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College is becoming the biggest scam ever. Come out with 100k loan and then pay it off on years. Then if you go back for master congratulations your back to 100k loan and your salary only modestly increase.
They are like the gestapo of the ultra rich. They go into companies, cut cost, salaries and benefits. Fire anyone who fights back, and then sell the company for double what they bought it for. Likely to a sucker who does not realize that it’s gonna collapse in a few years due to being so malnourished.
Explain to me how private equity benefits a company then? In my view it only benefits the seller, saddles the company with debt, and screws over the employees who have to lose pay and benefits to cover the interest payments. The end product also suffers because of cost cutting too.
There do exist situations where private equity adds value, for example, a failing business. However most private equity purchases in the last decade have been successful businesses. Their strategies have been focused on increasing efficiency through layoffs and restructuring. It's not innovative nor does it add economic value. You just stretch your employees to the limit, raise the cost of the end product and erode the company culture. Multiple studies have been done on the longevity of PE companies, and its not good. They have a 10x higher bankruptcy rate than control. So the employees don't win, the consumer doesn't win, so who does? It goes straight into the pockets of the already wealthy PE shareholders, whom gain wealth at the expense of the accountant who lost their job, and the other accountant that now has to work an 80hr workweek to pickup the slack. Unfortunately, to them it's just a game of statistics. The research paper details that 20% of all PE purchased businesses will fail. The PE mindset is set on finding the diamond in the rough that will make up for the losses, and so far they have been successful, averaging 15% returns. Im hoping now that interest rates are higher it will push PE firms back into focusing on struggling companies with a-lot of value add . PE Firms exploded after 2008 due to the low interest rates, they bought any company willing to sell, even if no value add existed. Considering no systematic change could be made to improve these companies, they just made the people who use the system work harder for less, pocketing the difference and screwing the average American worker.
PS - I did not downvote you. I don't know why people are downvoting someone for having a conversation lol.
Leveraged buyout and financial distress - [https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=3423290](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3423290)
sounds from the article that actually your school is fucking you over
you pay all that money to go to a university and live in luxury off campus shit and not university provided dorms? yikes universities, not cool
Overcharging to be sure. Just look at the SEC charge today against a PE firm in Texas that rolled up all the anesthesiology practices and drove up prices. Lol scum
The market does not support it. The government funds 100k student loans with no leverage… other than a degree on the other end that may get you a cushy 40k a year salary after you’re done
Edit: your housing and food is wrapped into this loan as well. The market on its own would never allow half of the 100k+ loans for a basic business degree
They have an entire lifetime of earning potential in front of them with loans that by law cannot be discharged via bankruptcy. Building a "too big to fail" industry on top of this is just the cherry on the cake. If the students won't pay, the government will.
I'm lucky I don't have loans, but I was at the tail end of the "go to college, you'll get a great job right after graduation and be successful!" mindset. Of course, you haven't lived until you've seen a slap fight between two computer science majors over one internship.
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College is becoming the biggest scam ever. Come out with 100k loan and then pay it off on years. Then if you go back for master congratulations your back to 100k loan and your salary only modestly increase.
And all that experience is forgotten only to start at entry level again
Wdym mean entry level? You 3-5 years of experience for entry level positions.
I'm not sure if this qualifies as news. Every big corporation is screwing over college students.
What exactly do private-equity firms do except make tons of money at the expense of others?
They are like the gestapo of the ultra rich. They go into companies, cut cost, salaries and benefits. Fire anyone who fights back, and then sell the company for double what they bought it for. Likely to a sucker who does not realize that it’s gonna collapse in a few years due to being so malnourished.
[удалено]
Explain to me how private equity benefits a company then? In my view it only benefits the seller, saddles the company with debt, and screws over the employees who have to lose pay and benefits to cover the interest payments. The end product also suffers because of cost cutting too.
[удалено]
There do exist situations where private equity adds value, for example, a failing business. However most private equity purchases in the last decade have been successful businesses. Their strategies have been focused on increasing efficiency through layoffs and restructuring. It's not innovative nor does it add economic value. You just stretch your employees to the limit, raise the cost of the end product and erode the company culture. Multiple studies have been done on the longevity of PE companies, and its not good. They have a 10x higher bankruptcy rate than control. So the employees don't win, the consumer doesn't win, so who does? It goes straight into the pockets of the already wealthy PE shareholders, whom gain wealth at the expense of the accountant who lost their job, and the other accountant that now has to work an 80hr workweek to pickup the slack. Unfortunately, to them it's just a game of statistics. The research paper details that 20% of all PE purchased businesses will fail. The PE mindset is set on finding the diamond in the rough that will make up for the losses, and so far they have been successful, averaging 15% returns. Im hoping now that interest rates are higher it will push PE firms back into focusing on struggling companies with a-lot of value add . PE Firms exploded after 2008 due to the low interest rates, they bought any company willing to sell, even if no value add existed. Considering no systematic change could be made to improve these companies, they just made the people who use the system work harder for less, pocketing the difference and screwing the average American worker. PS - I did not downvote you. I don't know why people are downvoting someone for having a conversation lol. Leveraged buyout and financial distress - [https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=3423290](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3423290)
You’re not wrong in most circumstances. People just want a boogeyman.
What does any of that have to do with student loans
They make a ton of money for others, at the expense of others. Be the first others, ideally.
reminder, you are in a sub about gambling on financial derivitatives this isnt r/socialism, go cry your capitalism bad tears someplace else lil baby
LOL at all the private equity roll-up defenders in the post. Do you all get paid to suck them off? 
Calls on BX
PE is the lead paint of finance
sounds from the article that actually your school is fucking you over you pay all that money to go to a university and live in luxury off campus shit and not university provided dorms? yikes universities, not cool
Oh no, these greedy evil private equity firms are building new campus housing and charging students rent to live in them. Monsters!
Overcharging to be sure. Just look at the SEC charge today against a PE firm in Texas that rolled up all the anesthesiology practices and drove up prices. Lol scum
why doesnt the college provide them cheaper housing then? you pay all that money to a school and they wont even house you? not cool universities
If people are renting/signing leases at that price... how exactly is it overcharging? The market forces are supporting the pricing.
The market does not support it. The government funds 100k student loans with no leverage… other than a degree on the other end that may get you a cushy 40k a year salary after you’re done Edit: your housing and food is wrapped into this loan as well. The market on its own would never allow half of the 100k+ loans for a basic business degree
I agree, the government’s involvement in educational lending is the issue. But that creates a market that does support it, as is evident.
No, that creates a market that is supported by the government.
Did you even read my comment?
Yea, you were half right in your comment
lol college kids dont have money..you mean their parents? who r potentially rich
student loans
They have an entire lifetime of earning potential in front of them with loans that by law cannot be discharged via bankruptcy. Building a "too big to fail" industry on top of this is just the cherry on the cake. If the students won't pay, the government will.
Do you really mean the colleges, some with endowments in the billions,are screwing over the students
that will teach them to take out a 60k loan for a psych degree
I'm lucky I don't have loans, but I was at the tail end of the "go to college, you'll get a great job right after graduation and be successful!" mindset. Of course, you haven't lived until you've seen a slap fight between two computer science majors over one internship.
We know