“No-limit” loans don’t have an income requirement or give a cap on how much recipients can borrow. This means borrowers can drown in debt before graduating and even if they don’t finish, they’re still forced to pay everything back.
This is causing low-income people to fall victim to the U.S. debt crisis.
These loans are not only nearly impossible to repay, but are also predatory.
Those with some of the most debt stemming from ”no-limit” loans are Black families. Admissions counselors even prowl Black neighborhoods searching for families to buy an education they can’t afford!
Colleges don’t seem to be concerned about these families' well-being after the checks clear.
Debt has the ability to wreak so much havoc. Your job, your neighborhood, your healthcare quality, your mental health and so much more are negatively influenced by a debt-filled life.
College can expand your financial and social opportunities, but we shouldn’t have to fall into massive debt to reap the benefits. The student loan debt crisis is just another way our economic system prioritizes the already wealthy and makes it difficult for anyone else to access financial liberation.