Drug Use at the Department of Education: The Discretionary Income Formula

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:

  • Rent/Mortgage
  • Food
  • Utilities
  • Clothes
  • Trash pick-up
  • Phone
  • Internet
  • 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

President-elect Biden’s Current Student Debt Solutions are Deeply Flawed and Inadequate;

Ideas proposed only ensure the corruption continues in the student loan industry.

The $1.7 trillion of student loan debt is an economic disaster for our nation but the solutions proposed by President-elect Biden and his senate supporters fall well short of lasting, legitimate solutions. In summary, the plans are to give X amount of money ($10,000+), to student borrowers who meet X qualifications (where they attended school, how much their families make, minority or displaced population, etc.), and all of this only applicable to undergraduate degrees.  

“Without addressing the multiple issues that caused the $1.7 trillion dollar student debt crisis, the solutions proposed by Biden, Senators Schumer and Warren, do little to help the American people,” said Alan Yeck, Founder and Executive Director of AltRaged. “The government, both Democrats and Republicans created this mess – not the students. Congress started this crisis fifty years ago through changes in the bankruptcy code and multiple changes in the Higher Education Act.” There are simple, but key steps that have to be put in place for a lasting fix.

The disgraceful costs of higher education must be reined in

There is no reason a bachelor’s degree at a state institution should cost $40-50,000. Like a black hole in space where gravity’s pull is so strong that even light cannot escape, fiscal mismanagement and lack of leadership in higher education have created a system that will devour every dollar, and then immediately look for more. The costs are not reflective of markets or student’s abilities to repay. The government solution of throwing money at the problem, without accountability by higher education only benefits the massive, corrupt student loan collection industry. 

Full bankruptcy rights must be restored to student loan borrowers

The Student Borrower Bankruptcy Relief Act (H.R. 2648), if passed, would remove the section of the bankruptcy code that currently prevents student loans from being treated the same as other non-criminal debt (as it used to be before Congress changed the code, which removed the safety valve for the cost of higher education). Schools charge phenomenal tuition and fees knowing the government will loan the money, and the loan “servicers” know the students and parents are then trapped. Wage garnishment, social security garnishment, tax return garnishment, and estate seizures for private loans; it is a lifelong, true debtors prison our elected officials continue to protect because of the payouts to their campaigns from Super PACs, both red and blue. 

Cancellation by the executive branch

There is an ongoing discussion that the executive branch has the authority to instruct the Secretary of Education to cancel student loans, without the approval of congress. But as is the case with all political rhetoric, the devil is in the details and there’s plenty of evil in this system. If he does, Biden would most likely also make those cancellations conditional to only certain groups, degrees, and dollar amounts – similar to their previous restrictions.  This again leaves millions of borrowers abandoned to the collection wolves. 

Student loan reform

Beyond fixing the cost of education, beyond restoring bankruptcy, beyond cancelling all student debt, the entire student loan system needs to be reformed and the outsourcing to the loan servicers eliminated. There are millions of Americans who owe more than $100,000 because of fraudulent interest, penalties and lies. It is impossible to ever pay these off and without bankruptcy relief, the loan “servicers” will garnish until death. The lives of millions of Americans in similar situations are being destroyed because Washington appears to only address selective issues with this crisis.   There is zero accountability and it affects the future of our country for all citizens.

Yeck continued, “It’s the biggest scam the U.S. Government ever pulled on the American people. Governmental loan sharking enforced with judicial muscle. The mob wishes they ever had it so good.” 

#altraged #studentloandebt #studentloancrisis