Student loans to be the next subprime mortgages?

With the funding for education shriveling up while costs skyrocket, borrowing is a necessity to pursue a college education. The student loan debt bubble is at $1.2 trillion and growing. Just like before, "when Wall Street speculators wanted a market for subprime mortgages, they created high-risk derivative securities that bundled the mortgages to sell as investments. The speculators have done the same for student loans."

Most of the loans are subsidized by the government and are now being packaged as SLABS, student loan asset-backed securities. Even more troubling "The income stream is nearly guaranteed to pay off because the loans are next to impossible to discharge in bankruptcy.."

As was noted in a recent post, Dept of Ed. hounding borrowers for loans the admit are illegitimate, even bogus debts have no means of being discharged. So go get an education, ranked as a high school equivalent compared to other developed countries, and start off with a nice heavy set of debt slavery chains weigh you down in a cubi-kill or some other soul-draining employment.

Dept. of Ed hounding borrowers for loans they admit are illegitimate

This is not the first time the Department of Education has discredited an educational institution but kept borrowers on the hook for debts that should be discharged. The article discusses the recent bailout and dismantling of Corinthian College and compares it to Wilfred American Educational Corporation. The bogus beauty schools that were WAEC resulted in a remaining 60,000 in loans the Dept. of Ed is still enforcing as legitimate.

Lesson from these aspiring students, the chains of debt slavery are a priority, not your education or freedom.

I personally analyzed the student loan system in 2006 while experiencing skyrocketing education costs at Humboldt State University, part of the California State University system. I figured it creates more profits and more life-long debt slaves for the lenders while education and access suffered. Major education lender Sallie Mae was a government entity floated into the private sector that soon after my research was in the midst of a scandal in the mainstream news. Here is a good article on that, Leading Lady: Sallie Mae and the Origins of Today's Student Loan Controversy.