Problems with Student Debt

Recently, Steve Vodhanel has made comments on this blog about the problems of student loan debt and the impact that such debt can have on people who get caught in a situation where they are unable to get a job that allows them to repay their student loans.  A recent media interview on Inside Higher Ed with Alan Collinge, deals with some of the points that Mr. Vodhanel has written about in his comments.

Mr. Collinge has written a book titled The Student Loan Scam (Beacon Hill).  He outlines what he sees as the problem with loans, placing emphasis on the fact that student loans are not subject to “standard consumer protections (such as bankruptcy rights, statutes of limitations, refinancing rights, and other free market protections).”   While Mr. Vodhanel has questioned whether the problems are associated with for-profit colleges and universities, Mr. Collinge describes his experience with private not-for-profit universities.  What is described by Mr. Collinge is troubling, and his call for Congress to “return to standard consumer protections to student loans, and also to terminate some of the more debilitating collection powers . . .” seem to be reasonable and just.

Your comments?

Mike