Money

The past few days, in my copious downtime at work, I’ve been playing on the websites I’m allowed to visit. (Needless to say, the bank has a very strict policy on what sites are appropriate. When I try to get to an unapproved site, a big black page comes up with red flashing letter, “NO ACCESS!!!! Any access is being monitored and recorded. Of course, how tempting is it to see how many times I can get blocked each day?)

One of the sites I like to read is cnnmoney.com. The latest on that site is a series of I-Reports, where people are sending in their stories about life during this recession. Yup, I said it – recession. ‘Cos we’re in one, people. Most people write about struggling by, trying to decide whether their kid’s prescriptions are more important than utilities. It’s sad to read. It’s even sadder to see the (oh, about 2 of the 50) people who write in with what is essentially a f-you to everyone else. Must be nice to be so perfect and capable in hard times. Just about everyone I know is holding back on spending in some form or fashion. For me, this means no eating out, and checking out every deal I can. I also try to not drive as much. It also means that I know my law school lender’s customer service reps by name. Seems like I’m going to have a very long Christmas card list this year. I’m trying to convince the reps that rent comes before repayment, despite what their bosses say. Wish me luck on this, because I’m going against a powerful machine.

I’m curious though – how did the private lenders get so powerful? I think it’s bad public policy to allow private lenders to join the party when it comes to bankruptcies. I do understand (somewhat) the policies behind not discharging federal student loan debts. After all, the interest rates are lower and there’s more flexibility involved. But why do private lenders, who can charge whatever interest rates (and adjust them!) any way and time they want, get to ensure that those debts will be paid?

I also wonder, given the cost of a private school education, just how much money from these loans are going into the schools’ coffers. I can almost guarantee that at least one of the many associated “fees” I pay is going to my law school alma matter. How can I find this out, without subscribing to conspiracy theories? I’m all for making money – I’m on Team Capitalism. But I have to wonder what can be done to fix this system.