College debt after death not a singular concern

[tenisghs]

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If that was written into the loan contract then fine but if it’s not then I don’t understand why someone would try to apply ‘compassion’ and force the bank to pay in this circumstance. I can flip it around - the cosigner should have compassion for the bank and its shareholders to ensure they’re not adversely affected due to the cosigner’s failure to hold up their end of the bargain.

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<p>Show compassion for the banks, GladGradDad? Seriously? If my memory serves me correctly, banks primarily exist to make a profit. Banks are not “people”, GladGradDad. During the Great Recession, it took federal intervention to address the foreclosure crisis because banks were profiting off of families’ misery and suffering. According to this [url='<a href=“http://chronicle.com/article/Student-Loan-Debt-Collection/131816/]article[/url”>http://chronicle.com/article/Student-Loan-Debt-Collection/131816/]article[/url</a>], private lenders and collection agencies profit more on student loan defaults (which can cripple a person’s credit history for the rest of their lives) than on-time loan payments. Banks and other financial institutions have NO incentive to show compassion for borrowers who may be experiencing extenuating and unforeseen circumstances. </p>

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The report accuses the department of failing to protect student borrowers and of creating financial incentives that encourage collectors to put profits first. It recommends that the department make it easier for borrowers to lodge a complaint; change its evaluation and commission systems to reward contractors for quality customer service; and increase its oversight of the agencies. Long term, it suggests that the department stop using collection agencies to assist struggling borrowers.

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