On a pretty regular basis during the last few years, we’ve seen stories concerning “outrageous” student loan rates and “unbearably-high” student loan principal amounts. The target is almost always the evil private student loan industrial complex and the employers who just won’t pay these kids enough money to pay off their loans. Should they direct their disgust elsewhere?
From the Daily Mail, we learn of Steve Mason’s plight. Tragically, his 27-year-old daughter and mother of three died in 2009 of liver failure after piling up $100,000 in student loans. Five years later, the amount owed is now $200,000. Mason co-signed for the loans. Throughout the article, it’s the private student loan companies who are the bad guys.
A Californian pastor is being mercilessly hounded for $200,000 in student loans he was saddled with when his 27-year-old daughter Lisa died suddenly of liver failure.
Crippled by the $2,000 a month in repayments and unable legally to declare bankruptcy to rid himself of the huge debt, Steve Mason, 59, and his wife Darnelle have reached their wits end.
Each time they have appealed to the lenders to beg for help, the couple have been told that the only solution is to repay the mammoth loans – some of which have interest rates of 12 percent – in full.
Of course, that statement is not true, as at least one lender provided Mason with some relief. From the same article … 15 paragraphs later.
One of the lenders, Navient Crop, did reduce Steve’s interest rate to 0% on three of four loans and lowered the amount owed from $35,000 to $27,000.
As I mentioned, these stories are not unusual. CNN lists more and the situation absolutely sucks for the families. It really does.
But should the media and the families be looking to the lenders or the schools for relief? Really now, think about this. The lenders don’t have the money or the resources to just forgive the loan. The lenders gave the tuition owed – in full – immediately to the school who paid the teachers and staff.
Why not petition the school, professors and staff for relief? We know the answer to that don’t we?
You can argue interest rates for student loans are too high all you want, but when you sign for the loan it’s quite clear in the documentation what the interest rate will be, when you will need to start paying off the debt, how many payments there will be and how long it will take to pay off the debt. It’s right there, in black and white.
Of course, the article notes how great government student loans are compared to the evil private loans …
Had they been federal student loans, then Steve [Mason] could have appealed to have them wiped or at the very least received a sensible and manageable payment plan.
But Mason was able to appeal, and it’s clear at least one of the loan holders adjusted the interest rate and payment amounts. It’s right there in the article!
That leaves the ability for the feds to have the loans “wiped.” A very nice payoff for the schools! You see, the government can just wipe out student loans and make the taxpayers and future generations foot the bill. It’s only a few dollars per person … fuhgeddaboudit.