So you’ve got nothing to add. Thanks. You’re free to go back to posting OccupyDemocrats memes...Originally Posted by 57Brave
So you’ve got nothing to add. Thanks. You’re free to go back to posting OccupyDemocrats memes...
As opposed to "but we gave Tom Brady a PPP loan!" which clearly isn't a resentment, but a mature argument to an "advanced economic issue."
zitothebrave (01-02-2021)
you asked and I gave 3 reasons why kids are pressured in to college
you asked who made these people take out these loans.
I ask you, what other options do low income high school grads have?..
you also might want to look at lending practices and who pays what in interest rates and why
options:
Wal-Mart ?
Military ?
Would you agree that preditory lending is an issue involving 18-20 kids and their families ?
Pretty sure preditory lending was spelled out to the general public after the '08 crash.
on the other note, you sturg and other MAGA are dug in without considering an alternative
witness how often you both repeat " still dont understand"
I understand perfectly your point and even agree to a point.
/////////////////////////////////////
no, I dont resent Koch, Brady etal
I find it immoral in the face of what we as society face.
Last edited by 57Brave; 01-02-2021 at 10:43 AM.
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
By ADAM HAYES
Reviewed By KHADIJA KHARTIT
Updated Dec 1, 2020
What Is Predatory Lending?
Predatory lending typically refers to lending practices that impose unfair and abusive loan terms on borrowers.1 In many cases, these loans carry high fees and interest rates, strip the borrower of equity, or place a creditworthy borrower in a lower credit-rated (and more expensive) loan, all to the benefit of the lender. Predatory lenders often use aggressive sales tactics and take advantage of borrowers’ lack of understanding of financial transactions. Through deceptive or fraudulent actions and lack of transparency, they entice, induce, and assist a borrower to take a loan that they will not reasonably be able to pay back.
KEY TAKEAWAYS
Predatory lending is any practice of a lender that imposes unfair and abusive loan terms on borrowers, including high interest rates, high fees, and terms that strip the borrower of equity.
Predatory lenders often use aggressive sales tactics and deception to get borrowers to take on loans they can't afford.
They typically target vulnerable populations, such as low-income workers struggling to meet monthly expenses; people who have recently lost their jobs; those who, due to discrimination, are denied access to a wider range of credit options; less educated consumers; or the elderly.
Predatory lending disproportionately affects African-American and Latino communities, and women.
How Predatory Lending Works
Predatory lending includes any unscrupulous practices carried out by lenders to entice, induce, mislead and assist borrowers in taking loans that they otherwise are unable to pay back reasonably or pay back with extremely high cost not in line with the market. Predatory lenders take advantage of borrower's circumstances or ignorance.
A loan shark, for instance, is the archetypal example of a predatory lender—someone who loans money at an extremely high interest rate and may even threaten violence to collect on their debts. But much predatory lending is done by more established institutions including banks, finance companies, mortgage brokers, attorneys, or real estate contractors.
Predatory lending puts many borrowers at risk, but it especially targets those with few credit options or who are vulnerable in other ways—people whose inadequate income leads to regular and urgent needs for cash to make ends meet, those with low credit scores, the less educated, or those subject to discriminatory lending practices because of their race or ethnicity. Predatory lenders often target communities where few other credit options exist, which makes it more difficult for borrowers to shop around. They lure customers with aggressive sales tactics by mail, phone, TV, radio and even door-to-door. They use a variety of unfair and deceptive tactics to profit.
Above all, predatory lending benefits the lender and ignores or hinders the borrower’s ability to repay a debt.
Predatory Lending Tactics to Watch Out For
Predatory lending is designed, above all, to benefit the lender; it ignores or hinders the borrower’s ability to repay a debt. Lending tactics are often deceptive and attempt to take advantage of a borrower’s lack of understanding of financial terms and the rules surrounding loans. The Federal Deposit Insurance Corporation (FDIC) gives some common examples:2
Excessive and abusive fees. These are often disguised or downplayed, as they are not included in the interest rate of a loan. According to the FDIC, fees totaling more than 5% of the loan amount are not uncommon. Excessive prepayment penalties are one example.
Balloon payment. This is one very large payment at the end of a loan's term, often used by predatory lenders to make your monthly payment look low. The problem is you may not be able to afford the balloon payment and will have to refinance, incurring new costs, or default.
Loan flipping. The lender pressures a borrower to refinance again and again, generating fees and points for the lender each time. As a result, a borrower can end up trapped by an escalating debt burden.
Asset-based lending and equity stripping. The lender grants a loan based on your asset (a home or a car, say) rather than on your ability to repay the loan. When you fall behind on payments, you risk losing your home or car. Equity-rich, cash-poor older adults on fixed incomes may be targeted with loans (say, for a house repair) that will have difficulty repaying and will jeopardize their equity in their home.
Unnecessary add-on products or services, such as single-premium credit life insurance for a mortgage.
Steering. Lenders steer borrowers into expensive subprime loans, even when their credit history and other factors qualify them for prime loans.
Reverse redlining.3 Redlining, the racist housing policy that effectively blocked Black families from getting mortgages, was outlawed by the Fair Housing Act of 1968. But redlined neighborhoods, which are still largely inhabited by African American and Latino residents,4 are targeted by predatory and subprime lenders.
Common Types of Predatory Loans
Subprime mortgages
Classic predatory lending centers around home mortgages. Since home loans are backed by a borrower’s real property, a predatory lender can profit not only from loan terms stacked in their favor but also from the sale of a foreclosed home, if a borrower defaults. Subprime loans aren’t automatically predatory. Their higher interest rates, banks would argue, reflect the greater cost of riskier lending to consumers with flawed credit. But even without deceptive practices, a subprime loan is riskier for borrowers because of the great financial burden it represents. And with the explosive growth of subprime loans came the potential for predatory lending.5 When the housing market crashed and a foreclosure crisis precipitated the Great Recession, homeowners with subprime mortgages were vulnerable. Subprime loans came to represent a disproportionate percentage of residential foreclosures.6
African American and Latino homeowners were particularly affected. Predatory mortgage lenders had targeted them aggressively in predominantly minority neighborhoods, regardless of their income or creditworthiness.7 8 Even after controlling for credit score and other risk factors, such as loan-to-value ratio, subordinate liens, and debt-to-income ratios, data shows9 that African Americans and Latinos were more likely to receive subprime loans at higher costs. Women,10 too, were targeted during the housing boom, regardless of their income or credit rating. African American and Latino women with the highest incomes were five times more likely than white men of similar incomes to receive subprime loans.
In 2012, Wells Fargo reached a $175 billion settlement11 with the Justice Department to compensate African-American and Latino borrowers who qualified for loans and were charged higher fees or rates or were improperly steered into subprime loans. Other banks also paid settlements. But the damage to families of color is lasting. Homeowners not only lost their homes, but the chance to recover their investment when housing prices climbed back up, contributing yet again to the racial wealth gap. (In 2019, the typical white family had eight times the wealth of the typical Black family and five times the wealth of the typical Latino family.)12
Payday loans
The payday loan industry lends $90 billion annually in small-dollar, high-cost loans (annualized interest rates can be 400%13 ) as a bridge to the next payday. Payday lenders operate online and through storefronts largely in financially under-served—and disproportionately African American and Latino—neighborhoods.14 15 Some 12 million Americans make use of payday loans, with women and people of color being the most likely to, Pew Charitable Trusts studies have found.16 Stagnant wages and a growing wealth gap have been pointed to as contributing factors,17 along with aggressive lobbying by payday lenders.
Borrowers use payday loans not for one-time emergencies for a couple of weeks, but to cover ordinary living expenses like rent and groceries, over the course of months. According to Pew18 80 percent of payday loans are taken out within two weeks of a previous payday loan, and the average payday loan customer pays $520 a year in fees to repeatedly borrow $325 in credit.
With new fees added each time a payday loan is refinanced, the debt can easily spiral out of control. A 2019 study19 found that using payday loans doubles the rate of personal bankruptcy—by worsening the cash flow position of the household, the researchers concluded. The economic impact of COVID-19, with no new stimulus payments on the horizon, means that more cash-strapped consumers could become vulnerable to these predatory loans.
Auto-title loans
These are single-payment loans based on a percentage of your car's value, for quick cash. They carry high interest rates, but in addition, you have to hand over the vehicle's title and a spare set of keys as collateral. For the one in five borrowers20 who have their vehicle seized because they're unable to repay the loan, it's not just a financial loss, but can also threaten access to jobs and child care for a family.
New forms of predatory lending
New schemes are popping up in the so-called gig economy. For instance, Uber, the ride-sharing service, agreed to a $20 million settlement with the Federal Trade Commission (FTC) in 2017,21 in part for auto loans with questionable credit terms extended to the platform's drivers. Elsewhere, many fintech firms are launching products called " buy now, pay later". these products are not clear in terms of interest rates and entice ignorant consumers to follow their impulse and fall into a debt spiral they will not be able to overcome."
Is Anything Being Done About Predatory Lending?
To protect consumers, many states have anti-predatory lending laws. For instance, payday lending is prohibited in 14 states and Washington, D.C.22 The U.S. Department of Housing and Urban Development (HUD) has also taken measures to combat predatory lending, as has the Consumer Financial Protection Bureau (CFPB). In June 2016, for instance, CFPB issued a final rule establishing stricter regulations for underwriting of payday and auto-title loans.23 But in July 2020, under new leadership, CFPB revoked that rule24
and delayed other actions, considerably weakening federal consumer protections against these predatory lenders.
How to Avoid Predatory Lending
Educate yourself. Becoming more financially literate helps borrowers spot red flags and avoid questionable lenders. The FDIC has tips25 on protecting yourself when you take on a mortgage, including instructions for cancelling private mortgage insurance (paid for by you, it's to protect the lender). HUD gives advice on mortgages.26 CFPB has guidance on payday loans.27
Shop around for your loan before you sign on the dotted line (although it's understandable that if you've experienced lending discrimination in the past, you just want to get the process over as soon as possible). Comparing offers will give you the advantage.
Consider alternatives. Before taking on a costly payday loan, consider turning to family and friends, your local religious congregation, or public assistance programs, which are unlikely to cause the same financial harm.
Develop Your Financial Strategy With an Advisor
A comprehensive financial plan can help you make the right investment decisions and prepare for retirement. To develop a strategy that’s right for you, use SmartAsset’s free tool to get matched with fiduciary financial advisors in just 5 minutes. Learn more about how SmartAsset can help you reach your financial goals and get your advisor matches now.
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
https://www.affordablecollegesonline...oan-practices/
and this :
The student loan market has exploded in the last 15 years, increasing from $600 billion in 2006 to $1.2 trillion in 2016 to a whopping $1.52 trillion as of July 2019. Whether you're a student at a private or public college, odds are that you have student loans. Student loans are managed and repaid through a loan servicing company. Loan servicers such as Navient, Great Lakes, and NelNet serve as a critical link between lenders and borrowers.
Unfortunately, students and new grads often bear the cost of mistakes by loan servicers ranging from administrative error to outright illegal activities such as harassment. Many student loan borrowers may not even realize that they're paying more than they should or have recourse in certain situations.
This guide will enable you to:
Identify your loan servicer
Learn how to spot red flags for unfair practices
Contact your loan servicer most effectively
Report unfair practices
How Big is the Student Loan Servicer Problem?
When the Consumer Finance Protection Bureau (CFPB) partnered with the Department of Education and the Treasury to learn more about student loan servicing practices, they received tens of thousands of comments submitted from the public on potential solutions to improve service delivery. Among the many complaints emerged some themes, including:
Surprise fees, damaged credit, lost loan records and repayment benefits resulting from loan servicer transfers
Falling into default or a debt cycle as a direct result of poor customer service and lack of error resolution
Non-disclosure of and non-facilitation of borrower benefits
Predatory practices of so-called debt relief companies that target low-income and vulnerable borrowers
How to Find Your Loan Service Provider
The first step in managing your loan is determining your loan service provider. A student loan service provider is a private company that's contracted to handle the billing and other issues related to your student loans. Loan servicing companies handle loan repayment processing, consolidation, and repayment options. The Department of Education has a team of companies that provide loan servicing around the country. Your student loan servicer can change if the Department of Education transfers it to another company and your monthly payment may change as a result.
To find out who current your loan servicer is, use the Department of Education's National Student Loan Data System (NSLDS). The site allows you to retrieve your loan information from the central student aid database. You'll need your Federal Student AID ID and password:
If you filled out the FAFSA and have logged into a federal student aid website any time after May 10, 2015, you should have an active FSA ID and password.
If you forgot your username or password, NSLDS allows you to retrieve either via security questions or via e-mail.
If you no longer have an FSA ID and password, you can create one here.
Unethical Practices of Loan Servicers
Your loan servicer should work with you to help you repay your loan, from processing your payments on-time to answering questions when they arise. Knowing what unfair practices look like and your options for responding helps you be proactive. As in any relationship, unfair practices are red flags that signal it's time to take action.
Illegal Practices
The Federal Trade Commission (FTC) protects consumer interests and works to prevent what they define as harassment or abusive behavior. They work to prevent harassment such as obscene or profane language, threatening violence, calling consumers repeatedly or at unreasonable hours, misrepresenting a consumer's legal rights, disclosing a consumer's personal affairs to third parties, and obtaining information about a consumer through false pretenses.
You may not know you're experiencing harassment, but watch for any of these signs:
Receiving phone calls before 8 a.m. or after 9 p.m.
Violating playground rules a.k.a. swearing, name-calling
Calling you at work if you've asked them not to
Calling you if they know you've retained a lawyer to handle your debt
Calling multiple times in a row
Threatening your arrest
Illegal practices may be more evident when you've fallen behind or your loan is in default. The Fair Debt Collection Act was passed in 1977, to help protect consumers from abusive debt collection practices. The FDCA establishes basic guidelines for how companies can interact with you when you owe them money. The Act prevents abusive behaviors like using foul language, misrepresenting themselves, communicating about your personal information with a third party, or reporting false information on your credit report. You're protected from these types of debt collection actions under the law and should report violations to the FTC via their online form.
Poor Customer Service
Inaccurate Billing Statements
Inaccurate billing statements suggest that your loan serving company is charging you the wrong amount. To verify your payment history, current repayment plan, and other details of your loan, visit NSLDS. Ask your loan servicer to provide you with a complete history of billing statements related to your loan, and compare that against your own payment records, repayment plan guidelines, and original loan contract.
Conflicting Repayment Information
Some student loan borrowers have reported conflicting repayment information, such as confusion regarding due dates, amounts, or even which repayment plans are available to them. Start by visiting Finaid.gov to learn more about general repayment options. Ask your loan servicer to provide you with a copy of your options in writing, along with estimates on monthly payments.
Incorrect Payment Processing
Your loan servicer is responsible for handling payment processing. This includes posting payments and late fees, how payments are allocated to your loan, and overseeing billing and loan payoffs. When payments are processed incorrectly, it can lead to late fees, the inability to participate in forgiveness programs, and more. If you suspect incorrect payment processing, access your payment history at the NSLDS website and collect copies of all your.
Unexpected Charges
Unexpected Inflation of Minimum Payments
If your minimum payments increase unexpectedly, it's important to determine why. Some student loan payers are enrolled in graduated repayment programs where the minimum payments increase in "steps." You may have a variable interest rate loan that's been affected by an interest rate increase. Another possible explanation for a sudden increase in student payments is that the Department of Education changed the company servicing your loan. The new servicer may have a different repayment schedule and inflation of minimum payment may be one result. Contact your new loan servicer immediately if this is the case to establish a minimum payment you will be able to meet consistently.
Unexpected Inflation of Interest Rate
There are two types of interest on student loans: fixed and variable. A fixed-rate loan has a set interest rate for the life the loan, making it easy to predict what your payment will be each month. Variable rate interest loans, however, are tied to the federal rates. Federal loans issued before 2006, as well as private loans, may have variable rates. When the government raises interest rates, your interest rate and payment may increase as a result.
Unexpected Loan in Default
If you've made all your loan payments on time but find that your loan is in default, you may have been the victim of an auto-default clause. Many co-signed loans contain a clause that states if a co-signer dies or goes bankrupt that a loan will go into default - regardless if you're in good standing or continuing to make payments. It's also possible that your payments have been applied incorrectly. Gather information such as your original loan contract and evidence of payments before contacting your loan servicer.
Discouraging Alternative Payment Plans
Withholding Cancellation Information
In certain circumstances, student loans may be cancelled. Examples include when the student loan holder is totally and completely disabled, dies, in situations of school closure, and (rarely) if student loans are discharged in bankruptcy. Your loan servicing provider should discuss these options with the person liable for the loan (whether you or your parents), and whether circumstance has made you applicable for cancellation. Loan forgiveness programs are also available, ranging from teacher loan forgiveness to medical professional forgiveness. For more information, visit MoneyGeek's Student Loan Forgiveness and Cancellation Guide.
What to Do If You Suspect a Problem
If you suspect or recognize that there's a problem with your student loan, take the appropriate steps to resolve it. There are a number of different options, from gathering information to filing a lawsuit.
Plan A: Contact Your Loan Servicer
The first step in resolving a problem with your student loan should be to contact your loan servicing company. Before you call, prepare all the information that you'll need to verify your identity and explain the problem. A basic list includes your social security number, date of birth, dates of payments made, records, and any notices that you've received. Once you have that, call your loan servicer:
Be polite and courteous, but firm. Explain the problem that you're having and the resolution that you'd like to see. For example, you might say "I'm calling because a payment was made on my student loan last month for $400. The check was cashed on June 1st, but my payment record is saying that no payment was made. How can we fix this?"
Follow up in writing with a detailed letter explaining the conversation and containing a copy of any related documents (for example, a copy of payments made). Send all correspondence certified and return receipt so you can verify the information was received.
Don't be afraid to escalate your requests, by asking to speak to a supervisor. Find out if the organization has a Director of Loan Servicing, customer advocate, or other position that can help you. Plan B: Contact the Higher-Ups
If you're unable to resolve your issue with your loan servicer, it may be time to take your complaints higher up.
Federal loans: If you have federal student loans, contact the Ombudsman Group, which is a neutral and informed resource that can help you resolve issues. They can assist with payment processing errors, explaining interest questions, and identify solutions to ongoing challenges. Gather the information on their checklist and then you can reach out by mail, phone or fax to request their assistant.
Private loans: The Consumer Finance Protection Bureau (CFPB) can assist borrowers who are facing problems with a private loan. Fill out their online complaint form.
Other Avenue: The Federal Trade Commission (FTC) operates a complaint line that can be used to further report problems. They deal with issues related to private education scams, scholarship scams, and more. To file a report, you'll need a narrative explaining the problem as well as any materials backing up your claims.
Default - Report errors related to loan default to the Department of Education. Write a letter that includes your name and social security number, as well as the background. Mail that with proof of payment to:
UNITED STATES DEPARTMENT OF EDUCATION
Default Resolution Group/National Payment Center
P.O. Box 5609
Greenville, TX 75403-5609
Plan C: The Last Stop
If you've exhausted all your options through your service provider and the Obsmudsman processes, you still have potential solutions. Debt collectors who have violated the Fair Debt Collection Practices Act can be sued - either in state court or in small claims court. More information is available on these options here.
How to Prevent Problems with Your Servicer
The onus isn't on you to keep your loan servicer in check, but there are preventive measures you can take to mitigate or even avoid these abusive practices.
Your 5 Step Preventive Plan
Repay loans on time, in full (even if you don't finish your education).
Keep your contact info up to date with your servicer.
Make scheduled monthly payments (even if you don't get a bill or coupon booklet).
Notify your servicer immediately if you can't make a payment or your eligibility for cancellation or deferment is jeopardized.
Keep a folder of all your important documents. The Department of Education recommends the following:
Financial aid award letters
Loan counseling materials
Your promissory note
Amount of all student loans you've borrowed
Account number (for each student loan you've received)
Your loan servicer's contact info
Loan disclosure(s)
Your payment schedules
A record of your monthly payments (keeping track of checks, printing out credit card statements)
Notes about any questions you ask about your student loan, the answers, and the name of the person to whom you spoke
Deferment or forbearance paperwork and notes of any phone calls to the loan servicer
Documentation that you paid your loan in full
Helpful Tips for Co-Signers
Co-signing a student loan may enable your child or grandchild to pursue their educational dreams. But before you put your credit on the line, it's important to consider how this may impact your long-term finances. Some 90% of private student loans are co-signed. Yet, it seems that an equal 90% of requests to release co-signers from the arrangement were denied.
Before co-signing a loan, consider:
Co-signing a loan is the same as taking full responsibility for the loan yourself. If the student is unable or unwilling to pay, ask yourself if you can cover the payments or pay off the balance without damaging your credit.
Terms the lender provides for putting a loan into automatic default. In some cases, if your co-signer dies or files bankruptcy a loan may default even if you're willing and able to continue making payments. Avoid co-signing loans with automatic default clauses.
Many lenders are under no obligation to communicate with co-signers, even when the primary borrower falls behind on payments. Before signing, find out the communications practices that a lender has for co-signers and how to get more information when you need it.
Expert Q&A
Whitney Barkley Whitney Barkley
Author
Whitney Barkley is legislative policy counsel at the Center for Responsible Lending, based in Durham, NC, where she works with state legislatures, attorneys general, and governors to fight predatory lending, exploitative student loan practices, and unscrupulous debt collectors. She attended The College of Charleston, in Charleston (SC), and graduated from the University of Michigan Law School.
What trends or issues are you seeing right now around illegal or unfair practices in student lending?
Currently, many of the unfair practices that we are seeing aren't happening on the front end, but the back end, with fraudulent or deceptive services aimed at helping students "manage" their student loan debt.
You've heard the advertisements - services promising to get you into a "new government program" that will qualify you for loan forgiveness. The problem is, the programs that these companies are advertising - public service loan forgiveness or income-sensitive repayment programs - are completely free to borrowers. You don't need to pay a third party to qualify you or help you navigate the system. If you have federal student loans, just go to https://studentaid.ed.gov/sa/repay-loans.
Another deceptive practice is private companies using government-like website names to make borrowers think that they are using a government site. In fact, this practice got so out of control that, while in office, President Obama had to issue an executive order trademarking VA (Veterans Administration) and GI Bill®. Be sure ANY website you are using regarding your federal student loans has a .gov URL.
Finally, we have seen some for-profit schools offering "institutional" (or internal) loans in the past. In fact, the PEAKS program from ITT Tech is under some pretty serious federal scrutiny, with the Security and Exchange Commission and the Consumer Financial Protection Bureau filing suits alleging that the loan program defrauded investors by hiding losses. If you are considering a for-profit school, or any school that tries to sell you on an internal loan program, reconsider.
Are there specific types of colleges, universities or educational institutions that students should be wary of when considering borrowing? How can students evaluate this?
If you are thinking about attending a for-profit college - and especially an online-only for-profit college - look closely. For-profit colleges have long been under intense scrutiny, facing accusations ranging from serious inflation of job placement numbers, stories about inducing homeless students to enroll, and to using a sales technique called a "pain funnel" to convince desperate, down-on-their luck students to sign up for classes. In fact, a running list of state and federal complaints against for-profit colleges can be found at the Republic Report.
Do you have tips for students and parents that can help them recognize an unscrupulous lender before they sign a loan?
As much as you can, stick with the Federal Student Loan program. Look, it isn't perfect. And you may pay a little higher interest rate - especially if you are a graduate student. But the fact is that federal student loans come with income-sensitive repayment programs, loan forgiveness options (public service, disability, and - yes - death), and servicing options that private student lending simply is not competing with.
You have to educate yourself and take advantage of these programs. Most borrowers aren't signed up for income-sensitive repayment, despite the fact that they qualify for the program. And most borrowers who qualify for ten-year public service loan forgiveness have no idea the program even exists!
What steps should you take if you think you're the victim of unfair or illegal lending practices (after they've already taken the loan)?
Again, it depends if they've taken out a federal loan or a private loan. The Department of Education is currently debating new rules for making an application for discharge under something called Defense to Repayment. Basically, students who make this claim are saying that they were ripped off by a school, not by a servicer, because of claims the school made when they induced them to enroll and, therefore, to take out loans.
You may remember the Corinthian "Debt Strikers," the student borrowers who refused to repay their loans after the fraud at the for-profit chain they attended was uncovered. This claim, which had been rarely used before, really arose from their protest.
For most student borrowers who make this claim, there is some concrete fraud they allege the school they borrowed to attend committed. Inflation of job placement numbers, promised intern or externships that never materialized, or serious issues with job training are all examples of claims that are being made against the former for-profit college chain. If you think they may qualify for this discharge, you should contact your local legal services office.
If you're a federal borrower whose schools has closed either prior to or within six months of graduation, you are also eligible to have your loans discharged, under what's called a "Closed School Discharge." You can apply for this directly through your servicer. If you are currently enrolled in a school that is closing, and you are being offered a "teach out," you'll need to talk to an attorney and seriously consider your options. Accepting a "teach out" may negatively affect a borrower's ability to have your student loans discharged.
For other complaints, contact the Department of Education Office of the Ombudsman and make a complaint. If you are a private student loan borrower, you have a friend in the Consumer Financial Protection Bureau. Again, you should make a complaint to the Office of the Ombudsman. You can also reach out to your local civil legal aid office for help.
Do you have any tips around refinancing student loans?
Refinancing is a major part of the student loan discussion, but borrowers should proceed with caution. A lower interest rate is great for those in the private sector who can afford to make full monthly loan payments and pay their loans off on time or early. But for those who are struggling with monthly payments, a lower interest rate is not all it seems if, in return, they give up access to IBR or Public Service Loan Repayment. Further, leaving the federal loan program for state or private refinancing may be risky if you face a lay-off or change in income.
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
and this :
Published Wed, Sep 11 20191:44 PM EDTUpdated Wed, Sep 11 20191:44 PM EDT
Megan Leonhardt
@MEGAN_LEONHARDT
When it comes to tackling the $1.5 trillion student loan crisis, lawmakers and consumer advocates say it’s time to give student borrowers more protections from the for-profit companies in charge of servicing this loan industry.
On Tuesday, Sep. 10, the House Financial Services Committee took on student lending and its ramifications for the 45 million Americans borrowers. Both Democrats and Republicans on the committee agreed there are problems with the current student lending system. Specifically, lawmakers and consumer advocates criticized student loan servicing companies such as Navient, saying that student borrowers need more assistance and protections from these for-profit corporations.
“Congress – and this committee – have a responsibility to take action to ensure student loan borrowers are better protected,” Chair Maxine Waters (D-Calf.) said Tuesday.
And it’s not just lawmakers who are calling for change. Comedian Hasan Minhaj, host of the Netflix show “Patriot Act,” urged the committee to take action to protect borrowers. “Americans should not have to go bankrupt to pursue higher education, and they should never be preyed upon by under-regulated loan servicing companies,” Minhaj said.
https://twitter.com/hasanminhaj/stat...18092398096384
Seth Frotman, executive director of the Student Borrower Protection Center, says that student loan borrowers have a “bullseye” on their back and are subjected to “predatory tactics” from servicing companies from the day they take out their loan until the day they pay it back.
He claims that’s because student borrowers have less rights than nearly any other type of borrower. “You have more protections if you’re paying back your credit card or your mortgage,” Frotman says. “There are big banks, federal servicers who are viewing the student debt crisis as their opportunity to get rich.”
Democrats unveiled eight draft bills on Tuesday for discussion that would, among other things, establish a student borrowers’ bill of rights, strengthen credit reporting standards, block debt collectors from unfairly going after student borrowers, protect private student loan borrowers and help borrowers with student debt purchase their first home.
“Student loan borrowers deserve and need the same protections that all consumers are entitled to in this country,” Ashley Harrington, senior policy counsel for the Center for Responsible Lending, said during Tuesday’s hearing.
“The solution to the student debt crisis is both working on front-end and back-end affordability,” Harrington says. And that affordability on the back end includes strong servicing protections and quality servicing for all borrowers, she added.
Of course, it’s not just loan servicers who are contributing to the student debt crisis. Rapidly rising tuition rates and stagnant wages also play a role.
“People aren’t making more money, and college is objectively more expensive,” Minhaj says. In fact, he looked at the 60 members of the House Financial Services Committee and on average, they graduated 33 years ago and spent $11,690 a year in inflation-adjusted tuition. Today, those same schools cost almost $25,000 a year, according to Minhaj’s calculations. That’s a 110% increase over a period of time when wages have only gone up 16%, he says.
“We’ve put up a paywall to the middle class, and if there’s one thing that Americans don’t deserve it’s more paywalls,” he says.
Those issues, however, likely fall under the purview of the Education and Labor Committee and the Education Department, Waters said Tuesday. But she noted that she believes the House Financial Services Committee can take a stand on student loan servicing.
“The rapidly increasing growth of student debt is indeed a national crisis and it is not something we should be playing politics with at all,” Rep. Gregory Meeks (D-N.Y.) said during Tuesday’s hearing.
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
https://www.google.com/search?q=pred...hrome&ie=UTF-8
//////
take your time
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
A long article describing predatory lending...great. How much of the $1.5T in student loan debt qualifies? Almost none?
The burden of proof is on you...I'm not the one advocating for the $1.5T in forgiveness...
maybe Julio had the right idea ?
forget it
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
Of course removing credit card debt would help more people. But the government doesn't own that debt like federal student loans.
Is it really that hard to direct some of our military budget to actually help our citizens in the form of higher education and ubi?
Approximately 92% of student loan debt is held by the federal government. After years of reading your posts, I’d be surprised if you felt the federal govt was a predatory lender.
That leaves 8% private. Most of that held by reputable banks which could hardly be described as predatory.
So what’s a generous estimate of student loan debt held by predatory lenders? Somewhere in the 0-2% range, on the high end? Cancelling $1.5T strikes me as an expensive way to solve a relatively minuscule problem.
I did and others have...the stimulus effect is very low. (1) If the debt relief was going to low income/unemployed folks, the stimulus effect would be higher, but most of the debt is held by those who are already relatively well off, so it isn't targeted to those most likely to inject it back in the economy (2) Since only a small portion of the debt is due in the immediate term, very little of the money is "infused" in the economy right now, when it's needed...relieving someone of the burden of making a $300 student loan payment in August 2027 doesn't stimulate the economy in January 2021.
The multiplier effect of the economic stimulus caused by student loan debt forgiveness is astonishingly low...certainly not worth the cost.
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
Stupid argument No. 2: Student debt cancellation represents a significant loss in revenue to the federal government
A new study by the Education Department finds that borrowers will pay back only $935 billion in principal and interest on $1.37 trillion in student loans held by the government.
"We'll only actually recover 70% of what's due, so **** it, let's just cancel it all!"
Stupid argument No. 3: SDC rewards many high-income households
Higher-income households that have not paid off their loans likely refinanced their loans at a lower rate and also left the federal loan pool. It is safe to assume that whoever has the means to refinance already did so. Therefore, we can forgive all outstanding federal student debt without conferring a meaningful benefit on high earners.
"Likely," "safe to assume," ...or in other words, nonsense we're unwilling to confirm because we know the answer will damage our argument. Just a bizarre claim considering 92% of outstanding debt is held by the federal government, thus hasn't been refinanced. Earlier I was told predatory lending was the culprit. Now it turns out the 8% are actually all high earners who refinanced. So much for the predatory lending angle, I guess.
Stupid argument No. 5: SDC won’t boost the economy
Economists have estimated the “multiplier effect” from student debt relief... These estimates range from 0.56 (Moody’s) to 1.50 (the FAIR model).
Non-partisan sources and mainstream economists like the CRFB calculate the multiplier to be negligible...the only place you're finding 1.50 is from a fringe group with an agenda.
Kids can graduate high school, go to community college long enough to get to get a welding certificate, and go to work in ruralish NW Georgia the next day at $70k. The next day.
Go get him!
Founding member of the Whiny Little Bitches and Pricks Club
Well the problem is that it kind of does. Because we live in a world where the University Industrial Complex exist. High School Guidance Councilors telling kids they need to go to college to learn a craft that they don't need to go to college for.
But forgiving debt doesn't stop the predatory loan process, in fact it would only encourage it. It would make it so they would tell people "see just get it and limp by for a couple of decades, and the Government will eventually forgive it" without fixing why people are having the issue.
I was told I needed a college degree to apply to work in management for a retail gig. I laughed at them.
I'm not putting down all college degrees. But they're pretty danged pointless for most people. I feel like they're used as a basic barrier by many companies to keep out poor people, and that's a shame. Many of the best sales people I've ever known grew up in lower socioeconomic situations, but took longer to move up because they didn't have a participation trophy from a degree factory.
Stockholm, more densely populated than NYC - sturg
To be clear it is a preditory credit system at issue.
and how it has infiltrated the education system
I get calls that for $20 a month someone will protect my computers
another that for only $20 a month I can extend my car warranty
yet another where I can remortgage my house for only ...
and everyone up front ( like the college loan ) looks appealing and doable until one month work dries up or one gets sick and a payment is missed
But in this case we are talking about education, the so-called gateway to our futures. From Kindergarten on we are preached by the " University Industrial Complex "
that college is not only something that will help but, essential.
If not a college degree what options does a newly graduated 18 year old have ?
The mills are gone, there are no training/apprentice programs to speak of.
The 2 year colleges provide little more than 13th grade
Military ?
worth while reading about Lynndie England and the dynamics that put her in abu Grahib.
Trump U wound up settling for $25M, text book issue.
My guess is Trump U is the tip of the fraudulent college iceberg
.................................................. ..........................
Not so sure any one is actually expecting all $1.25T to be dismissed.
Of course the bargaining has to begin somewhere
But this problem isnt going away.
In education, housing, automobile, insurance etc etc etc
And now we see it in health care
Last edited by 57Brave; 01-03-2021 at 08:07 AM.
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
funny thing is, the people that voted for a wall built on Mexican money are the loudest telling it is the customer at fault and personal responsibility
blah blah blah
The best way to stop a bad guy with a gun is to make sure he doesn’t get a gun.
It’s literally never been easier to make money. There are 8 year olds getting millions from
YouTube. A phone and a desire can get you paid. So I don’t feel sorry for 18 year olds.
We have hired 3, and laid out a foundation to lead them to water but no one wants to work.
It isn’t the lenders fault that you aren’t employable after you spent that money on an education. At some point, they were perceived as a guarantee but that’s incorrect
Ivermectin Man
Posting Permissions
Reply With Quote