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Trump wants to put people with student loans out begging on the streets...
Posted by: Onamuji
Date: March 19, 2017 11:23PM
[consumerist.com]

Until July 2015, guarantors that collected debts on defaulted loans from the public-private Federal Family Education Loan (FFEL) Program were allowed to charge collections fees equal to as high as 18.5% of what was owed on that loan, resulting in bills for several thousands of additional dollars on top of the original amount.

Then the Dept. of Ed. issued guidance [PDF] forbidding these fees, but only if the borrower responds within 60 days of a final notice, enters into a repayment agreement, and abides by that agreement.

This week, the Department changed course drastically, issuing new guidance [PDF] to guarantors, telling them to disregard the 2015 letter.

These fees are not an issue for loans issued through the federal Direct Loan program; only FFEL.

The FFEL program hasn’t issued new loans since 2010, but as the Washington Post notes, there are approximately 7 million borrowers with $162 billion in debt still outstanding to FFEL.

Additionally, the new guidance comes on the heels of a Consumer Federation of America report finding that 1.1 million Americans defaulted on their federal student loans last year — a figure that doesn’t include the number of FFEL borrowers in default, since those loans are managed by private contractors.

Rohit Chopra, CFA Senior Fellow and former student loan ombudsman with the Consumer Financial Protection Bureau, contends that allowing debt collectors to charge 16% fees “will do nothing to stop the tidal wave of defaults that is sweeping across the nation.”


...

There's lots more to this story if you follow the link.

Betsy DeVos, and an influential lobbying group are implicated.



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Re: Trump wants to put people with student loans out begging on the streets...
Posted by: Acer
Date: March 20, 2017 07:33AM
Another way society makes it expensive to be poor.
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Re: Trump wants to put people with student loans out begging on the streets...
Posted by: cbelt3
Date: March 20, 2017 08:30AM
Quote
Acer
Another way society makes it expensive to be poor.
AND for the Educational Banking Industrial Complex to continue to prey on the young.

Because, dammit, College is:
1- Not for everyone.
2- Not a guarantee of a Good Career afterwards.
3- not required for a Good Life.
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Re: Trump wants to put people with student loans out begging on the streets...
Posted by: Steve G.
Date: March 20, 2017 09:00AM
This all started when he made Bernie Madoff Dean of Students at Trump University.
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