Anybody who watches the 4profit college business closely knows about the first student debt strike (by the "Corinthian 15") that happened yesterday. Isn't it quite possible that ITT Tech students (especially those with PEAKS loans) will join the "Strike Debt" "Rolling Jubilee"?
...............http://www.theguardian.com/education/2015/feb/23/student-debt-for-profit-colleges............or put "Corinthian 15" in Google News.
"So, let's assume you borrow 100K at 9% interest, it'll take you 20 years to pay it off if you pay 1000 per month, and you'll pay them probably double of what you borrowed"
Yeah except that assumes you find a job where you can shovel $1000 a month for 20 years nonstop. In the real world ITT is viewed as a terrible school and most people won't find a job for over a year if they ever find one in that field. I graduated with 95,000 in debt across 2 dozen loans, all with varying rates and due dates and payment terms. It took me 18 months to find anything in my field of study and it pays in the low 40's, which doesn't even allow me to pay regular bills much less shovel a grand a month (they actually wanted way more) for my entire working life.
The biggest problem is not interest rates or anything else like that, the lions share of the problem is simple greed and massive principle amounts. Even at a 0% rate the debt would never get paid back, it is simply not prudent to saddle 18-30 year olds with 6 figures of debt at a time of their life when marriage, housing, and retirement savings should be the priority. This isn't going to end well, mark my words.
So, let's assume you borrow 100K at 9% interest, it'll take you 20 years to pay it off if you pay 1000 per month, and you'll pay them probably double of what you borrowed. S
Camden, you nailed it here.
They already are, just not officially. When someone is saddled with 6 figures of debt before they even start trying to pay it back, what are the chances realistically that someone is going to voluntarily pay a mortgage for the rest of their lives even if it did translate into a job? For most they don't even walk away with a job, and every dollar Sallie Mae tries to steal from them is money that really should be getting put towards housing, retirement, food, or myriad other things these people already can't afford.
They can throw a tantrum all they want, when the money doesn't exist and jobs don't exist the debt simply will not get paid back. Watch Germany trying to force Greece to agree to decades of austerity and how that will plan out, its no easier or more noble on a personal level.