Category Archives: Student loans

GAO Report Debunks Fair Value Accounting, Protecting Students and Homeowners

By David Dayen, a freelance writer (Salon, The Intercept, The New Republic, etc.) and author of Chain of Title: How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraud, which releases May 17, 2016 (available for pre-order now). Follow him on Twitter @ddayen. A couple of weeks ago, the Government Accountability Office saved the country’s […]

Read more...

“@ Hillary Clinton: How does your student loan debt make you feel? Tell us in 3 emojis or less.”

The above tweet is real and is from Hillary Clinton’s official twitter account. It is very difficult to express how appalling this sentiment is. It represents much of what’s wrong with American politics in our current moment.

Read more...

Rolling Jubilee: A Wolf in Sheep’s Clothing?

Yves here. As much as we we’ve been vocal supporters of many of the initiatives of the Occupy Wall Street movement, such as the excellent work of Occupy the SEC, the impressive relief efforts of Occupy Sandy, the success of local Occupy Homes groups in combatting foreclosures, the many projects of the Alternative Banking Group (including both a book explaining the crisis and its 52 Shades of Greed card deck, and last but not least, Strike Debt’s Debt Resistors’ Operations Manual.

However, Rolling Jubilee is a notable exception.

Read more...

Obama Administration Again Sides With Abusive Loan Servicers, This Time on Student Loans

A corrosive development is the ease with which lenders steal extract income which is not properly theirs from borrowers through what is at best incompetence and in far too many cases is fraud. This pattern has repeats itself again and again: in mortgage servicing, with debt collection, and more and more with student loan servicing.

Read more...

For-Profit Colleges as Factories of Debt

Yves here. The American higher education system has been sucking more and more of the economic life out of the children that supposedly represent our best and brightest, the ones with intelligence and self-disipline to do well enough to be accepted at college.

But even though the press has given some attention to how young adults, and sometimes their hapless parent/grandparent co-signers, can wind up carrying huge millstones of debt, there’s been comparatively less focus on the for-profit segment of the market. While their students constitute only 13% of the total college population, they account for 31% of student loans. Why such a disproportionately high debt load? As this post explains, the for-profit colleges are master predators, seeking out vulnerable targets like single mothers who will do what they think it takes to set themselves up to land a middle class job. This is the new American lower-class version of P.T. Barnum’s “a sucker is born every minute.” These social aspirants are easy to exploit because they haven’t gotten the memo that the American Dream is dead.

Read more...