You think Fraudclosure is bad….well hold onto your hats because you ain’t seen nothing yet. The coming war over student loan debt is going to make Fraudclosure look like a lazy warm up for an Ironman race. (more on that later)
The economics and politics behind student loan costs and inflation are far more disturbing than the sub prime bubble. College tuition has increased more than 5% each year over the last 5 years, with other costs (like textbooks) continuing to increasing exponentially. The class of victim preyed upon in the student loan scam are necessarily not as sophisticated as those who engineered the system against them.
Now the reality for most students is utterly impossible….they’ll graduate school hundreds of thousands of dollars in debt….debt with creeping interest rates…debt that cannot be bankrupted and….as a practical matter, debt that can never be repayed.
Total student loan debt in this country will exceed $1 trillion dollars…..and thanks to the magic of compounding interest (and a declining economy) it’s a debt that this country can never be repaid!
And just like the subprime loan boom, the same players exist in student loan…..Fannie Mae, meet your cousin Sallie Mae! And then lurking right below the surface are all the banking players who are siphoning off the interest and fees….for the rest of the student’s life!