Student Loan Debt Never Goes Away

Suze Orman discusses student debt at the Remaking America Panel recorded January 12, 2012.

Student debt is the only form of debt that cannot legally be discharged from declaring bankruptcy.  Federal loans are not enough to cover the cost of most universities, so it drives students to private banks that can legally charge up to 20% interest.  Bankruptcy law in America protects THE BANKS.  Banks borrow at practically 0% and then loan it out at 6-8% and if you ever miss a payment, then the rates increase and if you stop making payments on the principle, it begins compounding in the bank's favor. 

Banks know that in many cases for people will never be able to pay it off.  They will then come for people's social security checks or seize their estate after their death.