Government Mulls Making Debt Collection Rules Secret

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No suprise here. Debt, whether fed student loans, or credit cards have debt collectors that are a shade off of loan sharks. If you don't have a job, or are bankrupt but haven't filed yet, they come at you even harder, because the rule is, take whatever the debtor has and cut bait, vs. a more productive approach, such as "work with the debtor to get something today, and keep the relationship until the debtor is working again." Not sure how they intend to squeeze funds out of people with no resources....and the lender's best defense is to "ruin the person's ability to get a job, insurance or a loan" by damaging credit for 10 years. We'll, I got news for ya, we are going to have ALOT of people after this latest ugly recession unable to get jobs even if it was good, due to this, and they will be on the government's dole until they can. Good job, capitalism! You're managing to shoot yourself in the foot by dividing the haves and have nots, in part through these rules, so pretty soon....there will be a tiny group of haves, and no have nots left to work for them! Wonder what that will look like when the have nots start getting really mad, and there are so many of them? Run!

Fred of DE 10:07AM July 17, 2010

Uh, simple mistake. I teach for hours and then come home and do work as an advocate. Plus, I am on an exhausting schedule, because I live in South Korea. It was a simple mistake, and I do know the difference.

Ms. Johannsen of VA 2:32PM July 07, 2010

Kari - it was a simple mistake. I work on these things after hours of teaching in Seoul. I'm on a different time. I am, however, aware of the difference, and am frankly surprised at the jab.

C. Cryn Johannsen of VA 2:31PM July 07, 2010

Simple mistake! I work from a different time zone, Kari (I live in South Korea). I do know the difference, however. Honestly, it's a bit surprising that one would make such a jab over a simple error.
-Cryn Johannsen
Founder of Education Matters

C. Cryn Johannsen of VA 2:30PM July 07, 2010

For those of you who are unaware, the US Department of Education's abbreviation is ED. I know it can be tricky keeping all these conspiring government offices straight, but if you're going to take them on, at least be sure there's no mistake in who you're taking on.

Kari of IL 1:21PM July 07, 2010

How come you can't get the procedures under the freedom of information act?

Dudeman of OK 8:01PM July 06, 2010

Also, if you are a student loan debtor, please reach out to me. I can be found on FB. I need you to join the cause and fight this type of tyranny!
-Cryn Johannsen, Foudner of Education Matters; Student Loan Debt Advocate
http://alleducationmatters.blogspot.com/

C. Cryn Johannsen of VA 1:41PM July 06, 2010

Does the DoE wish to make themselves look any worse? This is absolutely despicable, and I will be sure to start a campaign that sends emails tirelessly to the DoE and the White House protesting this measure.
Shame on the DoE!!
-Cryn Johannsen, Founder of Education Matters; Student Loan Debt Advocate
http://alleducationmatters.blogspot.com/

C. Cryn Johannsen of VA 1:40PM July 06, 2010

@Nelson, IBR stands for 'Income Based Repayment'. You can search it on the web or visit this link: http://www.finaid.org/loans/ibr.phtml. The intent of IBR is to assist students in paying their federal student loans. Be sure to note the difference you will be paying in interest and terms of any repayment plan you choose.

RM of VA 11:52AM July 06, 2010

THIS IS THE STUDENT LOAN SCAM. IT HASN'T CHANGED. USNEWS KNOWS THAT THE RECOVERY RATE FOR FEDERAL LOANS IS 123 PERCENT. IN OTHER WORDS, THE FEDERAL GOVERNMENT IS MAKING, NOT LOSING MONEY ON STUDENT LOANS. IT HAS BECOME A PREDATORY AND PARASITIC SYSTEM, AND IT IS RUINING LIVES AND LIVELIHOODS. THIS IS BIG, CORRUPTED GOVERNMENT AT ITS ABSOLUTE WORST, WHERE EVEN THE "STUDENT ADVOCATES" PURPOSELY IGNORE THE IMPORTANCE OF THIS FACT.
I DEPLORE THE FACT THAT US NEWS NO LONGER DOES CRITICAL, INVESTIGATIVE JOURNALISM ON THIS ISSUE. THEY HAVE BECOME, IT SEEMS NOT MUCH MORE THAN A MOUTHPIECE FOR THE INDUSTRY. COME TO STUDENTLOANJUSTICE.ORG TO GET THE REAL, FACTUAL, UNBIASED, UNPURCHASED, TRUTH ABOUT THE FEDERAL STUDENT LOAN SYSTEM IN THIS COUNTRY.

ALAN COLLINGE of WA 10:13AM July 06, 2010