pfingten free or very low cost for everyone solves both problems: supply and demand. But the US is too heavily indoctrinated into the idea that everything must be measured by it's profit potential.

[@toothpick526]

Can we all agree not to pay?

[@denisestathatos4147]

Trade schools are better because they have a higher placement rate and a lower tuition.

[@chrissea1361]

America would benefit from looking at the Scandinavian model...society benefits when everyone benefits.

[@Myrslokstok]

Not realy it is complicated I would say. If everyone gets it "free" (still got to pay to live and living is imposible when everybody must do it). Then noone pays for it when everyone have colage education and is multilangual. 2 years off masterdeegre studies at elite university here in Stockholm Sweden gives an extra 100$ a month after tax in start salary. An apartment like 2 rooms is probably 350.000$. The best you can do here is to be a garbage colector they are protected by the union and work less and make 1.000$ moore. So sweeden is nice but not realy perfect. Get your education here work in norway!

[@georgesorosghost7244]

Can we talk about the fact the fact one of the reasons the books are so expensive is that they reprint a new edition to ensure they cannot be used secondhand? How about how they pay people who bearly had any interaction with the book for their "merit"? How about how the more expensive courses like laboratory work is absorbed in the easily manipulated "studies" students' fee costs? How a student with a "studies" course may not have anything worth while economically? How about the major mark up in price, funds four or five times the actual costs of running the university? Or how the media and students are more concerned with the PC side of things than the students' actual futures. I am not American, we have free third level education here, and few "studies" courses overall, I can't say much as very culture is different, but America seems so illogical .... it's like you guys think with your emotions all the time. No offence.

[@donovangomez8114]

Employers need to quit mandating college degrees for employees who worked for the company for over ten years

[@abdulazizkodirov5323]

is it just me or does he sound like Tony Stark?

[@derrellprice9721]

If you incurred debt, I say you, are responsible for the repayment. What gives you the right to expect me, a retired old man that put himself through college, to help pay for nitwits who mindlessly borrow money? Politicians are fools who could care less about the student debt.

[@DerekThomasLirio]

Careers in the new age, cannot be learned in school. Sure, if you wanna be a doctor, even though alot of the course work given is irrelevant to medicine, college is still good for credentialing. But for a vast majority of other careers, colleges and universities are useless/

[@mattcoffman9010]

Universities are to blame, make them pay for it.

[@wt460]

I would guess that the rise in tuition costs is not a function of mere escalation, but rather the retraction of state and federal funding support fro state and federal governments. So to simply say that tuition is rising way beyond any normal escalation is disingenuous. If state and federal governments would support universities the same support they provided thirty years ago, tuition would be at a normal escalation. You can’t simply blame this issue on universities, it is also the government that will no longer support the schools and they now leave it all on the students. That said, we can longer have the Government responsible for tuition/student loans, which they took over in 2010. Give it back to private enterprise and let them manage those getting the loans. If the student wants $100K for a Gender Studies degree, private business should not give the loan. The Government can’t really manage anything efficiently, as we now see the results of the Obama plans...

[@aerohk]

So.... Why loners don't lower interest rate to compete with each other's?

[@lankysapien3032]

+Aerohk Government is the only real lender. There is no competition. Government has monopolized the financing of education on both the supply side and demand side.

[@proad4516]

loaners

[@KategariYami]

And now our new Prime Minister of Australia wants to bring in this system for us... He thinks that this is a GOOD idea.

[@SideGateStudios]

We need a double dissolution and we need it now.

[@KategariYami]

What do we want? Double Dissolution. When do we want it? NAO!!!!!

[@ameghpatil2581]

Higher education bubble will burst sooner or later.

[@Saz103]

it won't. why would it.

[@92draw]

I have $116.000 in debt

[@KeishaMonet]

Go here to help one person out of student loan debt: www.gofundme.com/wxtar4

[@cathrynm]

Life insurance on your child? Good idea actually. Cosigning in the first place, very bad idea. Don't do this, not ever, no matter what.

[@MasterHalochief23]

school are tax exempt so they do whatever they want

[@tee5634]

The Billionaires should pay for the student debt. Billionaires should be taxed out of existence. There also needs to be a guaranteed income for everyone.

[@samuelrojassdarm7246]

get out of here commie

[@berrybares4028]

seriously kelsey Why?

[@Myrslokstok]

Close experianse ha ha ha yheee right 200 students!

[@mr.jakirhosenronnyronny4705]

1,000,000,000,000

[@jakewells5874]

key issue stop buying college what will you learn? more of the same lies that high school taught you, I went out spent 4000 for a 4 week class and now I make that in a months time and if I didn't have a family I wouldnt even need a house yo throw money in

[@BlackamusJones]

What class did you take?

[@jyde50]

AMERICA IS THE GREATEST COUNTRY IN THE WORLD!!!!!. what a joke. lol

[@hakusansaku8800]

Okay a venture capitalist who basically lives off giving loans to other people wants to explain that they have too much debt ^^ ?? This guy basically founded this companies who lend money to students. And now its a bad thing? But only bad because a debt of 100.000 $ disencourages people to start a business? He never said it is a bad thing that someone has such a high debt, thats ok for him. And the only thing that he want to change is provide cheaper education, by basically introducing online courses for every university. Well I guess he will be one of the "investors" who lend money to colleges to fire staff and buy techology to replace them. But these people are also college educated ! So he will put several 100.000 people from educational work. And still insists that people should still achieve higher education? He also said that the current generation (20% of the population) have to live with this huge debt. So all he proposed as a solution is to rationalize education. And that's how you get 20 minutes at TEDx Talks.

[@BryceJohnson88]

Thanks Democrats

[@ryanshaeffer103]

But these liberal professors need their 100k + a year jobs

[@geoffreyschuchardt2948]

7,000 is rubbish. A rip off. Think about it. That's criminal... lol.

[@geoffreyschuchardt2948]

Ps. No we can't fulfill any potential... it's a gridlock