The Student Loan Scam: The Most Oppressive Debt in U.S. History - and How We Can Fight Back |  | Author: Alan Michael Collinge
Publisher: Beacon Press
List Price: $22.95
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Seller: allnewbooks
Rating:  18 reviews
Sales Rank: 257718
Media: Hardcover
Pages: 167
Number Of Items: 1
Shipping Weight (lbs): 0.8
Dimensions (in): 8.5 x 5.8 x 0.8
ISBN: 0807042293
Dewey Decimal Number: 378.3620973
EAN: 9780807042298
ASIN: 0807042293
Publication Date: February 1, 2009
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Product Description
An in-depth exploration and exposé of the predatory nature of the student loan industry Alan Collinge never imagined he would become a student loan justice activist. He planned to land a solid job after college, repay his student loan debt, and then simply forget the loans ever existed. Like millions of Americans, however, in spite of working hard, Collinge fell behind on payments and entered a labyrinthine student loan nightmare. High school graduates can no longer put themselves through college for a few thousand dollars in loan debt. Today, the average undergraduate borrower leaves school with more than $20,000 in student loans, and for graduate students the average is a whopping $42,000. For the past twenty years, college tuition has increased at more than double the rate of inflation, with the cost largely shifting to student debt. The Student Loan Scam is an exposé of the predatory nature of the $85-billion student loan industry. In this in-depth exploration, Collinge argues that student loans have become the most profitable, uncompetitive, and oppressive type of debt in American history. This has occurred in large part due to federal legislation passed since the mid-1990s that removed standard consumer protections from student loans-and allowed for massive penalties and draconian wealth-extraction mechanisms to collect this inflated debt. Collinge covers the history of student loans, the rise of Sallie Mae, and how universities have profited at the expense of students. The book includes candid and compelling stories from people across the country about how both nonprofit and for-profit student loan companies, aided by poor legislation, have shattered their lives-and livelihoods. With nearly 5 million defaulted loans, this crisis is growing to epic proportions. The Student Loan Scam takes an unflinching look at this unprecedented and pressing problem, while exposing the powerful organizations and individuals who caused it to happen. Ultimately, Collinge argues for the return of standard consumer protections for student loans, among other pragmatic solutions, in this clarion call for social action. |
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Showing reviews 1-5 of 18
 A real page-turner horror story. November 11, 2009
goodstuff
If you take out a student loan in the US today, you are walking the edge of a volcano.
If you slip (and it doesn't take much to slip), you could end up little more than an indentured servant, owing 2x or 4x or more what you originally borrowed. Your wages, tax refunds, social security payments, even disability payments will be garnished from now until the end of time. Chances are slim you'll ever be able to pay it off, because the allowable fees and penalties on a student loan are impossibly huge. At the whim of the student loan companies, you can have your professional license yanked or be forced out of public employment. Did I mention debt collectors don't need to follow fair collection practices because it's a student loan? Oh and forget about discharging it through bankruptcy... it's a student loan... not allowed.
Every page of this book reveals jaw-dropping, horrifying facts of how the student loan industry put Congress in their pocket and began a massive wealth transfer (from student loan borrower to them) that has resulted in some student loan executives earning 500 million dollar salaries. The saddest part of this is not only the individuals who suffer due to this; it's all of society because we need a well-educated workforce to prosper, and the student loan industry is making that more and more impossible.
I highly recommend this book and think it would be a very good choice for a discussion group.
Glad this information is out there! August 12, 2009
Web Lady (DeKalb, IL)
This book is so on-point with the student loan business that its scary. Although, I'm not in default on any student loans, this was a "head-up" to what could happen to me if I do. So for me, the book served as a warning to just pay the money b/c it could be VERY messy if I don't.
the book also confirmed, i'm doing something right. Anyone getting a student loan, I highly recommend you stay on top of the amounts you are actually requesting, the amounts being certified by the school and the amounts the lender is sending to your school. Depending on how "slick" the schools are, the numbers can be different. So watch it. Also, keep every single peice of paper (E-mail) the school, lender, Dept of Ed, etc. sends you so you can have a paper trail when it comes time to start paying back.
I'm so glad he wrote this book.
 Use your own brain power July 11, 2009
Suki (Western, NY United States)
3 out of 23 found this review helpful
First a disclaimer: I do not own this book, this review is based on the content on the product page and on content mentioned in other reviews. It saddens me when people do not do their own research on such an important subject as student loans and accept as truth a very slanted account.
My personal experience with student loans was one where I took a year off during my education to have a child, the lender expected payments to begin since I was no longer in school. By CONTACTING the lender and explaining the situation I was able to have the loan payments postponed until I went back to school and finished my degree. After graduation I was not able to work immediately and the payments were postponed again. When the payments were to begin my income was still low and a special payment arrangement was set up where I paid the interest only for several years and then bumped up to higher payments until the loan was paid off. It took over 10 years but my loans never went into default.
Now to current information. Recently new legislation was passed that makes it even harder for a loan to fall into default and the interest rates on government backed student loans (which is almost every student loan offered)-- current and in default has been slashed.
Some basic advice-
Try to avoid a student loan in the first place but with the deferments and low interest available it is very perferable to credit cards or private loans.
If at all possible DO NOT take out a parent student loan so your child can go to school. YOU are responsible for that loan. Do not take on this burden and risk. You are healthy and working now but you do not want to fall on hard times and have this loan go into default. The final stage for a student loan in default is with the US government. They can and often do garnish your disability or social security. Even 20 years later. The same spirit of generosity and sacrifice that urges you to take out that loan will be the same one that keeps you from "bothering" your child with the fact you are being called by collectors and 15-25% of your social security is taken right off the top.
The simple basic hard truth about DEFAULTED student loans is they do not go away. They are almost never discharged through bankruptcy. The interest accrues daily just like a credit card and collection costs are added every time a government backed student loan is assigned to another agency.
Another truth about defaulted government backed student loans is they are easy to get out of default. Most people who are in default also owe other debts; they are hounded by so many collectors they don't know what to do and simply refuse to deal with any of them. Student loans are different: there are programs and options that will get the loan out of default, mark it as paid or erase it from your credit report, and give you a brand new shiny not-in-default loan with payments you can afford that looks nice on your credit report. In some cases with up to 30 years to repay.
Do yourself a favor and go to the sallie mae loan locator website. Find where your defaulted loans are. Call the company listed. You can take care of this and have one less burden to carry around.
And if your parents took out loans to help you with college make sure they have paid them off. Get proof. By law none of the collection companies can give you that information without your parent's permission. Have your parents visit the website with you and if loans show up on their social security numbers then step up, do the right thing, have your parents call and give the company permission to let you help and help your parents pay these. Don't let them sacrifice even a small portion of their peace of mind with a defaulted loan.
I'm going to get off my soap box now. People need to be responsible for their debts. You fall on hard times you call the lender and make arrangements. If you are in default you take care of it before that hole gets deeper.
Do some research, don't listen to fearmongers and rabble rousers. Don't be rabble.
A good, grounded look at what is wrong with the student loan industry July 2, 2009
S. Carson (San Francisco, CA)
3 out of 4 found this review helpful
The Student Loan Scam is an excellent look at the conflicts of interest, corruption, and exploitive practices within the student loan industry. It is a must read for anyone contemplating using student loans to fund their education (especially if they plan to take out high amounts of loans), as well as for folks saddled with a heavy debt burden.
The author, among other things, makes a compelling argument to return basic consumer protections to student loans. Stories in the industry of taking disability payments from the sick or disabled or raiding an elderly person's meager finances to pay for student loans is criminal.
The bottom line is that students are told that they should "follow their bliss" and that higher education will open doors for them and provide them with good jobs and financial security. They are told either directly or it is strongly implied, that taking out student loans for higher education is "good debt."
Nothing could be further from the truth. Tens of thousands of graduates now pay whopping sums of their meager paychecks to pay debts that never actually go down, but keep rising.
Frankly, one would be safer paying for their education on credit cards if they had to, for at least if they ran into financial or medical problems that prevented payback, they would be afforded chapter 7 bankruptcy as an option.
Anyway, the last two paragraphs are my opinion based on what I have seen from dozens of graduate school graduates who are struggling to just get by, including some that can't even land $10 grocery store jobs with master's degrees because they are "over qualified," but can't find jobs in their field.
If you plan to go to school, live cheap, work as much as you can, and find any way you can to fund your education without "the debt that keeps on giving."
A must read June 28, 2009
Erle Patrick Moore
4 out of 4 found this review helpful
This book is a must read for everyone planning to borrow money to go to college. The information is important, and the book could save many people a lot of pain in the future. It is also a quick read.
Showing reviews 1-5 of 18
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