mises
Joined: 05 Nov 2007
Location: retired
|
 Posted: Fri Dec 24, 2010 12:55 pm Post subject: |
 |
|
I've been reading PC for a long time. It's quite good.
Much of the content is topics that the PC people think should get more play, not stuff that was censored.
Not to beat a dead horse (or be a one trick pony) but this is good:
http://www.mediafreedominternational.org/2010/12/19/student-loan-debt-indentured-servitude
| Quote: |
The rise in higher education costs (which rose 80% from 1996-2006) combined with drastic cuts in public funding of colleges and universities has culminated in high levels of personal debt that threaten the financial future of young adults entering post-graduate life. As administered during the last decade, especially, student loans often create a vicious cycle of debt from which many young people find it difficult if not impossible to escape.
As a result of higher education being an expected step after high school, private student loan companies like Sallie Mae have gained tremendous power over vulnerable consumers. The 1997 amendment to the Higher Education Act removed all consumer protections for such loans, paving the road to success for the student loan industry while causing massive hardships for borrowers. Cozy relationships between banks and political leaders favors the policies that fuel loan industry profits and consumer debt.
Due to the financial meltdown of 2008 and the ongoing high rates of unemployment, it is taking young college-educated adults longer to launch well-paying careers which, in turn, prolong the time it takes them to pay off student loans. Further, an undergraduate degree holds, on average, less value than it used to, as far as guaranteeing a wage that surpasses the cost of basic needs. As a result, college graduates are encouraged to continue on to post-graduate education with still no guarantee of a remunerative career. This leaves students even more highly indebted.
In recent history default rates on these predatory loans have risen increasingly, with those for students attending for-profit colleges being the highest. This results in even greater interest rates on these loans. In addition, when students default on education debt, their credit ratings plunge, which may lead to an increase in the interest rate they incur for all other types of loans. Those who experience a decrease in their credit rating may also have greater difficulty in getting hired, as some employers consider an applicant�s credit rating before hiring. As many student loans now require co-signers, loan companies are guaranteed payment regardless of the financial status of the loan recipient, thus locking parents or guardians into unmanageable debt as well. |
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
