Celebrating 10 years! 2007-2017

Loan defaulters, you have been Trumped

https://www.washingtonpost.com/news /grade-point/wp/2017/03/1 guyingorillasuit03/18/17
Didn't go far enough. Bring back debtor's prison for those u turde03/18/17
This is his position as a candidate: "Trump’s plan would guyingorillasuit03/18/17
I would bet all my loan balance that he did this knowing tha spaghetti03/19/17
Food for thought... Technically, I defaulted on my loans qdllc03/20/17
Wasn't there a required borrowers' school exit training sess contemplativestudent03/24/17
1. Not so much a class, but yes, I knew of those terms. 2 qdllc03/24/17
This is ancillary to the scantily publicized fact that Obama plumber03/24/17
What is your opinion of the new bill? Do you think it meets therewillbeblood03/24/17
I don't know. There is only one way we will find out. Obamac plumber03/24/17
Are there any specific ties between Obamacare and student lo guyingorillasuit03/24/17
There are specific ties between Obamacare and student loan d plumber03/24/17
"Dig deep and you will find your answers." Posts in /ot a wutwutwut03/24/17
Yeah, what I really meant was to research this topic on the plumber03/24/17
I am starting to suspect that this cannot possibly be a seri guyingorillasuit03/24/17
guyingorillasuit (Mar 18, 2017 - 9:33 pm)

https://www.washingtonpost.com/news/grade-point/wp/2017/03/17/trump-administration-rolls-back-protections-for-people-in-default-on-student-loans/

"Days after a report on federal student loans revealed a double-digit rise in defaults, President Trump’s administration revoked federal guidance Thursday that barred student debt collectors from charging high fees on past-due loans.

The Education Department is ordering guarantee agencies that collect on defaulted debt to disregard a memo former President Barack Obama’s administration issued on the old bank-based federal lending program, known as the Federal Family Education Loan (FFEL) Program. That memo forbid the agencies from charging fees for up to 16 percent of the principal and accrued interest owed on the loans, if the borrower entered the government’s loan rehabilitation program within 60 days of default."

Prepare your rears. Omar comin'. #MAGA.

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turde (Mar 18, 2017 - 10:06 pm)

Didn't go far enough. Bring back debtor's prison for those useless snowflakes.

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guyingorillasuit (Mar 18, 2017 - 10:21 pm)

This is his position as a candidate:

"Trump’s plan would also consolidate the current repayment programs in place and allow them to apply to both federal and private loans. (Currently, only federal student loans are eligible for income-driven repayment plans.) According to Trump, the new plan would be funded by reining in federal spending and the subsequent decrease in student loan defaults.

“Students should not be asked to pay more on the debt than they can afford,” said Trump at the rally, “And the debt should not be an albatross around their necks for the rest of their lives.”

His proposal is a radical shift to the current government programs. Today, borrowers have access to income-driven repayment plans such as Revised Pay As You Earn (REPAYE) and income-based repayment (IBR). But under those plans, the government does not forgive the balance of the debt until after 20-25 years of on-time payments."

https://studentloanhero.com/featured/donald-trump-student-loan-plan/

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spaghetti (Mar 19, 2017 - 4:08 am)

I would bet all my loan balance that he did this knowing that about 75% of the people negatively affected by this voted for HRC.

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qdllc (Mar 20, 2017 - 2:12 pm)

Food for thought...

Technically, I defaulted on my loans in 2012. The Department of Education moved to a new computer system and not all the migrated data translated properly. I was one of thousands whose addresses were mucked up and mail was being returned as undeliverable.

As they had no good current address on file, their trained monkeys put me in default for non-compliance. Nobody double checked against the old files to ensure it wasn't a computer glitch.

Once I found out and corrected the issue, they openly admitted that I wasn't the only one affected.

They refused to take the default off my credit report although it was 100% their mistake.

I had to get my congressman involved, and once his office confronted the Department of Education, they issued a letter telling the credit agencies to remove the default from my credit report. Even then, it took EIGHT MONTHS to get it straightened out.

Other than my congressman getting involved, legally I had no rights to challenge what they had done thanks to the gutting of most all consumer protection and credit reporting laws where student loan lenders are involved.

You don't have to welch on a student loan to get screwed...just have a computer error happen on your file. Most of the people you'll talk to at the Department of Education are low-pay lackies who don't care about your problems.

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contemplativestudent (Mar 24, 2017 - 3:25 am)

Wasn't there a required borrowers' school exit training session that made it clear the burden was on you to make sure your address and contact info was always up to date, and that your regular payment was always delivered on time? Seems to me I had to take undertake such a training session.

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qdllc (Mar 24, 2017 - 10:01 am)

1. Not so much a class, but yes, I knew of those terms.

2. I didn't fail to do anything. At this time, the DoE was sending me a year's worth of payment coupons at one time, and I did not get regular monthly mailings from them. So, the lack of contact didn't bother me. THEY went to a new system that scrambled my address to the point that mail was undeliverable. I didn't change my address and had no clue there was any issue. They had an e-mail address on file, but unless I approved electronic communication (which means EVERYTHING is done paperless), they claimed they weren't allowed to use it. Again, a total failure of due diligence on their part as THEY KNEW that many borrowers had been adversely affected. It seemed clear to me that nobody was cross-checking rejected mail against the old database. When my congressman got them to agree to remedy the false report to the credit agencies, they spewed a load of horse squirt of how it was an innocent mistake, but when dealing with me, they didn't give a rat's hind end about it being their fault.

The next to no consumer protection or FCRA protections on student loans means YOU are at their mercy...even if THEY are the ones who mess up your account. I got lucky that my congressman got to someone who was willing to remedy their mistake. I can't see what he alone could have done to the DoEdu if they stonewalled him as well.

I'm not surprised that not long after this the DoEdu passed the vast bulk (if not all) of their student loan servicing to a contracted agency.

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plumber (Mar 24, 2017 - 8:53 am)

This is ancillary to the scantily publicized fact that Obamacare is partially funded from student loan debt. Student loan payers are funding socialized healthcare. Whether that will always be the case under a new health care law remains to be seen. My guess is that Trump threw this bone to the owners of the student debt collecting companies so that their legislative puppets (some of the members of the Freedom Caucus) will vote for the new bill.

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therewillbeblood (Mar 24, 2017 - 9:31 am)

What is your opinion of the new bill? Do you think it meets his campaign promise of healthcare for everybody at lower cost than Obamacare?

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plumber (Mar 24, 2017 - 10:20 am)

I don't know. There is only one way we will find out. Obamacare wasn't working great and would probably implode at some point. If the new law were to fail, it would certainly help get a lot of Democrats elected! Oth, if it works great it will help the Republicans keep their legislative majorities (power). I don't think the Rethugs would have crafted this bill if they thought it was going to stink and fail.

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guyingorillasuit (Mar 24, 2017 - 9:45 am)

Are there any specific ties between Obamacare and student loan debt, in terms of funding or any other connection? Or are you saying that Obamacare is funded by general revenue, and interest earnings from student loan debt is general revenue for the US government?

Also, how can we be funding socialized health care, when we don't have such a system? Obamacare is not "socialized health care" by any interpretation of that term.

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plumber (Mar 24, 2017 - 10:13 am)

There are specific ties between Obamacare and student loan debt. When Obamacare was signed into law, one of the lesser discussed aspects was that the federal government abolished private sector distribution of federal student loan monies. As part of the healthcare law, Congress stopped allowing private banks to provide student loans. The Obama administration pushed a policy which allowed the federal government to take over the student loan program and raised student loan interest rates.

Also, Medicaid cost increases associated with the healthcare law forced states to raise college tuition rates. This has all negatively affected college students and recent graduates. I posted a bunch of articles about this in a back and forth with whatnext in ot a while back. Dig deep and you will find your answers.

"Obamacare is not "socialized health care" by any interpretation of that term."

Why did everyone who had private health insurance see a huge rise in their premiums? It is because we are all paying for it. Also, Obamacare takes money from successful insurance companies and redistributes them to unprofitable ones, killing competition in the process.

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wutwutwut (Mar 24, 2017 - 10:28 am)

"Dig deep and you will find your answers."

Posts in /ot and /dome get purged pretty quickly.

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plumber (Mar 24, 2017 - 10:33 am)

Yeah, what I really meant was to research this topic on the internet.

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guyingorillasuit (Mar 24, 2017 - 1:47 pm)

I am starting to suspect that this cannot possibly be a serious argument. Are you trying to be serious, or did I fall for some early April fools joke?

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