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The Student Loan Deception – The Most Oppressive Debt in US History and How We Can Fight Back

The Student Loan Deception – The Most Oppressive Debt in US History and How We Can Fight Back

It is widely believed that student loans exist to help the youth get a good quality education to secure better professions and careers in the future. According to the book written by Alan Michael Collinge titled “The Student Loan Scam… The Most Oppressive Debt in US History and How We Can Fight Back” students are not offered loans with the borrower’s best interest in mind. It is instead a highly organized and oppressive way to ensure gross profits for the lenders and collection agencies.


Educational loans have been around for decades. It wasn’t until 1998 when almost all educational loans were disqualified from being discharged due to bankruptcy. This included all personal and family loans that can be used for educational purposes which started the massive difficulty to payoff student loan debt.

In 1996, the Department of Education partnered with private collection agencies. These collection agencies will get 25% of the defaulted amount of Federal loans. This enabled collectors to create payment schemes and collection options for the borrowers that will essentially contribute to eventual defaulting.

Moreover, the Department of Education can collect Federally issued education loans in default through either the borrower’s tax refund, offsets from Social Security and other benefits or up to 15% of garnishment from wages.

How it Affects You

In today’s bleak economic situation, more graduates face the difficult reality of being underemployed or unemployed, making it virtually impossible to eliminate student loan debt because of little to no financial resources. To avoid the loans from defaulting, collection agencies offer “loan rehabilitation” options disguised as help for students that have educational loans. These collection schemes often require borrowers to take out a new loan which in reality is up to three times larger than the original amount. The logic then becomes: to get rid of your debt you’ll need to incur more debt that will likely default again.

What You Can Do

First of all, educate yourself and understand that in order to effectively payoff your loans, you will need to know what you’re up against. Take action and let your voice be heard, go public with your situation and how the system has made it impossible for you to eliminate student loan debt. Get help from your local State Chapter and organize a coordinated action. It is difficult to get rid of your student loan debt but with the right course of action, it is possible.