Student Loan Forgiveness Act of (2012) H.R. 4170

The problem I have with this is we already have people trying to spend 10 years in college picking up 3-4 degrees, then expecting foregiveness because they don't want to work after that! Hmmm

[link to nationaldebtclocks.com]

not much better, but US debt per citizien is the highest of all, even more than Greece.
I didn't know that

40.000€

Last Edited by Obi-Van Kenobi on 09/04/2012 10:05 PM

As justified as the opposition to more entitlements is, it is important to consider the incentives either policy will provide.

Do you want to incentivize people to get an education and risk not self-actualizing enough to pay off the debt?

Or do you want to incentivize the big banks to make predatory loans?

It is obviously not that binary, but at the very least private student loans need to be made partially forgivable. The only reason they aren't is to benefit the big banks. If you know that the federal government is going to make sure you get all your money, it doesn't matter who you lend it to.

sweet i blew my last one on new phones, game consoles and car payments.

funny how most of the arguments against it are "DER SHIT FUK I HAD TA PAY SO KIDS SHOUD TOO"

inflicting the same hardship on future generations because YOU had to, is the most selfish thing Ive ever heard. God, republicans are dumb are bricks.

I paid off $60,000...

I fully support folks in being as artsy fartsy as they like, but they need to remember that they can be artsy fartsy without a degree from some overpriced diploma mill.

Just get out there and do it. That's why I've got some respect for the hippie kids selling fimo bead necklaces on the sidewalk-at least they are showing some initiative.

Wanna paint? How about airbrushing some t-shirts, or doing murals for businesses. Just go door to door to new businesses and ask if they want a mural, or a sign....

Pass the law, pay the loans off, then reset the money and scw the banks

smart country unlike the idiots here

The useless want more free shit.

What a surprise.

So how much in american money is that? Just curious, I thought Germany everyone gets free college in exchange for some type of social work or military?

exactly and how do you expect the welfared to fnally get off welfare, by getting an education by getting into school...here they are brainwashed, those entitled should only be... they forget how we all need to raise as a country if not the system will continue the way it is... haves vs have nots... it's pathetic

You're not bailing anyone out money isn't even fucking real. You're the SHEEPE

Might be useless now but guess who's gonna developing the diepers that clean themselves when you are old and cant work or pay for anything?

yes, you have to do 10 month military or social work!
500€ ist 640$

I know bills like this are trying to help the people which will then help the country but this country is already gone and after this election it will be gone even more

he?
you should get the best education possible, to get a good job after that...to earn enough money then?!

aww...uncle tom lol
you's a good nicha

I doubt all the people voicing complaints are Republicans, as most people are older, have worked for what they have in life, and have no complaints in that respect. However we see the youth of today spoiled by misguided parents who through good intentions desired to give their children all that they missed out receiving during their youth they forgot the lessons they learned.

Their children did not learn the value of work or a work ethic by delivering newspapers or mowing lawns as mommy and daddy gave them what they wanted. Now they expect the government to take over the parental role and provide them with an education and trinkets without the responsibility of repaying their debt to society.

Do you seriously believe that when these entitled young adults emerge from college they will somehow develop a work ethic when everything in their lives has been handed to them?

sounds like clash of the generations...don't forget you'll be old soon and need the young people!
If you don't come together, the young will give a shit what happens with the old ones

I'm guessing not the people that can't take responsibility for themselves.

If you can't pay off the student loans you signed up for, but want someone else to take care of it. You should probably shoot yourself before you start really fucking things up.

It's pretty obvious they don't give a shit about anyone but themselves.

If relying on them is the option, I guess we're fucked. No one ever gained anything relying on hopeless, useless people.

Not bad then really. I actually went to school and paid my loans but I don't see anything wrong with making education affordable for everyone.

I am in complete agreement. I relied on a combination of scholarships and paying my own way through college and I'm very proud of that decision. This generation is so entitled, I'm hardly surprised... and the timing of this bill is oh so suspect. Such bullshit.

WORD UP!

me neither and i have to work anyway.
i don't understand this discussion.
you have to work to pay the rent, food, energy etc.
free education doesn't mean that you don't have to work.
ok, if you live at home maybe

that they profit from defaults.
Lenders are paid full book value on defaulted loans (principal plus interest). For defaulted loan collections, collectors get to keep 18 cents out of every dollar before anything is applied to principal or interest. If the loan is rehabilitated, the new, much larger, loan is sold, and the guarantors get paid (in addition to 10 months of payments that go straight into their pockets) something like 18% of the inflated balance.

For lenders who only lend to students (and don’t guaranty, or collect on defaulted loans), they lose no money on a default. The money they are reimbursed can (and is) immediately used to fund another loan. Therefore, these lenders, fiscally, have a neutral outlook about defaults (i.e. they don’t care one way or another if a loan defaults). [I think Alan is ignoring administrative costs, which might be significant.]

If a company both loans, and also owns collection subsidiaries, then as long as collection of defaulted student loans is profitable (and it is extremely profitable), then this company clearly and unambiguously has a financial interest that loans default rather than remain in good stead.

If a company not only lends, and collects, but also owns a guarantor company (guarantor’s lifeblood is penalties and fees attached to defaulted loans), then this incentive is increased significantly.

Sallie Mae went on an acquisitions tear in the late 1990′s, acquiring some of the largest collection companies, and also multiple guaranty agencies, including the largest, USA Funds . Therefore it is impossible for Sallie Mae to claim that they would rather loans remain in good stead than default.


[link to www.forbes.com]

You should get a refund. You lived worse than a college student. Not worst.

Incentive Pressure

These companies receive that fee only if borrowers make a minimum payment of 0.75 percent to 1.25 percent of the loan each month, depending on its size. For example, a $20,000 loan would require payments of about $200 a month. If the payment falls below that figure, the collector receives an administrative fee of $150.

That differential provides an incentive for collectors to insist on the minimum payment and fail to reveal when borrowers are eligible for a more affordable schedule, according to Loonin, the attorney at the National Consumer Law Center, which is representing borrowers in the Washington talks with the Education Department

Collectors, then paid about minimum wage, could earn thousands of dollars a month in bonuses, based on the money that borrowers repaid, said Cournan, who took the upstate New York job out of high school. Pioneer set monthly goals for wage garnishments and loan rehabilitations, he said.

Using automatic dialers to track down borrowers, Cournan would figure out where they worked, then contact their employers. He would tell borrowers that he was going to seize part of their wages if they didn’t make the payments. Using a company loan calculator, Cournan would insist on the minimum payment, he said.

“When wou’re making 8 bucks an hour, it’s all about the bonuses. You’re starving,” said Cournan, 26, now an auto mechanic.
Gift Cards, TVs

Pioneer maintained a “boiler room” environment, with high turnover among those who didn’t perform, said Joshua Kehoe, a former collector. Kehoe worked in Batavia, New York, from July 2006 through October 2008 after managing a pizza stand at a theme park.

Pioneer rewarded collectors with $100 restaurant gift cards, a $500 mahogany jewelry box, televisions and a trip to the Dominican Republic, according to Kehoe, who said he earned $9.60 an hour before the incentives.

It would be “a cold day in Hades” before collectors would tell borrowers about options with lower payments, according to Kehoe, who said “rehab cash was king.” The company pushed collectors to sign borrowers up for the rehabilitation plans, which often required payments equal to 1.25 percent of their loan amount monthly, he said.


[link to www.bloomberg.com]