Everyone at some point needs to pay tax! When we enter the ‘adult’ stage, we started looking for a job that would definitely require us to accumulating these Government IDs, health and life insurance, licensure, and many more legal documents. These would eventually lead us into paying taxes depending on what we received as income.
Both successful and middle-class people have to pay taxes as well. That’s what we owe to the government and society. But do you know who’s exempted?
College Loans
The increasing number of High School graduates decided to attend College right after! A ratio of 7 out of 10 students which are about 70% of their population!
They might have been encouraged by their parents and peers to go chase higher education or was influenced by the society that going to college is the norm. For whatever reason, once they enter college, the majority of the students will face what we call ‘college loans’.
In the United States, students drowned with thousands of dollars of debt for their education. It means if they have to attend an Ivy League School or Private Universities and Colleges, they have to pay for the huge amount of tuition fees. Other necessities and miscellaneous fees are not even included yet! They would own an average of $34,000. Imagine the stress that these students have to go through!
Not if they’re living in a higher social class, but they couldn’t pay it all off after 4 straight years! Right after they graduate, they still owe thousands of debts! And when they work, their income is to be given to pay it off gradually, and of course to pay the tax along.
United States Internal Revenue Code 501 (C)(3)
But do you know what’s funny? The only institution that is exempt from paying taxes is the Colleges, Universities, and Schools. Not to mention, both private and public educational institutions have both privileges. They are excused from this torturing method of taking their money away from them.
According to the United States IRS Internal Revenue Code 501 (C)(3), the majority of private nonprofit colleges and universities are exempt from taxes. That’s good news because it’s all about the benefit of education and even for other organizations and foundations.
But consider the activities that aren’t for educational purposes such as sports or the On- and Off-Campus Concerts or anything that has nothing to do with learning!
So here’s what more shocking, they don’t pay any taxes from the property and tuition, but they also received tons of sponsorships, donations, and 12% Capital gains. Of course, instead of getting their principal income to support all their expenses, they have to depend on these endowments!
They received lots of money but they have the guts to get money from us, from you!
BILLIONS IN, ZERO OUT! And meanwhile, student debt continues to pile up!
How does College Loan Affect Businesses
Now you might say that you didn’t even go to college or that in your country, it’s different. We paid for it all already!
It would have an adverse effect on our economy! It’s going to be so much harder for them to move on, to invest for themselves, and to buy the things that they want. Even a simple recreation would guilt them out because of the debts they have to pay!
Even we as business owners are affected because once these ‘hope of the future’ can’t see their hope out of their college loans, then a huge amount of the products and services that we offer, that we produce wouldn’t sell much.
What are you going to do next
We’re living in a Digital Age. Everyone, especially students, has their own social media and knows how the technology works!
Imagine we can use everything over the Internet with much cost-efficiency and much faster than what we hope after we attend 4 year-degree in College. Not to mention the masters or doctoral that students need to pursue next.
We don’t have a problem with education, foundations, and organizations that supports and caters to education, nor the students who choose to take higher education. But we’re here, and other entrepreneurs with me, to enlighten you about the messed-up ‘educational system’.
What I want to ask you next is “What are you going to do next?”
