Students getting raw deal on loans

Predatory student loans are grossly unfair to the college youth of America.

Bankruptcy laws are not offered to students with loan debts, but are offered to other debtors — and even encouraged.

Bankruptcies wipe out 401(k)s, stockholders of common stock preferred creditors and preferred debt holders. Owners of real estate are discharged from federal tax liens placed on their real estate after 10 years.

College students receive small concessions regarding their loans, and no relief is in sight. Consequently, their financial programs are on hold for these students, such as marriage, purchasing a home or starting a business.

Relief for these young Americans should be given by amending the bankruptcy laws or a deduction on their federal income tax. The only benefit they receive on their income tax return is their student loan interest, up to a $2,500 maximum. When a student is admitted to a college, the student should be thoroughly advised as to the pros and cons of their degree, their ability to pay all charges and the college’s job placement record.

These statistics should be reviewed prior to the student loan and again reviewed by an attorney or CPA. Job placement records, pros and cons should be evaluated so the student and his or her advisers can make a decision of how the life of the student will be affected.

Bailouts are given every day to banks, financial institutions and automobile companies; billions are given every year to military engagements and defense.

Perhaps the student loan limit could be capped at a modest figure of, say, $30,000.

The college student today is being financially crucified for getting an education.

J. Gerard Sitter

Attorney

Elmhurst