There has been a lot of hype recently about the Government wanting to create a more educated workforce in order to compete with other Nations on a Global Scale into the future. Yet it is our own Government (USA) that is continually making it more difficult for students who want to go to school to make their dreams a reality.

Loans to students are a cash cow for lenders and the system is ripe for abuse. What is important to note is you can not default on a student loan. The Government does NOT allow bankruptcy to erase student loans. Now you add to this the FACT That the United States Government guarantees student loans to lenders you can begin to see a scenario where the lender simply can not lose. It’s a near zero risk proposition. So what have private lenders don’t to help students – nothing! They have continually raised interest rates so they can become more profitable. Thank You Uncle Sam!

Here Mr. Banker here is all the money you want at 1% go ahead and lend it to students at 7%... if they default we will pay you for the loss. What? How does this create a situation where students can gain an education at a reasonable cost? Tax payer money feeding the Wealthy Bank Machine at the expense of our youth just trying to make a better life?

Student Loans are the 2nd highest profit centers for Lenders after credit cards. Think about that… higher profit than mortgages? Car loans? Wow!!! I bet you had no idea! I didn’t until I started to dig in and investigate.

Why is the Government letting this Happen to Students?

It didn’t have to be this way. There is no reason why the Government couldn’t administer the student loan programs directly and eliminate the middlemen, driving down the cost of education and capping interest rates. They can guarantee rates barely over a percentage point to lenders which are already receiving bailout fund and astronomical rates, but they can’t do anything for students – the very future of our country?

So why did this happen? The answer is quite simple. Congress decided that it would look better on the Government Balance Sheet if they shifted student loans from the Government Accounting Records to the “Private Sector”. This paperwork shuffle is ridiculous as student loans on the deficit pale in comparison to the Wall Street handouts and the unbelievable amount of money being pumped into the war machine.

There is so much “talk” about the importance of education and how we need to fund our schools, but when push comes to shove… it’s just that TALK!

Why should private banks be profiting from the desire of students to improve our economy in the Global Economy? The Government keeps feeding the Wealthy Elite at the expense of the working class. You simply can’t trust anything coming out of the mouth of a Politician. And it doesn’t matter if they are liberal or conservative – those are just labels. The bottom line is the American People are getting the short end of the economic stick while the wealthy just keep manipulating the system to take more and more.

If the Government were truly representing the American People they would immediately put and end to these abuses and put the people in a position where they can enrich their own lives, thus enriching the lives of the rest of us.

Students – Zero

Greedy Banks – well… you know the story.

Here see for yourself the cost of student loans- Some of the rates are as high as 13.38%!!!

Comments welcome