Student Loan Hell

U.S. Supreme Court to hear student loan case

2005-10-31T22:25:00.000-08:00

Regarding attaching social security for 20 year old student loans:

http://news.yahoo.com/s/ap/20051029/ap_on_go_su_co/scotus_student_loans

More corporate bankruptcy looming?

2005-09-13T15:32:00.000-07:00

More large corporations are preparing to get the bankruptcy relief denied to individuals under the lifetime yoke of student loan debt.

"September 13, 2005
Northwest and Delta Are Said to Be Preparing for Bankruptcy
By MICHELINE MAYNARD

...Once companies seek bankruptcy protection, they can ask a bankruptcy court judge to set aside contracts and impose lower terms, unless agreements can be reached. Northwest is likely to seek the same $1.4 billion in cuts once its bankruptcy proceedings begin, the people briefed on the airline's strategy said today..."

http://www.nytimes.com/2005/09/13/business/13cnd-air.html?ei=5090&en=e39305a977d221eb&ex=1284264000&partner=rssuserland&emc=rss&pagewanted=print

Katrina and student loans

2005-09-09T17:49:00.000-07:00

We deplore the minor relief the department of education and the assorted private, "non-profit" student loan guarantors have made regarding student loan borrowers in the Katrina areas. Short term, temporary delays of payments are pathetic compared to the size of the disaster.

Large corporations will be allowed to write off their debt in the bankruptcy courts. The same should be allowed for those individuals who tried to lift themselves out of poverty with the great lie of student loan debt.

Jobs? Student loans?

2005-08-26T21:43:00.000-07:00

"American university enrollments in science and engineering are declining because there are no jobs for graduates. It is pointless to invest money, sweat and toil in an education that has no payoff. Markets do work. Markets are working to shrink the demand for, and supply of, American engineers and scientists... "

excerpt of "The American Economy is Destroying Itself" article by PAUL CRAIG ROBERTS at http://www.counterpunch.org/roberts08252005.html

Mr. Roberts tells the tale of an engineer who wound up working in Thailand for $850 a month. If I had his ear, I would ask him if he had any student loans with that salary.

Iraqi soldier denied in-state tuition...

2005-08-21T13:57:00.000-07:00

Although we are sure that the bureaucrats will eventually punt in this high profile case, it is more of how the educational-industrial complex works to ensure student debt is the priority...

"So he was shocked when Austin Community College told him a few weeks ago that he didn't qualify as a Texas resident "for tuition purposes." Basham, a former Marine corporal, said he was even more shocked when officials told him why: After two tours of duty in Iraq, he's been out of the state too long to qualify."

http://www.dfw.com/mld/dfw/12403480.htm
Star-Telegram
Wed, Aug. 17, 2005

Reports on gouging of students

2005-08-19T18:51:00.000-07:00

"GAO: Supplements Drive Up Textbook Prices"
http://wireservice.wired.com/wired/story.asp?section=Breaking&storyId=1076542&tw=wn_wire_story

Download the government study for yourself:

http://www.gao.gov/new.items/d05806.pdf

All of this shows how the educational-industrial complex works on the forward side to push students into eternal student loan debt. Now, if only there would be some studies on the exit side on what former students are put through AFTER useless education and are saddled with student loan debt for life.

The Founders on Bankruptcy

2005-08-14T19:13:00.000-07:00

U.S. Constitution, Article 1, Section 8, Clause 4 (Bankruptcy)
Ever hear the fans of the educational-industrial complex bad mouth bankruptcy relief as some new-fangled boondongle of 60's hippies? Well it isn't. Bankruptcy is as old as the bible and was deliberated by our founding fathers. It is ironic to see these people go against the traditions of those who fought in our American Revolution in their struggle against the British. "British merchants and creditors... squaked so loudly that Parliament was forced to act. It restrained the colonial legislatures from passing lax bankruptcy laws..." See, American Pageant, 7th ed p84. No less an esteemed founder than Thomas Paine was involved in bankruptcy himself after a failed business and loosing several jobs. Wikipedia on Thomas Paine Robert Morris declared bankuptcy after the revolution. Price Paid In fact, so many of the founding fathers were running from creditors that they worked on bankruptcy fresh starts in the constitution BEFORE the bill of rights.
Joseph Story commented on the constitutional, religious, and moral arguments for bankruptcy in the United States as early as 1833.
"...that the general object of all bankrupt and insolvent laws is, on the one hand, to secure to creditors an appropriation of the property of their debtors pro tanto to the discharge of their debts, whenever the latter are unable to discharge the whole amount; and, on the other hand, to relieve unfortunate and honest debtors from perpetual bondage to their creditors, either in the shape of unlimited imprisonment to coerce payment of their debts, or of an absolute right to appropriate and monopolize all their future earnings. The latter course obviously destroys all encouragement to industry and enterprize on the part of the unfortunate debtor, by taking from him all the just rewards of his labour, and leaving him a miserable pittance, dependent upon the bounty or forbearance of his creditors... "
"It is incompatible with the first precepts of Christianity; and is a living reproach to the nations of christendom, carrying them back to the worst ages of paganism. One of the first duties of legislation, while it provides amply for the sacred obligation of contracts, and the remedies to enforce them, certainly is, pari passu, to relieve the unfortunate and meritorious debtor from a slavery of mind and body, which cuts him off from a fair enjoyment of the common benefits of society, and robs his family of the fruits of his labour, and the benefits of his paternal superintendence. A national government, which did not possess this power of legislation, would be little worthy of the exalted functions of guarding the happiness, and supporting the rights of a free people. It might guard against political oppressions, only to render private oppressions more intolerable, and more glaring."

Thomas Storey

CBS 60 minutes does story about student loan

2005-08-14T19:04:00.000-07:00

Finally, the mainstream media does a story about young adults having their lives ruined from student loan debt after going to schools that do them no good.

"Over the past two years, career colleges and lending institutions that benefit from government-backed student loans handed out more than a million dollars in campaign contributions to members of the House Education Committee. Half of that money went to the committee’s two ranking members: Chairman John Boehner of Ohio and Buck McKeon of California. Both declined requests for interviews."

http://www.cbsnews.com/stories/2005/08/11/60minutes/main772913_page2.shtml

Story begins with what many of us heard so long ago:

"What was the biggest lie? “Job placement -- 98 percent job placement,” several graduates said. “They said, like, starting $30,000 a year, $30,000 or more.”

http://www.cbsnews.com/stories/2005/08/11/60minutes/main772913.shtml

I hope they keep up the investigation. The tv footage included a young lady who sadly told how her mother advised bankruptcy after she found out her educational investment would be worthless for getting better employment opportunities. Sadly, the 60 minutes crew did not seem to tell her that since 1998 student loans were not dischargeable.

The Bible

2005-08-14T18:54:00.000-07:00

Mercy From Student Loan Hell!

Student loans were treated like all other debts. First they instituted a 5 year waiting period, and then a seven year waiting period before you could file for effective relief. Then in 1998, Congressional Acts went against ancient Judaeo-Christian traditions and eliminated the opportunity to file bankruptcy for student loans after seven years.

This new prohibition applies even to non-government backed student loans which do not have the same rules for forebearance, consolidation, or health cancellation. Not even death of the student is provided. Now in 2005 Congress has voted to further limit bankruptcy for the common consumer, while corporation are allowed use bankruptcy to get out of their pension obligations and other debts. Some have worried that student loan debtors in the US as well as Canada may face special scrutiny under the Patriot Act. See, The Georgia Straight.

We urge Congress to follow the advice of the Jewish Bible, called the Old Testament by Christians:
De 15:1 At the end of every seven years thou shalt make a release.
De 15:2 And this is the manner of the release: Every creditor that lendeth aught unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the Lord's release.