Suze Orman on student debt

Suze Orman completely nails it in this video about student debt. She discusses unfair laws preventing people from discharging student loans in bankruptcy, predatory lenders, and the lack of options for students who can’t afford their monthly payments. It’s definitely worth a watch.

Many of these banks and institutions, they borrow at zero percent and they’re lending to you at 6.8 or 8 percent. And when you don’t pay it back, they are thrilled. They are thrilled because it starts to compound and compound and compound, and $40,000 turns into $80,000, turns into $150,000.

 

And then, you think you’ve been able to get away with something because you haven’t been able to pay it. And then they contact you and you have got to pay back that $150,000. You can’t. What do they do? They will garnish your wages. Even if you’re old enough, when this happens, they will garnish your social security check.”