MadHatter500: chitownmike: Do you know the way to Mordor: Phony_Soldier: Bandito King: Phony_Soldier: I don't understand why the loans should be forgiven. People knew what they were getting into.

Predatory lending practices exist, smart guy.

As for DeVos, lock her up.

I did find this funny:

"Students came together to speak up for themselves and show the court the massive scope of the trauma they have endured at the hands of the Department of Education, and the courts are listening," said Eileen Connor, legal director at Harvard Law School's Project on Predatory Student Lending...

/Trauma???
//Seriously???

Being forcibly evicted from your rented accommodation when you know your lack of money is due to an orchestrated scam IS pretty traumatic.

Nope, rent is first priority.

They take that choice away from you by garnishing your wages.

You try paying rent on $75 a week.

orbister: IndyJohn: orbister: Phony_Soldier: /Trauma???
//Seriously???

Millennial-speak for upset. Cf "anxiety" which is millennial-speak for "worry".

Your post:

Asshole speak for "I lack empathy and am a human shi ... Er ... I'm a Republican"

You sound traumatised.

gar1013: IndyJohn: The_Homeless_Guy: IndyJohn: The_Homeless_Guy: IndyJohn: TorpedoOrca: I honestly do not understand how this student loan pyramid scheme is supposed to play out.

Oh, you defaulted on your loan? Well there goes your credit score that was already in the toilet. I'll just sell this off to another debt collection company

Oh, you defaulted on your loan? Well there goes your credit score that was already in the toilet. I'll just sell this off to another debt collection company

Oh, you defaulted on your loan? Well there goes your credit score that was already in the toilet. I'll just sell this off to another debt collection company

Student loans generally can't be discharged in bankruptcy. This means they can follow you forever into the grave unlike most other debts.

It also means that you can be subjected to ongoing collection activity through the courts. Wage garnishment, and also harassing requirements to appear in court and potential arrest for failure to appear.  The debt collectors don't just sit back passively and sell the debt to the next chump.  They try to collect and can make peoples lives hell while doing so.

Are most of the loans in question federal loans and if so aren't they eligible for PAYE or other repayment plans? I wouldn't think the department of education would have much authority over the completely private. With a repayment plan 10 percent of your income (minus a basic cost of living adjustment so the first few 10's of thousands of income don't count) isn't that bad. Many people pay nothing or a couple hundred bucks a month. The only problem is that, when they forgive your loans after 20 years, the amount forgiven is taxable as income. Owing money to the IRS at the end could be a significant problem. Change that part of the law and you have essentially solved the student loan crisis.

There are a number of income-based repayment plans for student loans. However, my understanding is that every single one of them requires you to be current in order to qualify. If you are I behind at all, you can end up falling down a rabbit hole never to get out.

In addition and related, some of the major student loan servicers have been sued because they did not provide proper and adequate information to borrowers about income-based repayment.

You don't have to be current to enroll I was a bit behind as I forgot the paperwork at one point. They literally let anyone. The process is simple too. In most cases they just need either last year's tax return or a months worth of paystubs to calculate your income. I owe close to 400k in loans. I pay 400 bucks a month. I'd like to have that extra money but such is life. I do have a mutual fund account I am placing enough in to cover the eventual tax bill as I am not even covering the interest at this point and will never pay off any of the principle. However I realize that everyone might not be able to save in that manner so again what needs to happen is to just not tax that money at the end.

According to the federal government, you aren't eligible for income-based repayment if you're in default. Not sure why you slipped through, but I'm glad you did.

https://studentaid.gov/manage-loans/re​payment/plans/income-driven/questions

In default is not the same as behind on payments.

gar1013: PerryWinnwet: Phony_Soldier: I don't understand why the loans should be forgiven. People knew what they were getting into.

Except this article isn't about ALL student loans, it's specifically about the student loans from institutions (allegedly) engaging in fraud. Where, by definition, the students were misled and therfore did NOT know exactly what they were getting themselves into.

And perhaps many of the applications don't prove fraud - they prove that people want their loan to go away.

Proving fraud is a high hurdle to clear. If you can prove actual fraud, then you actually open up the door to the Federal False Claims Act, which allows the government to go after the entity committing fraud for treble damages.

orbister: Phony_Soldier: /Trauma???
//Seriously???

Millennial-speak for upset. Cf "anxiety" which is millennial-speak for "worry".

bsmz: gameshowhost: Shut up, Politico.  DeVos is simply *lying*.  She doesn't believe a goddamned thing she's pushing - she has a financial interest in pushing what she's pushing, and that's all she cares about.

What is DeVos' financial interest in denying all those claims?

Phony_Soldier: I don't understand why the loans should be forgiven. People knew what they were getting into.