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Student loans are a way the US government redistributes income from the 99 to the 1 percent. Notice also that virtually all K-12 educational reform is geared toward turning the most IQ challenged children into university students. The complete process of student loans and educational reform are interrelated scams to redistribute income from the 99 to the 1 percent. The more students take out loans, and the more kids and parents feel pushed toward university educations, the richer Wall Street and its investors get.

Wall Street investment corporations purchase student loans, and then turn around and issue bonds based on the value of the government guaranteed student loans, meaning there is no risk for the rich investors who opt to purchase these bonds. These student loan transaction generate billions of dollars of income for Wall Street.

That’s one reason why the US government allowed student loan interest rates to double from 3.4 to 6.8 nearly two years ago. The rich investors of Wall Street benefited from this at the expense of the 99 percent.

There is another reason why the US government keeps this massive income redistribution scam going. Wall Street banks have invested billions of dollars into private, for profit, universities.

* ITT is 100 percent owned by Wall Street investment companies.
* The Apollo Group owns the University of Phoenix, among other private universities. JP Morgan, Citigroup, Barclays, Wells Fargo and Blackrock, among others, own 98 percent of the Apollo Group.
* Devry University is 100 percent owned by Bank of America, Barclays, BlackRock, JP Morgan, and Morgan Stanley, among other Wall Street Investment firms.

You can go on and on and the story is the same with respect to for-profit universities. Many of them are owned by Wall Street.

These universities target low income students, and charge several times more tuition than community colleges. Student loans amount to $32 billion in revenue a year for Wall Street owned private universities. That equals 25 percent of all student aid in the USA. The revenue generated by student loans provides up to 90 percent of annual income for Wall Street investment schools.

* In 2012, 88 percent of graduates left school with debt equal to almost $40,000 per student, which goes straight into the pockets of Wall Street investors.

* With interest, late fees, penalties, and collection fees assessed against students, the total cost of an education at these private schools is “can end up being more than double the cost of an education at Harvard University.

* 17 percent of revenue is spent on teaching, 19 percent goes to profits, and 23 percent does to marketing their bogus products.

* The average annual pay of a CEO at any of these corporate schools equals $7.3 million.

* The US Department of Education reports that 72 percent of private school graduates wind up in jobs that “average less pay than high school dropouts.” This may explain why corporate school college graduates represent only 13 percent of all college graduates, but they account for 47 percent of all loan defaults.

And these are only some of the reasons why student loans represent a nice income redistribution scam for the 1 percent at the expense of the 99 percent. Check out the link below for a story and interview about how one person decided, among many, decided it was in his best interest to default on his student loans.

why-this-man-defaulted-on-his-student-loans-and-suggests-others-do-the-same–Yahoo! News

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Wall Street investment corporations purchase politicians so that they will enact legislation that redistributes income from the 99 to the 1 percent. This is true in any number of ways, including debt. Household debt, credit card debt, mortgages, student loan debt, auto loan debt, can all be purchased by Wall Street investment corporations, such as Goldman Sachs and JP Morgan. These corporations take the loans they’ve purchased, and issue bonds against the debt. Then they sell the bonds to rich investors. The payments made by, for example, people who have outstanding student loans, go into the pockets of the rich via these bonds. Wall Street steals billions, perhaps hundreds of billions, via every one of these transactions annually. There are more commissions when the banks purchase home mortgages from lending companies, and then there are billions of dollars more to be made when Wall Street sells the bonds to rich investors. This is why the US government enacted tougher bankruptcy laws seven years ago, and why the government made it impossible to go into bankruptcy on student loans. It’s also why the government doubled student loan interest rates two years ago.

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Elizabeth Warren says to Republicans, “It’s time to put up or shut up. I have a message for my Republican colleagues, stop talking about helping the middle class, and start doing it.” Then she lists a number of things the Republicans that control congress can do to help the middle class, none of which the Republicans intend to do. Basically, she’s accurately saying the Republicans are lying about their desire to help the middle class, which is totally true.

Of course, plenty of Democrats secretly and not so secretly side with the Republicans on these issues, most notable among them is Wall Street Senator Ron Wyden, who is pushing the largest income redistribution scam in history from the 99 to the 1 percent. It’s called the Trans Pacific Partnership, and Wyden is one of the strongest supporters of the 1 percent in their war against the middle class.

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US Senator Elizabeth Warren and US Congressman Elijah Cummings today announced the launching of the The Middle Class Prosperity Project. Warren pointed out the unequal distribution of income and wealth has been due to the government, which has been rigged (you can say corrupted) to only help the rich at the expense of the middle class.

Warren and Cummings call for reversing some of the inequality which has taken place. Warren pointed out that the government earned over $60 billion in interest from nearly $3 trillion student loans last year, and that this profit subsidizes tax cuts for billionaires. She said that student loans could be renegotiated to reduce the interest rates student pay, and that would help out the middle class. Run! Elizabeth! Run!

Check out the USA Today story by clicking on the link below.

Warren & Cummings: Free the middle class–USA Today

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Wall Street Senator Mitch McConnell embodies only one thing; government corruption to the core.

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