This is legalized entrapment. These lenders are fleecing a bunch of students who don’t know any better and couldn’t do anything about it even if they did. Something needs to change, and soon.
Los Angeles, CA (PRWEB) April 26, 2012
As national student debt was skyrocketing past $1 trillion, the executives of America’s unregulated student lending industry were spending their profits in some of the most ridiculous ways possible, according to a new report released today by CreditCardAssist.com. From falconry lessons to 4,000-gallon shark tanks, the extravagant purchases made by some executives at the expense of debt-ridden recent graduates and dropouts seems almost criminal.
“The student lending industry,” says CreditCardAssist.com founder Bill Hazelton, “is out of control. Average student debt has risen 25 percent over the past decade and this summer, interest on student loans is set to double. If 6.8 percent interest happens, that will be a financial death sentence for many Americans with student loan debt.”
The report argues that by supporting specific reforms to the Fair Debt Collection Practices Act, the Higher Education Act and other legislation, Sallie Mae and the lending lobby have made it impossible to escape student debt through bankruptcy or loan forgiveness. Something is wrong when Americans aged 60 and older collectively owe more than $36 billion on their student loans.
Things aren’t getting any easier for today's college students, who will enter the worst job market for recent graduates in 60 years. On average, each student will be saddled with more than $25,000 in student debt - some are able to take out loans in excess of $100,000 when they can’t even qualify for a credit card. Yet despite that fact, some studies have shown that 94% of parents still expect their children to earn a college degree.
“Kids are told that they need to go to college to succeed, so they take whatever loans the self-interested lender says they qualify for,” Hazelton says. “If they can't find a good job out of the gate, they'll be trapped. This is legalized entrapment. These lenders are fleecing a bunch of students who don’t know any better and couldn’t do anything about it even if they did. Something needs to change, and soon.”
As a father and a finance expert, Hazelton is committed to reforming student debt legislation. The CreditCardAssist.com founder has been advising consumers and business owners on personal finance and the credit industry since 2004. Under his guidance, CreditCardAssist.com has grown into one of the leading credit card information resources on the Internet. Its on-site reports have been cited by Forbes, the San Francisco Chronicle, the New York Post, Yahoo! News and more.
To learn more or to schedule an interview, please email jasmine(at)contentfac(dot)com. More information, and the report itself, can be viewed at http://www.CreditCardAssist.com.