Student loan debt, cancellation, reformation? A cause for massive concern for our nation. Over 40 million people and counting owe a collective of almost $2 trillion in student loans. These loans, federally backed and held by lending institutions such as Mohella, Aidvantage, SoFI and more are an atrocity to this nation! Read the article, “The U.S. government profits on defaulted student loans.”
This should shock and should absolutely be a cause for concern for borrowers and our fellow American citizens. The Republican Party — a strong opponent to big government — should absolutely be tearing their hair out reading this article. The government in fact does massively profit off student debt, especially defaulted loans. The loans are unconstitutional as they lack any uniform bankruptcy rights, statute of limitations and no protections for the borrowers. The Constitution (Article 1 section 8) calls for uniform bankruptcy rights ahead of the power to declare war.
85% of borrowers were never going to be able to repay their loans since before the pandemic, and nearly 60% had stopped paying altogether. More than half of all borrowers are over 35 (vs. under 35). But people over 50 outnumber people under 25, and they owe 300% more, on average.
Nicholas Linkey, Logan