To: President Donald Trump, The New Jersey State House, The New Jersey State Senate, Governor Phil Murphy, The United States House of Representatives, and The United States Senate
Student Loan Bankruptcy Reform Repeal
There are 44 million people who are saddled with $1.5 Trillion in student loan debt currently.
I can say to you that the ONLY meaningful fix for this problem begins by forcing the lending system to contend with the same bankruptcy protections that EVERY other lender for EVERY other type of loan must contend with.
Removing bankruptcy protections from both federal and private loans was a dirty, dirty trick by the industry, up to and including the federal government. This happened by creating 11 USC 5233(a)(8), which made student loans the ONLY type of loan in our nation's history to be vacated of standard bankruptcy protections. What is most important: when student loans were treated the same as ALL OTHER LOANS in bankruptcy court, FAR LESS THAN 1% were discharged this way.
Because Congress removed standard bankruptcy from student loans, the banks have become predators, the federal government now books over $40 Billion in profits from the program, and the federal government now actually PROFITS FROM DEFAULTS!!! This is a defining hallmark of a predatory lending system, is not defensible, or tolerable. This MUST END.
While many of our elected officials talk about fighting the banks, and I admire this, but silence on this issue flies completely and directly in the face of this rhetoric. The citizens are not stupid on this issue anymore, There are 27 million people who are currently unable to pay on their student loans. While very few of them would ever file for bankruptcy, particularly in the presence of more attractive repayment programs, ALL of them understand the inherent injustice that is being inflicted upon them by the banks, and the Department of Education as a result of bankruptcy protections not being there for them, as it is for every other borrower of every other type of loan.
The Founding Fathers place a uniform system of bankruptcy ahead of the power to declare war, coin currency, and the power to raise an army and navy when enumerating the powers of Congress. There was a good reason for that, and the student loan problem illustrates this in spades.
There are 27 million distressed borrowers that vote, and their numbers are enough to turn a loss into a landslide, and vice versa. I will be hoping and expecting Senator Sanders to give these people someone to vote for, instead of against in the election by unambiguously champion the return of standard bankruptcy protections to all student loans through the repeal of 11 USC 523(a)(8).
These people can either fight very hard for you, or against you. They won't be swept up by the rhetoric. They will be scrutinizing your campaign very closely, and will not hesitate to vote against you or for you, depending on the bankruptcy issue.
I can say to you that the ONLY meaningful fix for this problem begins by forcing the lending system to contend with the same bankruptcy protections that EVERY other lender for EVERY other type of loan must contend with.
Removing bankruptcy protections from both federal and private loans was a dirty, dirty trick by the industry, up to and including the federal government. This happened by creating 11 USC 5233(a)(8), which made student loans the ONLY type of loan in our nation's history to be vacated of standard bankruptcy protections. What is most important: when student loans were treated the same as ALL OTHER LOANS in bankruptcy court, FAR LESS THAN 1% were discharged this way.
Because Congress removed standard bankruptcy from student loans, the banks have become predators, the federal government now books over $40 Billion in profits from the program, and the federal government now actually PROFITS FROM DEFAULTS!!! This is a defining hallmark of a predatory lending system, is not defensible, or tolerable. This MUST END.
While many of our elected officials talk about fighting the banks, and I admire this, but silence on this issue flies completely and directly in the face of this rhetoric. The citizens are not stupid on this issue anymore, There are 27 million people who are currently unable to pay on their student loans. While very few of them would ever file for bankruptcy, particularly in the presence of more attractive repayment programs, ALL of them understand the inherent injustice that is being inflicted upon them by the banks, and the Department of Education as a result of bankruptcy protections not being there for them, as it is for every other borrower of every other type of loan.
The Founding Fathers place a uniform system of bankruptcy ahead of the power to declare war, coin currency, and the power to raise an army and navy when enumerating the powers of Congress. There was a good reason for that, and the student loan problem illustrates this in spades.
There are 27 million distressed borrowers that vote, and their numbers are enough to turn a loss into a landslide, and vice versa. I will be hoping and expecting Senator Sanders to give these people someone to vote for, instead of against in the election by unambiguously champion the return of standard bankruptcy protections to all student loans through the repeal of 11 USC 523(a)(8).
These people can either fight very hard for you, or against you. They won't be swept up by the rhetoric. They will be scrutinizing your campaign very closely, and will not hesitate to vote against you or for you, depending on the bankruptcy issue.
Why is this important?
Reform Student Loan Bankruptcy laws. Repeal 11 USC 523(a)(8) and stop predatory lending of student loans. Many of these loans will not restructure payment terms and our children are leaving schools with no job yet or low paying internships, an education and cannot afford to pay the loans. Now our children are unable to be a positive part of our economic society. They can't even rent a home or apartment because of bad credit. The pain that has caused students is also inflicted upon their families. Many of which have cosigned for the loans. Allow bankruptcy for student loans. America should have the same rights as all loan types in the event of needed protections of their finances.