“Education is life” as what J. Dewey says, that is why there are lots of programs created to help and convince people to continue education. Through education, ignorance has been eliminated. Aside from scholarship programs, student loans have been introduced to help those students who can’t afford to pursue their studies, preferably the low and middle class families. At first, student loan had been very helpful and effective. Many students have finished college and were able to land a job. Because of the successful output of this program, US were able to change the world, especially in the field of technology. Through this achievement, many students were criticized to continue to school. That was a way better before since tuition fees are very affordable. However after decades passed by, the insight of student loans has been changed. Instead of helping the less fortunate people, they are the ones who put them down. So loan companies are making student loan scam.
So, who are able to benefit the student loans?: It has been suspected that the student’s right were not protected. There were hidden charges that were added on students’ loans. Aside from collecting interests from student loans, loan companies also collect penalties to those who were not able to pay on time. So therefore only the loan companies are beneficial from this program. In other words, students who were able to borrow funds from the loan companies were the victims of student loan scam. Another problem arises is the continuous increase of tuition fees. In contrary of the past decades, many students nowadays were not able to proceed to college because they already borrowed $20000 from Loan Company and they were not able to pay it. Students who have finished college were able to borrow double the price of that in high school. So many professionals that have availed student loans are still having a hard time paying their debt in loan companies. A lot of victims are still striving hard just to pay their loan.
Are there any law or bill that protects the right of the student?: In 1988, Congress passed a legislation that permitted loan companies to use draconian method of collection. Instead of protecting the students, it just ruins the budget of students since this kind of law allows the loan industry to collect massive penalties. This legislation also allows industry to apply 25% interest on the basic loan when they fail to pay on time. This was a real burden on the borrower’s side. The author of the book clearly states that the students were unprotected with the outgrowing loan industry that keeps on cheating or scamming through extensive interests on their loan. He really did a good job in combating these big industries that doesn’t think the sake of other people but themselves only. It is just right to investigate these industries to stop this kind of scam. And once the government will take any actions regarding with this scam, then many will profit with student loans again.
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