Obama just signed the Bipartisan Student Loan Certainty Act. It was cheered as a victory for students in higher ed because it keeps federal student loans at low interest rates through 2015. The victory is Pyrrhic.
The law is more accurately called the Debt Serf Pipeline Act because students who use the loans are pouring their financial futures down the insatiable drain of the state. Like the grads before them, they are likely to end up moving back home and working two minimum wage jobs, if they are lucky enough to get them. Their subsistence wages will go toward enriching the federal government which expects to make $184+ billion on the loans over the next 10 years. Because Congress excluded student loans from bankruptcy proceedings, there is no way out for this generation of grads. The debt collectors will dig them up from the grave, if necessary.
The number of young people who are on the fast track to serfdom is shocking. On August 20th the Education Department reported that…
Read the complete article at The Dollar Vigilante here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.