With all of this talk about the subprime mortgage market meltdown, I hope that this country doesn’t forget about the student loan scandals that are silently rocking higher education. Just as people were duped into loans that were bad for them, many students were duped into consolidating with organizations that provided a kickback to schools that referred a certain number of students.
If America wants to remain a country balanced between capitalism and socialism, then we cannot forget student loans. In other words, if this is a country where the free market can create situations where private organizations trick borrowers into signing mortgages that are inherently bad for the borrower and if this is a country where the people demand our government fix this “injustice,” then this also needs to be a country that does the same with ALL forms of financial contracts. That would include student loans.
Providing a bailout for the unfortunate masses who were tricked into signing these subprime mortgages means that we need to provide a bailout for those students who were tricked into consolidating with companies that had profit motives over the best repayment option for the student.
Leave a Reply