A System Designed to Keep You in Debt
If you're in college right now, you’ve probably heard that getting a degree is the key to success. But have you noticed something strange? Everyone seems to need more and more education just to get the same kinds of jobs. A high school diploma used to be enough. Then it was a bachelor’s degree. Now people need master’s degrees—and still struggle to get hired.
Meanwhile, tuition keeps going up. Student debt in the U.S. has reached over $1.7 trillion, affecting more than 43 million people. Many of us are borrowing tens of thousands of dollars just to get a shot at a decent job. Some never escape this debt, even decades later.
This isn't just bad luck. It's a system, and it works really well—for banks, employers, and universities. But not for you.
Credentials Are the New Chains
A few critical thinkers—like economist Michael Hudson and philosopher Maurizio Lazzarato—have a name for what’s happening: debt peonage. That’s a fancy way of saying people are trapped in endless debt, not because they’re lazy or irresponsible, but because the system is built to keep them there.
They argue that education has been turned into a machine for generating debt. It’s not just about learning anymore—it’s about taking on loans you’ll be paying off for decades, often for jobs that don’t even require the degree you earned.
This debt doesn’t just affect your bank account—it shapes your whole life. It influences the jobs you take, how much you’re paid, whether you can move, start a family, or speak up at work. In other words, debt is a tool of control.
More School, More Debt, Less Power
There’s a name for what's happening with degrees: credential inflation. It means that as more people earn degrees, employers keep raising the bar—asking for more education, even if the job doesn’t really need it.
This works out great for employers. You need the job to pay off your loans. You’re less likely to ask for higher wages or better conditions. You’re easier to control. Think about it. When you owe $38,000 in student loans, can you really afford to quit your job? Or turn down unpaid internships? Or fight back when you’re treated unfairly?
That’s not a bug in the system—it’s the point.
The Rise of the Academic Underclass
It doesn’t stop with students. Many of your professors and TAs are also part of what we might call the academic precariat—people with master’s or even PhDs who are stuck working part-time for low pay, no benefits, and no job security.
These are the folks who teach your classes, grade your papers, and write your recommendation letters—while living paycheck to paycheck and often on government assistance. They’re the most educated people in the country—and many of them can’t afford basic needs.
Why does this happen? Because colleges don’t have to pay them fairly. There are more PhDs than full-time teaching jobs, so universities keep a huge pool of low-paid instructors they can use whenever they want. That’s called a “standing reserve” of labor—and it's incredibly profitable for institutions.
The Internship Trap
And then there are unpaid internships—another form of credential inflation. Now, just having a degree isn’t enough. You also need “experience.” But that experience is often unpaid, meaning students (and their families) cover the cost of working for free.
This second wave of credential inflation hits working-class students hardest. Many can’t afford to work unpaid jobs, pay rent, and take classes at the same time. So the system ends up rewarding privilege and punishing struggle—again.
And here’s the kicker: unpaid interns often don’t even get jobs. Studies show people who never interned sometimes do just as well—or better.
Is There Another Way?
You might be thinking: but aren’t degrees still worth it? Isn’t this just the way things work?
That’s exactly what the system wants you to believe. And while it’s true that some education leads to better job outcomes, it’s also true that the cost is rising faster than the benefit. And the system is rigged to keep you in debt no matter what.
So what can we do? First, question the system, not yourself. If you’re overwhelmed by debt or struggling to find a job, you’re not failing—the system is. Second, recognize that individual solutions—like working harder, studying longer, or networking more—won’t fix a structural problem. What we’re facing is a system that uses debt to control, not to educate.
Final Thought
Degrees should be tools for empowerment, not chains of obligation. But as long as education is tied to debt, exploitation, and ever-escalating credential requirements, it will remain part of a system designed to extract—not uplift.
It’s time to stop asking how can I survive this system and start asking why does this system exist at all?
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