The Most Oppressive Debt- The Banking Scam You Never Hear About
As a former student organizer and staff of the US Student Association, I always have an eye out for stories about access to higher education, and the affordability crisis. Not only are there few stories, but they usually focus on the impact of rising tuition. The analysis (if there is any) is it is caused by more cut backs in state funding. There's little to no analysis of the declining value of the Pell Grant.This segment on Democracy Now is astonishing. Like I said, I know more than the average person about student loans, the impact on students, and on access to higher education for communities of color; and I am amazed at the analysis and the evidence here of a student loan racket and wholesale ripoff. You have to watch it for yourself starts 13 minutes in (scroll down for audio or the written transcript).
They show clips of Defualt: The Student Loan Documentary, from the website,
"While the media has focused on the disaster that sub-prime mortgages have turned out to be, only superficial attention has been given to financial giants which have been profiting by approving loans to low-income students with variable interest rates up to 25%."
Another guest, Alan Michael Collinge, author of The Student Loan Scam: the Most Oppressive Debt in US History--and How We Can Fight Back, talks about his personal experience with the student loan industry and reveals how private banks have created a perfect monopoly and racket in student loans that even the mob would envy. His website www.StudentLoanJustice.org is fantastic- it names names.In addition to extraordinary and arbitrary fees, student loans have been stripped of consumer protections, not just bankruptcy protection, but truth in lending laws. Under the banking protection laws, it is in their financial interest for students to default- you owe them WAY more, AND they still collect. This graph will help illustrate that profit motive.
