Matt Taibbi: U.S. Student Loan Bubble Saddles a Generation With Debt and Threatens the Economy 1/2

http://www.democracynow.org – On the heels of President Obama’s signing of a measure keeping federally subsidized student loans at a relatively low rate through 2015, Rolling Stone political reporter Matt Taibbi joins us to discuss how the high price of U.S. college tuition and the federal expansion of student debt to pay for it pose a major threat to the economy. In his new article, “Ripping Off Young America: The College-Loan Scandal,” Taibbi writes: “The dirty secret of American higher education is that student-loan interest rates are almost irrelevant. It’s not the cost of the loan that’s the problem, it’s the principal — the appallingly high tuition costs that have been soaring at two to three times the rate of inflation, an irrational upward trajectory eerily reminiscent of skyrocketing housing prices in the years before 2008. … Throw off the mystery and what you’ll uncover is a shameful and oppressive outrage that for years now has been systematically perpetrated against a generation of young adults.” “The government now projects that it’s going to make 5 billion over the next 10 years in student loans,” Taibbi says. “There is no way out of these loans. Even gamblers can declare bankruptcy, but kids who enter into student loans will never, ever be able to get out of this debt.”

See part 2 of this interview: http://youtu.be/bOllVnMhgQg

Watch more reports about the growing student debt crisis at http://www.democracynow.org/topics/student_loans.

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15 thoughts on “Matt Taibbi: U.S. Student Loan Bubble Saddles a Generation With Debt and Threatens the Economy 1/2

  1. Whats the problem? All you lower class types can get a job at 711 and go
    shopping at Wall-Mart – after all , we need the apples to are selfs because
    we do all the thinking.

  2. Let us face the (FACTS) the USA is no longer the land of the FREE, it is a
    Fascist Tyranny. NO ONE can even argue this, without lying to themselves.
    We are all slaves to this system that is based in pure evil. If you are
    waiting for Obama to grow a Hitler mustache it isn’t going to happen,
    however since the 911 Reichstag fire, the policies and actions are
    IDENTICAL. We have been OVERTHROWN from within. LOOK it up.

  3. lol, the more loans the govt gives out, the higher the
    colleges/universities can charge for tuition. DUHHHHHhHHhhhHhhhhHhhhh

  4. Obama = the worst president in US history – I never thought I would see
    anything worse than the Bushes, but Obama has earned it.

  5. Blame Obama for everything. Got debt? Blame Obama. Economy not doing well?
    Blame Obama. Got a cold? Blame Obama. Stub your toe? Blame Obama. Focusing
    blame on 1 person is more dangerous than not fixing the issue.

  6. Principle, not principal (in the description). At least in Europe,
    university tuition rarely is above $5k a year, often only $500 a year where
    it isn’t simply free.

  7. America has never been free since 1913 after the federal reserve act.
    Americans are slaves to international bankers.

  8. That’s right. It’s the same with the medical industry. Hospitals and
    independent practices charge more than they did in the 40’s and 50’s
    because they know they can, because the gov’t Medicaid and Medicare
    subsidize the industry. The country is in debt and there’s no way to pay.

Comments are closed.