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The Industry of Student Loans

Mar 3, 2013 | Parents, Professors, Students

A word of caution from a graduate…

Dear Student Caring,

I was like a naive sheep walking into a wolf’s mouth with getting student loans. They capitalized $50,000 of interest at 14-16% up until the day I actually was able to start repaying. That means I’m going to pay more capitalized interest than most people ever spend on their entire college career.

Although I was stupid/naive, the industry of student loans is like a cheetah chasing after the younger prey. The industry is predatory lending. I loved my time in college, but college is not capitalistically worth what I need to repay. It’s shocking to me that student loan lenders are allowed to do lending like this with government protection. I can’t go bankrupt, although I would be bankrupt with the $2,400/mo payment that I’m contractually required to pay. Fortunately, I got them to lower my rate to 4% and payment to $1,300 temporarily. If these sharks had the risk of bankruptcy, I would not have this much debt because they would’ve never taken that risk on a young person who never had a job with no credit. Hmmmm…

This stirs me up. Thank you for being an adult educational professional advocate! People like me need it. Although I don’t morally think bankruptcy is the right option.  I’m now a slave. I’m fighting for my freedom!

–Fighting Salve

 

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