What can be done about predatory lending practices in the student loan industry?
EsoMan asked:
More and more students are graduating with loads of debt from “private lenders” (ex. Sallie Mae, Wells Fargo, Xpress Loans) who make loan terms unclear, and repayment plans ambiguous. These loans can rarely be consolidated, have high interest rates, are non-dischargable in bankruptcy, and have very high payments. Congress is realizing that something must be done to alleiviate the burden on the students that fell victim to these lending practices by the banks. What remedies do you think should be allotted these students? How do we fix problems within private lending so students can pay their loans while still maintaining a decent quality of life?
More and more students are graduating with loads of debt from “private lenders” (ex. Sallie Mae, Wells Fargo, Xpress Loans) who make loan terms unclear, and repayment plans ambiguous. These loans can rarely be consolidated, have high interest rates, are non-dischargable in bankruptcy, and have very high payments. Congress is realizing that something must be done to alleiviate the burden on the students that fell victim to these lending practices by the banks. What remedies do you think should be allotted these students? How do we fix problems within private lending so students can pay their loans while still maintaining a decent quality of life?
The government has to regulate these debtors to within a certain percentage
(example: canada government student loans will do prime + 1% - always.)
it is harder in the us because all the statutes that make america what it is say that government regulation is wrong. this way the rich get richer and the poor get worse.
a free market is a free market and to regulate would change the entire american way of life.
if you’ve already got your education, claim bankruptcy and screw those guys.
The lending practices are not predatory.
The students should realize what it will take to make a series of loan payments for a number of years.
The answer - don’t borrow more than you will be able to afford.
If you don’t know what you can afford - then don’t borrow.
Why should MY tax dollars be increased and MY decent quality of life be lowered so some “student” can get a free education and then P.I.S.S away all their money on spring breaks, cellphone foolery with texting etc., and nice cars?