Wednesday, August 15, 2012

Higher Education Panel Claims There Is No Student Lending Crisis

Outstanding student loan debt has now surpassed $1 trillion. Default rates are up at an alarming rate. Even the Department of Education admits they are concerned about the increase in borrowers defaulting on their loans. Studies, not just articles, are showing that more and more borrowers are struggling or unable to pay off their student loans. Despite all of this evidence, a group of experts - some of whom have ties to the lending industry - claim that the student lending crisis is being sensationalized. At a recent higher education conference, for instance, policy makers - once again -  dismissed the problem. 

The claim is enormously problematic, especially when there are numerous advocates and experts in various fields who, as just mentioned, have evidence - strong and conclusive evidence - that there is a full-blown crisis.

So, the question remains: when will these panels invite advocates who actually represent the voices of the borrowers? That would make for a more lively and honest discussion. For the time being, however, the same experts will downplay the issue. While they continue to do so, millions of more educated Americans will join the ranks of the indentured educated class. 

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