Alan J. Yeck

Tossing out any dollar amount in student debt relief with no other action is just another form of fraud committed by our government against its people – again! It’s a fraud sandwich and we’re the protein.

$10,000 – 50,000 paid by the government, to the dirty government collection contractors (Navient, et al), will then be directed back to the political PACs, Super PACs, and student loan industry lobbying firms. Everybody in on the con, wins! But that’s not us, my friend. “It ain’t me, it ain’t me, I ain’t no senator’s son.”

There is a reason the politicians, including the attorneys general, are not listening about implementing the foundational reforms that must happen in the student loan industry to remove the corruption, provide relief to existing victims, and prevent this crisis from happening again.

The elected elite are either: 1) listening only to the lobbyists who work for the student loan industry to keep their money train scam rolling along; 2) are part of the corruption/kickbacks themselves; 3) have their heads up their asses.

While I can understand the skill of misinformation of number 1, and can personally relate to number 3, I have a feeling their lack of addressing the real issues that caused this crisis comes down to number 2. It’s gone on too long, over both blue and red administrations, for them to claim ignorance. 

We the people, are the least of their concerns. 

To end this problem today – 

  1. Recalculate loan balances at zero interest (the government should not profit off of educating its people). With this formula we’ll save millions who have already paid back their original principal and are being held hostage by interest (10 times the original loan amount. I know you don’t understand how that can happen but it does).
  2. Restoration of unconditional, full bankruptcy rights for student loans. Bankruptcy isn’t a free pass at all, is it? Millions of borrowers, through the racketeering of collections agencies are in true, lifelong, debtors’ prison today. When Congress began to tamper with this right in the early 1970s the loan default rate was less than 1%. Today it’s over 20% and growing. Removing bankruptcy protection is the foundation of today’s crisis which all the student loan industry corruption was built upon. 
  3. Hold higher education accountable for the costs of their programs. Until this is done, they will just continue to raise their costs. Higher education is a financial black hole that will suck in every penny and then start going through your couch cushions to find more. Degree costs have risen 400%, above inflation, in the last generation. Policies have to be put in place that restrict loans going to any institution that cannot demonstrate fiscal responsibility and the return on investment for completing their programs.
  4. Immediately end the practice of the loan servicers from garnishing wages, tax returns, and social security. 
  5. Restructure the loan payback formulas to reflect the cost of life. Currently calculations from the loan servicers do not consider that you have to pay rent/mortgage. Car payments, insurance, healthcare, food, electricity, maintenance, emergency funds…they let the government get their taxes then they swoop in to steal the rest. The current formulas almost guarantee to force defaults, which in turn interest builds, added to the principal and interest applied on that new amount. 
  6. Increase Pell and Perkins Grants including for the trades and apprentice programs, again holding the educational institutions accountable. 

The current system and the currently discussed solutions are all just part of the con, the scam. It’s Three Card Monty with Uncle Sam not only dealing but telling you how much you have to bet, knowing you’ll lose every hand. Fixing fraud with more fraud. WTF?