Student Loan Justice

by Dana Sims

Sat, Dec 6, 2008 5:38PM

Due to Congressional action over the past decade, student loans are the ONLY type of loan in our nation's history to be specifically exempted from standard bankruptcy protections, have statutes of limitations removed, be exempt from truth in lending requirements, and also exempt state agencies from the Fair Debt Collection Practices Act. At the same time, law allows for draconian penalties and fees to be attached to student loan debt, allows for wage, tax return, Social Security and Disability to be garnished without a court order.

As a result, student loans have become the most profitable, uncompetitive, oppressive, and predatory type of debt of any in the nation. This has occurred due to legislation- championed by the student loan industry- that took nearly every standard consumer protection away from student loans. Vast personal fortunes are being made by student loan company executives who lobbied for this legislation, at the expense of decent citizens who were not able to capitalize on their education. This has effectively crippled MILLIONS of decent citizens.

We are banding together. If you are a student borrower hurt by your student loans, welcome. Do not be intimidated or ashamed. Please start by telling your story. It needs to be told. From there, you can support our Political Action Committee (PAC), and also find others in your local area who are facing similar situations. Above all, please help spread the word about this site.

If you are a legislator, please review this site. Your help is greatly needed.

http://www.studentloanjustice.org
http://www.artbehave.com/slj.htm
http://defaultmovie.com/
http://voptsslf.blogspot.com/
http://money.cnn.com/2008/10/23/pf/college/student_loan_fugitives/index.htm?postversion=2008102407

For more information: http://www.studentloanjustice.org

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§What is the current status of bills or student loan and bankruptcy reforms?

by Ann

Mon, Dec 8, 2008 5:50PM

I have been following your efforts with the predatory lending going on with the private student loans and I am just curious as to where everything stands today. I know that Richard Durbin's bill did not go through earlier in the year that would have helped debtors discharge their private student loans, but I have not heard about any more efforts from him besides the mortgage bill that he reintroduced. Also, what about Hillary Clinton's Student Loan Bill of Rights bill? Where is that at and what is going on with that? Does it even help any of us that are so in debt with our private loans? The interest rates for private student loans should be capped and we should be allowed to consolidate our private loans into one, lower interest loan that we can pay over an extended amount of time. Also, bankruptcy laws need to be changed to include private student loans that were credit based and uncertified by our schools. These are not loans backed by the Federal government and should not be treated as such. If they are going to treat them just like our Federal student loans, then we should have the same rights with these loans as we do our Federal loans (deferement/forebearance options, lower/capped interest rates, option to consolidate, etc).

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