Korean Job Discussion Forums

[Real Reality]

Deut. 15:1 At the end of every seven years thou shalt make a release.

Deut. 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.

The recent action by Congress to eliminate student loan bankruptcy is unjust. It was bad enough that the law allowed for extending the minimum time passage through tolling, but now student loans are non-dischargeable regardless of the age of the loan. That's right, now persons in their 60s cannot file bankruptcy for student loans made in their 20s. It is an egregious system that punishes persons for choosing bad schools in their 20s-- forever. Why not go after the schools? They get the money and usually co-sign the checks. Many schools even require you to sign the check over to their receivable department. That's right, the student doesn't necessarily even leave with the check. And how often is a student informed of the default rate of the school before he signs a life away? Usually the only statistics received are inflated placement rates that are not verified by any third parties. The fact that a school's program is ineligible for State professional or vocational licensing also is no grounds for relief from the loans.

Not to mention the fact that smoke and mirrors corporate maneuvers allow some quasi-private organizations to get away with making their own rules regarding forebearances, deferrments, and rehabilitation. They mix the legal definitions of non-profit, public, and private companies in order to get the most advantage from the law for themselves with a minimuum of protection for the borrower. Some have as little as one year of grace period, after which you go into default. The multiplicity of holding companies selling off the loans to one another adds to the confusion.

Many of the lobbying groups purporting to represent the interests of student loan borrowers actually are soley representing lenders or schools. No one speaks out for the dejected souls who are trapped in student loan misery for life. At least not any one with any power or influence. Look at the corporate CEO's that swindle people for millions and whipe out their debts while keeping their billion dollar homes after bankruptcy. Where is JUSTICE? Many of the same politicians who successfully "crack down" on student loan defaulters give out corporate welfare (such as the pro-ballpark/stadium building frenzy)in exchange for campaign donations.

Many student loan defaulters are prevented from working because of the draconian system of licensing in nearly every trade. Many states and the federal government will not let you work if you are in default. Every federal application for a license or job inquires into default status. Many state licesenses and applications do likewise. If you are a criminal, even a murderer, you can be rehabilitated, but not if you are broke.

Site: http://www.geocities.com/studentloanhell/

BOOK:
Condemning Students to Debt: College Loans and Public Policy
by Richard Fossey (Editor), Mark Bateman (Editor), David W. Breneman

Citibank is the largest private holder of student loans ($2.8 billion at last count). They got $54 million in taxpayer dollars last year just by participating as a lending institution. These loans are both risk free and profitable for Citibank because the federal government guarantees them and offers the bank a "special allowance" for participating.

Citibank opposes the Direct student loan program because if implemented it would completely eliminate banks from the federal student loan program and send student loans directly to the campus from which they originated.

Site: http://www.hartford-hwp.com/archives/45/091.html

The Consequences of Defaulted Student Loans
Since Student Loans are usually guaranteed by the Federal Government, they do not disappear with time if the debtor ignores them. Student loans are generally federally insured and have no statute of limitations. More recently, the government agencies and/or their collection representatives have become very aggressive in the collection of monies due. Tactics used by these agencies include, but are not limited to:

Garnishment of wages
Derogatory credit rating
Lawsuit initiated by the Federal Government
Heavy interest penalties calculated daily & high collection charges
Overly aggressive collection agencies
Loss of Income tax refund
Ineligibility for additional financial aid
Revocation of driver's license and/or professional licenses

Site: http://www.tobedebtfree.com/student.htm

[william beckerson]

As I understand it, in Canada, bankruptcy freezes your loan. It doesnt make it go away, but thats several years they dont get any interest off of you. And they dont like that.

But that is enough time to skip the country.

[Homer]

There is a simple reason behind these non bankruptcy laws for student loans (in Canada anyways).
Its because so many students had in the past defaulted on their loans and then declared bankrupcy to get out of them that measures had to be taken to stem this habit.
It is too bad because it stiffs those who really are bankrupt.

[rasta man]

OK guess who were the biggest contributors to Congressional and W's campaign? Citibank, MBNA, Bank One, etc.. their price for their money? Re-writing the bankruptcy code to prevent discharging most consumer debt, reducing student aid and forcing people to borrow more for their education. All this while they get more tax write offs and secrectly repealing all that corporate accountability laws W was promoting last summer

Whats really disgusting is the suspension of your drivers and professional licenses if you default. How are you going to pay them if you can't drive teach etc? Talk about catch 22

disgusting what these corporations can do. Forget about democracy!!!!

[Captain Obvious 2.0]

Or people who borrow money to further their education could just pay it back... Since that's what they promised to do when they borrowed it in the first place.

Not like it's some huge surprise or anything.

[Tancred]

[Zandie]

The problem with a student loan is that when the time comes to pay for it, you feel like you didn't actually get anything for all that money. Education is really expensive and the only tangible thing you have from the experience is a piece of paper.

[Mosley]

Regarding what Zandie said: That's right, but you had to take that into consideration when you applied for the loan. No one guarantees you a bright shining future simply because you went to university & borrowed money to go there. A student loan, a consumer loan,a mortgage, a credit card cash advance... should all be treated the same in the eyes of the law....

[Zyzyfer]

Yea, I also have little to no pity for people who ho-hum through college, indecisive of their major, or who take out money because "I've gotta do it! I've gotta go to college!"

I had to go to college to escape Hell, and I got out as fast as I could to keep that loan to a minimum. Money's a precious thing to one who comes from a background like myself...

[Captain Obvious 2.0]

[Mosley]

I didn't mean that at all, Captain(I'm surprised you haven't promoted youself to major, BTW). I was referring to the legal obligation of re-paying loans, with interest...or else suffer the consequences. The student loan topic contains the only posts of yours that I've ever agreed with... so don't blow it now....

[Captain Obvious 2.0]

[Mosley]

Well, gosh, gee whilickers, Captain(you'd be busted to corporal if I had my way) thanks for setting me straight on the conditions for getting a student loan. I had no idea. That's ignoring the fact, mind you, that I probably had my first student loan & credit card when you were in diapers. You must be less fun to be with than just about any human being in history....

[Corporal]

[VanIslander]

Bad policy replaces bad policy when over leniency is replaced with unjust burdens.

Instead of preventing all students from declaring bankruptcy for ten years to life (it's a murder sentence), nations with problems of defaulted student loans should simply make repayment schedules contingent on income levels.

Nothing is more discouraging for a grad than having to make massive monthly payments while still in the early struggling stages of a career. I have heard several grads give up in disgust at $1000+ monthly payments expected by the Canadian government, under a system where half payments still result in a default status and crippled credit rating.

It makes absolutely no sense to me why one can't pay loans back at a percentage rate hinged to the previous year's income.

That would reduce the incentive for many to give up trying.

And maybe there would be fewer of the present crop of ESLers in Korea.