I can tell you that a life of over $200,000.00 in debt at age 28 creates great anxiety. I am nervous and sad as I see friends getting married, buying houses, and taking steps toward indepedent lives. I feel unable to get a foot hold in life. I am a prisoner of debt. The formerly friendly loan companies make me feel like a fugitive, calling me at least six or more times a day. After having declared bankruptcy, I am denied the ability to rent an apartment. I have no savings and what little I had, one major loan copmany simply took directly out of my account.
My debt dictates my lifestyle today and into the future. There are still many people that believe that if you keep on "plugging", "keep your nose to the grindstone", you'll be able to succeed and eventually pay off your debt. Things do not work that way anymore, especially with private student loans. These loan companies now have full power to take advantage of students, the very people they promise to help. In point of fact, this is where some loan companies specialize their focus and make most of their monies. High interest rates, late fees and loans made on the speculation that students will possibly default, is where these companies focus their efforts.
In the 1970's, Congress began to remove standard consumer protections from student loans at the urgings of industry. Entities including Sallie Mae, USA Funds,(which was to be purchased by Sallie Mae in 1999), The Consumer Banker's Association, and others engaged in a deliberate long term strategy to make student loans inescapable, hugely profitable through not only loan payments, but also late fees, and default penalties. This campaign culminated in watershed legislation in 1998 that made student loans not only risk free, but also far more profitable when students defaulted on their loans. ...read more at studentloanjustice.org
Many people take the attitude that I should have known what I was getting into or they shrug and say, "Better you than me", or " It's not my problem". Well, it may not be your problem today or tomorrow, but chances are someone you know will be affected by this problem sooner or later. A record number of college students are now graduating with debt that hinders their ability to be good consumers. This affects our economy and slows both jobs and economic growth.
My story is just one of many. There are thousands more. I challenge you to go to STUDENTLOANJUSTICE.ORG . It will open your eyes as you read some of the victim's stories. Also, rent the documentary film, "MAXED OUT", http://www.maxedoutmovie.com. You can find this informative movie at your local video stores.
The American "buy now, pay later" mentality has become a run-away train, as we all watch our own government borrow from the financial future of the Social Security System to pay for its' current expenses. College students should not have to go deeply into debt just to get an education that has now become a necessity for employment.
