The controversial issue of substantial credit card debt among college students

Recognizing that no thought is thought nor no word written in a vacuum, I am pleased to acknowledge with warmest thanks those who came alongside me in dialogue on this project. Professor Martha Fineman, for her inspirational work and insights along the way; Professor Katie Oliviero, for helping me think broadly about stigma; Melissa Davey for grounding me in the real world of bankruptcy practice; Sari Bourne, for her unflagging enthusiasm, encouragement and helpful revisions; Danny Nolan for his support, though all the while assuring me this would never get published; and Alla Raykin and her editing team, who have labored over every thing from an italicized period to finding the perfect case. I am blessed for all of your time and attention. Finally, I must thank my friends, family and most of all, my partner, Michael Mols, for brilliance in eleventh hour editing discussions, and constant nutritional and emotional sustenance over this long process.

The controversial issue of substantial credit card debt among college students

Adding insult to injury

The evidence is overwhelming. Even after scrupulously correcting for ability bias—the brains, discipline, and other advantages you'd possess with or without school—formal education provides a big career boost.

At an individual level, investing in your own education often compares favorably to not just corporate bonds, but long-run stock market returns. Since individuals' investment in their own education is personally rewarding, you might infer that government investment in society's education would be socially rewarding.

But this is a classic "fallacy of composition. The same goes for education. Yes, schooling is selfishly lucrative—at least for strong students.

On a societal level, however, it is shockingly wasteful for students weak and strong. Federal, state, and local government spends far too much money educating Americans. The conventional case for government subsidies assumes that all of education's career gains come from building what economists call "human capital.

A nation gets more education; its productivity and income go up. If human capital is the truth, the whole truth, and nothing but the truth, education is a path to individual and national prosperity: Education makes the pie bigger, so every worker can enjoy a bigger slice.

Unfortunately, human capital is far from the whole story.

The controversial issue of substantial credit card debt among college students

Most of the personal benefits of education arise not from improving on-the-job productivity, but from convincing employers that your on-the-job productivity is already good. Economists call this "signaling.

Education as it actually exists blends crucial training in literacy and numeracy, which yields real skills, with thousands of hours of hoop-jumping to impress future employers. Selfishly speaking, this hoop-jumping pays.

Today’s Young Adults Will Never Pay Off Their Credit Card Debts |

But socially speaking, it's a waste. Only one worker can look like the Best Worker in the Country, and only a quarter of workers can look like the Best 25 Percent. When education isn't making the pie bigger, bigger slices for some necessarily mean smaller slices for others.

As signaling's share of the value of education rises, education becomes an incinerator that burns society's money, time, and brains in a futile attempt to make everyone look better than average. High school grads outearn dropouts by 30 percent, and college grads outearn high school grads by 73 percent.It's time to reclaim the concept of data mining from the marketing industry's microtargeting of consumers, the credit-card companies' anti-fraud profiling, the intrusive surveillance of state-sponsored Total Information Awareness.

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Essay on Credit Card debt. In today’s world with credit cards and debt The expression that comes to mind “Keeping up with the Joneses” is a very common quote that we have all heard of.

The controversial issue of substantial credit card debt among college students

Credit card debt among Americans under 35 has fallen to its lowest level since Having racked up a pile of student loans, young people want to avoid the kind of pressure that they saw their family and friends under during the financial crisis. Flexer Law, PLLC, has been among the top Chapter 13 filers for many many years.

Jimmy will be sorely missed. There’s Always a Car $8B in Bad Credit Card Debt Write-Offs Worry US Banks. State Court Issue: College Tuition Paid for Son by Debtor Not Fraudulent Conveyance;. Credit Card Debt Credit Card Company's Marketing to College Students Credit Card Company's Marketing to College Students The credit card companies marketing their products to college students on campus leads to debt, money management, and unnecessary stress.

However, credit card or car loan debt with a high interest rate is bad and should be paid down immediately. My general rule is: don’t take on debt for things you should be able to pay cash for (such as: groceries, used cars, vacations) and you’ll be fine.

Credit Card Usage and Debt among College and University Students. ERIC Digest.