Privatization of student loans in the 1990s and early 2000s was coupled with the removal of consumer
protections and other measures benefitting lenders.
"One Wisconsin Institute Executive Director Scot Ross commented, "As the cost of college tuition skyrockets, students and their families are saddled with over one trillion dollars in debt. Meanwhile, big banks and the federal government make billions of dollars in profits on the loans. Our original research shows how this vicious cycle is a clear and present danger not just for the finances of students and their families but to our national economy."
The comprehensive financial survey of over 61,000 Americans revealed significant length of repayment terms and resulting impacts on economic activity:"
"Higher education ought to be the path to the middle class, not a sentence to 20 years of debt. Our research findings show that the one trillion dollars in student loan debt currently burdening 37 million Americans is not just a crisis for them, but for our entire economy. The status quo, much less piling on with higher interest rates on federal student loans, is unacceptable," concluded Ross."
I found this piece of information interesting.... Didn't know that consumer protection was removed from the student loans while making them privatized... Another reason not to privatize education.
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