Phoebe writes that self-help finance guru Suze Orman has had an epiphany: Lending institutions could use some regulation.
Orman, who has held certification since 1986, champions personal responsibility. She is quick to chastise women who call in to the show confessing that their husbands handle the bills, and she regularly admonishes folks to get a second job when faced with debt, telling a woman on a recent show, "We are not the victims of our circumstances; we are the creators."But this past year, Orman veered from the party line. In mid-February, Orman was called before the Senate Health, Education, Labor and Pensions Committee to testify about the need for reform in student loans. In her testimony she called for an increase in Pell Grants, a reduction of student loan interest rates, an increase in the income limits for student loan deductibility, and changes in the repayment rules. In other words, she called on the government to help students help themselves.This summer Orman also brought her concern to The Suze Orman Show, starting two shows with segments on students who had been caught in the web of high student debt. In a switch from her usual format, in which callers are offered a 15-minute Orman fix-it plan, she presented two students as case studies in the pitfalls of education loans. She talked to Adam on Aug. 18, and asked about the interest rate on his private loan. He answered that it was 9.5 percent. "Thank you!" shouted Orman, "Nine point five percent. Shame, shame, shame on you lenders. Look at what you are doing to the future of the United States of America." And then she really let loose: "But here is the problem. … We can't do anything about it, because our great legislators have allowed these private institutions to be protected against you claiming bankruptcy."
Read the rest (and comment) here. --The Editors
