Student Borrowers Bill of Rights Act H.R. 3892

Parents Forum
1

<p>
[quote]
ny well-intentioned graduates can't afford to pay off their student loans because of the sour economy. They are being sacked with debt and penalties that outweigh their best efforts to keep up. </p>

<p>...
That’s where the bill proposed by Rep. Frederica Wilson, D-Fla., the Student Borrowers Bill of Rights Act, H.R. 3892, comes in as a possible solution.</p>

<p>The bill includes restoring bankruptcy protections for federal and private student loans and limits collections efforts to six years—instead of allowing an endless chase. It also would prohibit the financially and emotionally crippling garnishment of wages, Social Security benefits, and tax refunds from being used to collect debt owed.</p>

<p><a href="http://www.takepart.com/article/2014/02/12/federal-bill-protects-student-loan-borrowers"&gt;http://www.takepart.com/article/2014/02/12/federal-bill-protects-student-loan-borrowers&lt;/a>

[/quote]
</p>

<p>Since the Federal Government is guaranteeing the Federal Student Loans, I think the bankruptcy rules for Federal Loans should stay unchanged. Also, the limits on Federal loans limits the amount of damage a students can do to themselves.</p>

<p>However, with private loans, I think the lender should be at risk, and make sure that if they loan the money, that they have a reasonable chance to be repaid.</p>

<p>For those of you that complain that it would hurt poor people who need the help, I don't think we are helping anyone by saddling them with $100,000 of student loans. Now, if that poor person is a brilliant engineer going to MIT, then the private loan company can decide for themselves if that person is worth the risk. If that poor person wants to go to the State University and major in a low demand field, then I think it is helping that student by keeping them from getting into too much debt.</p>

2

<p>The vast majoirty of poor people aren’t going anywhere near 100k because they’re only taking out Direct loans. Private loans are rather difficult to get for the poor. </p>

3

<p>it’s political season. The bill is a non-starter in the House.</p>

4

<p>I absolutely agree this is political grandstanding and is a non-starter. But just think what the interest rate on private student loans would be if all of the “protections” in this bill were implemented - 25% APR? 200% APR? Would engineers and accountants get a decent rate and humanities and fine arts majors an interest rate double or triple in size? </p>