Higher education has turned into a pyramid scheme.
Many say student loans are worth it because in the end, one receives an education and is able to acquire a job to pay off the loans. However, according to a recent Forbes article, paying off student loans may not be so simple.
According to Bill Hazelton, founder of CreditCardAssist.com, “higher education in this country has turned into a giant pyramid scheme.”
“With tuition prices exploding, students are graduating with up to $200,000 (or more) in student loan debt and can’t find jobs that could possibly support their loan payments, let alone their living expenses.”
Hazelton characterizes the student loan industry as predatory. He blames unfettered capitalism for this problem and believes for-profit colleges are particularly problematic when it comes to predatory lending.
“What these schools do is go after anybody they can get their hands on, securing them federally guaranteed student loans to fund their tuition prices. It’s like a free-money gold rush for these dubious schools,” Hazelton said.