Adam Ruins Everything – How College Loans Got So Evil | truTV

'Sup, friendo? Care for a loanski? Hit me, loan tender See, Adam, student loans help people

A lot of us wouldn't be able to go to college without them (Adam) Right, they're a necessity That's why it's even more disturbing what they're doing to people Chill, Sheldon, everybody's doing it That's true

42 million Americans have student loan debt totaling $13 trillion Trillion? That's a whole lot of Pokémon Go coins And student loan debt has become the worst kind of debt Let me tell you a story

Before 1972, students could get federally backed loans to pay for school But there weren't enough to go around Please, sir, may I have a loan? All tapped out, sorry (Adam) But then, Richard Nixon created the Student Loan Marketing Association Or as it's known today Sallie Mae

Now, Sallie, your job is to buy loans from the banks so they can lend more But Uncle Sam is watching So, don't be a crook This system freed up financial institutions to issue more loans which meant more students could go to college Please, just one

Look, I told you, there's no more– Whoa! Thanks, Sallie! The party's on! (crowd whooping) (Uncle Sam) Uh, loan responsibly, now Just loan responsibly Seems like a good system It was! But the party foul began when the government moved to privatize Sallie Mae in the 1990s I'm tired of playing chaperone

You're free, Sallie (gasps) Free market (Adam) A compromise between President Clinton and congressional republicans cut Sallie Mae loose Who wants loans, bitches?! (Adam) Now Sallie Mae was in it for the profits And profits they received

They made a fortune off of government fees This chick is awesome I'm gonna get loaned up tonight Sallie Mae poured their new-found wealth into projects designed to increase those profits Come on, dude, she's not that shady

Oh, you'd be surprised Fearing competition, Sallie Mae started marketing like crazy (cash register opens) (Adam) They paid colleges to drop direct government loans and sign up for their program Hey! Ditch the clown and this could all be yours (Adam) and sponsored cruises for financial aid officers

Oh, you boys have to come on my boat Sallie Mae even placed undercover reps in university call centers where they tricked students into thinking they were talking to college loan officers You have got to meet this girl She is so cool And she didn't even pay me to say that

Sallie Mae, really doing everybody dirty like that I'm afraid so And soon, students were stuck with the worst kind of debt you can have Often, they're encouraged to take out more loans than they can even afford What's happening? Don't worry about that right now

These are the best four years of your life! Yeah, I'm 17, I know what I'm doing Hey, my payments are super low I'll finish these soon Sorry, you won't (Cole) No! Many borrowers have monthly payments that are so low, they don't even cover the interest

You could be in a situation where you're paying hundreds of dollars a month, but the amount you owe is still growing Oh, God, I can't keep up with this One in four borrowers are behind on their student loans And over eight million are in default What? That's crazy! (loud thud) And here's where it gets really scary

Unlike other types of debt, if you default on a federal student loan, the government can garnish up to 15% of your wages, tax refunds and social security benefits Hell, yeah! Rent money, baby What the– Sorry, Uncle chooses where your money goes now (Adam) And if your parents co-signed your loan, their income can be garnished too I'm sorry, Mom and Dad

I just wanted to go here because the school colors matched my Flyknits Adam, this is too much Make it stop! I wanna file for bankruptcy Oh! Sorry, you can't Sallie Mae spent decades lobbying congress to roll back consumer protections

And it all paid off in 2005 when Sallie Mae won their crowning achievement Because now, unlike almost all other forms of debt, it is nearly impossible to declare bankruptcy for student loans It's insane You sign a piece of paper when you're 18, and you can get stuck for life (moaning) Oh, I can't get them off! In 2010, the government finally cut out middle men like Sallie Mae, but it wasn't enough

A generation of Americans have had to financially cripple themselves with debt just to get the basic education that will allow them to survive in today's economy That's nauseating Yeah, it is But let me tell you about a few things you can do to– Oh, I really mean that's nauseating Oh, God! (retching) Oh, for once, Adam isn't the barf boy

Source: Youtube

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