Total private-sector student loan debt is estimated to be about $20 billion and growing. It is more than the external debt of the Ivory Coast. Many of these young people are in this situation because they have been betrayed by administrators in their own colleges and universities. The betrayers are the student aid officers who took bribes from loan companies to steer young people just out of high school into signing up for the high-interest, high-profit loans.NAF reports:
Our . . . investigation and those of others . . . revealed a series of payoffs, kickbacks, and luxury gifts to aid officials, thus compromising college-student relationships. Supposedly impartial intermediaries in the federal financial aid system were operating with substantial personal conflicts of interest.Now consider this: students graduating in 2009 will be saddled with the equivalent of home mortgages (without the home) and as the recession deepens, will have little prospect of finding a job.
On another note, today's WaPo had a full page advertisement by some presidents of major universities urging
"funding" of "construction and renovation projects on public and private campuses. The article said the university presidents' "proposed initial use for the money, would create hundreds of thousands of jobs. The proposed investment initially would be used to build classroom and research buildings that conform to "green" standards."Nothing said about upgrading existing buildings, funding scholarships, or hiring sufficient numbers of full-time faculty. Today's typical overpaid university president just loves building more buildings.