Here is a more detailed analysis of the economics of student loan wherein according to Ted Rall, "an essential public service like education" has been transformed into "a profit-based loan-shark business creates too much temptation to poorly paid, easily corrupted college administrators and corporate greed monsters alike."
I agree whole heartedly with Rall's point, EXCEPT the point about college administrators being "poorly paid." As far as I can tell, a college administrator makes 30% - 50% more than a college professor. Under the present regime, one cannot be GREEDY enough. As far as I can tell, the more well paid you are, the greedier you become!
As Rall points out, retired Al Lord, CEO of scandal ridden, price gouging Sallie Mae paid himself $225 million over the last FIVE years: there is no cut off point after which one says, I've had enough of the cookie. I'll kick back and give back. Meanwhile, middle class kids pay over $800.00 to financeCarpetbagging IS the name of the game. Let's not cry alligator tears for USC, Columbia and Johns Hopkins financial aid officers, although the level of their profiteering is dwarfed by the greed of those at the top. Everyone can use 100K.
Rall suggests and the ONLY presidential candidate who seems to realize this is John Edwards -- that Banks and private credit agencies should be banned from making student loans to begin with!
Oh, by the way, Student Loan Xpress's corporate parent is CIT group, a former subsidiary of Tyco -- you remember Tyco?
And by the way, to all those out there who have praised Buffet and Gates for their philanthropy, the rich could not give back ENOUGH money as far as I am concerned. They're hoping to put a fig leaf on economic injustice that has taken on gargantuan proportionsm, and the do-gooders are still showing us that ONLY capital can talk and walk...
Labels: economic justice, higher education