I was reminded this morning that I left the student loan industry 12 years ago immediately before the financial collapse related to Fannie and Freddie.
I choose based on the consequences of statutory changes by Pelosi after her elevation to Speaker less than 2 years before. There was no longer any reasonable chance to be successful in my goals, privatization, and improving the lives of student borrowers. I recognized that the collapse of the industry was inevitable under those rules and that students would end up indentured by debt to serve politicians.
In a committee hearing last year, Rep. Maxine Waters scolded bankers about their greedy fleecing of student borrowers and the bankers replied was that they had left that business a decade before. Now it is the greedy government that is fleecing the lives of student borrowers to put them into the service of politicians; when one stops trading in dollars, then the trade in human lives begins again.
Now Democratic politicians have presented their claim check upon the lives of those they indebted…vote for us in November if you want relief from the debt you owe the government. See the “Providing Borrowers Relief from Crushing Student Debt” section on page 70 of the 2020 Democratic Platform, which demonstrates that their actual pie-in-the-sky offer is less than the earlier marketing slogan of debt forgiveness. Through federal student debt, those politicians own those debtors [who were previously citizens] and they will give their debtors scraps not freedom.
Back when I was working in the student loan industry, before it was nationalized, my specialties included rehabilitation of non-performing debt and risk management. I know how to fix this indebtedness problem for existing student loans and how to prevent student borrowers from being saddled with unproductive borrowing. However, no one wants to solve these problems. Schools want an unlimited supply of government cash. Politicians want to have control over others. Students want something for nothing. So shouldn’t everybody be happy because they got it?
Yet those students who abdicated their responsibility to the schools and politicians are not happy in their stifling debt.
I have previously written two pieces on simple means to solve the student loan debt crisis for your consideration:
- Deflating the Student Loan Bubble with Better Risk Management
- How to Fix Federal Student Loan Debt without the Democrats’ Debt Forgiveness Promises