Predatory lending has created a generation financially hamstrung by student loan debt and if something isn’t done soon the economy will suffer.
That’s according to several financial experts who are worried about approximately $1.6 trillion in outstanding student loans owed in the country. About one in six Americans owe student loans.
Ohio is one of the states with the most student loan debt with a total of about $57.4 billion and with the average amount a borrower owes at slightly more than $30,000, according to the U.S. Department of Education.
The exact cost to forgive all student loan debt isn’t known but presidential candidate, Sen. Bernie Sanders, estimates on his website his plan would cost $2.2 trillion and plans to raise it through a Wall Street speculation tax. By comparison the Wall Street bailout in 2008 through the Troubled Assets Relief Program is often said to be about $700 billion, but Mother Jones Magazine reported the true cost through all the different programs was closer to $14.4 trillion.
Since there’s no way to get rid of the debt and federal loans have no statutory limits, the government has made money or broke even on student loans, which has led to schools to raise costs without repercussions.
This has in turn led to larger loan amounts being taken out, but with very limited protection for borrowers and regulation for lenders.
For the original article click here: http://www.sanduskyregister.com/story/201909250026