Private School Loan Reform

Private student loan lenders are not subject to any federal student loan guidelines and therefore impose variable interest rates, stiff late fees, unreasonable repayment schedules; refuse in-school deferments and forbearance for any reason, including unemployment, and they employ aggressive collection tactics. Further, private student loans cannot be consolidated leaving students with multiple, high interest payments that eat up the bulk of their take home salaries. These circumstances prohibit most students from becoming contributing members of the economy because they struggle to support daily living needs. Most students simply have no expendable income. By binding students financially for upwards of 10 years in a life of debt, wealthy lenders and investors are able effectively marginalize an entire segment of the population, a measure that further erodes the economy while they preserve their elite status without effort. Most importantly, this disparity ultimately poses a national security risk as Europe and Asia overtake the United States in science and technology advancements while higher education falls further out-of-reach for most students.