Student loan interest rates were raised yesterday. This is not only an attack on students and the working class--it will heighten and deepen the financial crisis: "As students are forced to borrow and repay more and more money, a growing student loan bubble could also threaten to destabilize the economy in the same way the housing and dot-com bubbles did in the first decade of the 21st century. Securities called SLABS (Student Loans Asset-Backed Securities), first created in 1992 by Sallie Mae, now account for between a quarter and a third of the $1 trillion total of student loan debt, and are on the rise. As with the subprime loan racket, SLABS are often bundled with other kinds of loans for trading purposes."
Posted on: Tue, 02 Jul 2013 13:24:25 +0000
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