Newshoggers bring the startling news that total student loan debt is now over $1 trillion, more than total credit card debt, with a staggering $100 billion added on last year.
For the banksters, this is even better than mortgages. A fine educational establishment like Fleece U trolls for the desperate unemployed, signing up new students and then shoveling loans at them. The loans are then securitized just like mortgages. The colleges take no risk nor do the banksters (who of course get hefty cuts for doing little) because the federal government guarantees the loans 100%. How very cozy.
But it’s not cozy at all for students who find themselves owing large amounts and of course student loans are not dischargeable by bankruptcy like a bad mortgage can be.
Next time you watch one of those TV ads by your local franchise unit of America’s education industrial complex, ask yourself how many of those students will actually earn enough to repay the borrowed money by which they are getting their training program