America's Student Loan Racket
Washington lets corporate crooks steal from students.
by Stephen Lendman
This writer's recent book titled "How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War" includes a chapter on America's student loan racket. It discusses the issue in detail.
It explains a disturbing government/corporate partnership. Students are exploited for profit. Providers are enriched. For many, rising tuition and fees make higher education unaffordable. Others need large loans to attend. As a result, they become debt entrapped.
Some face burdens up to $100,000 or higher. If unpaid after 30 years, it's a $500,000 obligation. If default or declare bankruptcy, it's unforgiven. Bondage is permanent.
Lenders thrive from defaults. Wages can be garnished. So can portions of Social Security and other retirement benefits. A conspiratorial alliance of lenders, guarantors, servicers, and collection companies derive income from debt service and inflated collection fees.
Education today grows more unaffordable. Many students are priced out and can't attend. Others become debt entrapped. Growing numbers remain there for life. A predatory system fleeces them.
Principle, accrued interest, late payment and collection agency penalties create enormous burdens to repay.
Once entrapped, escape is impossible. Unless repaid, future lives and careers are impaired. Today's economic crisis exacerbates conditions. Job opportunities are scarce. Ones for higher education grads are even fewer.
Around yearend 2011, student debt exceeded $1 trillion. It's staggering. It increases nearly $3,000 per second. It exceeds credit card and auto loan obligations. It's second only to outstanding mortgage debt. It's rising exponentially. A lost generation threatens.
It's part of the grand scheme to transfer maximum wealth to America's super-rich. It's been ongoing for decades. Under Obama, it accelerated.
On May 12, The New York Times addressed the issue. Titled "A Generation Hobbled by the Soaring Cost of College," writers Andrew Martin and Andrew Lehren overall did a credible job worth reading.
Ohio Northern University's Kelsey Griffith was mentioned. "To start paying off her $120,000 in student debt, she is already working two restaurant jobs and will soon give up her apartment here to live with her parents. Her mother, who co-signed on the loans, is taking out a life insurance policy on her daughter."
Griffith knew college costs were high. She never imagined owing $900 a month after graduating. "No one told me that," she said.
Nearly every baccalaureate candidate borrows to attend. Most can't imagine a future "unprecedented financial burden."