Let me explain what I meant when I said we were all on the hook for our Student Loans.
First, a simple if then statement: If you accumulated debt from a for profit university then I think your student loan debt should be lower than your current balance.
The abusive lending habits of many of these “universities” have been well documented. I have had friends that spent some time “recruiting” for these schools. Whether on the phone or in person. The story always centered around first signing up student for loans, then signing students up for class, and then letting them twist in the wind. In some cases the universities outwardly avoided them and sought out new students to enroll.
Brown MackieJust to name a few
I have done some of my own research and the interest rates on loans, as well as, the original price of the schools are outrageous. If I knew more about the ridiculous housing market crash of ’07 I’d probably make a comparison but I don’t. So I wont. But if someone reading this does please let me know.
Initial fees as high as 10% and interest rates of 16.25% just to pay for College. If that’s not predatory i’ll kiss your ass. Another of my favorite Jerryisms*. My own brother attended ITT Tech for two years and raked up even more loans than I did over any two years while I was attending Purdue University. For the purpose of comparison my FAFSA loans were locked in at 3.5%. Others at for profit universities were as high as16.25% Sad, but true.
2 years at ITT Tech
What is even crazier is the fact that he’s not alone. But much like me he signed a contract. Unlike me I believe he was a victim of predatory lending.
So what exactly is predatory lending?
Predatory lending includes any unscrupulous actions carried out by a lender to entice, induce and assist a borrower in taking a loan that carries high fees, a high-interest rate, strips the borrower of equity, or places the borrower in a lower credit rated loan to the benefit of the lender.Investopia definition
If the federal, state, and local governments are going to allow Universities, Pay Day Loans, and mortgage companies to act as mere corner bookey and fleece the American People I think they should at least be able to set some responsible guidelines.
But litigiously speaking if you signed the contract, irregardless of reading, you’re on the hook. Thankfully, as an adult I’ve never used any of these pay day loan businesses. But, as a child I remember one of my first driving lessons with my mom was driving her to the Check into Cash on 30 just west of 41 in Schereville.
We need the money now Kenny
I get it. I just don’t understand how any company, university, or lender can outwardly exploit the vulnerable. But that’s just me.