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Guaranteed Installment Loans For Bad Credit The Federal Student Loan Shark System: How Billions Of Taxpayer Dollars Are Legally Stolen

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04-Aug-2019 04:53 AM

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tribal

As I sit manning my post at my full-time security job I listened contently to May 2, 2012 Coast to Coast. On the show was a man named Alan Collinge, founder of StudentLoanJustice.org. Alan is a dedicated political activist working diligently to spread awareness and persuade congress to fix a broken federal student low credit installment loans system. While on air he brought to light a method of deceptive practices that lenders actively pursue to pad their wallets with outrageous profits while borrowers find themselves saddled with outstanding balances totalling three times or more of the original amount owed. Unlike traditional consumer debt banks want borrowers to default. Lax restrictions and an irresponsible lack of consumer protections all play an integral role in making this possible and it needs to stop.

As I listened I heard about a $900 a month loan payment going into default as a result of a drop in income and marital trouble. Upon applying for an income based repayment plan the borrower saw his payment jump to $1600 per month. How is that possible I thought to myself. Someone unable to make the current payment is now expected to pay nearly double that? Surprising enough that wasn't the shocker of this whole scam. Federal student loans are guaranteed by the government. So when a borrower defaults on thetribal lenders guaranteed approval the lender has the right to collect 100% of the outstanding balance from the government. However thanks to a nearly restrictionless market as a result of congressional loop holes the bank instead sells the loan at 100% to a collection agency often times owned by the original lender. The agency then tacks on outrageous penalties and fees to the outstanding balance. All legally and now also guaranteed to be paid by the United States government.

As you can see by pushing a defaulted loan to another division a lender has now manufactured a guaranteed profit with manipulated fees and collections costs. Pull this maneuver for a few years then cash that loan in and the lender can triple their investment or more all the while knowing the borrower will never be able to pay that loan. In fact that is what these lenders count on because no payments from the borrower spells guaranteed payment from Uncle Sam.

The bottom line here is that the student loan program is nothing shy of legalized fraud. Honest hard working American's who have paid their student debt off or are current on payments may think that forgiving the debt of those that cannot afford it is unfair and a drain on taxpayers, but the cold truth is not forgiving it costs far more and big banks will be the ones cashing in. If a borrower can't afford to pay their debt at the original amount owed, the taxpayers can expect to pay double, triple, or more of the original tab. All of which is a sum of fabricated fees allowed by law.

Alan and his organization are actively advocating for the same consumer protections that are enjoyed by all other consumer debt. The same rights someone who maxes out his credit cards purchasing meaningless desires already is awarded. The only difference here is that borrowers of this money were led to believe they were doing the only thing that would guarantee them a prosperous future. Instead they were thrown into the pool of legalized loan sharks.

With some $1 trillion in outstanding student loan debt and a stagnant jobs market, taxpayers cannot afford to financially support this Mob economy anymore. It's time our elected representatives begin standing up for the citizens that entrusted them and hold banks accountable for making good on their investments. Help Alan and his organization take the burden off hard working Americans and their tax dollars. Check them out at StudentLoanJustice.org and join in the fight.

As taxpayers we need to take a stand and let our elected officials know that we have had enough. Alan's organization is fighting this fight but they need all of our help to get the message out. Check them out at http://www.studentinstallment loan onlinejustice.org.

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