John Hechinger of Bloomberg News has unearthed the unsavory practices of the “debt relief” industry.
These are loan sharks that advertise that they will help people pay off their students loans, then charge them as much as $1,600 for services they could get for free from the government.
It is a good business, but it preys on uninformed people.
It is best to be informed, know your rights, contact your Congressman’s office to find out what is available before falling for these lures.
Diane Ravitch's blog 
On top of this, http://www.nytimes.com/2013/07/11/us/politics/democratic-rifts-stymie-senate-bill-on-student-loan-rates.html?smid=fb-share&_r=0.
We are creating generations of young people to go into debt before their careers begin. On top of that, how can they pay off these loans when there aren’t any jobs. This is not a country that is investing in America’s future–especially for the middle and lower class. There aren’t any good paying jobs. The jobs report is phony because these are minimum wage jobs with no benefits.
I would advise any college freshman wanting to become a teacher not to apply for a loan.
The job may not be there in 4 years with so many schools closings and budgets being slashed. But that seems to be true for many professions. I would never want my loan to be tied to the Treasury. It’s fine when interest rates are low, but they are rising now. When I bought my apartment, the rate was over 14%!! This is why a low fixed rate is the only possible solution.
Yes indeed. I met a U of M senior yesterday, major in geology and environmental studies, whose parents were immigrants from Ecuador, who are paying for her education. She had no debt. One can always have what one’s daddy will pay for, but if your daddy is the Federal Government, your tuition loan comes from other peoples taxes. You can call it “investing” but in reality its socialist theft.
Nice to have a daddy with deep pockets. So should college be for only those who can afford it?? And how is a loan “socialist”?? Banks do it all the time and since it’s with interest, they make a profit. I think you need to learn the definition of a loan. It’s not a handout.
If it weren’t for the gov’t loans and grants, I wouldn’t have gone to college. My parents were alcoholics who spent everything they had on their addictions, expecting me to pay for my own clothes and shoes with my high school job (forget about a car and gas like all my friends).
I guess you think people like me don’t deserve a college education? Or only if I go to the loan shark banks?
Of course you “deserve” an education in the abstract, but if you have a right to and education then someone else must have a duty to contribute to it. In general, we impose that duty in the form of taxes. As long as you are comfortable having the government be your daddy, and you pay back the loans, no prob. But, do realize that “the government” is “taxpayers,” and you don’t have a “right” to a taxpayer subsidised loan.
It may be good public policy for a society to make such loans available to young people whose parents are corrupt and irresponsible in some way, but, it is a kind of charity, and when our democratically elected representatives try to provide everything for everyone, you get a big budget deficit which simply cannot be paid back at current rates of taxation.
You personally benefitted, and I’m glad you did, and now the question is, are you still supporting Obama whose idea is to buy votes with taxpayer funds or have you adopted the old fashioned American virtue of independence? Do you want a government guaranteed loan on a home? Do you want your student loans forgiven. Do you expect the government to now give you a job?
I sense a slight hostility to banks, and that may be justified. But, really, what’s your fundamental value in life, freedom or dependency? You had a hand up and you made it to the top of the cliff. Well and good. Go out and help others if you wish. But don’t compel me to help if I choose not to.
Wow..
You don’t even hide your hatred. “Corrupt and irresponsible parents???”
Student loans should be at a low fixed rate. It’s called Commerce!!!
Do I believe that every American should go to college? NO!! And not every Democrat loves Obama. I don’t. So stop with your generalizations. But most of all, your bigotry is truly ugly!!
Bigotry? I just don’t see it. Aren’t a couple of alcoholics irresponsible and corrupt? I agree that student loans SHOULD be at a low fixed rate, but currently the interest rates were subsidised by tax payer contributions. It’s just a fact. When one borrows money for any purpose one pays was the market rate is unless other people’s money is subsidising the rate. If you feel comfortable letting other people subsidize your loans, well, fine. But you don’t, nor does anyone, have a “right” to a low rate. Isn’t the great American idea freedom and independence, not freeloading off others?
So all these parents who can’t afford college are alcoholics?? Your comment was a a generalization. What about the ones with jobs who are also taxpayers and pay their bills on time, but still can’t afford college.
And yes a low fixed loan does not come out of your pocket. In fact, it interest means the government makes money not loses it. Student loans are not subject to bankruptcy. It’s a win-win situation.
Meanwhile do you have any problems with states using taxpayer dollars to subsidize Teach for America, many who come from privileged backgrounds?? Why should my dollars help pay of their loans, and provide them housing and a job they will leave after 2 years??
And yes, your I do feel your statements show a deeper hatred.
It has become perfectly clear that our leaders are intent upon eating our young. In the long run it won’t work, but they only care about the short run and how much money they can make in the deal.
This is why student loans are the only loan you can’t get rid of in bankruptcy. Eating our young indeed!
That’s why Harlan’s comment was so stupid. These loans must be paid back. It’s not a handout. It’s not socialism.
It’s commerce!!!
The Fed is not doing any better than the private loan industry. From the great David Dayan: http://www.salon.com/2013/07/12/new_student_loan_“fix”_is_a_sham/
This is a little misleading, honestly. The problem is that it’s difficult to differentiate between the quality companies and the ones who are out to take you for a ride. As with anything else, it’s up to the consumer to do their research. Look for reviews, testimonials, suggestions from friends, in addition to reading consumer reports on debt relief companies before choosing one that’s right for you.