Student Debt

“Education’s purpose is to replace an empty mind with an open one.” ~ Malcolm Forbes 

In my humble opinion…

Education’s purpose, is to replace good credit with insurmountable debt.

With the high cost of college, it has become impossible for many Americans to obtain a higher education without taking on debt.

One can take on debt in several different ways, and because I care about people, I’d like to compare and contrast two of those ways.

1.) The Loan Shark: 

A moneylender who charges extremely high rates of interest, typically under illegal conditions. These thick necked, gold chain and diamond pinky ring donning lenders will gladly lend you all the money you need. You may end up in their employ later, or you may end up sleeping with the fishes. 

2.) The Student Loan:
 

“A student loan is designed to help students.” Right. This is a purely mercenary venture for lenders. They will lend you all you need to pay for university tuition, books, and living expenses, and claim to offer interest rates “substantially lower” than other types of loans, but I beg to differ. Fixed interest rates for student loans are advertised as ranging from 6.5% to 13%, and a variable rate might start out at 5.5%, but could go as high as 18%. I suppose the term “low interest” is subjective.

These kindhearted selfless lenders offer you the option of deferring repayment until after graduation.

What might a student with a parent co-signer who has an excellent credit score be offered? A $10,000 loan might be offered at a “low rate” of 8.9%. If the option of deferring payments until after graduation is exercised, junior will end up repaying $25,000 over the course of fifteen years. 

Once junior has moved back home, into the workout room that was once their bedroom, he/she will have to make a lot of mocha soy lattes at their post-grad job at Starbucks to make those monthly payments…and they will make those payments. Laws are strict regulating renegotiating and bankruptcy.”

Organized crime:

A category of transnational, national, or local groupings of highly centralized enterprises run by criminals who intend to engage in illegal activity, most commonly for money and profit.


Banks: 

A category of  transnational, national, or local groupings of highly centralized enterprises run by white collar criminals who intend to engage in activity protected under the law, most commonly for money and profit.

What is a single mom to do? I am open to suggestions. 
I can already hear the responses: “You should have saved more.” In a perfect world I might have. Middle income earners never win in this country, regardless of their marital status. 

______________________________

June 16, 2016, One Word Daily Prompt: Open~ <a href=”https://dailypost.wordpress.com/prompts/open/”>Open</a&gt;

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