Home Main Forums Latest Breaking News Trump Reverses Obama-Era Protections on Student Debt

  • azurnoir (1530 posts)
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    Trump Reverses Obama-Era Protections on Student Debt

    According to a Tuesday analysis from the Consumer Federation of America (CFA), millions of Americans have fallen behind on their student loans. The data, obtained from the U.S. Department of Education, reveals 42.4 million people in the U.S. owed $1.3 trillion in federal student loans by the end of 2016. Since 2013, the average amount owed per borrower increased by 17 percent.

    Back in 2015, the Obama administration issued a memo that prevented debt collectors from charging high interest rates on overdue student loans. So long as the borrower entered the government’s loan-rehabilitation program within 60 days of defaulting, agencies of the old, bank-based Federal Family Education Loan Program (FFELP) were forbidden from charging up to 16 percent of personal and accrued interest. Still, some lawmakers argue that debt collectors continue to impose these fees, despite the Obama regulations.

    This request was short-lived. The Department of Education revoked the Obama guidelines on Thursday and instructed guarantee agencies (companies that issue government-backed student loans) to collect on defaulted debt.

    One of the main criticisms from the Trump administration, as stated Thursday in a “dear colleague” letter, was that the Obama memo lacked public input. Only time will tell what the public has to say about the new administration guidelines.

    https://www.theatlantic.com/education/archive/2017/03/trump-reverses-obama-era-protections-on-student-debt/520059/

     

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  • Green Dog Dem (1366 posts)
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    1. I actually saw an ad for student debt refi the other day.

    Aloha! KamaAina in the hale (house).
  • Punxsutawney (656 posts)
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    2. Well

    Take that! Millennials!

    Plenty of others as well.   

    To neoliberals, everyone and everything are disposable. -  Chris Hedges
  • ZimInSeattle (223 posts)
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    3. I think all people with student loan debt should default all at the same time.

    That would be a good way of sticking it to the man! Of course this would probably make the stock of the prison industrial complex skyrocket in anticipation of new customers.

    "Those who make peaceful revolution impossible will make violent revolution inevitable" - JFK | Bernie would have WON! | “The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness" - J.K. Galbraith |  “Fascism is a result of the failure of the left to provide an alternative” - Leon Trotsky
  • mindwalker (525 posts)
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    4. Just paid off my student loans

    It looks like I did it at just the right time.

    Readin'?  That's un-American!  Get your ass in front of a TV!
  • Rosa Luxemburg (1048 posts)
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    5. Trump hates students

    he hates old people, students, young people in general. He only likes rich millionaires, models.

    The more that social democracy develops, grows, and becomes stronger, the more the enlightened masses of workers will take their own destinies, the leadership of their movement, and the determination of its direction into their own hands. Rosa Luxemburg.