<p>I’m quite aware of the distinction. </p>
<p>And no the scandals have not peaked. Have had former students contact me from out of state, they have been subjected to loan solicitations from schools which they have had no contact or interest in attending. And online schools seem to be the new players for these kinds of games. And they seem to be targeting minority students, recent immigrants and the less affluent areas. Former students who do not fit those category’s haven’t mentioned receiving these kinds of solicitations. </p>
<p>Just because its not in the press doesn’t mean its not happening. </p>
<p>“Finally, if by alleging that students don’t have adquate consumer protection you mean that student loans are no longer dischargeable in bankruptcy, I don’t see anything wrong with that. It was for too many years an easy way for deadbeats to walk away from their student loans”</p>
<p>That actually was a propaganda tactic first used by the loan industry during their first attempts to remove consumer protections. At the time it had about as much veracity as its contemporary companion “the welfare mom driving the Cadillac”. As such it was a fine piece of disinformation and it worked. Because at the point it was used, defaults were actually at a lower rate than they are today.
And exactly why should student loans be exempt from standard consumer protections? And as far as alleging consumer protections on student loans are inadequate its not such bad company to be in…especially since such high level people as Dr. Warren of Harvard Law, have commented about the problem…</p>
<p>And its obvious consumer protections are being ignored…nothing much has changed since last year. The press gets bored, Congress gets distracted, and the common culture gets obsessed with Jolie’s baby or Britney’s underwear…</p>
<p>[Probe</a> Launched on Sallie Mae Collection Tactics - washingtonpost.com](<a href=“http://www.washingtonpost.com/wp-dyn/content/article/2007/04/26/AR2007042602627.html]Probe”>http://www.washingtonpost.com/wp-dyn/content/article/2007/04/26/AR2007042602627.html)</p>
<p>By Amit R. Paley
Sallie Mae, the nation’s largest student loan company, may have violated federal laws by repeatedly using aggressive tactics to collect loans from student borrowers, Senate investigators said yesterday.
Aides to Sen. Edward M. Kennedy (D-Mass.), chairman of the Senate education committee, said they believed the Reston lending giant tried to collect debts that were not owed, fired employees who attempted to help borrowers and intentionally sent payment notices to an incorrect address to force a borrower into default.
“I am concerned that several private lenders may be engaging in harsh and inappropriate tactics” that “are prohibited by federal law and regulations,” Kennedy wrote in letters sent yesterday to Sallie Mae and Nelnet, a Nebraska student lender, that requested documents about their collection practices.</p>
<p>The 544 billion is currently the overall student loan debt in the country, including all forms of academia. I include it to let people know exactly how much money is involved here…at no point was that number phrased to indicate it referred specifically to proprietary schools…</p>