Taxpayers Fund $454,000 Pay for Collector Chasing Student Loans

Discussion in 'Economics' started by Banjo, May 15, 2012.

  1. Banjo


  2. Why do you need a debt collector on a loan you can never discharge?

    At some point in time the IRS could seize your assets, garnishee your wages, confisticate your tax refund. All of these methods would cut out the middle man (debt collector) and provide greater return to the tax payer.

    just asking.
  3. Friends,

    I'm trying to collect signatures, and I could really use your help to STOP this madness.

    Collection agencies, student loan servicers and even some schools have a vested interest conflicting with the best interest of the students.

    Collection agencies have inherent conflict of interest involved when private debt collectors are given financial incentives to collect the greatest number of dollars possible—rather than help student loan borrowers who have defaulted on student loans to a path toward making affordable repayments and rehabilitating their credit in the process.

    Independent organizations have successfully assisted student loan borrowers in preventing their loans from default.

    To read more about what I'm trying to do and to sign my petition, click below:

    It'll just take a minute!

    Once you're done, please ask your friends to sign the petition as well. Grassroots movements succeed because people like you are willing to spread the word!
  4. Lucrum


    Personally I don't think kids should be borrowing large sums of money for college to begin with. They can study, work and pay as they go.
  5. This shit really needs to be dischargeable in bankruptcy like all other consumer loans as it used to be at one time. As it stands, there is no incentive for lenders to work out anything with the borrower because of the loans' super debt status. The results are collection abuses, ruined lives, and absurd results out of involuntary bankruptcy proceedings where the debtor is left saddled with tens or hundreds of thousands in student loans and barred from filing for another 10 years. Unfortunately, there is little prospect of allowing bankruptcy protection to student borrowers because there are too many pigs feeding at the trough of higher education and Sallie Mae is the biggest pig of them all.

    The current system is creating a class of indentured servants among the young people who are guilty of nothing more than buying into the hype of overpriced schools in their pursuit of a brighter future. Obama lacks the balls to address the problem except for token gestures and Romney is in the back pocket of big business. The young people as a class face a bleak future and that is a knock against the country and not against them regardless of the mistake they may have made.
  6. ssaya401


    Sorry I saw multiple people work 40 hour weeks while getting their engineering degrees, I have below 0 sympathy for those who did nothing while spending 4 years getting a degree they knew was worthless.
  7. I worked my way through undergrad and even dropped out for 3 years to work full-time and save enough to finish. I also know people who borrowed their way through and finished before I did. But what the hell does that have to do with giving bankruptcy protection to people who are in over their heads with debt? The current system isn't about sympathy or lack of sympathy but sheer protection of profits.
  8. I'm going to agree with you to disagree.

    The method of $ave as much money as you can for your college education. The more money you have saved, the less you will need to borrow in student loans for college. Is that really true with the rising cost of education?

    What about the families who have no concept of financial literacy?

    There remains a risk when borrowing large sums of money to pay for school but, for some that is the only way they will ever make it to college.

  9. No...I wont sign, because unlike the other trillions that Obama is wasting, this single billion dollars IS actually creating jobs. You get the government to stop spending that billion on debt collections, then FOR SURE it will just go somewhere else and be wasted.
  10. SREC


    The reason it is not dischargeable is because doctors and lawyers used to graduate and instantly file Bankruptcy before they had any income and start with a clean slate.
    #10     May 16, 2012