There are those who always raise the issue of “I paid for mine, you pay for yours. I know of no other debt created by borrowing money where the penalty is a life time of servitude and the means of retirement in Social Security is also attached too.
Principal remains untouched and whatever money paid goes to interest atop of interest and penalties. By the time salary catches up and if it does, the interest and penalties have grown.
Allen Collinge of Student Loan Justice is finally getting national Coverage on TV.
Biden expected to tackle student loan debt crisis, what the impact would be, “Rebound,” January 25, 2020
President Joe Biden campaigned on a promise to help solve the student loan debt crisis, and many are expecting him to tackle that soon. On the campaign trail, he spoke about favoring some student loan debt forgiveness but was hesitant on the idea of wiping out the debt completely.
Student loan debt forgiveness, in any form, is very controversial. While some believe it is necessary for millions of Americans who are unable to pay these loans back. Others worry it will raise the national debt to help those who are unable to repay their loans.
Neal McCluskey, with the Cato Institute
“You have to remember, people who earning a bachelor’s degree or advanced degree, greatly on average, increase their lifetime earnings. Starting when you get a bachelor’s degree, about $1 million more than someone who gets a high school diploma.”
McCluskey says student loan forgiveness sounds good to those with student loans, but he says it becomes “very problematic” for everyone else.
While many who graduate with an advanced degree do tend to make more on average, that is not always the case.
“I went to college because I was unhappy with my life. I wasn’t finding good jobs because I didn’t have an education, so everyone your whole life was saying, ‘If you want a good future, you go to college,” said Chad Albright.
In 2005, Albright enrolled at Millersville University of Pennsylvania, studying communications and public relations.
“I worked full-time went to school full-time,” Albright added.
In order to fund his education, he had to take out tens of thousands of dollars in student loans.
“As soon as I graduate comes the great recession and no jobs available,” explained Albright.
He struggled to find work and pay back his student loans for four years.
“I was frustrated not being able to find a job. I even tried to join the military”
However, that didn’t pan out either. Overwhelmed with a growing student loan debt due to interest and feeling hopeless about the possibility of ever repaying the debt, he made a decision to leave the U.S. and his debt behind.
In 2011, Albright moved abroad.
Albright: “The only thing college did is ruin my credit rating and forced me to leave my country. I haven’t seen my mother in over three years.”
Alan Collinge Founder of Student Loan Justice
“People are committing suicide, fleeing the country. Young people and middle-aged people are unable to buy homes,” said Alan Collinge, Student Loan Justice.
Alan Collinge has fought for more than a decade for loan forgiveness and an end to predatory student loan practices.
“Student loans, unlike every other type of loan, has been uniquely stripped of fundamental consumer protections. There are no bankruptcy protection, for all intents and purposes, for student loans and no statute of limitations.“
“Fair debt collection laws, truth in lending laws, these have all been vacated from student loans.”
This the first time in his fight for student loan debt forgiveness and protections that he is cautiously optimistic. A new administration in the White House and a majority Democratic majority in the Senate and House could lead to student loan forgiveness and better protections
“Bankruptcy protections absolutely must be returned for loans that cannot be canceled. In fact, bankruptcy is probably the more important and fundamental right that has to be restored,” said Collinge.
At this point, it will take either full loan forgiveness or bankruptcy protection for Albright to come home. On principle, he refuses to pay back debt never leading to a job and being allowed to rack it up with little protection.
“I see the U.S. as tyranny. They have me and 40 million other people in a debtor’s prison,” said Albright.