Z Brown – You’re lucky to have a loan locked in at 6%. But with no refinancing options, those of us at variable rates are unlikely to ever make much headway into the principal balance, particularly under Sallie Mae’s capitalised interest policy, which adds every fee and interest hike onto the existing principal, which is then charged at the going rate. It’s disingenuous to call me financially irresponsible when, as the article states, I have repaid more than $5,000 of my loan, only to watch the balance inflate, seemingly at random. With most other kinds of debt, I would be able to seek alternatives, but due to the influence of the loan cartel in Washington, I can’t sell off my debt to another company to get a better deal. I’ve looked into getting a private loan with a British bank to get a fixed interest rate, but because of my status as a student with a low income, I can’t qualify for any deal that would offer monthly payments that I could afford.

And no, nobody held a gun to my head to make me take the loan. The choice was one of continuing my Master’s course after I’d borrowed to the limit on my federal loan, or drop out halfway through. Obviously I chose to complete the course. It wasn’t as if I was given a range of options by Sallie Mae – in fact everything was communicated over the phone (so no small print to read) and within a week or so the full private loan sum was in my bank account. Believe me, I’ve been though all the self-recriminations over my ‘mistake/greed/naievety/whatever’ and spent many sleepless nights trying to figure out ways to overcome the fact that the money I keep throwing into the hole doesn’t bring me any closer to the surface. I’ve stopped blaming myself, though. If you take a look at http://www.studentloanjustice.org you’ll find many people far worse off than me through actions no more irresponsible than simply wanting an education.

I’m sure you’ll remember how we were always persuaded that no matter what our socio-economic standing, there was help available to any American that sought a higher education. Do your research and you’ll find a vast body of evidence to suggest that the student loan industry extends and exploits poverty, rather than assisting graduates to overcome it. This is the fundamental problem here. The US Department of Education has endorsed predation and usury and the country is worse off for it. I agree that students need to understand the terms of the loans and do their homework – that’s why campaigns like Student Loan Justice exist.

In the meantime, I think it is completely illogical to subsidise the practice of usury and finance predation tactics just to uphold standing conventions. The game has been fixed and playing by the old rules is pointless. I support Robert Applebaum’s student loan forgiveness campaign but realise that it will be a very, very bitter pill for the public to swallow.

I implore anyone who reacted to this article with the predictable but entirely understandable feeling that this is a nightmare of our own making, and we ultimately bear responsibility, to do some research on Sallie Mae and its CEO Al Lord, the American student loan cartel, its lobbying successes and these companies’ ties to Congress. A very different picture emerges and a lot of mysteries are explained.

The student who chose to exile himself instead of being financially responsible is madness. Can’t feel sorry for you there, buddy. You’re making the rest of us pay for you. If more borrowers 1) read the fine print, 2) understood the terms and 3) did their homework, they might not be in the position they are today. It’s because of people defaulting on loans and thereby making it harder (or impossible) for others to get loans and making everybody else pay for the borrower’s mistake/greed/naievety/whatever. It’s one of the reasons the world economy is how it is today–in ADDITION to predatory lending practices and greedy financiers and other factors.

Variable interest rate?? 14%? Man, they saw you coming. I got a flat 6%, which may be working against me because of how things have tanked, but at least it’s not variable or 14+%. And living here where the pound is still stronger than the dollar, if only slightly, helps.

I’ve dealt with student loans for years and lenders ARE flexible and there to help–if you ask! I’ve defered my loans because of financial hardship several times, or arranged to make smaller payments just to pay something towards my debt. I’d rather deal with student loan lenders than private bank lenders ANY day.

Lenders are quick to jump on students in order for them to get into debt. I hate seeing companies offering credit cards on universities. But no one is forcing you to take a loan. You may need it, but there’s no gun pointed at your head.

Yes. Reforms are needed, but in the meantime, grow up, accept your responsibility, and pay your debt.