Finally, someone issued the wake-up call to another even more volatile financial
disaster than the home loan scandal. Student loans have no collateral to file on
unless parents were dumb enough to put up their homes as collateral. Many
financial experts have warned of this debt and now its becoming a problem
because banks or government are not getting reimbursed for money sent to
colleges. Student loans are smaller than home loans but there a lot
more of them and that is real. Any loans with collateral can't be collected
because the economy is depressed with no one to buy low value tangible assets.
Thus we have another financial crises of misappropriated funds and money that
can't be collected. Debt funding debt is a dangerous economy and banking
According to "The 10 Commandments of Money", federal student loans can
be forgiven if you work in a public service job and make payments for ten years.