So now if you’re depressed because you can’t get a job in your lesbian studies or African studies major, you will qualify as disabled and can then have all your student loans paid for by the hard working taxpayers of this country. What a country.
Submitted by Tyler Durden on 04/13/2016 08:01 -0400
Joining the ranks of “broke lawyers” who can cancel their student debt, “Americans with disabilities have a right to student loan relief,” now according to Ted Mitchell, the undersecretary of education, said in a statement. Almost 400,000 student loan borrowers will now have an easier path to a debt bailout as Obama primes the populist voting pump just in time for the elections.
On top of “the student loan bubble’s dirty little secret,” here is another round of student debt relief…as MarketWatch reports,
The Department of Education will send letters to 387,000 people they’ve identified as being eligible for a total and permanent disability discharge, a designation that allows federal student loan borrowers who can’t work because of a disability to have their loans forgiven. The borrowers identified by the Department won’t have to go through the typical application process for receiving a disability discharge, which requires sending in documented proof of their disability. Instead, the borrower will simply have to sign and return the completed application enclosed in the letter.
If every borrower identified by the Department decides to have his or her debt forgiven, the government will end up discharging more than $7.7 billion in debt, according to the Department.
“Americans with disabilities have a right to student loan relief,” Ted Mitchell, the undersecretary of education, said in a statement. “And we need to make it easier, not harder, for them to receive the benefits they are due.”
About 179,000 of the borrowers identified by the Department are in default on their student loans, and of that group more than 100,000 are at risk of having their tax refunds or Social Security checks garnished to pay off the debt. Often borrowers losing out on these benefits aren’t even aware that they’re eligible for a disability discharge, said Persis Yu, the director of the Student Loan Borrower Assistance Project at the National Consumer Law Center.
“Borrowers just frankly don’t know about this program,” she said. “In the past it’s been incredibly complicated to apply and that process has been getting better over time, but some people just assume that it’s not going to work.” The letters will help make more borrowers aware of their rights, Yu said.
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So it’s a start – “broke lawyers” , “the poor” and “disabled Americans” get student debt relief. What about models that suddenly become too ugly to work? Or Petroleum Engineers no longer able to work because of The Fed’s over-indulgent easy money creating a glut in oil prices? Don’t they have a right to relief from their student debt? Seems like not granting students debt relief would violate all of their “safe spaces” – so cancel it all! Student Debt Jubilee here we come.
As we detailed previously, however, this is a drop in the bucket…
Borrowers hold $1.2 trillion in federal student loans, the second-biggest category of consumer debt, after mortgages. Of that, more than $200 billion is in plans with an income-based repayment option, according to the Department of Education and Moody’s Investors Service. For taxpayers the loans are “a slow-ticking time bomb,” says Stephen Stanley, a former Federal Reserve economist who’s now chief economist at Amherst Pierpont Securities in Stamford, Conn.
The Congressional Budget Office estimates that, for loans originated in 2015 or after, the programs will cost the government an additional $39 billion over the next decade.
So that’s a $39 billion taxpayer loss just on loans originated this year or later, and that could very well rise as schools begin to figure out that they can effectively charge whatever they want for tuition now that the government is set to pick up the tab for any balances borrowers can’t pay (which incidentally is precisely what we said in March).
Consider that, then consider how much of the existing $200 billion pile of IBR debt will have to be written off and add in another $10 billion or so to account for for-profit closures and it’s not at all unreasonable to suspect that taxpayers will ultimately get stuck with a bill on the order of $100 billion by the time it’s all said and done and that’s if they’re lucky – if the “cancel all student debt” crowd gets its way, the bill will run into the trillions.
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And finally, as a reminder, if things don’t change, Student Debt could be $17 trillion by 2030…
Student Loan Debt is a cancer for our society. This misconception that getting a college education equals a steady career has been dashed by the recession. For-profit colleges pray on undereducated and low-income individuals. Text book prices have risen exponentially while the cost of a quality education has as well.
This industry of education is going backwards, and will one day burst.
The bitter truth for taxpayers is that most of these students are Mentally Disabled (Democrats) cribbed along in some wasteful government funded Affirmative Action degree program at a Black “college” (who were cribbed through high school and couldn’t have even gotten into a real college) and who never intended to repay their loans or get a good job other than as a government gold brick. Since the 1964 Civil Riots Act quotas, free government doles from conception to grave are a Black Privilege (or Right). It’s not racist to vote for serious in depth welfare reform but rather common sense for our National Financial Survival (essential for an effective National Defense).
“The letters will help make more borrowers aware of their rights, ”
———- Persis Yu, National Consumer Law Center..
“Americans with disabilities have a right to student loan relief, … and we need to make it easier, not harder, for them to receive the benefits they are due.”
——— Ted Mitchell, the undersecretary of education
I was going to express my outrage in some colorful language.
But, if you read the above quotes, we are talking about RIGHTS (!!!), goddammit, and not just any “rights”, but rights which are DUE (!!!), goddammit.
One just can’t argue with “rights”. It’s un-American. I think they should add “free school for all” in the Bill Of Rights. Please support President Obama in this effort to help the neediest amongst us, the disabled .
I prayed about this before posting, and Jesus told me that not only does he support this effort, but he would also like to see the disabled get free food for life. Let us pray that this too shall come to pass.
Halleluiah
Maranatha
One mans debt is another mans asset.
So here we see someones assets taken from them by decree without any say so about it or any chance to oppose it in the legal process.
In the case of student loans that someone is you and I, the working class taxpayer.
You mean that working people ARE going to get stuck with the bill from stupid people making bad decisions spurred on by fraudulent lenders and a complicit government? Shocking I tell you. Absolutely fucking shocking. WHO could have seen this coming???
“Americans with disabilities have a right to student loan relief,” Ted Mitchell, the undersecretary of education, said in a statement. “And we need to make it easier, not harder, for them to receive the benefits they are due.”
I never thought when I was a kid that the world would be so full of complete and absolute pussies. I don’t give a flying fuck how disabled you are. If you can go to college and incur debt then you must have had at least two firing neurones in order to get there. I’m supposed to have sympathy for you though? Fuck you. You can find sympathy in the dictionary right between shit a syphilis you bunch of morons.
Just curious, what do you think the racial profile is for these students?
Even though we knew this day was coming, it’s still pisses me right the fuck off.
Can’t wait for eight years of hilary………….
actually, that’s a wonderful idea, as long as the funds to pay for it come out of the department of defense’s budget…
masterman.
Yeah, especially if it’s the part that pays for European defense so they don’t have to pay for their own. The part that pays for an indirect American subsidy of European socialism by freeing up their funds to use on socialist programs instead of defense.
$7.7 billion is a good start. In a society as wealthy as America higher education should be free.
Please commence your self-righteous tirades.
Cdubs with the mentally disabled point of view.
Free for whom, Cdubs?
Reparations for those who paid their student loans in full. This is BULLSHIT !!
Why should WE pay for this?? Cdubs go fuck yourself.
Or they could just give forgiveness on proof of voting democrat, Tammany hall redux.
Coward-Piven meets reparations. That sounds racist…
Cloward-Piven serves the NWO paradigm.
@Cdub
“$7.7 billion is a good start. In a society as wealthy as America higher education should be free.
Please commence your self-righteous tirades.”
This is not a question of “should,” it is a question of “is.”
I don’t believe any money will be transferred from the “military budget.”
The military are crying “poor” and claim they are (literally) out of bullets,
and other weapons. Used em’ up killing people.
Sure, make education free, why not? We need more scientists.
It “is” plunder, looting, and bankruptcy. Focus on that.
Tirades indeed.
“higher education should be free”
Isn’t that special. The little tyke thinks it’s ‘free’.
Cdubbya’s world:
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Cdubbya,
Nothing is free, everything in mans sphere of existance is produced and paid for by someone.
The question is who, the person who uses and consumes it or someone else?
FWIW, we’re not really a wealthy nation, we are the most indebted nation in history, we’ve just managed to have better credit than the others that look less wealthy than we are but actually have better balance sheets.
Does a huge credit line on your credit cards make you wealthy?
I tell you what Cdubs, I’ll run up my huge credit line on my card and have them send you the bill to pay you ignorant dumbass. Oh but you would squeal like a pig and say, “I’m not paying his debt, not me, no sir”…………….but I don’t get a say in this, Uncle Sugar says I HAVE to pay it. Fuck you and your socialist bullshit.
C Doobs, it ain’t gonna happen because kiss my ass.
There.
Those of you who are pissed off should vote for Bernie Sanders. He wants Wall St to pay for student loans, not the taxpayer.
Coaster – Did your mother drop you on your head when you were an infant?
Westie,
So where does Wall Street get the money?
Increased fees on your retirement account, banking accounts and use, and other financial transactions maybe?
It’s all got to come from someone somewhere, and that someone is always the productive working class in the final analysis of things.
Arguing that Wall Street will pay…is like believing that JP Morgan paid a fine to the government for their part in the housing bubble.
Please accept my apologies, I forgot that I was dealing with the shallow end of the gene pool who take everything literally.
Of course when I said “free” I meant free to the students.
Disgusting.
Cdumb – if a country’s governments are already $200 trillion in debt, just how do come by the numbskull conclusion that they are rich? Enquiring minds want to know.
Cdub,
“Of course when I said “free” I meant free to the students.”
And that is what everyone thought you meant, pointing out that that “free to the students” means freebies to non producers paid for by those who actually get out and work to produce only to have it taken away from them and given to someone who did not.
Today, the Federal Housing Administration published Mortgagee Letter 2016-08, Student Loans, which provides revised guidance for mortgagees when calculating student loan obligations for use in a borrower’s debt-to-income ratio calculation. FHA believes that its approach provides the appropriate balance between expanding access to credit and ensuring that the borrower is able to maintain successful, long-term homeownership.
Consistent with industry practice, the revised guidance allows the same calculation criteria to be applied regardless of the student loan payment plan type (such as income-based payment plans) or deferral status, and also includes:
•A 50 percent reduction in the percentage used to calculate monthly student loan obligations, or the use of the actual documented payment when the payment fully amortizes the loan over its term. This may result in increased purchasing ability for some borrowers, while ensuring borrowers have the long-term ability to meet debt obligations.
•The separation of student loan policies from other deferred obligations and installment loans, including future incorporation into the Single Family Housing Policy Handbook 4000.1. This separation provides greater clarity for mortgagees on the unique treatment of student loan payment calculations versus the calculations required for other deferred obligations.
“Of course when I said “free” I meant free to the students.”
Holy fuck. I didn’t think it was possible for anyone to actually be this stupid. Go back to the CBC you mathematically impaired idiot. You are way out of your depth here.
I just sent in tax payment checks (balance of 2015 and 1st quarterly 2016) totaling the cost of a fairly nice new car, even in 2016. My appreciation for the federal government right now is around the same level as my appreciation of Ebola and Zika. Then I read this story and I am even more pissed off. I took out major student loans to get where I am, and I paid them off, every last penny, 20 years early and without ever missing a payment or seeking forbearance, much less default and relief. This is so much utter bullshit. I’m going to start praying to Odin to saturate the east coast with meteors.
“A billion here, a billion there, pretty soon, you’re talking about real money.”
Special kind of stupid-coaster drops in again with more pro-Sanders talk.
Honestly, I think the guy is just trolling at this point.
Student debt is small potatoes since what cannot be repaid won’t be repaid let’s just default on the $19,239,967,200,983 national debt and get it over.