Naviet Sued for Abusive Student Loan Practices

State Prosecutors Accuse Student Loan Giant Of Wrongdoing
According to the Huffpost Business Navient Corp., the nation’s largest student loan company, violated state laws that ban unfair or abusive practices by paying call center workers based on how quickly they could get struggling borrowers off the phone, a group of more than two dozen state attorneys general alleged.  For more

This practice smacks of the same problems that permeated the mortgage lending practices.  Lenders are rewarded for doing nothing that will really help the borrowers.  I am not asking you to ignore the horrible abuses that a few borrowers suffered on the student loan system.  Borrowing hundreds of thousands of dollars to obtain a degree that will never provide for the necessary funds to pay their student loans.  Money is not free.  Loans should not be entered into without understanding the long range consequences on the family budget.
Having said that lenders (schools) need to be responsible for their actions.  They give loans to individuals that they know will not be able to repay the debt, unless they hit the lottery.  The schools raise tuition so as to make more loans, which makes it impossible for those students who do not have to take out student loans to get an education.
Contact your Congressman/woman and urge them to pay attention to proposals to change the bankruptcy laws dealing with student loans back to where the laws were twenty, plus years ago.  Everyone with any insight into the lending market knows the next huge financial balloon to burst will be student loans.  Most likely this tsunami will look very similar to the mortgage loan debacle.
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