Michelle Singletary columnist of Color of Money for the Washington Post Sunday giving Personal Finance advice wrote an excellent piece about student loan default this past Sunday. The article “After College, Student-Loan Sinkhole Awaits”
I finally had the chance to take a look at the information and was relieved to learn that student loans borrowing is being address by the Rainbow/PUSH Coalition, headed by Rev. Jesse Jackson. He has launched a “Reduce the Rate” campaign, urging the Obama administration to allow people to borrow at extremely low rates. He said students should get the same deal banks are getting. If banks can borrow at 1 percent so should students. Hell yeah! I would have to say I agree with the Rev on this one.
Most of us went to college by borrowing student loans that we knew we could not pay back. Default rates rise as fast as unemployment hit a world high…there are no jobs available for degree toting recipients of student loan debt. Go figure…..it is the biggest ploy in my humble opinion because most companies don’t care if your a PHD degree carrying individual. Then your over qualified for the job but hell why should the recruiter care, they have a job!
These programs took effect in July, will give borrowers some hope. Could this be the bailout plan for student loan borrowers? We will have to see about that….I am picking up the phone as I type to get the scoop. To be continued……