Defusing the student loan debt time bomb

Published 10:31am Tuesday, February 25, 2014
  • Deb

    great article Danielle, and I couldn’t agree more!

  • Danielle Keyser Butler

    Thank you. It is all true. There currently exists no protection for students and the run away inflation of college costs must be addressed if this country is to succeed and al other generations be able to move forward. As it stands, the student loan industry is so predatory that it keeps young college graduates and older graduates from being able to participate in home purchasing, auto purchases and all other manner of commerce.
    Defaults and bankruptcies were much, much lower when basic consumer protections were afforded to students. Because the loan holders and schools had reason to work to keep costs fair and equitable for all parties concerned. It bothers me greatly to know that companies such as Sallie Mae have bullied young people to taking their own lives because of trying to obtain a college degree. There is something horribly wrong and basic consumer protections must be returned. For even one student to have committed suicide over this issue speaks volumes about the industry as a whole. Something must be done to fix this issue. HR 3892 would do a great deal to setting past wrongs right, and possibly save a life.

  • Anthony_Eller

    Great letter to the editor! A student loan system that could truly help our children…. the very future of our great country that is being taking away by the very people we are electing to represent our best interest. When it takes $7 Billion by some estimates to elect the President and our Congress the last election….. so many favors are owed that a select few are being allowed to destroy the very thing that is hope of our great Country our children’s education

  • Ed McKinley

    It’s time to teach our younger generation a real lesson in personal responsibility. We need them to know the true value of honesty and integrity in personal finance and government. That is why it is so critical at this time that we restore ALL free market consumer protections to ALL student loans. Our young people and families have, by and large, done everything they were told. They were told they MUST go to college if they want to live better lives. They were told that they should follow their dreams and when they decided to study in the arts and social sciences they were told, “good,” and they were handed the money. They were told, all their lives that in America we do not tolerate predatory and corrupt lending practices. They were told to avoid unnecessary debt, but then they were told that student loan debt was good. They were told that the additional income due to college would more than make up for the cost. They were told to believe that the risk was minimal. While many blame borrowers for not understanding the terms of the loan they signed it is often overlooked that the terms have changed many times and yet they were still obligated.
    They were NOT told what the very real and potentially catastrophic risk would be if they stumbled. They were not told the truth about the default rates which were claimed to be low when in reality they were running @ 33%. They were NOT told that these loans were NOT like any other in that they were laced with perverse incentives by the schools, lenders, servicers, collectors and even the government to fail because defaulted and distressed loans were MORE profitable than those paying on time. And I can go on and on.
    So, how about that lesson in personal responsibility ? Let’s do the right thing. Maybe we can restore some of their trust too.

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