--- title: "Meaning & Key Takeaway of: The fact that you have…" description: "\"The fact that you have government-guaranteed student loans has created a whole new sector in the American economy that didn't really exist before - pri..." image: "https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png" --- # The fact that you have government-guaranteed student loans… ![“The fact that you have government-guaranteed student loans has created a whole new sector in the American economy that didn't really exist before - private for-profit universities that sell junk degrees that don't help the students. They promise the students, "We'll help you get a better job…” quote by Michael Hudson](https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png) [Download](https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png) [Open image](https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png) > “The fact that you have government-guaranteed student loans has created a whole new sector in the American economy that didn't really exist before - private for-profit universities that sell junk degrees that don't help the students. They promise the students, "We'll help you get a better job. We'll arrange a loan so that you don't have to pay a penny for this education." Their pet bank gets them the government-guaranteed loan, and the student may get the junk degree, but doesn't get a job, so they don't pay the loan.” [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Government‑backed student loans have spawned profit‑driven colleges that sell low‑value degrees, creating a debt‑laden economy. **In simple terms:** Student loans enable for‑profit schools to profit from debt. Key Takeaway Demand accountability in higher education. Themes economics education debt Mood critical analytical Type policy economic When to use this quote - student loan counseling - policy reform - financial literacy Key Concepts public policy market dynamics Questions to Reflect On - How can we balance access with quality? - What alternatives exist to for‑profit colleges? A Different Perspective Some argue loans increase access to education. ★ ★ ★ ★ ★ No ratings yet [American economy](https://sms4smile.com/quotes/about/american-economy/) [Better jobs](https://sms4smile.com/quotes/about/better-jobs/) [Economy](https://sms4smile.com/quotes/about/economy/) [Education](https://sms4smile.com/quotes/about/education/) [Facts](https://sms4smile.com/quotes/about/facts/) [Government](https://sms4smile.com/quotes/about/government/) [Jobs](https://sms4smile.com/quotes/about/jobs/) [Pet](https://sms4smile.com/quotes/about/pet/) [Profit](https://sms4smile.com/quotes/about/profit/) [Promise](https://sms4smile.com/quotes/about/promise/) [Student loan](https://sms4smile.com/quotes/about/student-loan/) [Student loans](https://sms4smile.com/quotes/about/student-loans/) [Students](https://sms4smile.com/quotes/about/students/) [University](https://sms4smile.com/quotes/about/university/) ## Related quotes > [Seventy-eight percent of millennials are worried about not having enough good paying job opportunity to pay off their student loans. Seventy-four percent can't pay…](https://sms4smile.com/quotes/michael-hudson/seventy-eight-percent-of-millennials-are-worried-about-not-having/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [In housing you have jingle mail and you can walk away and leave the bank holding the bag. In the case of student loans,…](https://sms4smile.com/quotes/michael-hudson/in-housing-you-have-jingle-mail-and-you-can-walk-away-and-leave-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Normally, if someone goes bankrupt, you wipe out the debt and get a fresh start. But that's not permitted with student loans. So the…](https://sms4smile.com/quotes/michael-hudson/normally-if-someone-goes-bankrupt-you-wipe-out-the-debt-and-get-a/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Just like a house is worth whatever a bank's going to lend against it, an education is worth whatever the bank is going to…](https://sms4smile.com/quotes/michael-hudson/just-like-a-house-is-worth-whatever-a-bank-s-going-to-lend-against-it/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [For-profit higher education is today a booming industry, feeding on the student loans handed out to the desperate.](https://sms4smile.com/quotes/thomas-frank/for-profit-higher-education-is-today-a-booming-industry-feeding-on/) [Thomas Frank](https://sms4smile.com/quotes/author/thomas-frank/) > [As president, I will fight to make tuition in public colleges and universities free, as well as substantially lower interest rates on student loans.](https://sms4smile.com/quotes/bernie-sanders/as-president-i-will-fight-to-make-tuition-in-public-colleges-and/) [Bernie Sanders](https://sms4smile.com/quotes/author/bernie-sanders/) > [I would get my student loans, get money, register and never really go. It was a system I thought would somehow pan out.](https://sms4smile.com/quotes/ray-romano/i-would-get-my-student-loans-get-money-register-and-never-really-go/) [Ray Romano](https://sms4smile.com/quotes/author/ray-romano/) > [Private student loans should be avoided at all costs.](https://sms4smile.com/quotes/suze-orman/private-student-loans-should-be-avoided-at-all-costs/) [Suze Orman](https://sms4smile.com/quotes/author/suze-orman/) > [I never had the high-paying job or the company car. It took me over a decade to pay off my student loans. I never…](https://sms4smile.com/quotes/christine-o-donnell/i-never-had-the-high-paying-job-or-the-company-car-it-took-me-over-a/) [Christine O'Donnell](https://sms4smile.com/quotes/author/christine-o-donnell/) > [The rising costs of higher education coupled with the stress of paying student loans are putting increasing pressure on students.](https://sms4smile.com/quotes/hank-johnson/the-rising-costs-of-higher-education-coupled-with-the-stress-of/) [Hank Johnson](https://sms4smile.com/quotes/author/hank-johnson/) > [When we talk about something like student loans, what we should be talking about is the fact that every American wants their kids to…](https://sms4smile.com/quotes/jason-kander/when-we-talk-about-something-like-student-loans-what-we-should-be/) [Jason Kander](https://sms4smile.com/quotes/author/jason-kander/) > [Student debt is crushing the lives of millions of Americans. How does it happen that we can get a home mortgage or purchase a…](https://sms4smile.com/quotes/bernie-sanders/student-debt-is-crushing-the-lives-of-millions-of-americans-how-does/) [Bernie Sanders](https://sms4smile.com/quotes/author/bernie-sanders/) > [What I want to do first with education is my student loan idea. Basically, if you go into teaching and teach for five years,…](https://sms4smile.com/quotes/charles-schumer/what-i-want-to-do-first-with-education-is-my-student-loan-idea/) [Charles Schumer](https://sms4smile.com/quotes/author/charles-schumer/) > [“You don’t mention what you’d like to study, but I assure you there are many ways to fund a graduate education. I know a…](https://sms4smile.com/quotes/cheryl-strayed/you-don-t-mention-what-you-d-like-to-study-but-i-assure-you-there-are/) [Cheryl Strayed](https://sms4smile.com/quotes/author/cheryl-strayed/) > [Student loans have been helpful to many. But they offer neither incentive nor assistance to those students who, by reason of family or other…](https://sms4smile.com/quotes/john-f-kennedy/student-loans-have-been-helpful-to-many-but-they-offer-neither/) [John F. Kennedy](https://sms4smile.com/quotes/author/john-f-kennedy/) ## More by Michael Hudson > [Europe is creating the flight of refugees that's tearing it apart politically, and leading rightwing nationalist parties to gain power to withdraw from the…](https://sms4smile.com/quotes/michael-hudson/europe-is-creating-the-flight-of-refugees-that-s-tearing-it-apart/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [This is not really currency that circulates. It's like the old joke about expensive vintage wine. Wine prices will go up and once in…](https://sms4smile.com/quotes/michael-hudson/this-is-not-really-currency-that-circulates-it-s-like-the-old-joke/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Nobody prefers to earn income any more, because that's taxable. Rich people prefer to make capital gains.](https://sms4smile.com/quotes/michael-hudson/nobody-prefers-to-earn-income-any-more-because-that-s-taxable-rich/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Nothing could be better for the economy than to get rid of fracking.](https://sms4smile.com/quotes/michael-hudson/nothing-could-be-better-for-the-economy-than-to-get-rid-of-fracking/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [If you end internet neutrality and permit mergers of the big information technology corporations, that's a form of rent seeking. It's part of today's…](https://sms4smile.com/quotes/michael-hudson/if-you-end-internet-neutrality-and-permit-mergers-of-the-big/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Deflation means a slowdown of income growth. Markets shrink, new capital investment and employment also taper off, so wages decline. That is what's happening…](https://sms4smile.com/quotes/michael-hudson/deflation-means-a-slowdown-of-income-growth-markets-shrink-new/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [What's bad for the frackers usually is good for the rest of the world.](https://sms4smile.com/quotes/michael-hudson/what-s-bad-for-the-frackers-usually-is-good-for-the-rest-of-the-world/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [You could say that the vote to withdraw from Europe is, it's really a vote of the British middle class, the working class, to…](https://sms4smile.com/quotes/michael-hudson/you-could-say-that-the-vote-to-withdraw-from-europe-is-it-s-really-a/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Actually, high housing prices don't help the economy. They raise the cost of living.](https://sms4smile.com/quotes/michael-hudson/actually-high-housing-prices-don-t-help-the-economy-they-raise-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [When economists speak of money, they neglect that all money and credit is debt. That is the essence of bookkeeping and accounting. There are…](https://sms4smile.com/quotes/michael-hudson/when-economists-speak-of-money-they-neglect-that-all-money-and-credit/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [The United States and Europe are in a state of debt deflation, where people and businesses have to pay banks instead of spending their…](https://sms4smile.com/quotes/michael-hudson/the-united-states-and-europe-are-in-a-state-of-debt-deflation-where/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [On the flat tax, the more you compress the tax rates, the more you untax where the income is really made, at the top…](https://sms4smile.com/quotes/michael-hudson/on-the-flat-tax-the-more-you-compress-the-tax-rates-the-more-you/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Income is sucked upward to the creditors, who then foreclose on the assets of debtors. This shrinks tax revenue, forcing public budgets into deficit.…](https://sms4smile.com/quotes/michael-hudson/income-is-sucked-upward-to-the-creditors-who-then-foreclose-on-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Debtor countries may postpone the inevitable by borrowing from the IMF or U.S. Treasury to buy out bondholders. This saves the latter from taking…](https://sms4smile.com/quotes/michael-hudson/debtor-countries-may-postpone-the-inevitable-by-borrowing-from-the/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [No price is too high to pay to try to make the financial system go on a little bit longer. But ultimately it can't…](https://sms4smile.com/quotes/michael-hudson/no-price-is-too-high-to-pay-to-try-to-make-the-financial-system-go-on/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) [Explore all 184 Michael Hudson quotes ](https://sms4smile.com/quotes/author/michael-hudson/) ## More American economy quotes > [Small businesses are the backbone of the American economy and employ almost half of the working population. 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Making sure we sustain the ability of the American economy to perform well is really the…](https://sms4smile.com/quotes/john-w-snow/we-have-the-most-flexible-and-adaptive-economy-making-sure-we-sustain/) [John W. Snow](https://sms4smile.com/quotes/author/john-w-snow/) > [As homeowners see the value of their homes decline, they become more likely to delay purchases of the big items - like automobiles, electronics…](https://sms4smile.com/quotes/charles-duhigg/as-homeowners-see-the-value-of-their-homes-decline-they-become-more/) [Charles Duhigg](https://sms4smile.com/quotes/author/charles-duhigg/) > [What we see today is an American economy that has boomed because of policies and developments of the 1950s and '60s: the interstate-highway system,…](https://sms4smile.com/quotes/fareed-zakaria/what-we-see-today-is-an-american-economy-that-has-boomed-because-of/) [Fareed Zakaria](https://sms4smile.com/quotes/author/fareed-zakaria/) > [Small business in America is what fuels the American economy. We need more small business to assist us in creating a great nation and…](https://sms4smile.com/quotes/debbi-fields/small-business-in-america-is-what-fuels-the-american-economy-we-need/) [Debbi Fields](https://sms4smile.com/quotes/author/debbi-fields/) > [One wonders whether the Obama re-election campaign may be on the right track as it seeks to apply the you-break-it-you-own-it rule to Bush and…](https://sms4smile.com/quotes/jon-meacham/one-wonders-whether-the-obama-re-election-campaign-may-be-on-the/) [Jon Meacham](https://sms4smile.com/quotes/author/jon-meacham/) > [The notion that big business and big labor and big government can sit down around a table somewhere and work out the direction of…](https://sms4smile.com/quotes/bruce-babbitt/the-notion-that-big-business-and-big-labor-and-big-government-can-sit/) [Bruce Babbitt](https://sms4smile.com/quotes/author/bruce-babbitt/) > [I do agree that the science is not settled on this. The idea that we would put American's economy at jeopardy based on scientific…](https://sms4smile.com/quotes/rick-perry/i-do-agree-that-the-science-is-not-settled-on-this-the-idea-that-we/) [Rick Perry](https://sms4smile.com/quotes/author/rick-perry/) > [“The problem was not that Americans spent beyond their means but that their means had not kept up with what the larger economy could…](https://sms4smile.com/quotes/robert-b-reich/the-problem-was-not-that-americans-spent-beyond-their-means-but-that/) [Robert B. Reich](https://sms4smile.com/quotes/author/robert-b-reich/) > [Donald Trump has a grand direction. He doesn't have a grand strategy. He wants to re-establish American authority and power and to relaunch the…](https://sms4smile.com/quotes/newt-gingrich/donald-trump-has-a-grand-direction-he-doesn-t-have-a-grand-strategy/) [Newt Gingrich](https://sms4smile.com/quotes/author/newt-gingrich/) > [When Reagan left office, he was the most unpopular living president, apart from Nixon, even below Carter. 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Branscomb](https://sms4smile.com/quotes/author/lewis-m-branscomb/) [Browse all 111 American economy quotes ](https://sms4smile.com/quotes/about/american-economy/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The fact that you have government-guaranteed student loans has created a whole new sector in the American economy that didn't really exist before - private for-profit universities that sell junk degrees that don't help the students. They promise the students, \"We'll help you get a better job. We'll arrange a loan so that you don't have to pay a penny for this education.\" Their pet bank gets them the government-guaranteed loan, and the student may get the junk degree, but doesn't get a job, so they don't pay the loan.", "creator": { "@type": "Person", "name": "Michael Hudson" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/michael-hudson/the-fact-that-you-have-government-guaranteed-student-loans-has/", "about": { "@type": "Thing", "name": "American economy" }, "@id": "https://sms4smile.com/quotes/michael-hudson/the-fact-that-you-have-government-guaranteed-student-loans-has/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png", "contentUrl": "https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png", "url": "https://sms4smile.com/quotes/i/7c4/michael-hudson-2134_american-economy_the-fact-that-you-have-government-guaran_2623618.png", "width": 1080, "height": 1080, "caption": "“The fact that you have government-guaranteed student loans has created a whole new sector in the American…” — Michael Hudson", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Michael Hudson", "item": "https://sms4smile.com/quotes/author/michael-hudson/" }, { "@type": "ListItem", "position": 4, "name": "The fact that you have government-guaranteed...", "item": "https://sms4smile.com/quotes/michael-hudson/the-fact-that-you-have-government-guaranteed-student-loans-has/" } ], "@id": "https://sms4smile.com/quotes/michael-hudson/the-fact-that-you-have-government-guaranteed-student-loans-has/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```