January 10, 2011

College Debt Slavery in America is On the Rise

Now that the federal government is in charge of most college student loan debt, expect more of these sad stories. And don't expect the government to understand and forgive:

To collect on federal loans, the Education Department can seize borrowers’ paychecks, tax refunds and Social Security payments without a court order -- as much as 15 percent of a borrower’s disposable income.

The department is currently authorized to collect tax refunds and Social Security from 3.4 million borrowers. About 98,000 borrowers are having their wages garnisheed, the agency said.

In part because of those powers and the laws discouraging bankruptcy discharge, the department estimates it will collect 100 percent of the dollar value of all defaulted student loans.
The result? As one woman said, "I'm going to be in debt until I die."

Many college grads cannot find work. The days when a college degree guaranteed a job are over. Think hard before you send your children to college unless you can afford it without putting them in debt.

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