This blog is 1 Week Old Today, thank you everyone who has left emails, comments and who has shown support for this blog. I think nearly 600 hits in a week is awesome, hopefully people have made some calls to their representatives, become more informed, and opted into the engagement process. Thank you!
I can’t emphasize enough, walking away from student loans is really not an option. Because, your student loans never go away! EVER! There are many ways in which your debt can be dealt with the utilization of various programs. There is a link on the right, Navigating Through Your Student Loan Nightmare, which may help. More info on restructuring your debt will come later.
Congress and the Senate should be held accountable because of the lack of financial protections they eradicated; or should I say, [the bankruptcy protections] they have done away with, for the sake of their special interest associations.
- Sub-Prime Economics, “Student loans do not come with “free-market consumer protections.” Student loans cannot easily be discharged in bankruptcy (compared to other unsecured loans); borrowers do not have the option to restructure their student loans; and these loans come with no real statute of limitations in most cases. Lacking these protections, borrowers are more or less bound for life to repay any money they borrow for their education.
- The organizations that are meant to oversee student lenders (called “guarantors”) make roughly 60 percent of their revenue from fees and penalties associated with loans that have gone into default. In other words, the groups intended to protect borrowers from lender abuse actually have a financial interest in borrowers not being able to repay their loans as outlined in their loan terms.
- Student lenders have broader debt collection rights than other types of lenders. This means that they have a better chance of collecting some or all of the money owed to them (including money owed as part of penalties and fees).” (http://www.totalbankruptcy.com/blog/without-bankruptcy-option-are-student-loans-predatory/).
"I readily admit it," said E. Gordon Gee, the president of Ohio State University, who has also served as president of Vanderbilt and Brown, among others. "I didn't think a lot about costs. I do not think we have given significant thought to the impact of college costs on families.” (http://www.statesman.com/news/education/current-generation-likely-to-be-hobbled-by-student-2353555.html).