So we have your typical private lender that charges expensive interest rates for a student loan. These types don’t care much about you and only want you to take out as many loans as you can.
More loans equal more profit for them, especially since you can’t discharge student loans with bankruptcy and you don’t have any means of protection should you not get into the dream-job you thought you would get when you first enrolled in college.
Okay, so why not make tougher legislation that seeks to regulate student loans, protect the borrower and discharge loans in a declaration of bankruptcy? That is a very possible scenario in the near-future, especially since Democrats are pushing these agendas hard.
Now the banks and private lenders are high-tailing it out of the student loan business. US Bancorp, JPMorgan Chase and First Financial Bankshares have all – in one way or another – limited their participation in the student loan market. They have decided to cut and run while the pickings are still good and regulation hasn’t kicked in. Potential student loan borrowers are now left with fewer options, and the remaining providers have even more leverage over these already stressed-out borrowers.
It’s a classic case of damned-if-you-do-damned-if-you-don’t.
This is where the results of an abusive and exploitative student loan system have begun to take their toll on our society. Just like when the subprime mortgaging craze hit the country, big banks came in and indiscriminately touted their loans. They didn’t care whether the students can pay their loans back or not – all they cared for was more, more, more loans. And they didn’t worry about risk either, since student loans can’t be discharged with bankruptcy.
So now that we are turning our heads and fixing the system, we see the vultures leaving the student loan market just when things are getting cleaned up.
They claim the earnings just aren’t enough to justify their participation in student loans. The only thing I see are thieves running away from a “public service” they could no longer exploit while enjoying legal protection at the same time.