American students and college graduates were again in the spotlight thanks to a few joyless financial news.
First, the total amount of debt banks outperformed students of ordinary users with credit cards. They owed more than a trillion dollars. Causes: high unemployment, low demand for newly minted professionals, as well as a large number of "college-by-night" who do not give a good education, and young people are driven into debt.
One of the former students in the state of California has admitted that he could not find a job even with three diplomas.
"Today is my duty for education was $ 100,000, — he says. — If I pay $ 500 a month, it will take me almost 17 years to repay the loan. This is a great time. "
The problem lies in the fact that most of the students of the debtor can not file for bankruptcy. Theoretically, of course, it is possible. However, in practice, college graduates are facing a lot of difficulties.
It is ironic to note that if a person has lost $ 100,000 in a Las Vegas casino, pay by credit card, he can declare himself bankrupt. 3-4 months after submission of the required documents will be forgiven debt (credit history is, of course, will fall by 8 — 10 years). If a man spent five years at the university, having accumulated a debt of $ 100,000, then he will have to pay the price.
It turns out that gamblers banks forgive, and stretching to the knowledge young people — no.
This week, several human rights organizations appealed to the Obama administration and Congress to change the bankruptcy laws. Sinking in debt, students and alumni, in their opinion, is the real object of discrimination.
Second, independent analysts have found the law ineffective Credit Card Act, which came into force in February 2010. This bill, recall, limited the actions of banks in respect of the students. In particular, do not impose on loans if the student otsutstovali stable sources of income.
"For many years, credit card debt turned around a headache for students and graduates — says activist Ryan Smith, favoring a federal ban on loans unemployed. — Law of Credit Card Act was intended to solve one of the most pressing issues of our society. In reality, however, it was completely useless. "
One of the points of Credit Card Act prohibited the unemployed young people aged up to 21 years the application for a credit card without the help of adults guarantors. Banks, however, continued to "bombard" student residences and home mailboxes students approved in advance (pre-approved) credit cards.
Contrary to the Credit Card Act bans banks regularly organize promotional actions outside of universities and colleges, campuses and even on campuses where classes are held.
For example, in educational institutions in Florida, California and Texas, representatives from a number of banks were given to each student to complete an application fashionable bag with symbols of their own faculty. Free bag turned around for a credit card with a $ 5,000 annual fee of $ 2,000 and interest of 30%.
Practice shows that the students are very easy to lure into the debt mire thanks to free gifts. And the banks are keeping pace with the desires and needs of the students. They are presented with trendy T-shirts, stationery, video games, cell phone accessories, chargers, etc.
"The Bank will gladly spend $ 10 — $ 20 for a gift for a customer to get in the coming years with him thousands of dollars in interest alone — says L. Rosario, who has been the" strategy "to impose loans to young people. — Tickets for the film premiere, travel to amusement parks, exclusive offers — any student can be something to entice. The only exceptions are very wealthy young people, for whom the parents pay. However, sometimes they fill the credit profiles for some trinkets. "
It is curious that banks are always stepping up their promotional activities with respect to students shortly before the holidays. As a result, millions of dollars of credit money goes to the "party" organized by student societies often act (sororities).
"Alcohol, cigarettes, some food and fashion — that's what I spent all the money on my credit card this year — admits the 20-year-old John M. from Texas.
According to the corporation Sallie Mae, is engaged in registration cleon to study, the average American student debt on credit cards in 2009 was $ 4,100. This year, according to unofficial data, the figure could exceed $ 7,000.
Today, students have a variety of credit cards with an available balance of $ 500 to $ 30,000. Several tens of thousands of young people have debt in excess of $ 100,000.
"I'm depending on the credit card — recognized 21-year-old Margaret R. from Kentucky. — The first card was sent to me on the 18th anniversary. Now I got about 20 pieces. Every week I had to be moved money from one card to another to reduce the total amount of the debt. A few more months and I will have to declare bankruptcy. "
Its financial carelessness students are markedly different from the graduates of 10 years ago. Previously, young professionals was open the whole world. They were able to find a job without too much trouble, pay off debts, buy a property in a few years (on credit, of course). Today's graduates also look back and realize that just a few years drove themselves into huge debts to pay which will be very difficult. And in some cases even impossible …