Private student loan bubble could burst!
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Kristin Cole, 30, who graduated from Michigan State University's law school and lives in Grand Rapids, Mich., owes $150,000 in private and government-backed student loans. Her monthly payment of $660, which consumes a quarter of her take-home pay, is scheduled to jump to $800 in a year or so, confronting her with stark financial choices.
"I could never buy a house. I can't travel; I can't do anything," she said. "I feel like a prisoner."
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Your comment is very interesting testimony.
What we should do is widen the concept: the debt trap is everywhere notably the housing debt; that's how the farmers in the twenties lost all.
It's the same game even in the very global scale:
http://hubpages.com/hub/Confessions_of_an_Economic
So you see, it's always the same thing ... but most people won't recognize it before it is too late.
Financial Abuse on the part of Government? Anyone with me on this?
Emplives says:
2 years ago
Oh I soooo feel the pain of this. I've figured out all too late how huge and profitalbe is the game of private colleges and the loan companies that suck the money out of us. I went to NYU for my undergrad, and still paying my wonderful student loan. First they make you feel infirior if you even consider a public college, then they suck you out of every penny while you are in school, and then at the end the leach your income for anouther ten to twenty years. And it got worse and worse since I got out of school. I get more consolidate your student loans offers in the mail then credit card offers.
When my sister graduated chigh school, I convinced her to go to a good public college in NYC to get her degree and I will recomend that to anyone one outthere. DO NOT WASTE YOUR MONEY ON PRIVATE schools. They are biggest money machines in USA. In New York City Catholic Chursch is the biggest land owner, and it would make sence with all the churches, shcools etc. Guess who are constantly competing for the second and third place - NYU and Columbia University. And they don't just own RE for their scholastic pursuits. They got tons of it as just residnetial and commercial RE for rent. Talk about tax free income. But the only way they can stay in business, is to attract lots of middle class families to take huge loans to give their kids that special experience. Makes me sick. :(
Hm.... Maybe I should write a hub about it! :)