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 disappearing.
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