Saturday, March 30, 2013

Taegan Goddard's Coverage on Mounting Defaults

This subject, that of an increase in student loan defaults, has been covered for several years on AEM. So, this won't come as a surprise to most of my readers, but student loan defaults are worsening.

Over at Political Wire, Taegan Goddard provided a short brief about the increase in student loan defaults. 

Here's a snippet:
The Department’s Office of Inspector General… blames a system installed in 2011 by Xerox that is supposed to transfer defaulted loan accounts from servicing companies to private collection agencies… The Inspector General’s office says the collection problem led to a ‘material weakness’ in the department’s financial controls last fiscal year, according to CNBC.
While this post paints a decent picture of the problem at the macro level, it does not offer insights into the emotional and financial turmoil that is occurring in millions of homes across the country. Alas, it is 2013, and I have high hopes for this year, high hopes for actual solutions. Who knows? Maybe those solutions don't have to come out of legislation or policy changes in D.C. After all, Congress is - once again (sigh) - at yet another impasse, because of the high level of dysfunction in D.C. One should really say they have created multiple stalemates or dead ends, instead of suggesting it is merely one impasse.  (And for the critics out there, who will quickly point out that this is "business as usual," here's what I have to say: D.C. hasn't always been this dysfunctional. This is a well-known fact inside the Beltway). In any event, it pains me to read these figures, as I can't help but think about the letters I've received, and continue to receive, that are filled with anguish, dread, and fear from overwhelmed, educated, and indebted Americans. 


Tony said...

I have a blog: It is based loosely on the Opportunity Maine tax Credit and the $5250 Tuition Reimbursement program that allows employees to go back to school with employer receiving a tax credit.
I ask that you please take the time to read several of my posts I ask that that you comment if you like it and tell your friends and if you don’t like it comment and tell me why it will not work.
This is just a small part of a solution to this $1 Trillion student loan debt that continues to grow larger everyday!
Ask your Congressmen; I did Vitter and Landreau of Louisiana that seldom agree on anything their answer was they voted to keep interest rates low and they share my concern.
Well if they did they would be working on solutions not just dragging this debt out!
i ask you to write you Congressmen it seems to be the answer that all of them have
Thank you for your time if we all come together we can find solutions and wipe out most of this debt if not all!!!

Johnny Debtor said...

Re: The link for the radio show last summer:

Anonymous said...

I wrote my congressman. I told him how I am a master's degree holding homeless person who lives out of my car because my payments are over 80% of my income. I explained that at no point throughout my education did I ever qualify for grants. His reply? "I support education. See if you can get a grant." Clearly he didn't read my message, doesn't care and is completely out of touch with the common person. I have to rely on this individual to represent my interests and it scares me to death.

Cryn, you mentioned having hope for our cause after speaking with key people on the hill. I certainly hope your feedback was better than mine. We're dying out here. Literally.

Cryn Johannsen said...

@Anonymous April 16th -

Thanks so much for sharing with us. I am very, very sorry to hear that you are living out of your car. This type of information is beyond frustrating to me.

May I repost your comment for my next entry?

Let me know.

Don't give up hope. I know it's hard. It's hard for millions of us, but I have hope that we can turn this problem around. I am realistic and understand what we're up against, but I know there are countless possibilities that could lead to real change.


Anonymous said...

Thanks for your good hope, Cryn. You may absolutely re-post my comment. Thank you for your advocacy.

Chris said...

Until the investment vehicle SLABS impacts retirements, there is no hope that the student loan issues will be tackled, let along solved. It will take a whole generation coming to the conclusion, grandma should live on catfood.