How Not To Pay for Your Student Loans
by James Altucher: 7
Things I Learned From Hurricane Sandy
Sherman ?@itsmikesherman: what advice wound you give to graduates
that worry about paying off their student loans??
The other day
I went to walk around the NYU campus. My sister went to NYU. Both
my parents went there for graduate school. I considered going there
but went elsewhere. In any case, Ive been hanging around that
campus since I was a kid and playing chess in the SW corner of Washington
much less drugs and prostitution there now than when I was a kid.
And probably less violence. But at any given moment, the combined
debt of the young men and women in the park at any given moment
is probably over one hundred million dollars. Its one thing
for billion dollar corporations to have that kind of debt. Debt
is the grease that keep the wheels of capitalism moving. But individual
and irrational debt is also the cement that keeps our young men
and women from becoming creators, inventors, innovators, and entrepreneurs.
to me, well you went to college. Or I went to
college Or, why shouldnt kids have debt?
The problem is not that we all went to college and kids today shouldnt.
Its that kids and parents have been scammed into taking on
more debt than ever before. And for what? Very few people bring
up, well they read the classics. I dont even know
what the classics are but presumably they could read those same
classics for free on the Kindle and also read as much analysis of
those classics as they want. Most people bring up, they will
get a job.
I will upload
this video in a few weeks and well see the real answer to
that last question. Suffice to say, its pretty scary what
actual students at NYU think in terms of how they will pay back
this debt and what kind of jobs they are getting right now.
is this: not only are there no jobs
there never will be jobs
again. Technology has improved so much that companies are more efficient
than ever. They dont need to hire people. Combine that with
globalization where not only unskilled labor but skilled labor can
be outsourced for cheap and you are left with a tiny sliver of jobs
compared with what used to be out there. Throw in increased managerial
efficiency and there is also less jobs for a declining middle management
say, were screwed. And the more student loan debt you have,
the more screwed you are.
So what is
pay back the debt.
But how do
you do that? Even in bankruptcy, the government can still garnish
wages to seize your student loan debt. Isnt that funny? They
were perfectly willing to lend you the money so they can make money
on your interest payments before you even make enough money to pay
them taxes. But when you are struggling, they go after their money
first rather than help young citizens, the hope for our future,
ok. Everyone needs to make money. Even the government. But I just
told you above: theres no new jobs coming. So what wages will
they garnish if you stop paying down the debt?
what you do: treat yourself like a corporation (uh-oh, is he about
to say corporations are people the quote that brought
down the Romney campaign? No, Im saying the opposite: people
should turn themselves into corporations). Make a company, and start
figuring out what services you can offer people. Be freelance, and
collect money through your company. And expense all or most or many
of your expenses through that company. This way you can pay your
bills, and only take a tiny salary. Let the government garnish what
they can (it wont be a lot) but you dont let that slow
you down on building up your ability to innovate, to offer services,
to create a product, and so on.
And, if you
are unemployed, you can work with the government on
forbearance programs or even on cancelling your debt.
You might say,
not everyone can be an entrepreneur.
true. But EVERYONE can incoroprate a company (go to incorporate.com),
and charge their services in a freelance manner, and obey the tax
laws on how to take expenses, etc.
though, everyone will have to be an entrepreneur to an extent. Because
the concept of job which has only existed for about
150 years or so, is going to disappear. And you will need to build
your idea muscle, and stay healthy, and become an entrepreneur to
succeed in this new and exciting and transforming (and scary!) world.
And when you
finally do well and sell your first company do you know you should
do? Pay down your student loan debt. You borrowed it, so you have
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© 2012 The
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