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 by 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.
Today’s theme is again on the student loan debacle; sub-prime economics & unethical business practices within the student debt recovery system which is backed by our federal government.
A comment I found on the net: by Unemployed_Northeastern
2000: $200 billion owed
the end of 2008: $440 billion owed
Very Valid Points! (If anyone can prove his claims as to be invalid, I welcome it).
2012: $1 trillion owed, with another $113 billion expected to be borrowed.
Plug those numbers into Excel or a graphing calculator or Wolfram Alpha. What you have, more or less, is an exponential curve. Not a linear or geometric increase - an exponential increase. I would add that a commenter over on CHE said that because these figures are based on "cohort borrowing," they likely do not represent the full amount that is currently owed; nor do these figures take into account the decades of capitalizing interest that will accrue during payback.
1. The targeted lobbying to rid student loans of all consumer protections - statute of limitations, state usury and consumer protection laws, the Truth in Lending Act, the FDCPA, the ability to discharge in bankruptcy, the unheard of collection/garnishment measures.
2. The role of SLABS (Student Loan Asset-Backed Securities), their [until recently] invulnerability to market downturns because of the draconian repayment measures I listed above in #1; their influence in raising college costs and getting rid of the consumer protections in the first place, and the general public's almost complete ignorance that student loans are sliced and diced into securities the same way that mortgages were (and are).
Sponsor: Sen. Charles Grassley OR 11 USC § 523 - Exceptions to discharge
Sponsor: Sen. Charles Grassley
show cosponsors (12)
Sen. Thomas Carper [D-DE]
Sen. Michael Enzi [R-WY]
Sen. Orrin Hatch [R-UT]
Sen. Ben Nelson [D-NE]
Sen. Jefferson “Jeff” Sessions [R-AL]
Sen. Richard Shelby [R-AL]
Sen. John Thune [R-SD]
Sen. John Sununu [R-NH, 2003-2009] (joined Feb 03, 2005)
Sen. Michael Crapo [R-ID] (joined Feb 07, 2005)
Sen. Jim DeMint [R-SC] (joined Feb 07, 2005)
Sen. David Vitter [R-LA] (joined Feb 16, 2005)
Sen. Charles “Chuck” Hagel [R-NE, 1997-2009] (joined Mar 03, 2005)
Student Loans have become the most profitable and the most oppressive type of debt in our nation’s history. This debt has been the financial ruin of millions of hard working Americans.
Profitability is the key reason these debts cannot be discharged in bankruptcy—lenders have spent millions lobbying for their own interests at the expense of student loan borrowers.
Currently, student loans cannot be discharged when the debtor declares bankruptcy, which means that, unlike most other unsecured debt, student loans will stay with the debtor post-bankruptcy--this was not always the case: