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Trump Administration Rolls Back Obama Protections On Student Loans
ZeroHedge ^ | March 18, 2017 | Tyler Durden

Posted on 03/19/2017 5:41:12 AM PDT by bobsunshine

Just days after reports emerged that student loan defaults are soaring, which is undoubtedly due to some combination of, among other things, poor job prospects for the millions of snowflakes who graduate each year with their $200,000 educations in anthropology and the moral hazard created by liberal politicians constantly calling for student debts to be 'forgiven' (a.k.a. forcefully jammed down the throats of taxpayers), the Trump administration has revoked rules put in place by Obama that barred student debt collectors from charging penalty fees on past-due loans.

Originating from the Department of Justice, the "Dear Colleague" letter (full letter included at end of post) says that Obama's unilateral rules implemented in 2015 could have "benefited from public input"...but what good is being King if you can't unilaterally force new laws on the masses?

(Excerpt) Read more at zerohedge.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: debt; doj; education; millennials; salliemae; studentloans
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To: yldstrk

” ...innocent college kids...”
**********
If they are still “kids,” why do we let them vote and sign for loans? When young men my age were entering college, they were smart enough to know that they needed to educate themselves for jobs that would allow debts to be paid. If young people nowadays are usable to grasp this, why are we sending them to college?


21 posted on 03/19/2017 6:28:58 AM PDT by Socon-Econ
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To: Vigilanteman

You left out a key, necessary, contributor. The colleges should be forced to contribute some of their billions ($trillions?) in endowments toward the problem from which they profited.

I looked it up. Looks like there is just a HALF $trillion sitting there that could be used to help ameliorate the crisis. https://nces.ed.gov/fastfacts/display.asp?id=73

Offset that against the debt, and you’ll have a good start on cleaning up the mess.


22 posted on 03/19/2017 6:30:42 AM PDT by PAR35
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To: Vigilanteman

You left out a key, necessary, contributor. The colleges should be forced to contribute some of their billions ($trillions?) in endowments toward the problem from which they profited.

I looked it up. Looks like there is just a HALF $trillion sitting there that could be used to help ameliorate the crisis. https://nces.ed.gov/fastfacts/display.asp?id=73

Offset that against the debt, and you’ll have a good start on cleaning up the mess.


23 posted on 03/19/2017 6:30:50 AM PDT by PAR35
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To: Vigilanteman

I’m in favor of anything that does not involve a government bailout. People at 18 are adult enough to vote they are adult enough to pay their bills for what they contract to own. If some ninnie thinks borrowing 100k for a degree in firefly signals recognition is important fine just make them pay for it. Not me I am done with carrying a nation now chock full of crybabies and protestors. When I was 18 our future involved draft. Today’s snowflakes worry about legalizing drugs and fag “rights”.


24 posted on 03/19/2017 6:33:50 AM PDT by Mouton (There is a new sheriff in town.)
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To: ptsal

Choice #2 - Military


25 posted on 03/19/2017 6:36:04 AM PDT by Baseballguy (1)
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To: bobsunshine

This is a reasonable rollback considering their are options open for people to avoid default. It upsets me and I would caution all those fake conservatives who want to bring back debtors prison.

Banks and colleges promise the world and offer cheap money that they obtain from a printing press. Then they then offer it as government debt to avoid bankruptcy law protections.

Claiming the 18 to 20 year old who accepted the dealer on the corner’s goods totally responsible displays a lack of understanding of the situation.

There is a constant push for students to acquire student debt. Student debt affects your credit and if you will eventually be able to purchase a home.

We just saw a situation with the housing bubble when bankers and property assessors over inflated the real value of homes. But who received the blame from fake conservatives.

Was it the banks who made millions churning properties or the people who were left holding a property worth half the value.

It was the people that were blamed. The homeowners, because they asked to own a home they couldn’t afford. Do your really believe that people went around borrowing money they thought would vanish in a years time.

And who received the bailout for all the cost. The banks of course from people, the tax payers. Be careful when you look down on your fellow citizen for the debt they have and place blame. You may just make your self a tool of the corporate elite who only have their self interest at heart.

My point is to look a the big picture the cause and effect in totality.

Luckily Trump is smart enough and sees through all this fake conservatism such as this targeting of students. This ability to see the big picture is what allowed him to build a large enough base to win the white house.


26 posted on 03/19/2017 6:36:57 AM PDT by MagillaX
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To: Grams A

“To my mind, if you own property, you are subsidizing the education of K-12 students through property taxes. Not getting much for our money, are we?”

Yup, the morons of my city, Chino, CA, just passed what amounts to a 2 Billion Homeowners tax “School Bond” for “the Children” K-12. Dopes.


27 posted on 03/19/2017 6:41:16 AM PDT by DAC21
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To: bobsunshine

Stop make loams available for anyone who can fill out a request.


28 posted on 03/19/2017 6:42:50 AM PDT by hadaclueonce (This time I am Deplorable)
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To: Mouton

We are 100% on the same page.

The same with health insurance.

A huge pot of money means costs expand to spend the entire pot.


29 posted on 03/19/2017 6:43:11 AM PDT by xzins (Retired US Army chaplain. Those who truly support our troops pray for their victory.)
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To: puppypusher
Good.These are loans that the students agreed to and they,not the taxpayer should end up paying the bill.

The laws should be changed making the Administrators, Finance Departments, student loan administators, and the deans and professors of the snowflake studies majors personally liable for consumer fraud by knowingly selling a defective product.

Or just make all the students whole by confiscating the endowments of the Ivy League schools.

"From each according to his means" you know.

30 posted on 03/19/2017 6:44:43 AM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: PAR35

You obviously don’t have kids


31 posted on 03/19/2017 6:45:10 AM PDT by yldstrk (My heroes have always been cowboys)
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To: puppypusher

Yep, and they should not provide any more. They have been a disaster not only financially but with how they have driven up the cost of young adult indoctrination centers.

If someone can’t afford college and the private sector doesn’t voluntarily feel inspired to give out a scholarship, he or she can pull him or herself up with bootstraps, working their way through the first two years of a community college, then if still motivated doing the same for two years of a regular state college.

Living cheaply and taking two courses a semester, it would only take three years instead of two to get through each of the two degrees. That’s become pretty standard for regular four-year students anyway.


32 posted on 03/19/2017 6:47:03 AM PDT by 9YearLurker
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To: Socon-Econ

“alimony disguised as child support” what nonsense. $400 a month is not alimony. These moms with their little office jobs need the help and the dads that end up going to jail go because they REFUSE not just can’t pay. There is a difference.


33 posted on 03/19/2017 6:47:05 AM PDT by yldstrk (My heroes have always been cowboys)
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To: bobsunshine

There is a simple (not necessarily easy) way to reign this in quickly.

1. Get the federal government out of the lending business, both directly and as guarantor.
2. Make student loans dischargeable in bankruptcy.
3. Require the underlying institution to indemnify the lender for 50% of the value of a defaulted loan used to finance the “education” provided by institution.

You’d see the market sort this out very quickly. No more $200,000 in loans for a Middlebury lesbian studies degree when Middlebury and the lender are potentially both on the hook for up to $100,000 for that worthless “education”.


34 posted on 03/19/2017 6:47:08 AM PDT by rockvillem
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To: Mouton
Here is the thing. College was for those who wanted to lead. When I went to college in 1983 you where taught the skills to manage and make decisions.

I guess as the money started to get funneled into because of the Clintons, Bushes, and Obama things got screwed up. I gave my sons a choice as freshmen in High school. Either you become a scientist in college or goto tech school for two years and learn a skill.

They are both now going into their respective degrees into Phd School full paid and doing research. I believe this is the problem of the parents, like soo many issues nowadays. If you dont parent your child to make them an important part of society then part of the responsibility is thiers.

35 posted on 03/19/2017 6:47:45 AM PDT by Baseballguy (1)
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To: Mouton

“People at 18 are adult enough to vote they are adult enough to pay their bills”

And those that argue otherwise need to be reminded that probably 95% of Undergrad School loans are consigned by a Parent or Guardian. Were they to dumb and immature to know the ramifications of not paying back the loan as well? No bail out!


36 posted on 03/19/2017 6:47:54 AM PDT by DAC21
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To: USS Alaska

yeah, well, no steel mill to work in now. Economy has been sucked dry by the democrat thieves.


37 posted on 03/19/2017 6:48:36 AM PDT by yldstrk (My heroes have always been cowboys)
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To: xzins

Except for GI bill, at least there should be a requirement to score 70th percentile or higher on SAT or ACT to receive a college loan.

Demonstrated ability.

I think ACT essentially claims a 21 or higher is necessary by their stats to succeed at college.


38 posted on 03/19/2017 6:49:43 AM PDT by xzins (Retired US Army chaplain. Those who truly support our troops pray for their victory.)
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To: bobsunshine

Bankruptcy court is where the student loan debacle is headed. This is the first step.

Either loan holders can pay, or they cannot.

1. Those that can pay must pay
2. Those that can pay something must pay something with debt restructured and some written off
3. Those that are insolvent and cannot pay must have that debt written off and any avaulable assets liquidated to go towards debt

These are the three options and the only three options. Agree or disagree, this is how the problem will be solved.

The unworkable 4th option of keeping the present system is not possible over the long term.

The only thing to discuss is process.


39 posted on 03/19/2017 6:51:12 AM PDT by RFEngineer
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To: USS Alaska

I also am a veteran. A female one. I am very conservative and don’t suffer fools gladly. I also think for myself and don’t pick on 18 year olds.


40 posted on 03/19/2017 6:51:30 AM PDT by yldstrk (My heroes have always been cowboys)
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