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Originally Posted by cphague
1 - As a result of this, many universities are talking students into useless degrees that do not pay enough to both live and make their student loan payments at the same time.
2 - The government guaranteed the student loans, so universities saw dollar signs and went on a hiring binge so many have more administrative staff than teachers. All on the backs of students getting loans that they knew would not be defaulted on.
3 - To maintain the gravy train, students were talked into going to college instead of a vocational or technical school where many would have thrived.
I don't like loan forgiveness, but this is not a good situation. Predatory lending to teenagers is a lot of what is going on.
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I don't think you would have a case against the universities for predatory lending because they are not the lenders. Students borrow money either directly from the Federal Government or from a private lender who is allowed to issue a Government guaranteed loan. Obviously, the universities are going to promote their product and charge as much as they can, like any other business would. This problem is the fault of the Federal Government that allows the loans, and the students who agree to the terms of the loans.