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Student debt crisis watch: pay $18,000 of your $24,000 loan, owe $24,000

mostlysignssomeportents:

Kaitlin Cawley finished grad school with $95,000 in student loans, including a $24,000 variable-rate loan that started at 9.4% and now stands at 11%, a loan that the US government lender Sallie Mae brokered for her when she was 20.

Sallie Mae’s portal makes it almost impossible to find out how much you’ve paid into your loans; after a lengthy runaround, Cawley found that she had paid back $18,000 of her $24,000 loan, but that she still owed the full amount, thanks to sky-high interest and stiff penalties the government assessed against her because she opted to save tens of thousands of dollars by going to grad school outside of the USA.

Cawley comes from a working-class background and her family was not able to substantially offset the expense of her university. She attended anyone, convinced that postsecondary education was the path to social mobility. Despite an advanced degree, Cawley lives in relative penury, largely thanks to her student debt.

Americans owe $1.4 trillion in student debt. Student debts are largely not dischargeable through bankruptcy, and is the only form of debt that you can be forced to pay your Social Security into.

The President of the United States has declared bankruptcy six times. His university defrauded its students of millions of dollars, which they are still paying back. He enacted a policy that makes it impossible for defrauded students to escape their loans; while his Secretary of Education has killed the rules that prevented debt-collectors with a track-record of committing illegal acts from collecting student debts.

Last month, the student debt industry’s top expert was revealed to be an imaginary person, puppeted by industry executives.

https://boingboing.net/2018/05/17/debt-traps-2.html

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