Lingering Obama-Era Move at CFPB Now Threatens Credit Markets

American Thinker.com ^ | June 13, 2019 | Ken Blackwell

[Kaslin]

As college graduates have their commencement celebrations, they certainly hope their hard work will pay off. After all, in the booming Trump economy and with record low unemployment, there are countless opportunities for entrepreneurship and success.

Sadly, there is one reason why those dreams may never get off the ground: crushing school debt. As too many students and parents are painfully aware, there are more than 44 million borrowers in America who collectively owe $1.5 trillion. Because of these obligations, young adults are putting off essential milestones in life — such as buying a home and getting married — while not accumulating savings.

They have been saddled with debt by a higher education industrial complex thanks to the assistance of the federal government. Now, thanks to some Obama administration decisions, the problem might become even worse!

Before his disastrous campaign for governor of Ohio, Richard Cordray was an Obama administration holdover running the Consumer Financial Protection Bureau (CFPB). What we are now learning is Cordray likely exceeded the scope of his authority with a proposed "consent judgment" against the National Collegiate Master Student Loan Trusts (NCMSLT) in September 2017. This decision deserves more attention, as it threatens the Trump economic boom by potentially hurting America's financial marketplace and freezing the credit industry.

[PGalt]

DEFUND, DISMANTLE collective CFPB.

[Saltmeat]

Make them all take Dave Ramsey’s personal finance course. Prevent them or their spouses from obtaining a loan for anything until their student loan is paid in full.

Unpaid student loans are going to cause the same catastrophe that the subprime mortagages did, therefore Congress needs to stop the insanity. No more loans to 18-year olds with no collateral whatsoever but the promise to pay when and if I can.

[posterchild]

...more than 44 million borrowers in America...That is an odd phrasing. Where did I hear something similar before?

[Principled]

First, it can be used against the deep state. It was set up as a weapon against us... but Trump won!

It is a weapon that I expect will be wielded in the future for our benefit.

THEN dissolve it.

[ActresponsiblyinVA]

Make the universities guarantee repayment if there is a default. Take it out of their endowment.

[SauronOfMordor]

Change the student loan system so that the university must cosign the loan, and the student can discharge in bankruptcy.

Colleges will then stop admitting unqualified students, and stop offering majors which do not lead to jobs.

[griswold3]

Federally guaranteed student loans are a lucrative revenue stream for the Government. The Government will not be denied.

[Buckeye McFrog]

DEFUND, DISMANTLE collective CFPB.

Can't defund it as it essentially funds itself (and the courts have thusfar not intervened in that novel arrangement)

If we can't dismantle Obamacare there's no chance in Hades of dismantling this.

[DoughtyOne]

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[PGalt]

it’s a big administrative swamp and we aren’t in it. Thanks for the info, servant. If we elect the injin, maybe she can help us.

“That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”