Progress Illinois

Hats off the Rep. Davis and Rep. Durbin. They seem to be the only Congressional members who "get it" and who are looking out for the borrower instead of the private for profit lender giant. Please support these members in their fight. Call your representative and tell him or her that you expect them to support this bill and to, for a change, look out for the citizens instead of the lobbyist. It is way past time to correct this huge problem and restore all consumer protections that were stripped, including the bankruptcy rights, for these private for profit consumer loans. I have recently decided that my Congressman will no longer have my support because he said he understood and was behind the students yet he has failed to do anything about it. The time for talk is over and the time for action is now. Please, please, take this directly to the persons responsible for creating such a mess, Congress, and don't ask but tell them to correct their mess and do it now. The very future of students who have been left out to the wolves depends on your actions. Please don't let them down.

Thank goodness for the two representatives! I understand federal guaranteed loans, but private loans are another matter entirely. Taking out loans to pay for college is not a crime. But it's lumped in with child support, back taxes and criminal charges. I really do understand Congress protecting its own backed loans and having an alternate program for them. But Sallie Mae as a private lender means that its on the credit report, that they have rights to access everything about a person, can call familes to let them know that you are late, call a million times a day and harrass young adults who are not even in default.

While on the one hand I support any relief for student borrowers burried in an endless mountain of debt, it outrages many of us who have been victimized by the very same mechanisms as those involved in private loans. It's not OK when a "for profit" institution does it, but if the federal government is involved then that's a different story. Senators Durbin and Davis, do you really beleive that borrowers of federally guarenteed loans are enjoying some kind of mysterious protection that sigificantly separates them from private loan borrowers ?
While I agree that their are some elements of private loans that make them even more predatory that FFEL loans, this is kind of like comparing terminal cancer to a brain tumor. Their are some differences, but they are both likely to kill you.
The profits companies are raking in off of defaulted FFEL loans are staggering. The shear numbers of borrowers that are financially enslaved to these debts as a direct result of the lack of protection is enormous. How dare you suggest that because these are goverment backed loans that it is an understandable consequence. Your thinking in this matter simply drives one more nail into the financial coffins of the tens of thousands of FFEL borrowers that are knocked out of the game every year due to essentiallly the same conditions you state you oppose in private lending. Is it OK for the goverment to engage in predatory lending practices ?
Please understand, that I do not think that it was the majority of congess intention when these protections were removed. It is, however, the reality now. It is all good and well to say you must protect the taxpayers money, but sometimes it is more important to man/women up and admit that some very bad and toxic legislation was passed that resulted in lenders victimizing FFEL borrowers as well. How about affording us some protection too.
And while we're using the, "but it's taxpayer money," excuse, let's step back and be real honest. Not only are student loans the only consumer debt void of standard consumer protection, they are the only government backed loan void of protection as well.
Their never was a bonified rational for removing these protections. They exist in consumer debt to protect citizens from being exploited. Guess what ? FFEL borrowers are being exploited. But, that's OK, it's the government.
One final point. To those out their that feel resentful of the idea that bankrutcy protection for all student loan will cause a catastrophe with their tax dollare, the joke is on you. What do you think happens when the government has to pay up on a guarentee. In most cases the balances are exploded to a point that few borrowers are ever able to pay enough to even touch the principle. Lenders, guarators, servicers and collectors enjoy a lifetime of collecting on the penalties and interest which lines their pockets rather than returning it to yours.
Restore standard consumer protections to ALL student loans. Only three significant events have been assured since you removed them. Individual student loan debts have exploded. Student loan debt nationallly has exploded. College tuition and costs have exploded. Sounds like good ploicy to me.

EdMcK you are right about federal backed loans being void of protections as well however, the difference between the two lie in usury, tactics employed to balloon debt, extremely aggressive collection tactics that clearly violate the law in any other instance, lack of working with borrowers, etc. What I am trying to say is that with the Federal government involved, there is at least some cap on interest rates and fees, and when you are dealing with Direct Loans, you are dealing with the government and they are much more willing to work with borrowers without going out of their way to balloon their debt. I know because we have private, Direct and Perkins so we are dealing with all the parties ---- Sallie Mae, Dept of Education, and the university. Hands down, for us, dealing with the Federal government is the direct opposite of dealing with Sallie Mae. There isn't any comparison. I do agree however that the protections, including bankruptcy, should be returned to all student loans but the reason the bankruptcy provision is more applicable to private student loans is that they are consumer credit based private for profit loans that are not backed by anyone and have mostly variable rates and they are the only consumer credit based loan without these protections. Why???????????? The answer is only too clear - special interests are running our Congress.

I am so greatful for these two individuals who are fighting to make things right again. It's not that us students/graduates don't want to pay the loans back, we can't. From about 2005-2008 there were decent paying jobs. Now, I can't even get a job at a pet store because I have a Master's Degree. Student's did not predict a recession with a major economic change to go along with it.

Basically, whether kids file bankruptcy or the loans go into default, the cost of ecucation is going to rise. We have nothing left to give and those who inherit the private loans will have nothing to give.

Us kids who turn 18 are NOT middle class. We're poor. So we live in crammped up dorm rooms, spend 12+ hours going to school and work plus homework, live off of canned food and potatoe chips with the hope that one day life will be better. The media portrays college life to be one big thrill ride. Reality check: It is sheer misery and depression. So, unless you've been there, you have no opinion about our situation.

My hope is that current college kids and upcoming freshman are informed about the potential consequences of taking out any student loan. To the banks: QUIT pushing credit cards in our faces. We don't have a pot to pee in or a window to throw it out of. Our parents don't have any money either because their profit sharings got wiped out.

I'm very glad that two reps are fighting for this; it will bring an all around positive change to this country to have standard consumer protections, including bankruptcy, restored to student loans. It should be restored to private and federal loans without any time limit, but hopefully this bill they are proposing will pass and be a step in the right direction.

Thank you for bringing about sanity in the bankruptcy bill! We didn't ask for the recession, we had a dream that we would be the next multi-millionaires or traveling through different countries or even making a difference in the world. Some of us just wanted a better life, even to try to be good role models for our children.
When tides turn, we are faced with a mountain of debt. As I have recently found out, even if a parent was to pass away, private student loans would haunt their children. The least we can do is take the burden off of the already pressed generation that is to come. Huge big businesses can file and have all the protections that it entails. Why can't the struggling working single parent or poverty level couple. Private student loans are among the worst financial pillaging many have ever seen. No laws govern them, no amount of legalities will prevent them from harassing you. The common people need protection from this. We don't need more big businesses getting rich off of the working poor. Many people are struggling to make ends meet as it is. We're in a recession that was brought on by big business and unscrupulous lending practices. The common person has only one option out, bankruptcy (which big banks obviously have lobbied to prevent any consumer protections).
Please support this bill.

I am one of the many former students who are being preyed upon by these legalized mobsters they call student loan companies. I was told I was signing for Government loans. I signed for 20k in Federal loans and 40k in Private loans. Now I'm about to have my pay garnished and I'm already broke and bottom of the barrel. My life is destroyed. Please help students like us. The banks just want money. We want a future.

I will never be able to have a future now.

I feel you brother. Way I see it is that credit score is just a way to get you further in debt. SO F em. Live with a smile and be thankful you are breathing and healthy.