Student Loans Suffocate Graduates
To The Reader’s Forum:
Selling out the future seems to be a option for government since I was a kid in the sixties.
I have been working with a young man who borrowed around $38,000 in student loans for school. He was laid off for an extended period and was only granted an deferment for part of the time so needless to say he went into default. He then moved several times due to job changes and economic reasons so his mail did not keep up with him. When the mail finally caught up he was three years in default.
He now had a job he could support himself with, so he contacted the student loan center to start making payments where he found out a judgement was being put out and they would take up to 15 percent of his pay to clear up the loan. Well let’s go eight years later. He has been paying $350 per month for all these years only to find that in default they need $1,380 per month not the $350 he had been paying. I spoke with the repayment center and if he will pay an additional $1,380 per month for a year on top of his 15 percent taken from his pay there is a chance they will rewrite the loan and drop the interest to a lower rate like 2 to 3 percent, but because his loan has now ballooned to well over $120,000 there is no way with payments in the $1,400 range he will ever own a house a new car. His credit is totally destroyed.
This is what easy money has done to the youth of America. I find this an atrocity. This is many times worse than the housing bust. We are looking at a new generation of kids who will just plain give up. Can we blame them? Pay my head this needs fixed and fixed quickly or this country is doomed.
On second thought maybe that’s what they have been working towards for the last 75 years’ total dependence on government. a.k.a. social welfare.