Stop Student Loan Private Lenders Hurtful Practices
Stop Student Loan Private Lenders from hurting your credit and life after graduation
Since the new bankruptcy law in 2005, many students like myself have been suffering from the hurtful practices that Private lenders have towards private student loan lending. Sallie Mae as well as other private lenders are not regulated to be protected like a government funded student loan. It is not lawful to allow such a lender to be excluded from the bankruptcy law, because they do not comply with the government student loan programs. We are in recession, and students are unemployed, not in the field they went to college for, and/or are underpaid for their position they graduated for. I was a student and now I'm a graduate, so I am experiencing the same issues every other graduate is that didn't land the high paying job that their college said their career path would lead them to. Sallie Mae does not offer help to students in repayment for their private loans except for a 6 month maximum forbearance at $150 every 3 months, or an interest only payment for 2years. This becomes hard to pay right after graduation or early in our career years, because for example say Student A. has private loans of $76,000, but they only make $16.75 an hour at 40 hours a week, plus they own a home, car, and some credit card debt. Per Sallie Mae, they have used their forbearance and are on interest only payments of $408 a month. The Student A only makes about $1600 a month and their bills are estimated $1800 a month. This picture obviously shows that the Student A is trying to make ends meet and live the American dream of owning a home and car. Was Student A put in a situation like the housing market? Of course they were, Sallie Mae, other private lenders, and the colleges did not educate the student on how damaging student loan debt could be. If anything Sallie Mae lends too much money to millions of students beyond their means of paying them back. A lot of students were setup for failure by these over lending practices very similar to the housing market. Sallie Mae did not ask for pay stubs, it was merely based on existing credit. Millions of American Students are in this almost busted bubble of student loan debt, because we were young; some at 18 years old trusting our colleges advice and the lenders on the loans we choose to have. If the United States Government put pressure on lenders in the housing market to stop the greedy and hurtful practices of lending, then what is the difference with student loans from private lenders? We, the graduate students of America need your help and soon before we experience worse issues than the housing market, because we can't file bankruptcy to get away from our private student loan lenders. One day this world will see the light, but until then we all have to fight individually or together for justice.