<p>...The U.S. Department of Education issued the search and called in the S.W.A.T for his wife's defaulted student loans... </p>
<p>...According to the Department of Education's Office of the Inspector General, the case can't be discussed publicly until it is closed, but a spokesperson did confirm that the department did issue the search warrant at Wright's home...
<p>And so Stockton Police sent their SWAT team and arrested the occupant? I think someone got the warrants mixed up…meanwhile, across town, DEA agents were trying to arrest a gun and drug running kingpin with the help of one Stockton police officer and one police car.</p>
<p>I understand PRIVATE student loans for college also cannot be discharged through bankruptcy, except under extreme circumstances. With the higher interest rates and the interest acrueing while in college, the private loans can multiply quickly. If a person delays paying them, the interest and penalties can quickly become larger than the original loan amount. </p>
<p>In any case, if you need private loans to get your degree, look for a cheaper college.</p>
<p>There’s a reason why banks spent millions of dollars lobbying to make student loans non dischargable–it so that the student loan derivatives that they sell on wall street have less risk. That way investors will be more eager to snatch them up. More student loans derivatives sold on wall street means more money for investors and more money for banks to go out and make even more loans and make even more money on interest and penalty fees. It is the biggest factor what drives the excessive tuition inflation. It is a giant scam that’s about to explode.</p>
<p>Part of the logic behind making student loans bankruptcy-proof is that at time of graduation, almost any student with significant loans is technically bankrupt: no assets, huge debts. That’s an even bigger factor for professional school grads, where six-figure loans are commonplace. Apparently a few were opting to declare bankruptcy before getting their career underway. (No idea how prevalent this was, or how successful the strategy proved.)</p>
<p>Say your daughter or son walks into a bank asking for a student loan. The bank hands it out to your S or D. After that, the bank packages your S or D’s student loan with a whole bunch of other student loans into what are known as student loan asset backed securities (SLAB) and sells it on wall street. Investors get money on SLABS on interest and principal payments when your S or D pays on the loan. SLABS are also guaranteed by the federal government to pay out even if a huge wave of students start defaulting on loans, i.e. tax payers are liable for any student loans that go into default. Investors are happy to buy up SLABS, they’re government backed, so there is virtually no risk involved in SLABS. They’re pretty much 100% guaranteed to payout. The money that banks get from selling SLABS then gives them more money to go out and issue more loans and repeat the whole process over again. The never ending supply of risk free money (to investors and banks) then allows colleges to continue to drive up their costs. There’s essentially no risk involved for anyone except tax payers and students while huge profits are made by banks, investors, and schools. School X can raise it’s tuition to $55,000 a year for someone majoring in underwater basket weaving and bank Y will be happy to issue out a loan to a student because banks can easily sell the debt on Wall St and still turn a profit even if a student can’t pay it off in the end because it is government backed. The risk on SLABS is even lowered further because it is virtually impossible for students to get rid of debt in backruptcy, hence the reason why banks spent a ton of money lobbying to get student loans non-dischargable, it makes it easier for them to sell SLABS and continue the game. Easy credit + massive profits + no risk=huge tuition inflation. Sound like the 2008 housing bubble right?</p>