Trump Administration Rolls Back Obama Protections On Student Loans

ZeroHedge ^ | March 18, 2017 | Tyler Durden

[bobsunshine]

Just days after reports emerged that student loan defaults are soaring, which is undoubtedly due to some combination of, among other things, poor job prospects for the millions of snowflakes who graduate each year with their $200,000 educations in anthropology and the moral hazard created by liberal politicians constantly calling for student debts to be 'forgiven' (a.k.a. forcefully jammed down the throats of taxpayers), the Trump administration has revoked rules put in place by Obama that barred student debt collectors from charging penalty fees on past-due loans.

Originating from the Department of Justice, the "Dear Colleague" letter (full letter included at end of post) says that Obama's unilateral rules implemented in 2015 could have "benefited from public input"...but what good is being King if you can't unilaterally force new laws on the masses?

[xzins]

We must stop increasing funding for university education. The universities see icreazed cash in student hands and increase their fees. It is as predictable as sun by day and moon by night. Obama has fostered huge inflation in education.

[Gaffer]

Ubama had no authority to ‘protect’ anything beyond that which he could control during his limited tenure. That privilege now belongs to President Trump. Snowflakes had better start thinking about paying back now.

[puppypusher]

Good.These are loans that the students agreed to and they,not the taxpayer should end up paying the bill.

[ptsal]

Choice #1- Debtors prison
Choice #2-

[LibsRJerks]

Could never understand why on earth I as a taxpayer must subsidize someone’s education, which ultimately, THEY will benefit from over their lifetime, and not I.

No one subsidized much of anything for me. I worked my way through school, taking out only small loans which I paid back myself before I was 30.

[Mouton]

This insane rush without regard to any public benefit to underwrite a trillion in worthless loans is a disgrace. In a just world the politicians who did this would be hung just before the bunch on educrates who foisted this sham on the nation. There is no way out now. The loans sunset at some time. The debtors meanwhile thumb their noses at the lenders. The schools have made fortunes for a bunch of professors who see themselves as mental stars. The adage that costs expand in direct proportion to the money available is correct.

[Grams A]

Could never understand why on earth I as a taxpayer must subsidize someone’s education,...”

To my mind, if you own property, you are subsidizing the education of K-12 students through property taxes. Not getting much for our money, are we?

[Socon-Econ]

They have reinstituted debtor’s prison for unemployed dads who can’t pay alimony disguised as child support. So why not debtor’s prison for student loan deadbeats?

[yldstrk]

What must be understood here is that grown men calling innocent college kids names is wrong.

Secondly, what academia has done is criminal. Forcing students and parents to become indentured servants for years in order that liberal crooks who call themselves “professors” and “administrators” can earn outrageous salaries and benefits pursuant to the tenure system while “working” only part time.

College has become a profit center and steals the future of these students and their parents while teaching them little of value to equip them to become a contributing member of society.

So stfu about criticizing the victims of this fraud and start looking at these “institutions of higher learning” that are actually conspiracies to commit theft.

[USS Alaska]

No one subsidized much of anything for me. I worked my way through school, taking out only small loans which I paid back myself before I was 30.

Yep! I was married with kids, two jobs and loans that were repaid in full before I was 30 also.

I worked in the steel mill {was a forced union member}, bartender, waiter, concrete worker, and had spent 2.5 years in the Army.

I have NO sympathy for today's snowflakes that spend 4-8 years in colleges, racking up YUGE debt, and then expect people they have never met, to repay their legal, financial obligations.

[Leep]

Hail to the Cheif
https://www.youtube.com/watch?v=bxgoajDI1WQ

[JusPasenThru]

College is expensive but dayum we are seeing some mighty fine roundball this month.

[john drake]

Not getting much for our money anymore sounds about right. Historically, the only reason I can justify paying taxes for good or better schools is that it makes my home more preferable and easier to sell for parents wanting to send their kids to those good or better schools. Living in a large urban area probably creates that option, too, for now.

[Vigilanteman]

Any permanent fix to the student loan problem is going to involve a combination of the following factors:

1. Partial forgiveness, say 25%. This can be accomplished in a long-term write-down.
   
2. Reversal of the loans to the institution of origin. They get 5%, they owe the government guarantor 70% of the remainder.
   
3. The institution of origin has a given and reasonable period to make those loans current with liquidations and remittance. They may use their 5% commission to write down or write off some loans, sell them to outside agencies at a discount, etc.
   
4. Anything they cannot discharge via the above methods may have the collection methods ramped up by withholding transcripts or revoking degrees.
   
5. Those methods failing, the government guarantor may attach real estate, endowments or other assets to collect the remainder.
   
6. After the given liquidation period is over, the government is out of the student loan guarantor business and allocation business forever save a given amount of exposure which congress may allocate annually as discretionary spending.
   
7. Cruel, you say? Not nearly as cruel as the present system where a graduate is sold a near worthless degree and expected to pay it back on a Starbucks wage. Poor people can still go to college from a cornicopia of scholarships and endowments or even majoring in something useful and highly marketable like, say, mechanical engineering or nursing where private lenders would step into the breach created by offering low interest loans for low risk of default occupations. $120,000 degrees in xyz studies? Not so much.

[ridesthemiles]

To my mind, if you own property, you are subsidizing the education of K-12 students through property taxes. Not getting much for our money, are we?”””

I bought my first house in May of 1966. I sold that house in May of 1995.

I inherited my Dad’s house in Dec 1980, altho I had paid HIS taxes for 7 or 8 years prior to his death. I sold that house in 1998.

I bought my second house in Jan 1989 and sold it in Dec 2004.

I bought this house in Feb 2005 & am still here.

I am 77 years old & I have paid 82 years of property taxes-—

I have had NO KIDS AT ALL.

And YES, I didn’t get much for my money, considering the ‘education’ that I paid for & the results coming out of the schools.

[The Antiyuppie]

“So stfu about criticizing the victims of this fraud and start looking at these “institutions of higher learning” that are actually conspiracies to commit theft.”

+1, it is exactly the same problem with health care. Goverment subsidizes—>> prices go up—>> government subsidizes.

[PAR35]

Humorous post of the morning:

“innocent college kids”

[USS Alaska]

So stfu about criticizing the victims of this fraud

No BUTThole, you need to STFU.

These idiots are not VICTIMS, no one put a gun to their head and forced them to sign anything.

I entered the Army at age 17 {volunteered for the draft} no one forced me to do that.

These snowflakes have been pampered and coddled their entire lives and have to accept the consequences of their CHOICES.

You and I signed on at FR at about the same time, and you have rarely posted any comment that a conservative could agree with, why are you here?

[ronnie raygun]

I just love “what are you majoring in? LIBERAL ARTS” what a crock of sh##. If the snowflakes cant pay the parents will, hit them