The whole student loan thing is a mess.
BY the way, if you pass away while owing a student loan - then that becomes a debt of the estate, not the heirs (although satisfaction of that loan will direct the estate proceeds to the debtor, rather than the heirs.) That is the general rule for any debt - if you own a house with a mortgage, the morgage doesn’t disappear if you die.
Generally, though, minor creditors like credit card companies tens to write off, rather than pursue, the loan in those cases.
Found it!
I had to read almost to the end to find the real source of the problem. “Navient has only existed for a few short years, ever since it split from Sallie Mae back in 2014.”
Spun off from a quasi government agency. To me that explains everything. I now wonder Who & What (agencies) in the federal government have been protecting Navient and will they reup as soon as the whistleblowers start blowing their whistles.
Sorry but this commentary is nothing more than someone that has real hatred for a company that they owe money to. It does not get into the actual allegations and the contracts people signed.
For example, the settlement about the military members being overcharged. The rules around that have been in flux at times and the requirements for when you qualify and when you don’t and what documentation is required is far from clear and often borrowers do not properly notify their lenders that they want to or are entitled to the benefit.
They may be a crappy company, I get that but the rant and allegations made in the screed are not likely the whole story.
It may be hard to remember but it was the Obama Administration that removed the public marketplace option from education loans. From 1965 to 2010, students could get education loans from multiple sources with the Federal Government guaranteeing those loans to the lenders. After the credit crisis of 2006-2009, private & bank loans became nearly impossible to get BUT the new Federal program had no sunset provision, so it became and still is the sole provider.
Anyone care to see the parallels to single-provider health insurance from the Feds? Anybody hear the echo of Obama’s then Chief of Staff Rahm Emmanuel’s axiom about not letting a crisis go to waste?
caveat emptor
Bookmark
Huh?
I feel dumber for having tried to read this confusing story.
There is a whole lot of name calling and. not a lot of facts.
The DOJ and Attorney Generals pursuing a company - is that a bad thing or a good thing? Probably depends on if it is one of the good groups or the corrupt groups.