The Student Loan Scam

[SPAWN]

BUY THIS BOOK !!

 

The Student Loan Scam: The Most Oppressive Debt in U.S. History—and How We Can Fight Back Alan Michael Collinge. Beacon, $22.95 (192p) ISBN 978-0-8070-4229-8

 

Think credit-card debt is a problem? Take a look at the lives ruined through the corporate thug tactics, usurious fees and vicious harassment employed by some of the nation's largest student-loan providers in this shocking exposé from Collinge, founder of StudentLoanJustice.org. The author had a manageable $38,000 in loans—until he missed a single payment. Fees and charges quickly piled up, and his debt mushroomed to more than $100,000. The author reveals that since lenders make far more money from defaulted loans than they do from borrowers in good standing, they go to extraordinary—and illegal—lengths to force borrowers into default. There are currently more than five million defaulted loans on record, and incredibly, student loans are the only type of loan in U.S. history to be nondischargable in bankruptcy. The author exposes the engineers (and profiteers) of this predatory system and urges Congress to restore standard consumer protections to student loans, concluding with a call to arms for progressive changes, refinancing rights and a plethora of practical advice for borrowers. Comprehensive and stirring, this extraordinary book is whistle-blowing at its finest. (Feb.)

[LynnInMN]

BUY THIS BOOK !!

 

The Student Loan Scam: The Most Oppressive Debt in U.S. History—and How We Can Fight Back Alan Michael Collinge. Beacon, $22.95 (192p) ISBN 978-0-8070-4229-8

 

Think credit-card debt is a problem? Take a look at the lives ruined through the corporate thug tactics, usurious fees and vicious harassment employed by some of the nation's largest student-loan providers in this shocking exposé from Collinge, founder of StudentLoanJustice.org. The author had a manageable $38,000 in loans—until he missed a single payment. Fees and charges quickly piled up, and his debt mushroomed to more than $100,000. The author reveals that since lenders make far more money from defaulted loans than they do from borrowers in good standing, they go to extraordinary—and illegal—lengths to force borrowers into default. There are currently more than five million defaulted loans on record, and incredibly, student loans are the only type of loan in U.S. history to be nondischargable in bankruptcy. The author exposes the engineers (and profiteers) of this predatory system and urges Congress to restore standard consumer protections to student loans, concluding with a call to arms for progressive changes, refinancing rights and a plethora of practical advice for borrowers. Comprehensive and stirring, this extraordinary book is whistle-blowing at its finest. (Feb.)

 

Well I have never read this book and never will but from the information contained above, and I am assuming it is coming for the synopsis of the book, I can tell it is a bunch of BS. Simple fact...one missed payment does not cause you to default which the author of this book obviously did.

 

Defaults cost lenders money. They have to hire additional staff to operate a pre default, default unit. Plus the in house collection unit. It costs money in terms of rent, utilities, equipment costs, software costs and salarys. Then collection agencies have to be paid. It aint cheap.

[aluminumfalcon]

OP, do you work for the author?

 

I read an article by Collinge over the summer, he seems a bit into conspiracy, however on one thing I do agree, student loan debt should be dischargeable through bankruptcy, as well as easier to repay, with extremely low interest rates (1-2% even for private loans).

 

Having said that, some students are just not operating to their best interest--the dean of my grad program worked for ten years to make certain students are funded 80% through non repayable student aid and 20% student loans, yet, people still take out high interest, private loans for incidental expenses, so the situation isn't just a lending issue.

[Saria]

I'm curious to know on what basis you're recommending this book since it hasn't even been published yet.

[nwbroke]

BUY THIS BOOK !!

 

The Student Loan Scam: The Most Oppressive Debt in U.S. History—and How We Can Fight Back Alan Michael Collinge. Beacon, $22.95 (192p) ISBN 978-0-8070-4229-8

 

Think credit-card debt is a problem? Take a look at the lives ruined through the corporate thug tactics, usurious fees and vicious harassment employed by some of the nation's largest student-loan providers in this shocking exposé from Collinge, founder of StudentLoanJustice.org. The author had a manageable $38,000 in loans—until he missed a single payment. Fees and charges quickly piled up, and his debt mushroomed to more than $100,000. The author reveals that since lenders make far more money from defaulted loans than they do from borrowers in good standing, they go to extraordinary—and illegal—lengths to force borrowers into default. There are currently more than five million defaulted loans on record, and incredibly, student loans are the only type of loan in U.S. history to be nondischargable in bankruptcy. The author exposes the engineers (and profiteers) of this predatory system and urges Congress to restore standard consumer protections to student loans, concluding with a call to arms for progressive changes, refinancing rights and a plethora of practical advice for borrowers. Comprehensive and stirring, this extraordinary book is whistle-blowing at its finest. (Feb.)

 

Well I have never read this book and never will but from the information contained above, and I am assuming it is coming for the synopsis of the book, I can tell it is a bunch of BS. Simple fact...one missed payment does not cause you to default which the author of this book obviously did.

 

Defaults cost lenders money. They have to hire additional staff to operate a pre default, default unit. Plus the in house collection unit. It costs money in terms of rent, utilities, equipment costs, software costs and salarys. Then collection agencies have to be paid. It aint cheap.

 

 

My lender was completely unwilling to work with me - nothing less than the full scheduled timely payment was good enough for them - and when I defaulted, the lender got all their money in one lump sum, instead of waiting for the money to trickle in over umpteen months.

 

If my default cost my lender money, they didn't appear to care.