Student Loan Consequences: Real, Costly, and Personal
The consequences of making low-interest loans to unqualified buyers created the real-estate bubble that popped in 2007, resulting in the Great Recession. According to Gary Jason at the American Thinker, itâ€™s about to happen again, only this time over student loans. He wrote: â€śThis bubble has been fueled by the federal governmentâ€™s lavish subsidization of the student loan program â€¦ in a way similar to how the housing bubble was fueled by government agencies pushing subprime mortgages.â€ť
Under the Student Aid and Fiscal Responsibility Act (SAFRA) signed into law as part of ObamaCare in March of 2010, students may borrow money directly from the federal government regardless of their credit score or any other financial â€śissuesâ€ť they may be facing. They are not priced according to any â€śindividualized measure of riskâ€ť nor are there loan limits. They are instead politically determined by Congress with...
I got burned for student loan back in 1967. A two yr Jr college which in my last year with one semester to go the from the gov came up short. The gov would not correct the shortage and the school kept the sent to them. I was not allowed to continue school. Yrs later 2002 I ended up paying the loan back and what did I get out of it....NOTHING... .
Thank God my wife's student loan will be paid off in a couple of months. She last went to school ten years ago! It's taken $100 a month out of my paycheck for years. One reason I believe schools cost so much is because they know students get federal grants and the schools find out ways to get their hands on that money by coming up with ways to increase tuition and fees, etc.
I have made many mistakes in my life, chief among them was taking student loans to finance bad education at bad colleges and now having no realistic means to pay off these loans. Avoid this cursed trap.