Here is just one of millions of examples of the Harm done to decent citizens by this predatory lending system. Come to StudentLoanJustice.Org to find out more.
The federal student loan system has become fundamentally predatory due to the Congressional removal of standard consumer protections, combined with congressionally sanctioned collection powers that are stronger than those associated with all other loan instruments in our nation's history. These actions by Congress have, predictably, created an inherently predatory, state-sponsored lending and collection system where the motivations of the various functional elements of the system are fatally misdirected. The system that has resulted promotes inefficiency in administration, unchecked inflation, bureaucratic malaise and conflicted oversight. Moreover, the resulting system promotes needless and expensive complexity and redundancies, fails to encourage academic excellence, and ultimately, promotes delinquency and default.
Importantly: this problem exists across both Direct Loan (DL), and Federal Family Education Loan (FFEL) Programs. In the public interest, the consumer protections that were removed by Congress must be restored by Congress at the earliest opportunity. By returning these consumer protections, the motivations of the system's functional elements will be reoriented such that most, if not all of the deficiencies mentioned above will go away over time.
While this system has been extremely lucrative for a few individuals, it causes massive harm not only to borrowers and their families, but also to non-borrowing students and their families, due to the dramatic inflation that the system promotes. The nation suffers a massive cost due to the large amount of wealth trapped in this system, the quality of the education received by the citizens, and the public's opportunity cost associated with the materialistic career paths that citizens are forced into at the expense of public interest work, and entrepreneurship.
Here is just one of millions of examples of the Harm done to decent citizens by this predatory lending system. Come to StudentLoanJustice.Org to find out more.
Gail
This is my son's story so I don't have all the facts but I do know enough to know it was one of the factors that drove him to suicide. He was very depressed because he owed over $200,000 in student loans and saw no end to ever paying them off. He had consolidated before the interest went way down and when he looked into doing it when interest was good he was told he could only do it once in the life of the loans. He had gotten his masters degree and had almost completed his PHD. Because of this hard line rule it became overwhelming. He committed suicide 9/28/05 and the world lost a beautiful, brilliant person and I lost one of the loves of my life. I'm not just saying these things because I am his Mother and loved him.
He was so smart he belonged to Mensa and I am attaching his local obituary. I keep receiving bills from the student loans even though I have repeatedly returned them to sender with the message that he was deceased.
When they kept coming I added the fact that he was deceased in part because of these bills and when they still kept coming I added that they were rubbing salt in a wound and were breaking my heart and to please cease already. Michele was 39 and had so much to give. His Father is dying of liver cancer but Michele's death is the tragedy of his life, even more than his own death sentence. His wife, his parents and brothers are all victims. I would like to see legislation that protects these students and gives them alternatives if they have a hardship repaying these loans.