ELIZABETH WARREN ON BANKRUPTCY PROTECTION FOR COSIGNER PARENTS WHOSE DAUGHTER DIED LEAVING THEM WITH THREE SMALL CHILDREN AND $100,000.00 IN STUDENT DEBT.
Filed under: Elizabeth Warren, NEXT FINANCIAL BUBBLE, obscene profits on backs of students and parents, Student Debt
THE NEXT FINANCIAL BUBBLE
Senator Elizabeth Warren has pointed out that the Federal Government is on target to earn 66 billion dollars on student loan debt on the slice of debt from 2007 to 2012. This is after administrative costs, bad debt, etcetera.
There is 1.2 Trillion dollars in outstanding student loan debt at varying rates of interest up to 12% or more if in default.
Yet the banks have been given exemption from bankruptcy on these loans. This at a time when they can borrow at less than 1% from the Federal Government. 98% of the debt is guaranteed by the parents of the student borrowers. In this video she asks banks what relief they provide in hardship cases like the one outlined in the title. She gets evasive answers back from a banking industry representative. The least the banks could do is buy debtor life insurance with their enormous profits then they wouldn’t look like heartless profiteers on the backs of students and their cosigners as they do. All this said the next huge financial bubble to burst will be the student loan debt unless interest rates are lowered(they have been in some cases) and bankruptcy protection is allowed. Otherwise students struggling to repay debt are reluctant to marry, have children, buy houses etc. because they can’t afford it. Thus the economy is directly imperiled as well as the future.
HERE IS A VIDEO ON THE SUBJECT