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.
[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.