At some point this year, student loan debt will exceed $1 trillion, surpassing credit card debt. Students accepted a home mortgage worth of debt before they ever even had a regular income. This is based on phony promises, and that the debt is inescapable, regardless of life circumstances or ability to pay. Due to the 2005 bankruptcy bill, debtors cannot discharge student loans through bankruptcy. The government is shielded from the risk, and creditors are licensed to collect by almost any means they deem necessary.
This student loan epidemic is going to lead to a generation of wage slavery. If students are lucky enough to find a job during our economic crisis, they will be spending a lot of their money paying off their student loans, and the banks will continue to see massive profits. Different institutions are encouraging people to take out student loans through mainstream media, when in reality taking out these loans are a big scam.
Title: The $1 Trillion Student Loan Rip-Off: How An Entire Generation Was Tricked Into Taking On Crushing Debt That Just Enriches Banks.”
Source: Alternet, October 20, 2011
Author: Alex Pareene
Student Researcher: Joshua Nervis – Sonoma State University
Faculty Advisor: David McCuan, Sonoma State Uinversity