Student Loans They Seem Like A Good Idea At The Time

Student Loans They Seem Like A Good Idea At The Time



Student Loans,​ They Seem Like a​ Good Idea (At the​ Time)
This is​ the​ time of​ year when every day seems to​ bring new graduation invitations for the​ class of​ 2018 in​ the​ mail .​
I​ began to​ wonder what it​ must be like to​ finally leave school with all that energy and excitement only to​ find out that you​ are now going to​ spend years paying off those student loans that seemed like such a​ good idea at​ the​ time.
The Centre for Economic and Policy Research reported recently that almost 65% of​ all students use loans to​ pay for their education .​
With many students racking up debts of​ $90,​000 or​ more you​ start to​ wonder what it​ must be like to​ live under that type of​ pressure .​
How do they manage to​ pay off these loans and still have a​ life? There are many areas outside Southern California where you​ could buy a​ very nice home for that amount of​ money.
Do we really need to​ put the​ youth of​ today,​ our future,​ under this type of​ pressure all in​ the​ name of​ PROFIT .​
The laws governing Student Loans are some of​ the​ most powerful laws in​ the​ land .​
Our leaders have insured that it​ is​ a​ MOST profitable business for the​ lenders .​
These lenders have more power than all other lenders .​
Credit card companies and mortgage lenders cannot do what Congress has allowed the​ student loan providers to​ do.
Sallie Mae is​ the​ largest student loan provider in​ the​ country .​
They employ over 10,​000 people across a​ number of​ states .​
Since they became a​ public company trading on​ the​ stock markets,​ their shares have gone through the​ roof .​
Let me outline why this is​ such a​ wonderful business for the​ likes of​ Sallie Mae .​
The loans they give out are all guaranteed by the​ government (sorry taxpayer),​ so whatever happens they get their money .​
This means,​ unlike a​ normal lender who has to​ calculate risk against reward before agreeing to​ give out a​ loan,​ for these providers there is​ NO risk,​ it's all reward.
It does not end there .​
Should a​ student default on​ a​ loan (almost 25% do),​ the​ provider then gets paid by the​ government (sorry taxpayer) and they are now allowed to​ send that debt to​ a​ collection agency .​
It's normal for the​ loan to​ double in​ size at​ this point .​
Sallie Mae owns a​ number of​ these collection agencies,​ the​ law allows that too .​
They now have the​ power to​ garnish your wages without having to​ go to​ court .​
They can also garnish your social security money,​ something no other lender can do .​
Sallie Mae is​ allowed under these laws to​ keep 25% of​ all the​ money recovered from the​ collection agency (that they own,​ nice business if​ you​ can get it) .​
Where I​ come from this would be called Legalized Mugging or​ Jobs for the​ Boys.
Most of​ these students can forget about getting married or​ buying a​ home .​
There main concern is​ where's next months payment coming from .​
Maybe it's time we showed a​ little more compassion to​ these students,​ after all they are our future.
Have an​ opinion or​ a​ question you​ would like me to​ answer,​ then write me! www.CarlHampton.com




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