Private Student Loans Setting Lifetime Debt Traps

Private student loan lenders are bombarding families of high school students with offers at much higher rates than federal student loans. Some private loans include variable rates that escalate like adjustable-rate mortgages, as wells as daily-compounding interest that begins while the students are still in school.

According to Student Loans for Higher Education a California Research Bureau (CRB) report, practices in the student loan industry are ensnaring some students and their families into an insurmountable lifetime of debt. And under federal law, students and their families cannot discharge student loan debt, even if individuals file for bankruptcy and even if the loans could only be described as predatory.