The relief that should happen is the loan agencies who — because student loans are federally guaranteed — make more by defaulting debt.
Example is a $5K loan bureaucratically morphs into an $11K debt obligation by selling the “underperforming” original over and over.
It’s these synthetic accruing penalties obtained through rapacious manipulation of lending practices that puts many otherwise responsible payers into no-win financial black hole.
Leave the loan, forgive the excess interest and penalties, and let the lenders — not the taxpayers, be left holding the bag.
The relief that should happen is the loan agencies who — because student loans are federally guaranteed — make more by defaulting debt.
Example is a $5K loan bureaucratically morphs into an $11K debt obligation by selling the “underperforming” original over and over.
It’s these synthetic accruing penalties obtained through rapacious manipulation of lending practices that puts many otherwise responsible payers into no-win financial black hole.
Leave the loan, forgive the excess interest and penalties, and let the lenders — not the taxpayers, be left holding the bag.