Obama's administration is becoming student borrowers' worst enemy

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Obama Administration Hits Back at Student Debtors Seeking Relief
The U.S. government is becoming student borrowers' worst enemy
http://www.bloomberg.com/news/artic...n-hits-back-at-student-debtors-seeking-relief

On a day when Democratic presidential candidates sparred in a national debate over who would do more to help indebted students, the U.S. government launched a new attack on student debtors seeking loan relief.

On Tuesday, the Department of Education intervened in the case of Robert Murphy, an unemployed 65-year-old who has waged a three-year legal battle to erase his student loans in bankruptcy.

Unlike almost every single form of consumer debt, student loans can be erased only in very rare circumstances. Murphy’s case, which is currently being heard in a federal court in Boston, could make things a little easier for certain borrowers. A win for Murphy would relieve him of $246,500 in debt and could loosen the standard used to determine how desperate someone needs to be to qualify for relief.

The court asked the Education Department to weigh in on the matter. In a document submitted to the court on Tuesday, government lawyers urged the federal judges not to cede any ground to borrowers who say they are in dire financial straits. Doing so would imperil “the fiscal stability of the loan program” that has existed for half a century. The Department of Education did not immediately respond to requests for comment.

(More at above url)
 
Why is it that whenever democrats talk about the outrageous cost of an education, they somehow come to the conclusion that it simply means we need to pay more?

They never set their targets on the asshats in academia working 3 day work weeks getting paid mid six figures, or any of the mismanagement offunds that is prevalent at all these universities, no somehow that is always the fault of corporations who just need to pay more.
 
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From the article-

"From 2001 through 2007, Murphy took out several Parent PLUS student loans -- federal debt parents can use to finance their kids' education -- to send his three children to college. After accruing interest, the bill ballooned to $246,500. In 2002, Murphy lost his job as president of a manufacturing company when it closed shop to move overseas. He hasn’t found work in the last 13 years, he said, because he is viewed as too old for executive posts and overqualified for lower-level jobs. He lives on the salary his wife brings in as a teacher's aide, less than $15,000 in annual income. Murphy said he dried out his retirement savings, and his home was recently foreclosed.

The lawyers arguing the case on behalf of ECMC said in court documents that Murphy’s appeal “smacks of gamesmanship.”

Siding with Murphy “would suggest that any debtor nearing retirement can borrow as much money in federal student loans as possible, only to turn around a few years later, upon retirement, and have that obligation discharged due to the debtor’s ‘unemployment,’” wrote the lawyers."
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"He hasn't found work in 13 YEARS!!!"

That guy was absolutely gaming the system.
Fuck him.
Bring back debtors prison.
 
Student finance makes the heath care system look reasonable.

Clearly the availability of cheap federally backed loans has fueled the massive inflation in college costs.

Why there have been no calls for mandatory tuition caps is interesting. The left is quick to demand price controls on everything else, from rent to health care to energy. You name it, they want price controls. For some reason, higher education is different. I wonder if it could have something to do with the fact that so many leftists are employed in that field and drawing down huge compensatuion for little work? And that it's an important democrat constituency?

Hello Mr. Trump. Couple of suggestions for you. Call for federal price controls on tuition. Require that every univeristy getting federal funding, ie all of them, offer free online degree courses. Finally, put schools on the hook for defaulting student loan debt. Force themt o have some skin in the game, either by requiring them to match federal loans with their own funds or to guarnatee student loans themselves. This would realign the incentive structure and put schools in partnership with their students.
 
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