Obama Relies on Debt Collectors Profiting From Student Loan Woe

For those coming out of prison and contemplating going to school, student loans can be a very appealing way to travel. In fact, there are schools the specialize in offering student loans that are nothing more than shadow education facilities dependent on boiler room operations to make money.

Anyone even contemplating going to school would be well served to speak to a financial advisor that are in all community colleges of Florida. There are always scholarships, grants and etc. A search of the internet may well reveal more opportunities. Then there is always the option of taking longer to go through school by taking a lower course load and paying as you go. This may be a very good option it your program of instruction is a two year program.

Careful planning will avoid the below pitfalls:

“…We’re not playing here,” Campos recalled the collector telling him in December. “You’re dealing with the federal government. You have no other options.”

Campos agreed to have the money deducted each month from his bank account, even though federal student-loan rules would let him pay less and become eligible for a plan — approved by Congress and touted by President Barack Obama — requiring him to lay out about $50 a month. To satisfy Pioneer, Campos borrowed from friends, cut meat from his diet and stopped buying gas to drive his 82-year-old mother to doctor’s visits for her Parkinson’s Disease.

With $67 billion of student loans in default, the Education Department is turning to an army of private debt-collection companies to put the squeeze on borrowers. Working on commissions that totaled about $1 billion last year, these government contractors face growing complaints that they are violating federal laws by insisting on stiff payments, even when borrowers’ incomes make them eligible for leniency….”

Obama Relies on Debt Collectors Profiting From Student Loan Woe

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