A defining hallmark of a predatory lending system. In 2010, we found that the federal government was making a profit, not a loss, on defaulted student loans. This is a claim that no other lender for any other type of loan (including governmental loans) can make. More recent White House…

They had either stopped paying, or were paying but with increasing loan balances before the pandemic. This article was updated on 2/16/23 * There are about 43.4 million federal student loan borrowers. According to former Federal Student Aid Chief, Wayne Johnson, 85% of these borrowers were either not paying (over…

The removal of constitutional bankruptcy rights is the core issue. During the 1700’s, American colonists- including George Washington, Thomas Jefferson, Robert Morris, and others- were being treated poorly under debt- typically to British banks, trading companies, and other investors. In fact, the issue of debt was so concerning to the…

The loans can be cancelled entirely at little- or no- cost to the taxpayers. For decades, student loan interests- both inside and outside of government- have been claiming that the federal student loan program has been a cost to taxpayers. More recently, they are claiming that cancelling federal student loans…

They betrayed the people in ’08 and in the Lame Duck of ‘10. They’re on the verge of doing it again. The Founders- including many who were being financially exploited by British banks, trading companies, and others- called for uniform bankruptcy laws ahead of the power to raise an army…

Undue Hardship remains, is only transferred from open court to the bowels of the Administrative State. On November 17th, 2023, the Departments of Justice and Education unveiled their long-awaited plan to stop opposing student loan borrowers in bankruptcy court. …

The Department of Education will find ways to not cancel loans The Biden Administration announced a federal student loan cancellation action today. …

All federally owned loans could be cancelled entirely, and the government would lose little or nothing. The General Accounting Office (GAO) recently published a report claiming that the federal Direct Student Loan program was, on balance, a cost to the federal government, rather than an income source as was previously…

Disqualification of 99% of borrowers from IDR plans, and the profitability of defaulted loans render the study completely false. The General Accounting Office (GAO) recently published a report claiming that the federal Direct Student Loan program was, on balance, a cost to the federal government, rather than an income source…