Payday Borrowing’s Debt Spiral to Be Curtailed – The New York Times reports. That is, Congress and other entities are going to fight over how to control out of control debt…HAHAHA. Wow. As our public debts climb rapidly, as student debt balloons, as the ‘value’ of housing the very rich flies over $100 million for properties in Manhattan, we have been sailing along on this ocean of red ink and periodically, someone gets nervous about all this and then it goes on and on and on. Exploiting poor people to keep them rolling in red ink is old stuff so it is time for reformers to do something about this exploitation of people who have no money value at all and are just tools for the red ink flow.
The Democratic presidential candidates generally support stricter lending rules. Senator Bernie Sanders has called for a 15 percent rate cap on all consumer loans and for post offices to become basic banking centers, a change that could “stop payday lenders from ripping off millions of Americans,” he said in a January speech.
Hillary Clinton praised the payday lending proposals that the consumer agency released last year and urged her fellow Democrats to fight Republican efforts to “defang and defund” the agency.
Consumer advocates are eager for new payday lending rules, but some say the bureau’s rules do not go far enough.
Hey, this used to be Mafia territory. Way back when I was young and needed money, I worked for a Mafia boss in Tucson doing stripping and making really good money doing this while going to school during the day. A win/win for me! He also lent money and collected via his Family and if you didn’t pay him back, he did nasty things to the borrower.
Now, the average borrower from the Mafia accepted all this with a certain amount of ‘this is how the world turns’ attitude and even joked about this, that is, the borrowers who came to the joint I worked in to hang out while borrowing money from my Boss. This brief time (six months is all it took to pay for three years of school) was more ‘educational’ for me than anything professors knew!
Since the System shafted me by eliminating my major across the entire country (German Language departments) the ‘street smarts’ I learned working for a Mafia boss were most useful indeed! Well, ‘predators’ always prey on the lower classes who don’t get too many lessons in how to deal with a non-criminal system and since our systems are actually criminal operations made legal, the point of view of poor people is, screw the system, break laws and survive. Duh.
Another NYT article today hammers away at this issue of poor people and what they do: The Millions Who Are Just Getting By – The New York Times
In the United States, nearly one-third of adults, about 76 million people, are either “struggling to get by” or “just getting by,” according to the third annual survey of households by the Federal Reserve Board.
Americans seeking a path upward through education are staggering under a load of debt. The median debt load for someone with a bachelor’s degree was $19,162. For a master’s, it was $36,000, and for a professional degree, $100,000. Many students with debt use deferments or other plans to delay or extend repayments, but in most cases that increases the balance they owe. For those making payments, the average monthly bill was $533.
The NYT won’t be anywhere near as honest as Confessions of a College Professor which extensively savages the system which has been set up to exploit students. The biggest debt in the US is the collective student loan debt mountain. It will destroy future families, it will screw up buying a first home. I bought my first home just three years after leaving school (with no degree since my field was eliminated!!!). Yes, just three years of working in real estate for Mr. Cohen, I could buy a brownstone in Park Slope.
Imagine if I was screwed out of my degree AND owed $40,000 on top of it! I would have struggled to live afterwards and probably would have fled the country to avoid the debt.
Then there is outright fraud on top of legal fraud: Feds Accuse Doral-Based Student Aid Center of Running Student Loan Scam | Miami New Times
There’s some bad news and some good news for debt-saddled graduates who paid a company called the Student Aid Center to help reduce their student loan debt. The bad news first: The Federal Trade Commission (FTC) says the business was a scam.
The good news: The FTC and Florida Attorney General Pam Bondi are suing the Doral-based company for illegal business practices in hopes of recouping consumers’ money. That isn’t likely, however, given that Student Aid Center and its owners, Damien Alvarez and Ramiro Fernandez-Moris, filed for bankruptcy in February, saying the company had liabilities between $1 million and $10 million.
The only difference between the average school charging massive fees to learn nearly nothing is this operation that teaches nothing at all. In our major systems of universities and schools, we still have some elements of real science and real learning leading to useful degrees happening but for how long? The proliferation of useless stuff continues. A Message from the Secretary of Education About Debt Relief Scams | Federal Student Aid
Have you seen ads offering help with your federal student loans that seem too good to be true? They probably are. Many debt relief companies charge exorbitant fees for these services and often solicit unsuspecting borrowers online and through mobile ads, social media, phone calls—and even mail sent to your home.
If you took out federal student loans to pay for college, you never have to pay to get help managing your student loan debt. The U.S. Department of Education provides free assistance to help you
Discharge in Bankruptcy
This is not an automatic process—you must prove to the bankruptcy court that repaying your student loan would cause undue hardship.
If you file Chapter 7 or Chapter 13 bankruptcy, you may have your loan discharged in bankruptcy only if the bankruptcy court finds that repayment would impose undue hardship on you and your dependents. This must be decided in an adversary proceeding in bankruptcy court. Your creditors may be present to challenge the request. The court uses this three-part test to determine hardship:
If you are forced to repay the loan, you would not be able to maintain a minimal standard of living.
There is evidence that this hardship will continue for a significant portion of the loan repayment period.
You made good-faith efforts to repay the loan before filing bankruptcy (usually this means you have been in repayment for a minimum of five years).
Your loan will not be discharged if you are unable to satisfy any one of the three requirements. If your loan is discharged, you will not have to repay any portion of your loan, and all collection activity will stop. You also will regain eligibility for federal student aid if you had previously lost it.
So, if you get a degree in law, you can try winning against this only a Law Graduate Who Sued Her School Loses at Trial so this ‘escape claus’ is rarely allowed, isn’t it? HAHAHA.
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