July 23, 2017 Disclaimer: Please read.
Statements and opinions expressed in articles are those of the authors, not Truthdig. Truthdig takes no responsibility for such statements or opinions.
Revealed: How Wall Street and the Government Profit From Student Debt
Posted on Jun 29, 2016
It’s no secret that student debt is one of the biggest crises young Americans face today. And you’ve probably heard some of the numerous accusations against Wall Street for its part in the debt crisis. But a new report on Reveal News, produced by The Center for Investigative Reporting, shines a light on the outrageous profit made from student debt by big banks, private investors and even our own government.
The authors, James B. Steele and Lance Williams, use anecdotes to illustrate the struggles of living with student debt. “My loans are a black cloud hanging over me,” says one woman who owes more than $90,000. But they also report the stories of those who profit—such as an elderly executive whose golf course and several houses were paid for with money he made off the student debt industry.
They also acknowledge the historic shifts that have brought the situation to a tipping point, writing:
Student debt isn’t an insulated problem, either—it will certainly “exacerbate income inequality for decades to come.” The authors also explain that it isn’t just top Wall Street CEOs who profit from student loan debt, but the Department of Education as well. After student loan administration became privatized in the early 2000s, the department began to contract with private companies. Now, the authors write:
As the 2016 election season heats up, presidential candidates Hillary Clinton and Donald Trump both have made proposals to fix the broken system. Given the long history of profit made by the government, as well as the millions of dollars spent on lobbying by big banks and investment firms, it may be hard to reform. “As for the student loan industry,” states the article, “it keeps rolling along.”
Read the entire article here.
—Posted by Emma Niles
Banner, End of Story, Desktop
Banner, End of Story, Mobile
Watch a selection of Wibbitz videos based on Truthdig stories:
New and Improved Comments
Right Skyscraper, Site Wide
Right Internal Skyscraper, Site wide