Category Archives: College

Ripping off young America: The college-loan scandal

Ripping off young America: The college-loan scandal

“A 2005 Wall Street Journal story by John Hechinger showed that the Department of Education was projecting it would actually make money on students who defaulted on loans, and would collect on average 100 percent of the principal, plus an additional 20 percent in fees and payments….

First of all, a high percentage of student borrowers enter into their loans having no idea that they’re signing up for a relationship as unbreakable as herpes. Not only has Congress almost completely stripped students of their right to disgorge their debts through bankruptcy (amazing, when one considers that even gamblers can declare bankruptcy!), it has also restricted the students’ ability to refinance loans. Even Truth in Lending Act requirements – which normally require lenders to fully disclose future costs to would-be customers – don’t cover certain student loans. That student lenders can escape from such requirements is especially pernicious, given that their pool of borrowers are typically one step removed from being children, but the law goes further than that and tacitly permits lenders to deceive their teenage clients.”

Read more: http://www.rollingstone.com/politics/news/ripping-off-young-america-the-college-loan-scandal-20130815page=2#ixzz2cYopDg6Z 
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Read more: http://www.rollingstone.com/politics/news/ripping-off-young-america-the-college-loan-scandal-20130815page=2#ixzz2cYngYGYz 
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