From me, here, anyway.
dischargeable in bankruptcy.
DC area bankruptcy attorney Brian V. Lee blogs about this too:
In 2016, 43 million Americans carried a total of over $1.3 trillion in student debt. More than 40% of the nearly 22 million borrowers with federal student loans were in default or behind on their payments. Student loan defaults have been compared to the subprime mortgage meltdown of 2007-2010.
In 2017, Americans owed over $1.48 trillion in student loan debt, $620 billion more than total U.S. credit card debt. A record 8.5 million federal former students were in default as of June 2017. The number of students unable to pay back their school debt has increased every year for the last 14 years. Tens of millions of borrowers are behind on federal and private student loans.
Yes, same problem, but if you go over my past blog posts, you will see the bad numbers keep going up, up, up.
Straight Talk On Navient
Another recurring topic here, student loan servicer, led by Navient, f/k/a Sallie Mae, negligence and malfeasance.
Even one of Navient’s investors agrees, with a very, shall we say, down to earth quote:
“If your primary customer sh*ts all over you and you think your stock is worth twice what it’s trading for, why not give your owners back their money?” Cooperman said in an interview.
How come the share price is down by half?
The Bloomberg story continues:
The CFPB and attorneys general of Illinois, Washington and Pennsylvania added to the company’s problems this year, suing Navient for allegedly deceiving borrowers.
How do these finance companies do it? Lose money when the government rules and regulations all but guarantee a profit?
All the banks had to do to make money was keep the usual mortgage, vehicle and credit card business, with the subsidized low interest money only they can get from the Fed.
But, chasing higher profits, they skirted the rules and made up new stuff, puffed up the mortgage bubble, and then we taxpayers bailed them out when it burst.
So, Sallie Mae/Navient, in the student loan business, where it is difficult to discharge the loans in bankruptcy, still manages to screw up.
They lie to people, do not give accurate information on student loan repayment plans, do not recognize when loans are rehabilitated, and so on.
Could not happen to a nicer outfit.
Contact your Congressfolk to urge them to change the bankruptcy law to go back to discharging student loan debt.
If you have a student loan issue, contact me.