By Futurist Thomas Frey
Americans owe approximately $1.7 trillion in student loan debt—more than credit card debt, more than auto loans, second only to mortgages. Over 43 million borrowers carry an average debt of $37,000. Many have been paying for 10, 15, 20+ years and still owe more than they originally borrowed. Some will die with student debt still outstanding.
AI analysis of student loan origination, servicing, repayment, and outcomes is revealing something deeply troubling: a system deliberately designed to be confusing, to maximize fees and interest payments, and to keep borrowers in debt as long as possible. Where loan servicers profit from keeping people in default. Where schools raise tuition knowing students can borrow unlimited amounts. Where forgiveness programs reject 99% of applicants through technicalities. Where income-driven repayment plans are nearly impossible to navigate correctly.
The awakening in student loans isn’t about whether education has value—it obviously does. It’s about revealing that the student loan system has evolved into a debt trap that extracts wealth from borrowers while enriching servicers, schools, and investors, with minimal accountability for educational outcomes or employment prospects that would justify the debt burden.
Continue reading… “The Awakening Series Part 17: Student Loans—The Debt Trap Design”
