The Department of Education said it is still interested in privatizing its almost $1.7 trillion student loan portfolio. This change could put more responsibility on private lenders.
  • nonentity@sh.itjust.works
    6·
    17 hours ago

    Any society which charges its students to acquire knowledge values neither.

    A healthy and broadly educated population, which feels safe and secure, is incompatible with, and toxic to, conservative and authoritarian ideologies.

    They need you to be sick, stupid, and scared.

  • Optional@lemmy.world
    12·
    1 day ago

    That means they can never be forgiven and will never leave the debt holder even through bankruptcy and possibly death.

    • AlecSadler@lemmy.dbzer0.com
      3·
      18 hours ago

      Source? Federal loans can’t be bankrupted, but private loans absolutely can to my knowledge…

      …source: I’ve done it

      • Optional@lemmy.world
        2·
        1 hour ago

        it depends on whether they meet the legal definition of a Qualified Education Loan. If they do not qualify, they can be treated like ordinary consumer debt and discharged without proving undue hardship.

        Qualified private loans follow the same legal hardship standards as federal loans, but their repayment structure differs in ways that shape how courts view a borrower’s financial situation.

        Key differences include:

        • No income-based repayment. Private lenders do not offer income-driven plans, so payments are based on the contract rather than the borrower’s income.

        • No statutory forgiveness programs. Unlike federal loans, private loans do not have program-based discharge or long-term forgiveness pathways.

        • Balance acceleration in default. When a private loan defaults, the full balance becomes immediately due under the contract.

        • State-level collection tools. Private lenders rely on lawsuits, judgments, wage garnishment, and bank levies, which can continue for many years.

        https://www.tateesq.com/learn/student-loan-bankruptcy-private-discharge

    • zero_spelled_with_an_ecks@programming.dev
      24·
      24 hours ago

      I think you may need a remedial civics class. The department of education is a cabinet-level department, which means its head is appointed by the president and confirmed by Congress. Nobody voted or could vote either on this specific topic nor for the people directly responsible for it. It’s greed and corruption on a systemic level, not the failing of individual voters.