$1 Trillion in Student Loan Debt Sparks Furor & Exposing The Loan Racket!

Three years after the housing-market meltdown, a college education may be the next part of the American Dream to turn into a nightmare.

For the first time, Americans owe more on their student loans than they do on their credit-card bills, with a tally that could soon top $1 trillion -- leaving millions of Americans with a crushing debt burden at a time when decent-paying jobs are scarce.

“You can’t get rid of student-loan debt in bankruptcy,” says Andrew Gillen, research director at the Center for College Affordability and Productivity. “It pretty much follows you to your grave.”

www.nypost.com...

Please read the entire article, it was published about an hour ago and goes fairly deep.
Now let's talk about the racket if we can



Source:
www.healthcareadministration.com...

Please go to this link to look at the entire picture of how the federal loan program works
www.healthcareadministration.com...

Does it make sense to have it federal?

It's not an easy pickle to deal with that's for sure, but most definately what is currently happening doesn't make any sense at all.
Perhaps if they get rid of the Dept. of Education then school costs will go down and instead of federal loans which offer no route of bankruptcy perhaps they can get private bank loans

THoughts ATS?

lol you keep posting threads about topics that are my pet peeves. great job and thank you

keep up the good work!

reply to post by CaDreamer


lol no prob
Don't forget to check out this site:
www.healthcareadministration.com...

It's very important to go through the contents on that page

student loans are the only "loans" that are bankruptcy proof. even if you are insolvent and have to go the route of bankruptcy, your student loans will continue to be there. so i guess the alternative is to, not go to college until you are wealthy enough to pay for college... lol

reply to post by ModernAcademia


Yes indebt are now the very young before they even have a chance to acquired their American dream is what the capitalism and the corrupted banking system is doing to them.

For those that has not clue of what used to be before the so call "education or all", it was a world where you could get an education without getting into loans, the "big scam of education for all" means you get and education but are up to your neck into the hands of the banking system.

Yes, I am one of the lucky ones that remember what it was to get a quality education without worrying about having to become a slave of somebody else

It was a time in the US that it was possible, education was affordable and private colleges were only for the very rich.

Our own capitalistic system has failed us the consumer, we have become now their slaves.

i have student loans myself... graduated in 2003 still have 14k left to pay on my loans...

You say:

Originally posted by ModernAcademia

Does it make sense to have it federal?

Perhaps if they get rid of the Dept. of Education then school costs will go down and instead of federal loans which offer no route of bankruptcy perhaps they can get private bank loans

I see:

The extortion comes in to play when the loan is turned over to a private corporation. Why would we want to turn the whole process over to the private sector when we have such obvious and outright blatant proof of what the private sector will do to the students if given the chance? This makes no sense to me. The so-called 'debt collectors' are raping people blind already, and you want to give them even MORE opportunity to do so?

Originally posted by CaDreamer
i guess the alternative is to, not go to college until you are wealthy enough to pay for college... lol

That may be the case for some people and may not be such a bad choice either

the age where you have to decide your career path is quite young in my opinion, so some people stay in school longer trying to figure out what they want to do and thereby racking up more debt while instead they could be generating income.

Originally posted by ModernAcademia

Originally posted by CaDreamer
i guess the alternative is to, not go to college until you are wealthy enough to pay for college... lol

That may be the case for some people and may not be such a bad choice either

the age where you have to decide your career path is quite young in my opinion, so some people stay in school longer trying to figure out what they want to do and thereby racking up more debt while instead they could be generating income.

some students create their own nightmare by going to school to delay having to work.
living at home and having mommy take care of reality.
at school i saw students who were taking easy courses, avoiding hard profesors and graduating with no useful skill.
i also met students who had no intention of ever working, going to school was just playing for time.
and many cheat, meaning their diploma is a fraud.

that they were ruining their future didn't seem to matter.

meanwhile the students going to trade school to become electricians, plumbers, etc, graduate with no debt and many go on to earning a very good living.
and with the baby boomers retiring in large numbers, a useful trade is needed and the corporations have to hire the tech school graduates.

Originally posted by Montana
The extortion comes in to play when the loan is turned over to a private corporation

The extortion is already happening under your current system, have you been to the link I provided?
www.healthcareadministration.com...

Secondly it also raises education costs because colleges/Universities know that students have access to a pool of a student loans that have little or no interest while they are still in school, so they take advantage of that.

Originally posted by Montana
and you want to give them even MORE opportunity to do so?[

Ya i'm pretty sure that the powers that be are the ones that you want to keep in educational financing power are the ones making the $$$$$$$$$$$$$$$.

Firstly, i have to say the interest rates are exorbitant for this kind of loan.
Secondly there is no better way to make slaves out of the graduating classes of every university.
Thirdly it certainly looks like a scam and a sham.
Student loans should be interest free or very low 1-2%
Why should we pay such high interest for loans when the money we "loan " the banks by depositing our cash pays zilch for interest?
There is a definate slant to the playing field that rolls all the money down to one end, that of the already bloated rich.

reply to post by ModernAcademia


Yes, I read your link. I simply don't agree with the proposed solution you provided.

Modern finance corporations have provided us OVERWHELMING evidence of how they will act given even the slightest opportunity to fleece the populace. I will oppose any plan that gives them even more opportunity to do so. The idea that by changing the system to an entirely private financial process will somehow provide lower cost is ludicrous based on the proven business practices of those finance corporations.

Originally posted by Montana
Modern finance corporations have provided us OVERWHELMING evidence of how they will act given even the slightest opportunity to fleece the populace.

So tell me
What has the current system provided the American people with?
Did you read the first NYpost article as well? It tells stories of people who had gone through this current system and they want out.

I think the problem lies in perception.
If you had a free market then these modern finance corporations you had wouldn't be as massive as they are today, too many lobbyists in washington.
This overwhelming "Evidence" that you speak is mostly just perception under the current system and i wouldn't call it evidence as much as I would call it inferences.

The current reality however is very much overwhelming evidence.

Originally posted by ModernAcademia

Originally posted by Montana
Modern finance corporations have provided us OVERWHELMING evidence of how they will act given even the slightest opportunity to fleece the populace.

So tell me
What has the current system provided the American people with?
Did you read the first NYpost article as well? It tells stories of people who had gone through this current system and they want out.

I think the problem lies in perception.
If you had a free market then these modern finance corporations you had wouldn't be as massive as they are today, too many lobbyists in washington.
This overwhelming "Evidence" that you speak is mostly just perception under the current system and i wouldn't call it evidence as much as I would call it inferences.

The current reality however is very much overwhelming evidence.

If we had a free market, we would now be without the US auto industry and most large banks and investment firms. Thanks to uncle Sam's generousity, they got bailed out.

Those in the upper 5% own all the access to wealth and thereby power. This will NEVER change. The system is theirs to manipulate and control. The supreme court allows for unlimited donations for campaigns from businesses and individuals. I know don't have anything to spare for a candidate. But I know who does...
The same people who can afford lobbyists.

Originally posted by ModernAcademia

Did you read the first NYpost article as well?

I said I read your references, I just don't agree with your solutions. I understand this is difficult for you to believe.

If you had a free market...

I personally believe this to be incorrect. In a true free market (meaning as it would really work, not as it is supposed to work) All money and power would be gathered in the hands of a very few mega-corporations. This is because (as we see every day) a corporation will use the vast majority of it's resources to denigrate it's competition to increase it's market share rather than improve it's product. It will then use this market share to dictate to the rest of the market. The 'little guy' heroes of the free market myth don't stand a chance because they can never reach enough of the market to have any appreciable affect in it.

too many lobbyists in washington.

Amen, brother!!!!!! Professional lobbyists should be criminalized! Either you believe in something enough to support it on your own time, or you are an influence pimp to the government whores.

Let's take a look at reality

Government backed homes via Fanny and Freddy
Government backed health care via Medicare and Medicaid
Government backed Retirement plans via Social Security
Government backed Education via Student Loans.

All trillions in debt but not good enough it's everyone's right to free homes,health care,retirement and education.

People this country has failed because social engineering does not work because you run out of other people's money.

Every Government loan is a racket EVERY single one that right there has destroyed trillions of wealth creation all in the name of I want my free crap.

I am sorry to say if you think you need to spend 50k or 100k to get a good job and to go into debt like was said making money no amount of education is going to fix your problems.

College these days and the past for millions of American's is hiding from real life and get indoctrinated doesn't not matter education is not the Government's responsibility none of those things are.

Yeah this is what you get when you put people before profits there's not enough cash to go around.

reply to post by neo96


Now, Neo. I understand that you feel you are the only one who has a right to play with other peoples money, but the vast majority of posters in this thread have said NOTHING about free education. We are talking about student loans. These loans and the process people have to complete need to be revised, not forgiven. Then they need to be repaid.

reply to post by Montana


People defaulting on education loans is free money as well as any other "loans".

reply to post by neo96


Well, this would be true, if we don't send them to prison like any other contract breaker. If we did that- like we should in my opinion- then they would indeed pay a price.

This honestly makes me so angry. As a student who is in debt and not even close to being done school, I feel like I'm in a massive hole that I wont be able to get out of so I can "start my life." So annoying. So infuriating. How can they expect us to be "contributing members of society"?