Mother does not want to pay deceased son’s student loans (Update)
Do you think the holder of a private school loan is heartless for demanding payment on a student loan of a person who has died?
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In Chicago, a mother who lost her son to natural causes in 2009, is being asked to pay student loan payments even though her son is dead. I certainly feel bad for the woman, but she did co-sign for the loan and the school did get their tuition money.
In short, if the mother does not want to pay, why isn’t she petitioning the school – instead of the private loan holder – to refund the tuition paid so the loans can be paid off? Might sound plausible, but that’s not what she’s asking for. The mother is asking for the lender to forgive the loan debt. My emphasis in bold.
“I am 61 years old and I have been trying to work to make Jermaine’s loan payments…but I simply don’t have the money,” Ella wrote. “To make matters worse, Jermaine left behind a young son whose mother doesn’t have many resources. Therefore, she relies on me to help support Jermaine’s son.”
The petition directed to the institutions includes a letter calling for forgiveness of the loan.
“I’m horrified at your institution’s practice of hounding a dead student’s family for repayment of student loans he’ll never get a chance to use,” the letter reads. “I’m calling on you to do the only humane thing — let this still-grieving mother mourn the loss of her only son in peace. I stand with the Ella Edwards family and decent people everywhere in demanding that you discharge Jermaine Edwards’ student loan debt today.”
Remember. The bad guy here is the private lending institution, and as far as mom is concerned the school has no responsibility to return or refund the tuition. Why you think the demands are aimed at the private lending institution exclusively?
I can not comprehend why a lender would just write off more than $10,000 in debt when they wrote the check to fund the tuition of the student. But of course, there are exceptions, especially if you are the government.
Jermain had three student loans when he died, two federal and one private. The two federal government loans were forgiven within a month of his death. However, the private loan company is refusing to forgive the loan.
Isn’t that interesting? Of course, the school will say they provided their services in full and deserve to get and keep their income. Fair enough, but but what about the risk-takers who provided more than $10,000 in cash to pay the school in advance for the student?
What would Obama do?
No doubt, President Obama and the liberal establishment will use this example as proof private banks and lending institutions should not be in the business of providing school loans. It should be the exclusive realm of the federal government. That way, if the student dies or is unable to pay back the loans, the federal government can simply wipe out the debt with a stroke of the pen.
The school’s got their money … just add it to the federal taxpayer’s tab. We don’t seem to mind all that much.
Update: Washington Proposes $1 Trillion Bailout for Delinquent Student Loans. Why not? My emphasis in bold again.
America’s now-nationalized student loan industry just reached a value of $1 trillion, according to Citigroup, growing at a 20 percent-per-year pace. Since President Obama nationalized the industry (a tacked-on provision of the Obamacare bill), tuition has gone up 25 percent and the three-year default rate is at a record 13.4 percent.
We told you this would happen.
[L]iberals in Congress have proposed forgiving all student loans via “The Student Loan Forgiveness Act 2012,” costing taxpayers $1 trillion.
Goodness grief…
[U.S. Rep. Hansen Clarke’s (D-Mich.)] bill, which currently has five other sponsors, is aimed at helping current and future student borrowers. If it passes, people who take out student loans could see their debt forgiven up to $45,520, equal to the average cost of a four year degree at a public university.
Yup, the schools and all the union teachers got their pay, now we just have to all be willing to pay again.
14 Comments
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um, a little help steve?? where do i send my letter to get the gov’t to reimburse me for the student loan i paid back?? anyone who has met the terms of their contract surely can expect speedy recompense, no?? it’s only ‘fair’. . .? i’d go after the bank, but since the federal gov’t is the sole source, it’s their ‘level field’.
You see, since the federal government extinguished her obligation in a matter of 30 days, she can’t figure out why the private lender won’t do the same thing. Although I do feel bad for her situation, I certainly hope she elects to always procure future loans from the federal government, since she knows they will forgive them if she is unable to pay.
It’s ALL about the money!
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Jermaine originally took the money, USED it for his purposes, went toes up, Momma co-signed the loan — why? I don’t know — I’d say that she’s fairly well in it.
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What does anyone else do when they can’t pay back a debt?
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Maybe Obama can sign an Executive Order absolving her debt . . . show everyone that he cares. Otherwise, where’s all of those community do-gooders? Al Sharpton, ACLU, et al.
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She’s on the hook because she cosigned the loan plain and simple.? The whole “story” is just more media brainwash to further the notion that private banks are evil, like everything else associated with capitalism.? The fact that our “educational” system is effectively engineering each succeeding generation to be increasingly receptive to this just further convinces me that the free market system’s days are numbered.
Maybe one of those grossly overpaid media shills (Bill Maher comes to mind; he had a cool million to squander on ?bama) should stand up and pick up the tab for this woman!
Sad circumstances, however, that’s life.
When do we stop paying?? NEVER! The upheaval from economic irresponsibility will destroy this country, forever.? Sin has consequences.
in other news, Student Loan delinquency rates went parabolic:
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http://www.zerohedge.com/news/2012-11-27/scariest-chart-quarter-student-debt-bubble-officially-pops-90-day-delinquency-rate-g
[img]http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/11-2/Student%20Loan%20Delinquencies_0.jpg[/img]
heh, guess we cant use img code here?
No images, but links are welcome.
What should be some MUCH needed downward pressure on spiraling tuition costs will instead be a conve3nient crisis for your government to exploit to justify digging ever deeper into “someone else’s” pockets (yours and mine) for the oh-so-necessary rescue because only a knuckle dragging troglodyte would be against supporting education and tomorrow’s brainwashed socialists, the children…. PLUS it will be used as justification for taking private money out of the student loan biz.
Of course they skyrocketed! ?Why not, when it became apparent to the takers that Santabama will eventually pick up the tab?
Free fours years of college…..I just found out how to fund retirement….. four years of school followed by disability for alcoholism and sue the school for causing the alcoholism! Or I’ll go to Denver or Washington State for school and save my liver.
Contracts, smondracts!? Maybe unemployed students will start suing schools for their lack of employment now too!
Typical heartless conservative monsters attacking a grieving mother with no money to meet her contractual obligations.