Perspective: The New Indentured Servitude

Hypothetically speaking, let's say a 17 or 18-year-old kid strolls into the bank. He has no job or credit history, but wants to take out a loan worth hundreds of thousands of dollars to buy a house. What should the loan officer say?

Should he have the kid immediately sign the paperwork? Should he recommend that the kid take out an even larger loan? Of course not. And yet, this scenario plays out literally millions of times each year across the country. Teenagers take out loans for something that they cannot afford--an overpriced college degree.

This is not to say that college degrees are not worth it. However, for a system that prohibits people of a certain age from drinking, allowing them to take on huge amounts of debt that may or may not pay off is irresponsible. In fact, given the economic catastrophe that the United States is still recovering from, it's borderline criminal.

With skyrocketing tuition costs, student loans have helped to create a new class of indentured servants. A student who graduates with literally tens of thousands of dollars in debt may find him or herself working a job that doesn't require a college degree. Such students might be forced to take unpaid internships to get their feet in the door. Some might not even find work at all. In the meantime, the student debt does not go away.

Americans owe more money for student loans than they do on credit cards. This equals at least one trillion dollars in debt. President Obama reportedly paid off his student loans only shortly before winning the presidency. He recently announced a plan to provide relief to a number of Americans who are struggling to pay off their own debt. The "Pay as You Earn" plan would allow more than one million students to forgive their debt after 20 years worth of payments.

To be certain, education inside or outside the classroom is essential to achieving the "American Dream". Unfortunately, a college education is becoming an increasingly elusive commodity. Those who can afford it reap the benefits. Those who don't are out of luck. Grants, scholarships and yes, loans, were supposed to allow those born without the means a decent chance at pursuing their own American Dream.

This isn't to say that people should not be held accountable for their own actions. After all, securing loans requires signing contracts and agreeing to pay back what is being borrowed. The problem is that too many people are going to school to get educated without being educated on the enormity of their financial decisions.

Can an 18-year-old who can't legally buy a beer really be expected to understand the burden that he is undertaking?

However, it is this nation's responsibility to see to it that people make informed choices. And in this regard, we are failing.

Matt Reaves is a junior broadcast journalism major from San Jose, Calif.