Obama Going to Save Us From Our Student-Loan Debt Disaster?

Is Obama planning on helping out Americans who are in a debt pile so deep, it’s bigger than the entire American credit card hole? $1,000,000,000,000 and counting (but not with anything other than addition — we can’t afford to educate ourselves beyond that math level anymore).

As seen on Bloomberg news:

The U.S. Education Department, which hires private collectors, said today it would mandate that the companies use a standard form to gather debtors’ income and expenses. If borrowers protest, they would be offered an income-based formula, which can result in payments as low as $50 a month for an unmarried person with $20,000 in income and $20,000 in loans.

The collection companies — which receive commissions of as much as 20 percent of recoveries — are facing complaints that they insist on stiff payments from defaulted borrowers even though the Obama administration and Congress have approved more- lenient plans, Bloomberg News reported March 26. The education department is also reviewing the commissions it pays collectors.

Massive default is certainly in the future, and in the present — $67,000,000 in default so far — so what is the motivation for this band aid? With shooting up hockey-stick style, with measures to perhaps double it in the near future, people will need to be more responsible for their own education, fair or not (not).

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  1. L.Cav says:

    The student lending industry is corrupt. Particularly the private loans- they are predatory in nature. Students were charged average interest rates of 12% or higher on private student loans from Sallie Mae. This should be criminal. All private student loans are double or triple in size. This is a nightmare for students and their families.
    The default rates are sky high ( that’s why Sallie Mae illegally hid the true number of delinquencies by pushing their private loans into forbearance).
    President Obama, please allow these people to discharge their private student loans in Chp.7, if they need to. Pass HR 2028, and S.1102.

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