They Seem Like A Good Idea – Student Loans
This is the season when every day seems to bring new invitations for graduation of class 2006 in the mail. I began to wonder what it must be like to finally leave school with all that energy and excitement only to discover that they are now going to spend years paying for student loans that seemed such a good idea at the time.
The Center for Economic and Policy Research recently reported that nearly 65% of all students use loans to pay for their education. With many students transferring debts of $ 90,000 or more you start to wonder what it must be like to live under such pressure. How can we manage to pay these loans and still have a life? There are many areas outside of Southern California where you could buy a nice house for that amount of money.
Do we really need to today’s youth, our future, under such pressure in the name of profit. The laws governing student loans are some of the most powerful laws of the land. Our leaders have given assurances that a business is more profitable for lenders. These lenders have more power than all other lenders. Credit card companies and mortgage lenders can not do what the Congress has allowed student loan providers who do.
Sallie Mae is the largest provider of student loans in the country. Employing over 10,000 people through a series of states. Since it became a public company trading in the securities markets, its shares have gone through the roof. Let me outline why this is a wonderful business for the likes of Sallie Mae. The loans are all secured by the government (taxpayer sorry), so that whatever happens their money. This means, unlike a normal lender that has to calculate the risk against the reward before agreeing to a loan, these suppliers there is no risk, all reward.
It does not end there. If a student loan default (almost 25% do), then the provider is paid by the government (taxpayer sorry) and now allows them to send the debt to a collection agency. It is normal for the loan to double in size at this time. Sallie Mae owns a number of collection agencies, the law also allows. Now they have the power to garnish your wages without going to court. They can also decorate their money from social security, something that no other lender can do. Sallie Mae is authorized under such laws to maintain the 25% of all money recovered from the collection agency (which have, nice business if you can get it). Where I come it’s called legalized robbery or Jobs for the Boys.
Most of these students can forget about getting married or buying a home. There main concern is that next month’s payment from. ” Maybe it’s time we showed a little more compassion to these students, after all they are our future.
Have an opinion or a question I’d like to respond, then write me! http://www.CarlHampton.com
Tags: DEBT, debt consolidation, student load
