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  •  And thanks to Mike DeWine's amendment (0+ / 0-)

    student loans are even worse in bankruptcy. Although his amendment is badly worded, it looks like what he was to include commercial student loans (as opposed to just government and charitable loans) in the exception. Good for banks, bad for people.

    •  Was his amendment passed by voice vote? (0+ / 0-)

      It doesn't seem to be listed as a roll call vote.

    •  Well (0+ / 0-)

      Student loans have been non-dischargeable in bankruptcy for a very long time. That was the case before this new law passed anyway. So this isn't new.

      There was an interesting documentary on 60 minutes a few weeks ago. It was about how Sallie Mae makes money. Because student loans are guaranteed by the federal government, when a borrower defaults, coapanies like Sallie Mae receive the principal and interest back from the taxpayers. The government guarantees these loans because years ago banks were unwilling to lend money to students.

      However, in addition to getting the principal and interest back from the government, the loan companies then have free reign to terroize deliquent borrowers. Companies like Sallie Mae then pass on the non-performing loans to their collection agency subsidiaries. These agencies then tack on late fees and other charges. The law allows them complete free reign to terroize deliquent borrowers.

      While student loans can technically be discharged in bankruptcy, it is all but impossible to do so. The standard is the Brunner test. It has three elements to meeting it. And it is all but impossible to meet this test. One has to prove undue hardship and other impossible requirements. In fact the Supreme Court recently ruled that the student loan companies could even garnish from a disbaled man's paltry SSI check. This man couldn't work due to injuries that left him disabled. And the courts ruled that they could even take some of his sole source of incoime.

      So thus, not only does a company Salle receive a bail out from the taxpayer, they also make money from the deliquent borrower. Given that they have every means at their disposal to terrorize deliquent borrowers, they end up being paid twice.

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