we've got a student loan epidemic it's a big deal is college still worth it more than 40% of borrowers aren't making payments so what's a student to do there are only two people willing to give a 17 year old $100,000 loan one is a loan shark and the other well she kind of works for the government her name is Sally Mae now think about a 17 year old kid is barely getting their life started they may have a part-time job no assets no credit history would you really give a 17 year old kid $100,000 would you you're probably saying there's no way in the world I would well maybe if it was guaranteed that you're gonna get your money back which by the way that's essentially what the government does and here's what I mean by it they got started under Carter then it became tough during Reagan and it pretty much became impossible during george w bush but one of the topics recently by Bernie Sanders was colleges way too expensive for kids we should have free tuition at public colleges and universities that should be a right of all Americans regardless of the income of their families which I do agree with Bernie Sanders however there's one big question and here's what it is how do we fix it so he proposed taxpayers pay for it which do you really want to pay more taxes do you you really want to pay for everybody's college education see my proposal slightly different rather than having taxpayers pay for it why don't we invest again and find out why does college cost so much in the first place we did a little digging just to see where all this money is going to and what's really taking place and you're going to be absolutely shell-shocked by the numbers first of all you pay taxes I pay taxes businesses pay taxes we may not like it but we pay taxes who doesn't pay taxes well you know who doesn't pay taxes colleges and universities according to the IRS the vast majority of private and public universities and colleges are tax exempt entities as defined by Internal Revenue Code Section 501 C 3 okay no big deal I get it it's about education maybe this makes sense we shouldn't be taxed and I'm so this means obviously therefore ball ticket sales get tax right or on campus concert that have nothing to do with education they also get tax right again from the IRS income and activities that are substantially related to the purpose of an institution's tax exemption charitable contributions receive an investment income let me say it again investment income are not subject to federal income taxes are you kidding me can I sign up and start this business call the college or university but Pat come on now that's got to be only state schools because there's no way in the world that has to go same as private schools right because private is like private enterprise private businesses they get tax right like these Ivy League schools they should be paying taxes yes well private schools get the same privileges as public schools under our current tax code so not only do they not pay taxes on the land on the tuition or the sponsorships or the donations or the 12% they're raking and annually in capital gains from that bounty that's a lot of money but those schools actually have the guts to get money from taxpayers on top of all of that we're not talking a little bit of money so billions in zero out Rutgers University has 70,000 students enrolled at an average of $26,000 a year that covers room board parking Neil plants and approximately $2,000 a year in books which is a scam within a scam so let's do some math here let's take this 26,000 dollars of tuition multiplied times 70,000 students it equals 1. 8 billion dollars on the low end that's fortune 500 gross annual revenue type of numbers we're talking about here however according to its own website approximately 26% of Rutgers revenue comes from tuition with an additional 22% coming from state subsidies also known as taxes you know who pays for it you pay for it having estimated the tuition revenue 1. 8 billion we can assume that additional revenue they're getting is gonna be around 1.
5 billion from this citizens of the state of New Jersey that's nearly 3. 5 billion dollars courier ready tax-free on top of that tax subsidized by the way 3. 5 billion dollars the valuation of massive corporations like Yelp and Credit Karma and as an annual revenue outpaces ready for this one the legendary Elon Musk's Tesla Rutgers University is competing against Tesla every year tax-free you tell me if you don't smell a scam here let's take a look at what they do with this windfall of cash that they get they must really give back to community right you ready they hoard it they organize non-stop donation drives and build these amorphous hedge funds called endowments it's never enough let me give you stat here Harvard a very reputable school has an endowment of over 36 billion dollars which fun fact according to the IMF would put Harvard between Bolivia and Bahrain as a 96th largest economy in the world and based on data from the United Nations there are over a hundred countries with smaller economies then the Harvard endowment alone listen without even accounting for compound interest their tax-free mountain of cash just off that endowment alone Harvard could afford to pay their $50,000 or your tuition for their 6,000 students you know for how long not ten years not 30 years not 50 years a hundred and twenty years for free and not asking for another penny meanwhile student debt continues to pile up and has nearly doubled over the past decade ready to 1.
3 trillion dollars if you took all our credit card that every single one of the credit cards we have in our pocket you took all of it and combine it together it's only nine hundred and seventy seven billion dollars versus 1.
