Good points, Sheryl.

But you miss the key "cause-and-effect" relationship --in other words, yes, the problems you outline are important, but what solutions do you propose to prevent it from recurring?

Skyrocketing tuition is going through the roof (at a rate MUCH faster than inflation, even though this is no justification exists: Quality of American Higher Education has gone DOWN, as America keeps falling behind other nations in math, sciences, job skills, etc.).

But WHY?

Well, removal of bankruptcy protections from student loans, combined with draconian collection powers (such as wage garnishment) on already inflated original principals, combined with VERY heavy late fees, penalties, and interest, mean that the Department of Education makes about $1.22 for every dollar of defaulted student loans, and private lenders make a similar (if not greater) amount.

Since the Dept of Ed benefits more when students default, they have NO incentive to advise U.S. Congress to STOP raising the loan limits for Student Loans, and, of course, when students can borrow more, dishonest colleges & Universities "raise tuition to match" the increased borrowing abilities of students --even though not justified (quality of Education plummets).

Since college tuition has increased at a rate MUCH faster than inflation for decades, college is no longer affordable.

Also, removal of said Standard Consumer Protections AFTER the student signed the loan contract illegally violates well-settled Contract Law, and, of course, violates Equal Protection, insofar as Student Loans are the *only* types of loans NOT granted these 'Standard Consumer Protections' (truth in lending; bankruptcy proceedings; statutes of limits; the right to refinance; adherence to usury laws; and, Fair Debt & Collection practices, etc.).

Insofar as students were not notified of inability to file for bankruptcy, due to the lack of "truth in lending laws," this law, singling out student loans, also violated their fundamental Due Process under law. LOL --so much for the rule of law here!!

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SEE THIS case law to back this claim:

“When facts are to be considered and determined in the administration of statutes, there must be provisions prescribed for due notice to interested parties as to time and place of hearings with appropriate opportunity to be heard in orderly procedure sufficient to afford due process and equal protection of the laws…” Declaration of Rights, §§ 1,12. McRae v. Robbins, 9 So.2d 284, 151 Fla. 109. (Fla. 1942)


The trial court's failure to prosecute and/or the local law enforcement's failure to bring charges and investigate in a timely manner may not be generally held against the person seeking relief or the victim:

“Delay in the prosecution of a suit is sufficiently excused, where occasioned solely by the official negligence of the referee, without contributory negligence of the plaintiff, especially where no steps were taken by defendant to expedite the case.” Robertson v. Wilson, 51 So. 849, 59 Fla. 400, 138 Am.St.Rep. 128. (Fla. 1910)

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oops -- I forgot 2 other things that were probably illegal about how colleges treat student loans:

1. Since American colleges hold a monopoly on Higher Ed in this country, their price-gouging is illegal. Monopoly by, say, electric or phone companies would cause a revolt, but students aren't as numerous as say homeowners or renters, so they're easily victimised. (Doesn't this remind us how how ALL 'minority groups' which "aren't as numerous" as the "majority" groups -be they women, Blacks, or -as in my case -Native American Indians have been mistreated?) Plus,...

2. it can be argued that the students signed under duress, since the job market's hard even for those WITH college educations, much less those without.

In fact, while many people would say students "had a choice," at least ONE Attorney General disagrees. Observe:

Illinois attorney general's office plans to sue Westwood College

Among the complaints against the for-profit school are poor job-placement rates, high-pressure sales tactics, low graduation rates, excessive profit margins and the burdening of students with crushing debt

January 18, 2012|By Gregory Karp, Chicago Tribune reporter

http://articles.chicagotribune.com/2012-01-18/business/ct-biz-0118-westwood-20120118_1_illinois-attorney-office-plans-westwood-college

(Fair Use excerpt) "The Illinois attorney general's office is lashing out at Westwood College, which has four Chicago-area campuses, claiming the institution misleads students enrolled in its criminal justice program, putting them deep in debt and saddling them with a nearly worthless degree for pursuing careers in Illinois law enforcement."

See my friend's story on this issue: http://www.forbes.com/sites/peterjreilly/2012/03/19/why-college-prices-keep-rising

For further info, point your web browser to:

www.GordonWatts.com/FannyDeregulation/Higher-Ed-Tuition-Costs.html

or:

www.GordonWayneWatts.com/FannyDeregulation/Higher-Ed-Tuition-Costs.html

for documentation of this -and for how this has contributed to a SPIKE in Student Suicides, for the first time in our nation's history -- SOMEBODY has blood on their hands...

Gordon Wayne Watts - LAKELAND, Fla.