Student Loan Discharge Update

Student Loan Discharge is an issue this election

student loan  debt promises
Happy Horses in a Field

year.  So, we will get bills introduced about

Student Loan Discharge. And another bill.

And more bills.  Which have no chance of passing

because this is late into an election year, when all

our public servants do is work to keep their

seat at the public trough.

Such bills are the equivalent of what the horses in the picture leave behind on the ground.

Nevertheless, let’s look at a recent Student Loan Discharge proposal.

Student Loan Forgiveness Tax Repayment Act

This one is bi-partisan!  One could define this as having at least one scoundrel from each party behind it.  So, call me a cynic.

The bill, the Stop Taxing Death and Disability Act, would save families from big tax bills when federal student loans are forgiven after death or disability.

This one is also, a re-tread, having been introduced in – you guessed it, the last election year, 2014.

So, good idea, yes.  Chance of passage, not so much.

Still, keep your eyes on the current crop of idiots running for office and what they say about Student Loan Discharge.

The Supreme Court Does Not Want To Say Anything

There are so many punters in Washington D.C., pedestrians must keep their heads down all the time.

The Congress punts to the Executive branch, or to the Judiciary.  Obama punts wherever he wants to.

And, Justice Thomas berated his colleagues for punting a Student Loan Discharge question back to the Department of Education (DOE).  Which is part of the Executive branch, as are all cabinet departments.

(Remember when we had three functioning branches of government?  Me neither)

    While the two other members of the panel concurred with Hamilton to an extent both also expressed reservations, particularly in regard to the Education Department’s interpretation of the rules regarding collection costs and whether the department’s interpretation should be given deference.
     That was the critical question United Student Aid Funds wanted the Supreme Court to consider. The justice who declined to grant certiorari did not explain their rationale for doing so.
     But Justice Clarence Thomas blasted his colleagues, accusing them of choosing to sit “idly by” while “[h]e who writes a law” also “adjudges its violation” – a line borrowed from an earlier dissent written by the late Antonin Scalia.

It is tough enough dealing with the existing laws and statutes and rules and regulations.  What Justice Thomas protested was letting the DOE be the referee for a game in which it is one of the two teams.

C’est la vie.

National Collegiate Trust and Wilfred American Educational Corp.

A couple of student loan scams to discuss this week. NCT and robo-signing National Collegiate Trust (NCT) continues to make news on the robo-signing front. NCT even files student loan collection cases when it has no robo-signed documents. Robo-signing came into its own as a term in connection with the mortgage practices so well displayed… Continue Reading

More Student Loans And CFPB

I blogged last week about student loans and the Consumer  Finance Protection Bureau. And, again this week! CFPB Shuts Down Student Loan Scam from jd supra story: . . . California-based Student Aid Institute and CEO Steven Lamont charged borrowers a fee to participate in the federal student loan programs, the CFPB said, marketing itself to… Continue Reading

CFPB Student Loan Complaint – Notice

CFPB Student Loan Complaint – Notice       Reprinted in its entirety below: We’re writing to let you know that if you have private or federal student loans and you’re having problems repaying your loan or dealing with your lender or servicer, you can submit a complaint to the Consumer Financial Protection Bureau. You can also… Continue Reading

Billions Of Student Loan Debt Discharged

Student loan debt forgiver for 387,000 borrowers!   scream the headlines.What Is Really Happening? The Department of Education, which, like all cabinet departments, is part of the executive branch of government, so, you could say “Obama” forgives . . . However, nothing is being forgiven until, yes, you know it is coming, the paperwork is done.… Continue Reading

Garnishing Student Loan Debt

Jillian Berman writes for Market Watch:  Government Garnishing Student Loan Debt between October 1 and December 31, 2015, private debt collection companies hired by the Department of Education garnished more than $176 million in wages from defaulted student loan borrowers in order to pay back their debts, according to data released last week. I know… Continue Reading

Cannot Discharge Student Loan Debt? Emigrate!

Cannot Discharge Student Loan Debt? Emigrate! That is what some students are doing, being that  discharging student loan debt in bankruptcy is difficult. Alexander Coggin writes about the exiles at the vice.com web site. Some people are put in so desperate a spot they have attempted to bail on their loans by fleeing the country… Continue Reading

Student Loan Debt and Deception

Law schools are the focus of Student Loan Debt and Deception this week. Even as legal hiring dropped in 2011, according to Mr. Procel,   Thomas Jefferson stated that 92.1 percent of its graduates were working at full-time jobs. That was a major increase from the 83 percent graduate employment the school claimed during the… Continue Reading