By Alan Collinge
Excerpt:
This failure is a direct result of the wholesale removal of consumer protections from these loans. Not only have bankruptcy protections and statutes of limitations been stripped uniquely from federal student loans, the loans have also been stripped of Truth-in-Lending laws, greatly restricted Fair Debt Collection laws, and even state usury laws are not applicable to federal student laws. This, and a draconian collection regime which serves to hyper-inflate loans with penalties, fees, etc, have pushed the lending system over the brink of legitimacy.
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I seen a meme on a few popular Facebook pages that claims student loan forgiveness or cancellation only benefits the affluent in that it gives them a break on their student loan that the non-affluent lack. The meme is stupid. If the affluent have student loans then they would have paid them off on their own a long time ago or they would pay their tuition without assistance because they are, after all, AFFLUENT! Duh!
Do they even know what the word “affluent” means?
