On to the Next Credit Repayment Crisis…Student Loans…
Student loans have become the newest and most profitable predatory credit market in America. We’re already painfully aware of the ongoing home mortgage meltdown. Well…get ready for the next disaster as we continue speeding down Our- Economy-Is-Slowly-Becoming-Unglued boulevard. Government and worst of all, private students loans, are the most profitable, oppressive, and predatory type of debt of any in the nation. Kudos to the corporate fat cats who master minded these gems. This situation has occurred of course due to due to Republican legislation that was largely paid for by strong arm lobbying courtesy of Sallie Mae, the largest student loan company in America. As you might have already ventured to guess, vast fortunes are being made by unscrupulous Sallie Mae executives, and others who paid for this legislation, on the back of low and middle class college students. Additionally, many of the students now living with this high debt have not been able to capitalize on their educations, so the loans are being deferred or defaulted on altogether. To turn the old anal plug even further, these debts are exempt from bankruptcy, are not subject to cosumer protections like credit cards are and are not subject to the same collections rules that other debts are. This has effectively crippled millions of middle class people who want to repay their original debt, but are prevented from doing so by staggeringly higher amounts being demanded from them by both “non-profit”, and “for-profit” student loan companies. The situation amounts to usary, which is illegal the last time I checked. This latest scheme to defraud the middle class of this country by the power elite has and will continue to contribute to the slow economic destruction that will eventually undo our very culture. More to come on this topic in the future.
Check out these links for more info…
Sallie Mae Reaps Benefits From Ties to Key Agency, Paul Basken, Chronicle of Higher Education, May 7th, 2007
Law favors gambler Over Grad, Dave Newbart, Chicago Sun Times, May 6th, 2007
Probe Launched on Sallie Mae Collection Tactics, Amit Paley, The Washington Post, April 27th, 2007
Lending to Students a Gold Mine for Creditors, Davbid Washburn, San Diego Times Union, April 24th, 2007
Stock Options Provided to Financial Aid Officer by Student Lender, New America Foundation, April 4th, 2007
Press Release, Attorney General Andrew Cuomo, State of New York, March 15th, 2007
Student Debt Mayhem, Jennifer C. O’Donnell, Port Folio Weekly, March 6th, 2007
Posted on August 26, 2007, in Education Policy and tagged Banks Loans, Can't Pay Student Loans, Financial Markets, Higher Student Loan Interest, New Student Loan Legislation, Predatory Student Loans, Student Bankruptcy, Student Loan Consolidation, Student Loan Reform, Student Loans Bankrupt Exempt, U.S. Department of Education New Student Loan Procedure. Bookmark the permalink. 3 Comments.