Durbin Legislation Would Allow Studen...

Durbin Legislation Would Allow Student Loan Bankruptcy

There are 3 comments on the Patch.com story from Apr 5, 2012, titled Durbin Legislation Would Allow Student Loan Bankruptcy. In it, Patch.com reports that:

U.S. Dick Durbin has introduced legislation that would allow private student loan debt to be discharged in bankruptcy.

Join the discussion below, or Read more at Patch.com.

Student Loan Crisis

Sammamish, WA

#1 Apr 6, 2012
U.S. Sen. Dick Durbin (D-Ill.) is NOT at wrong in his claim here, and LIBERAL bloggers & news reporters who have weighed in on this are clueless -let me explain — They miss the key “cause-and-effect” relationship: I’m a true Conservative, and I can straighten out these ‘fake’ conservative commenters … observe:

Skyrocketing tuition is going through the roof (at a rate MUCH faster than inflation, even though this is no justification exists: Quality of American Higher Education has gone DOWN, as America keeps falling behind other nations in math, sciences, job skills, etc.).

But WHY?

Well, removal of bankruptcy protections from student loans, combined with draconian collection powers (such as wage garnishment) on already inflated original principals, combined with VERY heavy late fees, penalties, and interest, mean that the Department of Education makes about $1.22 for every dollar of defaulted student loans, and private lenders make a similar (if not greater) amount.

Since the Dept of Ed benefits more when students default, they have NO incentive to advise U.S. Congress to STOP raising the loan limits for Student Loans, and, of course, when students can borrow more, dishonest colleges & Universities “raise tuition to match” the increased borrowing abilities of students –even though not justified (quality of Education plummets).

This, of course, is known as distorting the ‘Free Market,’ bidding up (or ‘ginning up) prices, and is akin to illegal sub-prime predatory lending, which caused a Bubble in Housing (which burst, as we recall?-and which WILL cause one in Higher Ed as well!).

Since use of tax dollars to make (and guarantee) Student Loans drives up tuition, this is bad:
A) It hurts students when tuition goes through the roof; and,
B) It hurts taxpayers, who are the ones *paying* for these loans to be made and backs.-LOL- Double trouble… Since college tuition has increased at a rate MUCH faster than inflation for decades, college is no longer affordable. BUT it gets worse…

Tuition is LEGALLY a tax, by definition, since it is funding going to an arm of the Government (usually Colleges & Universities are STATE Colleges), and tuition, which has gone up MUCH faster than inflation is over-taxing students, a point which should convince “true Conservatives to call for a refund of the over-charge here: Conservatives supposedly oppose over-taxation, right?

Also, a number of things about this are illegal, which are violations of the “CONSERVATIVE ‘Rule of Law,” another thing that ‘true’ Conservatives should find as proof that I am right here:

(#1) Removal of said Standard Consumer Protections AFTER the student signed the loan contract illegally violates well-settled Contract Law, insofar as it *changes* the terms of the Student Loan Contract AFTER it was signed. This is illegal, and would get shot down in court were it any other group, other than “small and voiceless” students who have no political clout.

(#2) violates Equal Protection, insofar as Student Loans are the *only* types of loans NOT granted these ‘Standard Consumer Protections’(truth in lending; bankruptcy proceedings; statutes of limits; the right to refinance; adherence to usury laws; and, Fair Debt & Collection practices, etc.).

Also…(#3) Since American colleges hold a monopoly on Higher Ed in this country, their price-gouging is illegal. Monopoly by, say, electric or phone companies would cause a revolt, but students aren’t as numerous as say homeowners or renters, so they’re easily victimised.(Doesn’t this remind us how how ALL ‘minority groups’ which “aren’t as numerous” as the “majority” groups -be they women, Blacks, or -as in my case -Native American Indians have been mistreated?) Plus,…

Further:(#4) It can be argued that the students signed under duress, since the job market’s hard even for those WITH college educations, much less those without.
peter tucker

Haslett, MI

#2 Apr 6, 2012
"true conservative" Oxymoron. This should be good....what pray tell is that???

Dallas, TX

#3 Apr 16, 2012
Durbin has been trying this bill for some time over the past 4 years. Until our paid for do nothing congress gets an overhaul we are stuck!!!

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