According to this article, the CEO of Sallie Mae has made so much money from the student loan business that he owns his very own golf course! The article is entitled, Student Loans — Do Criminals Have More Rights? by attorney Richard Gaudreau is rich with information and powerful links, including this one, A history of Student Loan Bankruptcy Exception. It’s important to see the history of how student loans became increasingly difficult to discharge in bankruptcy because some of this debt is likely to be noncollectable, due to its age.
I agree with the advice given by Mr. Gaudreau with regards to being a savvy student loan borrower. It’s important to understand the difference between a federal and private student loan, and subsidized versus unsubsidized loans. Borrow as little as possible to keep the debt down is my Number One piece of advice.
I think criminals do enjoy more rights under the law than student loan borrowers. You know what else I think? I think that capitalism is alive and well, now stealing America’s future by commercializing education. It all starts with a bright idea by our federal government that everyone should be entitled to an education, even if they cannot afford it. Next, private lenders are allowed to issue federally guaranteed student loans. With little risk to the lenders, loans are handed out like Halloween candy. Then, the colleges and universities jump on the bandwagon for this money by increasing tuition costs faster than you can say, “Shit!”
We are left with student loan debt exceeding credit card debt in the U.S. that is now more than $1 Trillion Dollars! Private for profit colleges are now being investigated for their use of federal student loan funds, known as Title IV funding and not providing the education or failing to monitor the federal requirements to be entitled to such funds. The most troubling to me is that recent graduates are not finding jobs and even if they are, the pay is not enough to repay the loans. Where do we go from here?