Stephen Lendman’s recent book titled “How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War” includes a chapter on America’s student loan racket. It discusses this issue in detail.

It explains a disturbing government/corporate partnership where students are exploited for profit. Providers are enriched. For many, rising tuition and fees make higher education unaffordable; others need large loans to attend. As a result of this they become debt entrapped.

Some students face burdens up to $100,000 or higher which if unpaid after 30 years, it becomes a $500,000 obligation. If one defaults or declares bankruptcy, that loan is unforgiven – the bondage is permanent.

Lenders thrive on the defaults. The whole idea of encouraging our children to take out student loans through advertising and school counselor’s office’s or in setting up the system to demand it is immoral.  Why are so many of the college Chancellor’s and professor’s receiving $250K to almost $1M including benefits as salaries?  Ask your legislators what amount of reasoning justifies that.

Wages can be garnished along with portions of 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.

Education today grows more and more unaffordable. Many students are priced out and can never attend. Others become debt entrapped. Growing numbers remain there for life which is set up as a predatory system and fleeces them.

Principal, accrued interest, late payments and collection agency penalties create enormous burdens to repay. Once entrapped, escape is almost impossible. Unless repaid, future lives and careers are impaired. Today’s economic crisis has exacerbated these conditions along with job opportunities being scarce. Ones for the higher education grads are even fewer.

Around year-end 2011, student debt exceeded $1 trillion which is staggering. It has been increasing nearly $3,000 per second. It exceeds credit card and auto loan obligations and is second only to outstanding mortgage debt.

Along with the long range plan to “Dumb Down Our Children” it is part of the grand scheme to transfer maximum wealth to America’s super-rich. It’s been ongoing for decades and under Obama, it has accelerated and yet legislators all over this country refuse to address the real issues surrounding education.

Consumer Financial Protection Bureau deputy director Rajeev Date compares student loans to risky mortgages. Its extraordinary growth has surprised many. Its roots, in fact, are deep. Its “cast of characters” includes college marketing officers, state and federal lawmakers, administration officials, and predatory lenders, guarantors, servicers, and collection companies.

Loans are easy to get – they are tough to service.  For many in today’s job market, they’re impossible. Onerous debt has escalated to greater amounts creating a vicious circle entraps graduates and dropouts for life.

Since crisis conditions erupted, states and cities nationwide slashed budgets and for most states Education paid heavily.  However, states need to take some of the responsibility in this since they have not only engaged in the “No Child Left Behind” project, now most of the states decided to join into “Race To The Top” and the Common Core Standards  simply because the Federal government invited them to “play a game” for – what else “MONEY”! 

These programs are not teaching our children what they need to advance out in the world to be able to support themselves. In most states 45% of entering freshmen in college have to take “remedial” classes in Reading and Math which is not only slowing them down but costing them more money.  

At the same time, tuition and fees keep rising exponentially. If this current trend continues “through 2016, the average cost of a public college (education) will have more than doubled” in the last 15 years mostly due to the high salaries being paid to university “educators”.

Obama has not only allowed a bad situation to fester, but he has used these college age students as a pawn through the unions to protest and cause damage and disorder all over the country. 

Nearly 10% of borrowers who began repayments in 2009 defaulted in two years and has doubled the 2005 rate. Economists say the issue “hangs over the economy like a dark cloud for a generation of college graduates and indebted dropouts.”

Nationwide from 2001 – 2011, state and local per student financing dropped 24%. Over the same period, state school tuition and fees rose 72%.

Very few students and parent’s understand what they’ll face. Colleges recruit students aggressively, financial aid is touted; fine print language is a “minefield” to understand.

Some are written in a manner that suggests the student is getting a great deal, by blurring the line between grants and loans or not making clear how much the student may have to pay or borrow. College admissions staff do not explain all the rules.  While there are standardized disclosure forms for buying a car or a house or even signing up for a credit card, no such thing exists for colleges.

This is just another in a long line of problems regarding the Education system as a whole in this country and until we eliminate the Federal Department of Education or at the very  least appoint State School Board members and legislators who sit on Education Boards people who have a background in education, are children are doomed. 

I do not want the readers to think for one minute I am trying to let those that have had student loans for 20-30 years and never made a payment off the hook. I have no patience for them or their irresponsibility.

I am addressing is that once again the “moneychanger’s” have found a way to get their clutches into unsuspecting individual’s and this time it is our children. The Federal government wants our children destroyed, the moneychangers want more money and the State governments have not a clue what they are doing.

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