PBI Chair Ellen Brown delves into the mounting student debt crisis in her latest article series. Student debt has risen an astronomical 164 percent over the past 25 years, but median wages have gone up a mere 1.6 percent. She writes:
"Slavery by debt has continued to this day, and it is particularly evident in the plight of students. ...
The availability of federally guaranteed loans allowed colleges and universities to raise their prices to whatever the market would bear. By the mid-1970s, tuition was rising much faster than inflation. But costs remain manageable until the late 1990s, when the federal student loan business was turned over to private banks and investors with aggressive collection practices, converting federally guaranteed student loans from a public service into a private investor boondoggle."
Share this blog post with your friends!