Loans Organized Crime Might Envy, Part 2

MainStreet.com ^ | 7-23-13 | Michael P. Tremoglie

[William Tell 2]

NEW YORK (MainStreet) — As we said in Part 1, the terms for lending money to college students for their tuition are such that they would make loan sharks green with envy. One aspect of these loansthat make them very attractive to private lenders is the near impossibility of them being discharged in bankruptcy.

"They are almost guaranteed to be collected, so it is easy to sell the notes," said Barmak Nassirian, formerly an official with the American Association of Collegiate Registrars and Admissions Officers.

[Read: Avoid Popular Stocks like the Devil] More bluntly, Clare Law, a certified educational planner, summed it up this way: "The point that student loans are not dischargeable is huge."

Even the Consumer Financial Protection Bureau (CFPB) has raised concerns about the bankruptcy provision. The CFPB said...

[Nateman]

This article fails to point out that by showing you have little income you can let the repayment slide. Another trick used is to keep on taking a few courses on a study basis, with that little trick you can delay payment for a long time as well. It’s all set up really to transfer money from the tax payer to the Education unions.

[William Tell 2]

Read the title. The article is not about how students can avoid repaying loans. It is about how and why the lenders are making loan they have no business making to people who have little ability to repay.

[Nateman]

I realize that, the purpose of the article is to try and gain support for making it easier for escape from the burden of the loans, that is , to make further transfer of loot to the teachers Unions easier. With the Lamestream press it’s pretty consistently some kind of propaganda for more looting of working Americans. My point was to show the loot transfer is already too easy.