Student Loans

http://news.medill.northwestern.edu/chicago/news.aspx?id=204808

I was reading through this article, and I was thinking about how at least people had the opportunity to declare bankruptcy so as not to be trapped indefinitely under debt fees. Then I came across this line.

Under a 2005 law, private student loan debt is no longer dischargeable in bankruptcy, meaning ex-students will be obligated as long as they live, or until they repay completely.

Education is becoming so expensive and so many people with huge potential are either unable to afford it, or are stuck under all the costs of acquiring a degree. I think this should become one of the foremost issues for politicians that actually care about the people. The younger generations are getting stuck with majority of the problems that have developed and are developing right now. If too much focus is on not being crushed by debt, too little focus is on creating a sustainable future. I'm deeply disturbed with how the future is developing and hope we as humanity can collectively get our priorities straight.

hi crazee, your avatar name succinctly describes my frustration over my own student loans. had i known what i was getting myself into when i signed the dotted line!!! errrr.

it's a total banking scam, yet students and when you become adults are left w a debilitating debt and yes for the rest of your life.

they want it that way, so you can never be free.

was reading that a contract is actually not legit if the company does not sign. and many banks have a "forgerer" to do the signing for the head of the bank, ceo, etc.

this topic is rarely mentioned in the media nor at all during election time!

Exactly dolphin. I've always thought that education should be free but the trap that is laid out before unsuspecting youthful students who've yet to have enough life experience under their belt to realize what type of financial entrapment is occurring for them to continue their education is appalling. I'm just one of those people who never even considered getting a college loan because I didn't want to incur debt. And a good way to start off going to college is to live at home and attend a local Junior College - then local state college which is a lot less expensive then heading out-of-state. I managed to put myself through without grants, loans or help from my family as a single parent. I lived below the poverty level, never went on welfare and never incurred debt. It wasn't easy but it was worth it.

However, back then living expenses where not out-of-sight like they are now - which is why I encourage people to build those tiny houses on trailers to keep the overhead coasts down, or buy a used camper van to live in while going to school.

It's a sad topic. I'm going to try to change that law when I feel I have the means to tackle the issue.

Higher education needs to be free, and our already free education needs to be drastically reformed. I'm not sure which subject is more pressing, but they go hand in hand.

I kind of wanted to commit another thread to this video because it is so good, but I might as well post it here.

Crazee, here is something you might be interested in reading as Alan Collinge discussed this last night on Coast to Coast am.

Student Loan Crisis:

In the first half of Tuesday's show, grassroots organizer Alan Collinge discussed the student loan crisis that has left many college graduates saddled with massive debt. He characterized student loans as a predatory "sneaky lending instrument" in which students don't fully realize what they're getting into. Back in the 70s, the lending industry successfully lobbied Congress to remove bankruptcy protection from the loans, and subsequently other consumer protections were dropped as well, such as statute of limitations, and truth-in-lending requirements, he detailed. Schools typically underestimate the default rate on the loans, which has now shot up to 30%, he added.

To fix the problem, Collinge would bring back bankruptcy protection for student loans, which would force the Education Dept. to decrease the default rate, and this in turn would help lower tuition costs, he explained. Right now, the only options for defaulted borrowers are expensive "loan rehabilitation" programs that end up adding even more to the total amount owed, he noted. One of the most disturbing facts, he continued, is that for every $1.00 the government puts out for the loans, they get back $1.22, creating an environment where it's profitable for them for the borrowers to fail.

Student Loan Problems Alan Collinge CoastoCoast am 02-15-2012.mov

begins at 8:15

https://www.youtube.com/watch?v=sRn7EN0IvY8


Love Always
mudra