Is Student Debt Really a Problem?

Needless to say, words like loan forgiveness and forbearance are meaningless to the thugs that run this racket. In spite of my multiple requests to the contrary, they have placed my account in default and added a bundle in charges for the privilege. Moreover, they are garnishing my meager earnings to boot.Needless to say, over the past decade, in spite of literally thousands of applications and resumes, I am still stuck in a low-paying part-time non-benefitted position which does not cover the basic needs of my family.

Needless to say, words like loan forgiveness and forbearance are meaningless to the thugs that run this racket. In spite of my multiple requests to the contrary, they have placed my account in default and added a bundle in charges for the privilege. Moreover, they are garnishing my meager earnings to boot!

These people are allowed to run roughshod over us because our elected representatives have been bought by the industry and violated the Bill of Rights (Equal Protection) by preventing us from having any legal rights in these matters, including the right to discharge our school loan debts in bankruptcy.

The jobs and salaries that many of us were promised do not, and did not at the time that they were promised, exist. The schools did not help us get the jobs because they did not exist. The industry knew, or should have known, at the time that we became obligated, that these jobs did not exist. Nevertheless, they obligated us anyway. They were required to make full disclosure -- they failed to do so. FRAUD!!!

I have not paid off my loans not because I didn't want to pay them off. They have not been paid off because I cannot physically pay them off. Yet, I am treated like a criminal, in spite of my efforts, and cannot even get copies of my transcripts from my institution!!!

Our full civil rights must be restored IMMEDIATELY!!! Why are we required to live as second class citizens? Because DOE and the industry want slaves? Where is fairness?

RESTORE OUR FULL CIVIL RIGHTS NOW!!!

Rick Strul of FL

Aug 19, 2009 18:34:24 PM [permalink] [report comment] One third of all new bachelor's degree recipients in June of 2008 started their working lives without owing a penny in federal or private educational debt. Only 10 percent of last year's graduates owed more than $40,000, according to the lead author of the report, College Board researcher Patricia Steele. (She did not count credit card debt or other noneducational liabilities such as car loans.)

The median borrower graduated last year owing almost $19,999, a $1,026 increase from the typical debt load of 2004 graduates. "Most people would say that is a reasonable amount of debt to take on for a baccalaureate degree," especially if students stick with federal loans, which now allow borrowers to adjust their payments to their income, Steele says.

The College Board, an organization made up of

Bob the gay of KS 11:05AM September 23, 2009

College Board

I am aware that Kim Clark does not think it important to read what posters write - HEAD'S UP: Kim Clark does not care what you post on her articles. Well, I am a professional blogger and I DO care when people post.

I am also at a loss to understand why Kim Clark didn't bother to reveal in her article about the College Board that they HAD been lenders. Even more than that, they still have their hands in the that lending pot, so that's why they manipulated the data. As I already said on my blog, number crunchers have an excellent way of doing these things. Then they declare it all to be TRUTH. That's another point, and I'm digressing.

Shame on Kim Clark for NOT being honest as a reporter. I guess it doesn't matter what I'm writing, because she doesn't even bother reading it! I have news for her: old school journalism is on its way out.

Original Article: http://www.usnews.com/articles/business/paying-for-college/2009/08/12/is-student-debt-really-a-problem.html

My blog: http://alleducationmatters.blogspot.com/

Cryn Johannsen of VA 5:13PM August 20, 2009

Let's consider a couple of facts with regards to student loans:

1. Over the past 30-40 years, colleges and universities have raised tuition annually by about double the Consumer Price Index (CPI). Most of this increase has been shifted directly onto the backs of the students, in the form of loans. As a nation, we have gone from owing virtually nothing in student loan debt in the 1970's, to owing $730 Billion today. This is roughly 1/4th of all consumer debt in this country, excluding real estate.

I think this suggests pretty strongly that student debt is a problem.

2. Consider the 2003 Inspector General’s report that looked at defaults for two-year, four-year, and proprietary colleges. It used real default data from first and second year students, that ultimately led to the following estimates for defaults:

Average

2-year colleges: 30% - 42% 36%

4-year colleges: 19% - 31% 25%

Proprietary: 38% - 51% 45%

These data indicate strongly that something more than 30% of these students will likely default on their loans. In today's economc conditions, I don't thinki it is a stretch to say that about 1 in 3 students are defaulting on their loans, and have been for years, now- despite the happy sounding rhetoric that takes up all the headlines which claims that defaults are near historic lows at between 5-7%.

This is not a low rate. It is a high rate. In fact, it is a rate even higher than the default rate for credit cards, and payday loans. It is even significantly higher than the default rate for subprime home mortgage loans, (which is about 25%). As I think about it. I CANNOT THINK OF EVEN ONE LOAN IN THIS NATION THAT HAS A HIGHER RATE OF DEFAULT. CAN YOU?

Consider that unlike all other loans in this country, student loans have been had the most basic consumer protections removed by Congress. Bankruptcy protections are gone. Statutes of limitations are gone. Refinancing rights are now gone. Even Fair Debt Collection Practices aren't applicable to non-profit state guarantors collecting on defaulted loans, and federal loans also enjoy a host of special exemptions from the Truth in lending Act.

People whose loans are put into default (often despite their efforts to maintain their loans in good stead) are strongarmed into repaying far, far, more than they originally borrowed, or be relegated to living off the grid, hounded by collection companies for amounts double, triple, quadruple or more thabn they originally borrowed.

Why did USNWR publish this sort of story without even attempting to balance it with facts and opinion from the other side of the debate? USNWR (Meg Barnett/ Julian Barnes) wrote one of the best student loan pieces there is in 2003. What has changed?

Please come to http://www.studentloanjustice.org if you are a distressed borrower. We are fighting for the return of standard consumer protections which should never have been taken away.

Alan Collinge of WA 8:41AM August 18, 2009

I'm not even trying to be philosophical about this issue but let's look at the hard cold facts shall we?

Student loans are the only loans in our nation's history to be specifically exempted from basic bankruptcy protections, state usury laws, refinancing rights, truth in lending requirements and fair debt collection practices. Borrowers can also face termination from public employment due to the status of their student loan. They can also have their driver's and professional license suspended due to the status of their student loan in certain states. In essence, there are way too many bureaucratic blockades and not nearly enough leverage for borrowers.

This is in addition to the fact that Sallie Mae has also recently come under fire in Connecticut, Florida and Kentucky for legal allegations of violating federal civil rights and lending practices. This was done by deliberately targeting higher priced loans to students who were attending schools with a large “at-risk” or minority population.

The End.

Jean of IL 11:58PM August 17, 2009