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April 18, 2010

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Marek Trundell

Another reason why you shouldn't take a private loan. The cost will just get put onto the borrowers. Those lender/vultures don't care, they'll suck borrowers dry.

Sink Sallie

Sallie Mae's Jonathan Clarke is spouting pig swill. His "passage of time" comment is a trap for destitute borrowers. Sallie charges $150 for every single forbearance they grant to private student loan borrowers, and now they're going to insist on a "passage of time" in repayment and hold all these forbearances against the debtor? Give me a break.

And what's with Sallie Mae having any input at all on this legislation? I don't recall voting for Al Lord as Senator. Sallie Mae has created the need for this legislation, with their usurious interest rates and flat out refusal to work with private student loan borrowers. Clarke needs to get his facts straight because it was not true that students were graduating and then filing bankruptcy. This myth was proven false many years ago, and repeating it over and over as fact does not make it so. Hopefully this time around, Senator Durbin's bill will right the terrible wrongs that Sallie Mae has visited on the young people of this country.

Bizzaro Watchdog

The Sink Sallie poster is a fine example of the dump YOUR problems on the not-so-silent-anymore majority in this country who are frankly sick and tired of paying for other people's stupidity. It's plain to the latter who this Congress and President speaks for...and it isn't the people who didn't take out $600K loans for homes they couldn't afford, or, $100K college educations they couldn't afford. Durbin's bill just socks it once again to the people who play by the rules. This is unsustainble governance. Sink Sallie, YOU are simply the pig feeding at someone else's trough--nothing more noble than that. What a wonderful existence that must be for you.

Ron Tough

Bizarro,

It takes two to tango: a debtor and a borrower.

The banks have been floating so much money for student loans over the last 20 years that tuition has increased 3x the rate of inflation.

Borrowers have recklessly borrowed to attend universities with new gyms, new dorms and all the best bells and whistles.

The banks have lent so much money that many of these loans can not and will not ever be repaid. Many students will never ever make enough money to repay these loans. Carrying these loans makes zombie banks and zombie borrowers. Japan is still carrying bad loans on it's books for 20 YEARS and the country has been in a recession since 1990.

Writing off these loans and allowing discharge in bankruptcy isn't gaming the system or fooling anybody. The only fools are those who actually believe that the office worker with $70k in student loan debt (that keeps increasing from $40k)

I am an attorney and few if any of my peers have made any attempts whatsoever to pay off their student loans in less than 30 years. I know people 6 years out who STILL have graduated payment plans and forbearance. Nobody is fooling anybody if they actually believe these student loans will ever be repaid.

At the end of the day, these loans were bad business decisions, bad business transactions, and the banks just need to eat these losses.

As long as the banks don't get bailed out on the private loans, then there is no loss to the tax payer.

Why is it when a business walks away from a bad deal it's considered savvy but when an individual makes the same decision its considered immoral?

You really need to re-examine your thought processes here Bizzaro, because you're not exactly thinking things through. I too tend to be a conservative thinker but I recognize that damage and illogical conclusions that result from dogmatic thinking.


Ron Tough

To finish up on my comment, I routinely come across middle class people who make $40k or $50k a year and have $40, $50k or $60k or more in student loans. They can barely afford rent, a car, day care and the necessities of life before paying the bare minimum payment on their student loans. And when they default the balance increases exponentially in a short period of time. At least with defaulted credit cards the interest stops once it's been charged off but that's not the case with student loans. They just go up and up to the point where they are so ridiculously high that the borrower will NEVER and I repeat NEVER earn enough money in their lifetime to repay these loans.

Take the morality out of these loans, these were bad loans made by the banks and they should eat the losses. Filing bankruptcy does not come without consequence to the borrower: destroyed credit, difficultly obtaining future credit, usurious interest rates, inability to buy a home, etc.

To call people pigs at the trough is like barking up the wrong tree.

The only pigs at the trough has been the banks with their hands in both my and uncle sam's pocket. And now that they are insolvent, they're looking for an even bigger handout.

Really, you're blaming the wrong culprit here.

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