June 10, 2013
For growing numbers of American youths, higher education is increasingly
out of reach. High tuition and fees make it unaffordable. So does a
disturbing government/corporate partnership.
Millions of students need financial aid. They're exploited for profit.
Providers are enriched. Higher education involves debt entrapment.
Students graduate tens of thousands of dollars in debt. Some
post-graduates face burdens up to $100,000. If unpaid after 30 years,
it's multiples higher. If default or declare bankruptcy, it's
unforgiven. Bondage is permanent until repaid.
Loan providers thrive from defaults. Wages can be garnished. So can
unemployment benefits, disability payments, tax refunds, as well as
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. College marketing officers, state and federal
legislators, and administration officials are complicit with them.
Principle, accrued interest, late payment and collection agency
penalties create enormous burdens to repay. Private lenders are exempt
from federal fair debt collection requirements. Federal loans have
minimal safety net protection.
Lenders operate virtually risk-free. The system is
rigged against borrowers. Loans are easy to get. They're tough to
service. They're not forgiven. Burdensome debt escalates higher. A
vicious circle entraps graduates and dropouts. For many it's permanent.
Once entrapped, escape is impossible. Unless repaid, future lives and
careers are impaired. Today's economic crisis exacerbates conditions.
Job opportunities are scarce. High-pay/good benefit ones are fast