The Student Loan Bubble
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
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Hi There, Friends of Freedom:
As is my custom, I was sitting with my morning beverage today
looking through the investment and investor news
getting a handle on what the media might be talking about
that would spook my clients and de-rail them from the plans
we have put together to ensure that:
1. The family is properly protected in the event that they would “die too soon”
2. They are moving out of the “debt cycle” in order to get into the “cash cycle”, and
3. They are on the road to financial freedom, and will never have to worry about “living too long”
The following post
Student loan borrowers flood government website with complaints
found me. Hmmm… I had to learn more.
Liz Goodwin, of Yahoo News, wrote
Thousands of student loan borrowers wrote occasionally heartbreaking complaints about dealing with their debt burden to the federal Consumer Financial Protection Bureau, which is soliciting comments from people who have taken out private student loans to finance their education.
“My own children will not be able to get the help they need to go to college because I will STILL be shackled to my debt,” one woman wrote.
“I want to work hard, marry my girlfriend, buy a house, and start a family.
The consumer protection group asked the public for responses to help the Department of Education conduct a study on the private student loan market, and it published nearly 2,000 comments and complaints on its website. The group also released a student loan complaint system, where borrowers can report their grievances.
Private student loans often have higher interest rates than public ones and do not always offer income-based repayment plans for borrowers who get into financial trouble. Neither type of loan can be discharged in bankruptcy.
Many of the commenters say they are unable to pay their student loans or their children’s loans, and some complained that the loan companies have aggressively gone after their cash, driving them into poverty. Some borrowers wrote that they regret going to college altogether, or that they were uninformed about how quickly the debt would balloon. Many mentioned that they are unable to consolidate their various loans into one, lower-interest loan. A few people, however, wrote in to defend private loans, saying they had no difficulty paying them off.
To read the full article,
Student loan borrowers flood government website with complaints
Related Media
1. Student Loans Need Major Overhaul, Not Small Fixes (article)
2. The Student Loan Forgiveness Act of 2012 (H.R. 4170) – Bill Text (article)
3. Would the Student Loan Forgiveness Act Help You? (article)
4.
(video)
P.S. I AM Peter Pocklington. One of the things that drives me to be so passionate about my mission of teaching Main Street families “How Money Works” and coaching them along their road to financial independence is to avoid situations like these. We have been teaching people where paying for education belongs in a strong financial house. Ask “How much will this have cost me when I have paid the debt off” and you will make better financial decisions…