Student Debt Quotes
What made the situation worse at the time that the same big banks who got government bailouts to prevent failure and received the 0.75 percent rate, turned around and lent the money to the students not only charging them 9 times what they paid for the money, but also getting a government guarantee that the loans would be repaid and/or government prohibition of students going bankrupt and discharging their debt like any other American in financial difficulty. So the banks made huge profits and yet took no risk—a strange notion in capitalism.
Thiel responding to the observation that 70% of Millennials are pro-socialist.
The 7 percent was the interest students had to pay for the Federal Student Loan Program. The banks in contrast were able to obtain money at the Federal Reserve Bank Discount Window at no interest cost. Draut was one of those in the Occupy Wall Street Movement who could not understand why the government provided so much help to the banks relative to that given to students and most other segments of society. Draut, and other protestors, not only thought that the differential favoritism to the banks was unfair, but unjust in the sense that in substantial part the Meltdown of 2008 was the fault of the banks while the students and most of the other elements of American society were the victims. Both the George W. Bush and Obama administrations believed that even though the banks may have been irresponsible and the cause of much of the economic dilemma of the nation, if the banks would be allowed to fail, the Great Recession would have become a major depression and the suffering of the entire country would have been magnified many times, so Wall Street and the banks were bailed out to stave off a much worse economic disaster. It was clearly unfair and unjust, but generally perceived to have been necessary by the politicians and economists.
Student loan debt had rocketed to 2nd place (behind credit cards) as the largest form of consumer debt.
