By Alan J. Yeck
The formula used to determine how much of your monthly income the student loan “servicers” will steal is based on a model where Department of Education, in cooperation with Congress, fed rats LSD over a 15 week period and then observed their movements in a standard 20-point maze. What occurred was nothing short of remarkable on a global scale. After the results were reviewed by no less than seven times by outside scientists it was determined that the Department of Education, in cooperation with Congress, were the ones actually ingesting the LSD and not the rats. This explains why the payback formula used by student loan “servicers”, aka Sallie Mae, Navient, Fedloan, Nelnet, et al is so fucking insane.
This is directly from the Navient website –
Income-Based Repayment Plan (IBR)
“Your payments will be 15% (10% if you are a new borrower*) of your monthly discretionary income, the difference between your adjusted gross income and 150% of the poverty guideline for your family size and state of residence (other conditions apply) divided by 12.”
Clear? Maybe if you’re on acid.
Here is what the federal government considers as ‘discretionary’ income, meaning they will take 10-15% from your monthly income before these bills are paid:
- Trash pick-up
- Car payment
- Car insurance
- Car fuel and maintenance
- Dental/vision (deductibles if you’re lucky enough to have insurance)
- Health insurance (deductibles if you’re lucky enough to have insurance)
- Emergency savings (emergency trip for family emergency…transmission breaks…etc.)
- Any kind of retirement savings
- Pets (food, litter, veterinary – or do we just put the down?)
- Children (costs associated with children and or child support)
- Trying to help them with their college costs so they don’t get sucked in this black hole of despair.
- Misc (expenses I just can’t think of now or that might be unique to your life
The student loan “servicers” will take all they want, after their big brother has taken their taxes, and whatever is left you have to figure out how to pay these normal bills of life. When the transmission goes, and you need your car to get to work, so you can get your pay, so you can pay the loan “servicers,” you have to fix it, right? Right. Since you have no savings you have to default on your student loans to get your car fixed…or to travel to a family funeral on the other side of the country…and another 1,000 unseen events that you need emergency savings for. Then begins the interest game, and capitalization of that interest on to the principal…months later when you’ve been “rehabilitated” (what a great word – so fitting of the debtors prison they have created) you will owe more than ever before with the same formula used to steal your life. Repeat. Repeat. Repeat. This is the LSD influenced system they built and what our politicians protect. In turn for their feigned ignorance and silence to the plight of student loan borrowers, they are given campaign kickbacks through Super PACs to ensure the status quo remains the status quo and we go on paying. Forever. This story is told by millions of Americans and is the biggest scam ever inflicted by the U.S. Government on it’s own people.
At 59, with my 29 year plan ($35k loan will then be $310k), there’s a good chance I’ll be dead before it’s paid off. At least that’s one thing to look forward to.
#corruption #studentloandebt #dirtypolitics #bidenharris #joebidden #trump #kami #highered #students #business #innovation #blm #womensrights #elizabethwarren