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Govt profits from defaulted student loans

http://www.credit.com/blog/2011/01/government-profiting-from-student-loan-defaults/

The article is short, but more nauseating are the comments. Each person telling the same story about a lifetime of indentured servitude because Sallie Mae bought Congress back in the 1990s.

I’ve heard the arguments against bankruptcy protections – these loans are backed by the govt (tax payers) so….

bull. shit.

There are plenty of govt backed homr mortgage programs, including one for veterans. Yet there are bankruptcy protections for each and every one. There are govt backed grants and otherwise for small businesses and individuals and guess what, they don’t have to be repaid if things go awry.

Did you know that interest on debt in collections can only be accrued on the original debt? In other words, if you owe 100 at 10%, you can only be charged $1 per lending period. Not so with student loans; interest upon interest upon fees upon charges. It is a system that is impossible to get out of.

ETA: House Education Committee members; Senate Education Committee members

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