Bankruptcy of Your Student Loans

Bankruptcy of Your Student Loans

Wednesday, April 25, 2018



Back on March 22, 2018 I wrote the following heading on the blog article....
Today is the last day to comment
Today is the last day to submit any comments to the Department of Education 

Well, I need to correct the record and apologize to my readers, because I was mistaken about the date.  The correct date for all comments regarding the US Department of Education Request for Comments on the subject of Undue Hardship is actually going to be May 22, 2018.  

Perhaps in my excitement to be able to actually be allowed to tell the DOE what I thought in writing I had misread it as March instead of May 22nd? Regardless, I want to write today about what I found by going back to the DOE website to see how many comments have been submitted to date, and to read several to get a sense of what people have submitted in reply to the DOE'S "Request for Information" (RFI).

In case you are wondering where I am looking -- here is the link to the RFI site: Regulations Dot. Gov.   Click on the link and you will be on the page where submitted comments from the public are available to read.  As I write this today there are 310 posted commentaries from students, former students, parents, and a host of others.

I wish I could tell you that I read all 310 of the currently posted replies to the RFI.  But as I always attempt to be, I can say honestly, I did not read them all.  But I did read many.  What I read not only made me sick to my stomach, but also once again spurned a sense of anger and disgust at the US Department of Education!

Overwhelmingly, the responses of those who took the time to reply to the RFI were from people who were suffering financially -- under deep stress due to the size of their debt -- and the overwhelming inability to ever pay off the student loans!

If you think I am kidding about getting sick to my stomach, just read this reply posted as
ID:ED-2017-OPE-0085-0022Let me give you a short summary! A mother wrote:"This is my son's story so I don't have all the facts but I do know enough to know it was one of the factors that drove him to suicide. He was very depressed because he owed over $200,000 in student loans and saw no end to ever paying them off."

She also states this very disturbing information: " I keep receiving bills from the student loans even though I have repeatedly returned them to sender with the message that he was deceased. When they kept coming I added the fact that he was deceased in part because of these bills and when they still kept coming I added that they were rubbing salt in a wound and were breaking my heart and to please cease already."

Without any outburst of anger this mother simply ended her comment by saying this to the DOE: " I would like to see legislation that protects these students and gives them alternatives if they have a hardship repaying these loans."

Now maybe that grieving mother did not express her anger openly in her call for changes to the Undue Hardship rule, but I can tell you, I felt anger rise up in me!  The very sad and very upsetting thing is, this mother is not alone.  Several articles have been published linking the cause of suicide to the person having student loan debt that they felt they could never be free of.

In Summary ....

I could go on and on about the injustices of what student loan debtors are suffering!  The small number of comments submitted to the DOE actually also caused me to feel helpless!

As any of you who have read my posts knows, I genuinely care about the issue!  My heart breaks to read these people's stories of what they are going through because of the high interest rates, the penalties added to the loan principle, and the heartless and vicious tactics used by the loan servicers.  Then to add insult to injury, the DOE fights every student loan holder at every turn -- to the point of funding unscrupulous law firms to go to court and destroy lives by fighting in court to keep the student loan on the books and keeping the student in debt for life!

By the time a student loan debtor reaches bankruptcy -- and for millions it is going to happen sooner or later -- they do not have money to pay a lawyer!  What SENSE does it make to have the stipulation of proving Undue Hardship when the person can't defend themselves in a court of law?

When will someone wake up and see the INJUSTICE placed upon the backs of indigent debtors who are by and large VICTIMS of the DOE and the current student loan SCAMS!
  • Why have colleges been allowed to increase tuitions and costs at every turn?  
  • Where is the accountability in the financial aid offices?  
  • Why are college professors and presidents and members of the board allowed to have huge salaries while making students debt slaves?  
  • Why are student loan interest rates the highest of any type of consumer loan?
  • Why are loan servicers allowed to buy and sell loan holdings and make profits?
  • Why are Owner's and CEO's of loan servicer agencies millionaires?
Yes, these things make me sick!  And angry!

I will stop here...  But if I may, let me ask you to go to the Department of Education's site and post a comment.  Here is the link again:  Regulations Dot. Gov.  Plan out what you want to tell the DOE, and let them hear from you about your undue hardship.

While you are there, read several of the posted comments --- you need to see the magnitude of the issue -- from the hearts of the hundreds who wrote in to tell their story. 

I hope that by the time the deadline of May 22nd arrives, that there will be hundreds if not thousands more comments posted in repy the the DOE'S RFI...  Thank you!

Until next time....

Post note: If you like my articles, please let me know.  If I can answer any questions, I will.  Please follow me by adding your email address to the box in the upper right of this page or in the link box at the very bottom of this page below.  

Thank you, and God Bless You, and God Bless America! 
Richard Allan Precht, MSA


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