The fuse on the student loan nuclear bomb has already been lit….millions of Americans are trapped and soaked in the radiation of debt that will undermine what’s left of this nation’s zombie economy. We’ve taken millions of potentially prosperous consumers out of the equation. (And apparently consumers is all the economy we decided to make….not workers or builders or savers.) But that’s off the subject, the trillion dollars in debt outstanding create a mountain that is insurmountable.
The post below is a general outline, we all really need to be digging deeper into the role securitization and the servicers play in this hell we’ve created….
And what exactly is going to happen when all these college grads realize just how grievously they’ve been screwed? Well they ain’t just gonna live at home and wear their barista aprons forever….read this from a guest post:
Student loan debt has now surpassed $1 trillion, and the situation has gotten so bad that there are Americans who are having their Social Security checks garnished to pay off outstanding loan debt. Meanwhile, recent graduates sit in a precarious position of underemployment, combined with doubling rates and rising monthly bills as their loans are sold from one lender to another. It’s clear that we’ve reached a crisis point. But what got us here?
There are several places where we can lay blame: colleges, for becoming so expensive and ignorant of student finance, the government, for restrictive policies and inflating prices with student aid, private lenders with predatory tactics, and even students for allowing themselves to get in too deep. The fault lies not with just one, but all of these student loan villains, who have all done their part to bring us to a very real point of trouble. Read on to learn in detail how each of these groups has played a role in the destruction of student loans.