Summary/Critique (Argumentative ) - Essay Example

Summary Loan This article aims at alarming the fact that the credit card balances are surpassed by loan amounts across the nation. Detailed information of specific areas on debts has been itemized in the article with relevant references in order to indicate the need for such a rapid alarm. A clear focus on the impact of unauthorized money lending is laid in this reassert note to highlight the intensity of the problem in the long run. This note on imbalanced money lending system in the country runs through detailed concerns over how such an irresponsible system damages the feasibility of economy and in turn destroys the social set of the nationals.

The latest G.19 report by the Federal Reserve’s indicates the debt as hanging about $825 billion only on student loans. More accurately, OMB budget projection data shows the burden to be around $730 billion. Recent updates on the borrowing estimates framed by Mark Kantrowitz at Finaid.Org points to an increased debt of about $830 billion marked by student loans in the country. This amount at which the indebtedness stands was predicted to reach after many years but the liberty in credit card borrowing eased the amount of debt at this dangerous level.

Thus student loan alone contributes to one third of total consumer debt in the country which stands at 2.4 trillion. Interim surveys on debt ratios are helpful to create awareness while the reliability of news is suspicious as the fact is usually overcome by figures estimated by different agencies. The impact and burden of debt on citizens are equally forced by both credit card loans and student loans but federal student loan borrowers enjoy little fundamental consumer protections of their debt.

Student loan is exempted from provisions of consumer protection in almost all ways. The borrowers apply appeal process on defaulters at 20 cent on every dollar repaid by a defaulted are taken by guarantors before adjustments are made to principal or interest amount. The law of recovery is strictly exercised on defaulters; their wages, Income Tax returns and social security and disability income are garnished and the default is imposed on them by the lender even without a court order.

The life becomes miserable once the debt goes defaulted – there are chances of cancellation of professional license. They must find way to repay the debt or lead a marginalized second class life. The American public is forced to believe in the propaganda that they bear additional tax burden in order to patch up the damaged economy. However, the government makes steps to make money of defaults by charging about 25 cents on the dollar for credit card defaults and a strict 123% on student loan defaults.

A consolidated overview of the credit recovery system in the country hints out to two sides of the same element; one is that the predominant lending system that succeeds with freedom to impose stress on students when they fail to repay and the other is about causing a raise in the administrative failure at highest levels. Since the system assures no guarantee against inflation, it can be seen as a social evil as it destroys lives of people and demolishes communities. As this issue is a much solicited one in the present trend, strict media scrutiny is to be emphasized on both credit card debt and sub prime home loan debt to clearly figure out the data of student loan debts.

Hence a serious investigative journalism may be advocated into its light in the later version.