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Take Action:Tell Your Representative: Protect Students From the Predatory Private Loan Industry


Business  (tags: congress, cover-up, ethics, government, lies, politics, economy, usa, abuse, americans, business, consumers, corporate, corruption, cover-up, debt, dishonesty, finance, investments, investors, marketing, money, society, usa )

JL
- 546 days ago - credoaction.com
Americans now owe more money in student debt than credit card debt, with recent college graduates on the hook for more than $1 trillion in unpaid loans.1



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JL A. (275)
Friday March 1, 2013, 8:48 am
Tell your representative: Protect students from the predatory private loan industry

Americans now owe more money in student debt than credit card debt, with recent college graduates on the hook for more than $1 trillion in unpaid loans.1

Many of these loans - about $150 billion worth - are private loans, which have outrageously-high interest rates and are usually extended under harsh terms without basic consumer protections, resulting in a crushing financial burden on college students and graduates. Worse yet, unlike credit cards and other similar types of debt, a law pushed through Congress by former President George W. Bush prevents students from discharging private student loan debt through bankruptcy proceedings, which gives special protections to the private loan industry at the expense of students and recent graduates.2

Fortunately, two members of Congress - Rep. Steve Cohen (D-TN) and Rep. Danny Davis (D-IL) - have introduced legislation entitled the Private Student Loan Bankruptcy Fairness Act of 2013 that would treat privately issued student loans the same as other types of private debt in bankruptcy, providing much needed relief and consumer protections to college students and recent graduates.3

Your representative hasn't yet co-sponsored the bill, so we need constituents like you to help build support for this common sense legislation and give college students and recent graduates who are struggling in the weak economy the consumer protections they deserve.

Tell your representative: Support the Private Student Loan Bankruptcy Fairness Act.

Since 1999, the average student loan debt has increased by 511 percent.4 That's a five-fold increase in just 13 years! Student loans have now become "the 21st century version of indentured servitude."5 With unemployment still unacceptably high and millions of recent college graduates out of work or underemployed, the last thing we should be doing is making matters worse by allowing students to fall prey to the predatory lending practices of private loan lenders.

As noted in a letter from over thirty-five organizations representing students, consumers, and higher education institutions in support of the Private Student Loan Bankruptcy Fairness Act:

Private education loan borrowers also lack access to the important deferment, income-based repayment, or loan forgiveness options that accompany federal student loans. This leaves most private loan borrowers at the mercy of the lender if they face financial distress due to unemployment, disability, illness, or military deployment, or when a school shuts down before they can finish their certificate or degree. The recent sudden closures of for-profit colleges in Connecticut, Maryland, Massachusetts, and Rhode Island underscore the urgent need for the Private Student Loan Bankruptcy Fairness Act of 2013.6

It is worth noting that the favorable treatment afforded to private student loan lenders was a result of a legislation enacted by President George W. Bush in 2005, which included a special interest provision that severely limits the ability of students to discharge debt through bankruptcy.7

This is unfair and unacceptable. Tell your representative to co-sponsor the Private Student Loan Bankruptcy Fairness Act and address this injustice by restoring the dischargeability of debt from private loans made by for-profit lenders.

Tell your representative: Support the Private Student Loan Bankruptcy Fairness Act.

Let's speak up on behalf of our students, graduates and their families today.

Thank you for speaking out.

1. "Annual Report of the CFPC Student Loan Ombudsman," Consumer Financial Protection Bureau, p. 2, October 16, 2012
2. "Rep. Miller Supports Bill to Restore Fairness in Private Student Lending," Committee on Education & the Workforce, Democrats, February 7, 2013.
3. "Cohen/Davis Introduce Legislation to Restore Fairness in Student Lending," Office of Representative Steve Cohen, February 6, 2013.
4. David Indiviglio, "Chart of the Day: Student Loans have grown 511% since 1999," The Atlantic.com, August 18, 2011.
5. Mike Konczal, "Student Loans are the New Indentured Servitude," The Atlantic.com, October 12, 2009.
6. "Coalition Letter to Representative Cohen in Support of the Private Student Loan Bankruptcy Fairness Act of 2013," The Project on Student Debt, February 6, 2013.
7. "Rep. Miller Supports Bill to Restore Fairness in Private Student Lending."
 

Autumn S. (147)
Friday March 1, 2013, 9:37 am
signed and noted, TY, JL
 

Micheael Kirkbym (85)
Friday March 1, 2013, 9:43 am
Student loans have now become "the 21st century version of indentured servitude."5 With unemployment still unacceptably high and millions of recent college graduates out of work or underemployed, the last thing we should be doing is making matters worse by allowing students to fall prey to the predatory lending practices of private loan lenders.

What pray tell did they think Friedman economics was all about? Ronnie Raygun introduced a modified version which pissed Uncle Milty off to no end. Every POTUS since has been involved in invoking and employing the erosion and denial of goods and services; rights and freedoms. It's part of their job description.
 

JL A. (275)
Friday March 1, 2013, 1:11 pm
You cannot currently send a star to Autumn because you have done so within the last day.
You cannot currently send a star to Michael because you have done so within the last day.
 

Roger Garin-michaud (61)
Friday March 1, 2013, 1:22 pm
noted, thanks !
 

Vicky P. (463)
Friday March 1, 2013, 3:19 pm
noted and signed
 

JL A. (275)
Friday March 1, 2013, 3:25 pm
You are welcome Roger!
 

Carol D. (109)
Friday March 1, 2013, 3:32 pm
Thats terrible Student loans are much too high Even with a decent job they would have a hard time paying that sort of money back They will owe it for the rest of their life The government should halve their debts or wipe them out

Noted thanks
 

Terry V. (30)
Friday March 1, 2013, 5:33 pm
S&N THANKS!!!
 

JL A. (275)
Friday March 1, 2013, 5:36 pm
You are welcome Carol and Terry! You cannot currently send a star to Carol because you have done so within the last day.You cannot currently send a star to Terry because you have done so within the last day.
 

Angelika R. (146)
Friday March 1, 2013, 5:41 pm
Thx Jl, already signed yesterday ( which was good as again I received the form with prefilled signature(not deletable ^^)
 

JL A. (275)
Friday March 1, 2013, 7:12 pm
You cannot currently send a star to Angelika because you have done so within the last day.
 

John B. (215)
Friday March 1, 2013, 7:19 pm
Thanks J.L. for the post. Signed and noted,
 

Sherri G. (111)
Friday March 1, 2013, 9:52 pm
Wells Fargo, Bank of America, other banks Sallie and Fannie Mae were all making record profits before the crash on the backs of young people trying to get an education. All school loans should be regulated and controlled by the US government.
 

Joe R. (189)
Saturday March 2, 2013, 5:41 am
Thanks JL. Signed and noted.
 

Donna G. (38)
Saturday March 2, 2013, 12:51 pm
I have student loan debt for an education which I didn't get. It has bounced around from one creditor to another for over 10 years. The whole higher education system is due for revamping. People should not have to go into so much debt for a college degree. I am disabled and my only income is from SSDI. Anybody whose only income is from SSDI, SS, or SSI should be able to get their student loans discharged through bankruptcy, no matter what the source of the original funding.
 

Lois Jordan (55)
Saturday March 2, 2013, 4:59 pm
Gladly signed & noted. Thank you, J.L.
 

EARTH DAY IS EVERY DAY (82)
Saturday March 2, 2013, 7:09 pm
Signed and noted. Thanks J.L.A.
 

Heidi Aubrey (16)
Saturday March 2, 2013, 8:47 pm
Signed and noted.
 

Ludger W. (72)
Saturday March 2, 2013, 10:50 pm
done
 

Cheriann P. (17)
Sunday March 3, 2013, 10:28 am
Noted. Sorry, unable to sign. Peace ☮ L♥ve
 

JL A. (275)
Sunday March 3, 2013, 11:44 am
Thanks for trying Cheriann
 

Sara W. (110)
Monday March 4, 2013, 12:39 pm
Signed.
 

JL A. (275)
Monday March 4, 2013, 12:49 pm
You cannot currently send a star to Sara because you have done so within the last day.
 
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