Student loan debt driven by corporate mafia
The mafia banksters who run the student loan financialization scheme are no different. Now Obama is touting his 20/20 educational program. If you have not heard of it do not be surprised. You won’t find it on MSNBC where the Nation magazine seems to have found a home for its rising stars. Nor will you find it in Ruppert Murdoch’s Fox News or his Wall Street Journal, another corporate bulletin.
The Obama 20/20 Plan for Higher Education
Obama’s 20/20 plan seeks two things:
1. To increase graduation rates from colleges to at least 65% by 2020. As if a college degree is currency for anything but debt peonage.
2. Increase student performance requirements using standardized testing and beginning in high school where counselors are being used to hand pick those who will enter the corridors of educational power and those who will not. Yet be it a community college or Stanford, the plan is the same. To have ‘standards’ laced to industry needs as the rubric which teachers are to use to ‘assess performance’. It is basically a school-to-work racket with one component missing — there is no work.
All of this is being pushed, or better said, marketed to students who have little chance of getting any employment under capitalism. Technology is replacing workers, including teachers, and moving jobs overseas under phony trade deals which has left America bereft of anything resembling productive work, let alone the need for a college degree.
Monetizing and financializing students and college degrees is good for the criminal banking mafia that loans students money at usurious interest rates and then uses their goons, the collection agencies, to intimidate and even “go after students” by garnishing wages, harrassing them with threatening calls, taking their Social Security if they live long enough and if it is still a viable program, and garnishing wages.
This is Obama’s educational program and it is being run by the Lumina Foundation and Bill Gates, both ‘Dons’ for the Department of Education where clueless foot-soldier Arne Duncan simply afixes his name to any legislation crossing his desk.
Obama agrees with using debt to get an education for he himself told students at the University of North Carolina that he knows what it is like to struggle with student loan debt because he and his wife didn’t pay off their student loans until eight years ago. This is the Clintonesque, “I feel your pain” rap.
First, here is what President Obama said about his student loans:
“We only finished paying off our student loans off about eight years ago. That wasn’t that long ago. And that wasn’t easy – especially because when we had Malia and Sasha, we’re supposed to be saving up for their college educations, and we’re still paying off our college educations” (http://abcnews.go.com/blogs/politics/2012/04/behind-obamas-definition-of-wealth-and-paying-off-student-loans-2/).
Obama supports student loans as opposed to universally free education, just like he supports corporate health care instead of universally free health care. Why? He works for Wall Street, that’s why. He is little more than the civilian face of a caustic military government run by criminals.
The Default Rate
The default rate among students is astonomical and of course, under reported just as is the unemployment rate or rate of inflation.
Lifetime indentured servants is what colleges are teaching students. Not much else. For schooling under capitalism is all about getting the ‘degree’ as a ticket for the new American Scheme — the great college hoax. The “degree” like the “mortgage” is an IED waiting to go off.
Take a look at the mafia math:
Posted 31 December 2008 – 06:04 PM
“I took a personal education loan from Sallie Mae in 2004 – not a Federal Student Loan of any kind. Amount borrowed $8850 at 8%.
I’ve been making payments on this loan since. I have not always been timely, sometime 30-60 late, but always catching up with the late fees included. At one point I took a 9-month forebearance which added $980 in capitalized interest. At some point, because of my payment history, they raised the interest rate to 12%. I’ve made all payments on time now for almost 1 year.
Today I am doing end of the year financial work and looked at the details of the loan online. As of today my remaining PRINCIPAL balance is listed at $8690 – with 72 more payments of over $177 totalling over $12,000!! I also went back and added up the total of all payments made to date: $7395.
How in the world can they legally get away with making me pay almost $20,000 for an $8800 debt? Even with mortgage ammortization the numbers don’t add up like this.
I know fighting with Sallie is like taking on the mafia, but is there ANY recourse I have here? Has anyone had ANY luck challenging the evil Sallie?”
In this milieu of despair, the Department of Education is scurrilously ramping up collection efforts with steady speed. The neo-liberal state has teamed up with seedy private debt collectors who earn up to a 16% commission for arm twisting students with threats and intimidation to collect student loan repayments. You can be sure many of the employees of these mafia goons were once recruiters for the for-profit colleges that swindled hundreds of thousands of students out of an education while going through their pockets. Now, you as the taxpayer will clean up the mess why the ‘lenders’ laugh all the way to their Cayman Island banks.
This chummy relationship between the mobsters who perform the leg breaking collections and the government that sanctions them to the tune of $10 billion dollars in fees, immorally incentivizes mob-like collectors to conceal cheaper repayment options, lie about possible consequences, and threaten student debtors.
If you have not seen ‘The Godfather’ it might be a good time to review the movie or read the book for it is a metaphor for America.
Not only is the student loan debt over one trillion dollars and counting, but tactics now being contemplated for throwing students up against the wall, frisking them and demanding payment are escalating.
Bloomberg had a very interesting article about a congressional bill that was introduced that would force employers to withhold 15% of an employees’ paycheck to pay for student loan debt.
Congress will consider overhauling debt collection in the $100 billion-a-year U.S. student loan program, replacing it with automatic withdrawals from borrowers’ paychecks tied to their income — a system used in the U.K.
Legislation that Wisconsin Republican Representative Tom Petri plans to introduce as soon as this week would require employers to withhold payments from wages in the same way they do taxes. Payments would be capped at 15 percent of borrowers’ income after basic living expenses.
The bill follows growing concern about the burden of $1 trillion in outstanding student loans, which now exceed credit- card debt.
This is all criminal but yet all legal. So how does this work? Easy, like a charm. Capitalism is a criminal enterprise and any institution that serves it a criminal accomplice in crime. Student loan debt and the financialization of students as commodities is in full gear and leading the charge is the Obama administration with its mendacious lies about the importance of college and education when it is the college degree that is the real prize at the bottom of the cracker jack box. Unfrotunately like most cracker jack prizes it is made of plastic and will end up in a land fill.
The whole cruel hoax is the next big bubble to burst as I stated on Russian TV in 2010. Soon, if you are fortunate to find housing as a student on someone’s couch for $650 a month, you can count on the debt collectors to go through your sofa cushions when you are not at home looking for money to prevent the next Wall Street induced crisis. But it will not work. Only a debt jubilee will staunch the bleeding.
Meanwhile students face drug abuse, no educational future, no jobs, and a deracinated landscape of criminal activity, prisons and mounting suicides.
As we celebrate the holiday spirit with all the lofty talk of community and friends look under your tree or peruse your stocking stuffers for the debt bills that will drive you into economic purgatory.
To see an excellent graphic about how the loansharking scheme works go to:
This is truly American Exceptionalism at work and if you don’t doubt it, then look at Sweden where students get paid to go to college and education is considered a human right not a commodity to be bought and sold in the “free market”.