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Your story on the disabled student and her problems with the education dept was excellent. The media in general isn’t covering the problems and injustices with the student loan program.
Here are some things worth public attention:
— The department hires private vendors to collect the loans. Loans which are virtually cost-free in collection (due to wage attachments and benefits deductions) About 30+% of what a student/debtor pays is routed to these private contractors despite the fact that the department actually does the work
— To the best of my knowledge, there are only TWO things which cannot be forgiven in America: (1) Murder and (2) Student Loans. Unlike any other debt there is NO statute of limitations of a student loan.
— A number, a significant number, of debtors with no options have killed themselves after being hounded by collectors
— Social Security, originally by law exempt from garnishment, is being tapped for loan repayments. In my case, with ONLY $ 1174 as my only income for support of me and my wife; the Department is taking 15%. Frankly, we will have to give up eating or living indoors so that I can meet my loan repayment (Try to live on $ 997 a month after paying out $ 727 for rent
— One collector, apparently perturbed by my claim of inability to pay, said that I could always die to have the loan forgiven !!!!!
— Is there a Moral Obligation to pay? I suppose there may be but why are the guys who walked away with BILLIONS in S&L loans, and SBA loans, and farm loans ALL forgiven while student debtors — even with debts that are 30-plus years OLD, are pursued unto death?
( for example, Jeb Bush borrowed federally-insured money to buy a building, went belly up on the building, stopped paying his loan and yet is unencumbered by government collections )
We really shouldn’t treat debtors as the moral equal to murderers, that’s wrong
Anonymous