Skip to main content

To: President Trump; Vice-Pres.Pence; selected members of Congress and Senate; selected members- Covid 19 Task Force

Covid 19 and REAL student loan relief

Permanently slash interest rates on existing federal student loans. The current solution offered by the President to waive interest for some undefined period is not enough. The current rate at 6.5% - set by congress - is much too high and once the Covid 19 emergency is over and that rate is restored, the waiver will have done little to help and borrowers will find themselves back in the same situation. We need a REAL and PERMANENT SOLUTION to the long-standing student loan problem. We need interest rates on existing loans drastically and permanently cut now.

Why is this important?

The problem with the federal student loan program is long-standing and well documented including massive complaints and many lawsuits against lenders. I will reiterate a few main problems:
Many students, including myself, have been victims of aggressive and predatory lending practices that started in college and continue throughout loan repayment periods.

The interest rate at 6.5% - set by congress - is much too high and contributes to borrowers' inability to pay down loan principals.

The so-called benefits of various repayment plans is part of the scam that benefits lenders the most: they extend the life of loans while continuing to charge interest daily at 6.5%. In effect, these so-called benefits create a situation in which borrowers are making monthly payments that may not even cover the monthly interest on their loan. Subsequently, it is next to impossible to pay off the loan and any small principal payment that a borrower might eke out is not enough to substantially decrease the interest calculation; this assures lenders a steady stream of interest income with no end in sight.

Many student loan borrowers cannot move on with their lives or fully participate in the economy because they are strapped with debt.

I am an older, self-employed mental health counselor, losing earnings because of Covid 19, I - like most Americans - am concerned about my financial well-being. I should be planning for retirement, but having gone back to school in mid-life, I am concerned about my student loans instead. Interestingly, the repayment program in which I participate (IBR) contains a loan write-off provision if I die! Most of us would prefer help while we're still alive!

Juts like 2008 when the economy almost crashed, I hear plans of incentives, and bailouts for large corporations. I realize, for example, that airlines are hard hit today, but what about the little person? Where are the breaks and bailouts for those of us who work hard in this country every day and who bought into the American dream by furthering our education and now find ourselves paying the highest price for it?

We appeal to all branches of government to do their part to drastically and permanently cut student loan interest rates now! Thank you!

How it will be delivered

Via email

Updates

2020-03-23 19:55:06 -0400

10 signatures reached