<p>And there are millions who cannot pay these loans due to enhancements, hidden fees and the removal of basic consumer rights applicable to other loan paradigms. And with the potential of deflation or other economic troubles those happy people who are currently paying these loans may not be able to do so. What then, massive foreclosures on peoples educations? </p>
<p>Solutions OK. </p>
<p>Restore the consumer protections which were written away as a result of sweetheart regulations benefiting a select and limited group of financiers. If need be take even the minimal approach that was recently advocated in Canada of allowing those with loans older than 9 years to renegotiate their loans (and other companies should be allowed to compete for this potential business which heretofore has been limited to a select few) Activities for collections by these companies which have violated general FTC guidelines need to be corrected. In order to do this FTC guidelines applicable to virtually all other forms of credit/collections would need to be restored onto student loans. If their collection activities have resulted in suicides, nervous breakdowns and related problems (and they have) company officials should be held liable for harassment, and if found guilty both criminal and civil penalties should be applied. </p>
<p>Loan reduction or forgiveness programs should be extended in a meaningful manner. Especially for those in community service professions such as education and medicine. For others loan forgiveness could be premised on other forms of public service. </p>
<p>Another possible solution would be to finally, put a cap on the fee enhancements and collections tricks which have benefited no one but these select companies. For example the 220% fee increases since 2001 applied by several of the largest companies. Investigations into these tactics would be appropriate, and if improprieties are found (and they will be) monies collected by such means would have to be refunded to both the government and student borrowers. And if other salient statutes have been violated both civil and criminal action should be taken. </p>
<p>And the massive over billings of the government by these select corporations will need, finally, to be stopped. We are not talking pocket change here-one over billing by just one company was over 500 million-which would have paid the first two years of tuition for every student in a state the size of Colorado. And recent exposes by sources including the "Chronicle" indicate that over billings of 1.2+ billion and more have been committed. Monies collected fraudulently will be fully paid back to the government and either used for properly funding students or for debt relief for those already adversely affected by this situation. If the aforementioned over billings can be established to have resulted from conspiracy or collusion between corporate agents and agents within the US government then RICO should be applied. And if convictions are resultant the parties involved should be subject to both criminal action and civil forfeiture. </p>
<p>The appointment of company shills into the policy making sections of the USDOE needs to be stopped. And those appointed who are found to have conflicts of interest need to be dismissed. </p>
<p>Further investigations into collusion between College officials and corporate lenders needs to be expanded. Just in my little circle I can name two institutions which are involved in questionable and unethical associations with these companies. Those found in violation of institutional ethics policies need to be dismissed after appropriate review. And if investigations reveal that state laws or federal statutes have been violated, both civil and criminal actions need to be considered. </p>
<p>Governmental funding for these companies needs to be curtailed. First because it obviously does no good as indicated by the massive inflow of funds earlier this year 'to ensure liquidity'. Second because accountability for these funds has been at best appalling.
US policy could be applied to taking those funds into direct student aid such as grants. </p>
<p>Any school receiving federal aid should be under more strict requirements for what is done with these funds. Any activity which does not benefit academic operations (either classroom or research) would not be funded by the federal government. Colleges would be required to specifically report on average expected time to attain given degrees and have good rationales if these are not met. Additionally college costs should be linked to an overall cost of living index and should costs grossly exceed those ratios colleges would have to make public reports as to the causes. </p>
<p>Of course none of these suggestions will ever happen as too much influence is being exerted in closed rooms. And many of these suggestions have already been voiced by experts who have credible credentials. But of course they don't sit in the closed rooms with the lobbyists making 'policy'. And too often those inside educational policy bodies or bodies overseeing the student loan industry...who have brought these problems into the light and suggested solutions have been driven from their postings or even forced to retire...look back at what generally happens to USDOE officials who do speak about these matters.</p>
<p>The other factor which is negating any attempts to resolve this issue is because we (as a nation) have created an economic monster. And all it needs do to stop reform is to utter how much of the economy it currently effects or controls...but since this same monster is massively over leveraged and is now demanding a potential bailout of some 600 billion...it would seem its fall will happen anyway. Perhaps better to take reform action, and soften that fall rather than continuing to pretend that saving a toxic system is somehow beneficial.</p>