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Inforgraphic: The student loan racket, the next bubble to burst

Student loan debt, now at $830 billion, has surpassed credit card debt—a statement unheard of 20 years ago. Student loans, unlike any other form of debt, CANNOT be forgiven via bankruptcy—these loans MUST be repaid. Is this the next bubble to burst?

Great article and info-graphic:

http://www.healthcareadministration.com/college/

Enjoy




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Banks...

Banks can't stay solvent unless people take out loans. Americans have already maxed out their credit cards and bought houses they can't really afford so this is the new plan. Why else would we continue to push kids to go to college for jobs that don't exist? According to the Center for Labor Market Studies at Northeastern University, 40% of college graduates are employed in jobs that don't require a degree.

I found the following comment in response to the article posted and agree 100%. Private banks and government programs work in collusion to keep the money coming in. I don't think this poster would mind me reproducing their comment for purely educational purposes.

Russ_murray:
"The reason that education is so expensive is because of government subsidies in the form of student loans. There is no incentive for colleges to decrease costs because they can always rely on the customers (I mean students and parents) to get no-qualifying student loans for whatever amount is needed. If the free market (no government loans) were allowed to operate, you'd see a lot of these college institutions slash costs, merge, or go out of business."

This same idea can be applied to most things that the government gets their hands into including healthcare.

I also believe YumYum makes a very good point below as does dexterszyd in referencing the bankruptcy issue.

NOTE: I am not advocating violence in any way. The content of the post is for intellectual, theoretical, and philosophical discussion. FEDS, please don't come to my house.

Another gift from Bush years

In the past, some privately funded student loans could be discharged in a Chapter 7 bankruptcy. However, the law changed with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Now, any education loan that qualifies for a tax deduction is non-dischargeable, unless you show "undue hardship."

It's almost impossible to show undue hardship unless you're physically unable to work and your situation isn't likely to improve in the future. So, if your student loans make up most of your debt, it probably isn't wise to attempt this unless you're disabled.

http://bankruptcy.lawyers.com/consumer-bankruptcy/Student-Lo...

If you sign up with the Navy for five years, your student ...

...loan debt is forgiven. In any case, hyper-inflation will not save you from your student loan debt because the interest rates will go up with inflation. Millions of grads with student loans will join the military to fight in our up and coming WW3, just to be relieved of the student loan debt burden.

"I support the Declaration of Independence and I interpret the Constitution."

I still owe some college debt

but I don't plan on paying it. Sorry, but I got tired of Direct Loans "losing" my money whenever I sent in payments.

I don't care what the consequences are, they will NEVER see another dime from me. I tried to pay them back, but if they're going to outright screw me, then I'm not going to bother.

A signature used to be here!

What a racket

It never ends

For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.

This is excellent.

.

I know

A total masterpiece

For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.