Thread: College Loan and North America Ad

Below is an e-mail on college loans; please go to www.premierecredit. Notice that North America is being used in the ad.

[quote]Hey guys,

Well, It's election eve, and I've been asked alot lately about which candidate is worthy of an endorsement. Unfortunately, neither candidate has even addressed the issue of returning standard consumer protections to student loans. I can say that Obama offers the best chance of this happening, but the fact that neither candidate has even addressed this issue publicly is cause for serious concern, and disappointment. The only candidate, thus far, who has earned a contribution from our PAC is a challenger for Congress in Washington State, Rick Bart, who has called publicly for a student loan amnesty program.

Having said that, we have a real opportunity in the next 4 months to make this issue a major one. With the election over, there will be a ton of media time freed up for other purposes. It is up to us to make sure that the student loan scam in this country receives the attention it deserves.

Beacon Press has decided to move the publication date of the book to January. This will oincide nicely with the inauguration of the new president. In addition, I've been selected as one of 7 "good guys" for a prominent national magazine for the month of December. I have 3 media appearances scheduled ober the next 3 months, and I expect this will grow significantly...but only with your grassroots support. This means calling reporters, and convincing them to do stories about this issue. We definitely have the numbers at this point. Our membership has grown to exceed 3000 members at this point, and word of mouth seems to be working (although it is still not where it needs to be).

Remember, guys, we have an incredibly strong and compelling case to make, and this is being noticed. However, it is still going to take a ton of effort by you all to continue to get the word out There are 5 million of us (if not 10 million) in the country, and we have to get to them. It takes alot of persistence, and dealijng with alot of frustration, believe me. For every reporter you can convince to do a story, there will be 10 who waste your time, and end up publishing nothing. The first story I ever got published on this issue, for example (Fortune Magazine/Bethany McLean), took over a year to publish anything...but it was worth the trouble.


So gear up, guys. Educate yourselves, and get ready to do a full court press after the election. Its really very simple.

Below is a short summary of the issues that I have been sending around to reporters. Use it.


Regards,

Alan
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Hi. I am involved with a grassroots organization called StudentLoanJustice.Org. We started in 2005, and have grown to

comprise thousands of people across the country. Will you please consider doing a story on the predatory nature of student

loans?

The story:

Student loans stand alone among all other types of loans in our nations history to have the most basics, standard consumer

protections taken away. This happened since the mid-90's due to a heavily lobbied Congress and sympathetic executive

branch. Today, Student loans are the only loans in existence to be exempt from standard bankruptcy protections, Statutes of

limitations, Truth in lending requirements, refinancing rights, and even Fair Debt Collection Practices. At the same time, the

student loan industry convinced Congress to give them mafia-like collection powers including wage garnishments Tax return

garnishment, and even social security and disability garnishment---all without requiring a court order! In addition borrowers can

be terminated from public employment, and can have their professional licenses suspended as a result of their student loans.

This system actually makes it very lucrative for the lending industry when the borrowers fall behind, and actually makes it far

more profitable when a borrower defaults on their loans! They are, in effect, rewarded for confusing the borrower, and their

profits become inversely proportional to the quality of their customer service!

The end result is that decent citizens who fall behind on their payments (for whatever reason) are strong-armed into repaying

far, far, far more than the amount they originally borrowed. This often doubles and triples the debt (or far worse in some

instances), and there is absolutely no recourse. We have documented thousands of stories from across the country that

include people being forced off the grid, fleeing the country, and even committing suicide as a result of this predatory activity.

I hope that you might consider doing a story in your local area. I have (and would like to send you) many stories from your

state, from people who are willing to be interviewed. I can also send you thousands of stories from across the country if you

would like to interview them. I could go on and on here, but I will simply post a couple of examples at the end of this email for

your review.

One last point: In the first year of doing this, we ended up being featured in fortune Magazine, and also were featured in the

top story on 60 minutes in May, 2006. Hillary Clinton introduced a Bill on our behalf in 2006, as did Dick Durbin, and Danny

Davis. All have been quietly killed due to massive lobbying by the student loan industry. Also, Since then. Also, our plight has

been largely drown out by the credit crisis in the student loan industry. This is why I am writing to you to urgently request your

consideration. I will paste a couple of facts below for your further consideration. Also, check out our website to see more.

One last request: go to www.premierecredit.com for 10 seconds if you have any doubts about how ruthless this industry has

become. You will see what I am talking about if you just go there.

Please write me back if you are interested. I can also put you in touch with our local "state chapter leader" in your area.

Thank you very much.


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Student Loan Industry FACTS.


1. The student loan industry has grown to rival the credit card industry ($550 billion outstanding debt compared to $850 billion

for credit cards.

2. "Fee income" for Sallie Mae, the nations largest lender, grew by 228% between 200-2005 (Their loan portfolio grew by only

87% during the same time period)

3. Despite false advertisements by the industry that defaults are dropping, defaults are actually rising- in fact, about 1 in 5

borrowers will default on their student loans.

4. The average undergraduate borrower now leaves school with $23,000 in student loan debt, $42,000 for graduate students

5. The cost of college has risen at double the consumer price index for the past 30 years

6. Student Loans are the ONLY loans in our nation's history to be specifically exempted from bankruptcy protections, truth in

lending requirements, statutes of limitations, state usury laws, and even fair debt collection practices.

7. Between 1995-2005, Sallie Mae set aside $3.6 Billion in stock for its employees. This amounts to about $640,000 per

employee.

8. The Sallie Mae CEO bragged to shareholders in the 2003 annual report that their record profits that year were attributable

to collections on defaulted loans, and other student loan companies report similar trends.

9. Decent citizens whose only crime was to attempt to better themselves through higher education are literally going off the

grid, fleeing the country, or worse as a result of this predatory debt.


The following are testimonials submitted to this site. To tell your story, please go here.

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Withheld (Maryland)

I am writing to tell my sister's story. She is no longer with us...She took her life a year ago.

My sister was the first in our family to attend college. She graduated from Johns Hopkins University and did really well for

awhile. In her early 30s, she became ill (breast cancer) and was unable to work. I am not sure how she was paying her loans,

but I know the student loan representatives were hounding her. I spoke with several on her behalf and little if anything was

ever accomplished.

My sister was out of work for a very long time as "chemo" made her very ill. She was repeatedly called by student loan

representatives even when told how ill she was.

I do not want to go into a great deal of detail, but I will say that my sister took her life as she said she simply did not want to live

anymore. What is interesting is that my sister was not terminally ill. Her cancer was in stage 2...and her prognosis were very

good. What ultimately led to my sister's death is the way she was repeatedly hounded by collection agencies regarding her

student loans. I wrote to a Maryland Senator myself and stated that something has to be done about this. People are being

penalized for going after their dreams of becoming educated. Does anyone else see something wrong with this picture?

My sister's life has been an inspiration to me. I have decided to go back to school. I promised her that I would not obtain any

student loans...I am doing it the old fashion way....I am working 3 jobs to finance my education. I will be somewhere in my

early 40s when I finish, but at least I won't have to be concerned about being literally worried to death over student loans....



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Gail (Oregon)

This is my son's story so I don't have all the facts but I do know enough to know it was one of the factors that drove him to

suicide. He was very depressed because he owed over $200,000 in student loans and saw no end to ever paying them off.

He had consolidated before the interest went way down and when he looked into doing it when interest was good he was told

he could only do it once in the life of the loans. He had gotten his masters degree and had almost completed his PHD.

Because of this hard line rule it became overwhelming. He committed suicide 9/28/05 and the world lost a beautiful, brilliant

person and I lost one of the loves of my life. I'm not just saying these things because I am his Mother and loved him.

He was so smart he belonged to MENSA and I am attaching his local obituary. I keep receiving bills from the student loans

even though I have repeatedly returned them to sender with the message that he was deceased. When they kept coming I

added the fact that he was deceased in part because of these bills and when they still kept coming I added that they were

rubbing salt in a wound and were breaking my heart and to please cease already. Michele was 39 and had so much to give.

His Father is dying of liver cancer but Michele's death is the tragedy of his life, even more than his own death sentence. His

wife, his parents and brothers are all victims. I would like to see legislation that protects these students and gives them

alternatives if they have a hardship repaying these loans.

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David (Texas)

I don't have all the facts and figures about my situation but here's a synopsis. I graduated from chiropractic school (1989) and

defaulted on my federal student loans (for the same reasons that others have had to default) that totaled approximately

$40,000 (in 1989) and now total $320,000 (based on a collection agency's claim in 2005). I can't renew my license to make a

living (much less make payments (they wanted $800 per month in 1996) on the loans) and have experienced feelings of

hopelessness, despair, no self-esteem, depression, suicide, etc., etc.

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The Austins

My husband took out a Heal loan for podiatry school in 1982, 1983, 1984 totaling $39,000. We have paid Sallie Mae over

$88,000. In the last three years due to illness, bad luck and decisions, my husband's work has declined substantially. He has

exhausted his deferments, and now his loan has accumulated a tremendous amount of interest. This was a $39,000 debt that

now will have cost him well over $223,000 and more. All his government student loans have been paid in full. This particular

loan was originally obtained by a saving and loan that went bankrupt and then was later sold to Sallie Mae. It is not considered

a federally backed student loan. We have difficulty, but are able to pay our other debts such as food, clothing, car payment,

credit cards, etc. When my husband stopped paying he was making payments of $700-800 a month. We presently do not own

a home, but plan on purchasing one soon. He is apprehensive about filing bankruptcy on other debt that we can pay. Also,

you must file a student loan "undue hardship" separate from a bankruptcy anyways. How do we find a lawyer to do this,

because everyone I have contacted pretty much states "student loans can not be included in any bankruptcy". Personally I

don't think they want to bother even in legitimate cases. We have made several attempts to work out arrangements with Sallie

Mae, to no avail. Their only recourse is for him to take out another loan, with of course all this additional accrued interest. If

that is our only recourse, we will be paying $500,000 on a $39,000 debt. He is now 53 years old and this is getting scary.

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B. Napoli (CA)

Q: How does the American middle class dream of affordable
higher education become a nightmare?
A: Default a student loan.


Synopsis:


Multiple loans as a graduate student attending Cal State Northridge. Full-time through 1993 in an approved grad program, no

problems, just sailing along. (received loan in Sp. 1993). Earthquake in Sp. '94, lost home(apt.) verified by FEMA, dropped

down to less than 1/2 time. Put into default. Wrote numerous letters to CSAC & loan Co. (AFSA), that due to hardship, I'd be

dropping below full-time. To no avail, defaulted. Returned full-time in Fall '94 thru Sp.'95 full time, sent numerous letters (all

certified mail), "sorry, but can't help." I've been fighting this since then. Have all documentation, but it's useless. Every year

(thru 1997), I would ask for a dispute hearing, and was answered with either a garnishment or judgment. Finally gave up.

Original loans @26,000, now over 70,000.
Paid over $40,000 in garnish $ tax intercept, lost my
scholarships (PhD), loan forgiveness programs, and chance at
a fellowship.


I actually taught at a low income, inner city school in Los Angeles for 5 years with the expectation that my student loans would

be forgiven. After 5 years, I learned that my loans would not be forgiven due to my default status.


Made the mistake of contacting Scott Williams & EdFund. I offered a settlement, also, but no bite. Edfund, a "non-profit", has

also jacked my interest rate up to 19%.


I left off of the synopsis all the anguish, the
embarrassment, credit problems, anxiety, etc.( need I go on?)
All I want to do is pay my loans at a reasonable amount, and
get back to my life.

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Kathryn

I can only tell you part of my story, because my loans have been passed around so much that I have no idea how my interest

accrued or what the costs are. Due to a failed business and serious clinical depression, I had to declare bankruptcy in 2002. I

defaulted on my student loans, and now, after a couple of years of repaying, I am "rehabilitated". The lapse in paying back

these loans was no more than a year. My Sallie Mae bill went from 42,000 to 58,000. I just rehabilitated another loan (by the

way, these loans should be rehabilitated with 12 straight payments, but somehow, they "forget" to send them off to another

purchaser). Following the purchase of this loan by a bank, I received a "paid in full" note. The current amount I owe on this

note is more than $10,000(remember I have been repaying for about 2 years now). The amount of my original promissory note?

Less than $4100. WOW, huh?

I won't bore you with the tales of my other student loans. All told, I expect to repay them all by the age of 70, based on the

payment schedule. Well, that's one way of keeping me from retiring and collecting Social Security. (These debts were

incurred when I was 35 years old, by the way.)

My, my...you would think these student loans would not be given to loan sharks, but...


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Tina (Mississippi)

This is my story and I sincerely hope that someone will read it. My name is Tina Lutz and I am a 45-year-old Caucasian woman

living in Tupelo Mississippi. I have two children ages 14 and 16. I have been divorced for 10 years and have been rearing my

children alone.

I graduated from the University of Southern Mississippi in 1985. During my college career I incurred $6000 in student loan

debt. $1000 was incurred from Western State College in Gunnison, Colorado and $5000 from the University of Southern

Mississippi. Due to my financial situation over the years I could not be as diligent in the repayment of my student loans as I

should have been. I have consolidated and defaulted my loans more than once over the years. It has always been my

intention to pay off my loans but times have been lean over the years. I have had several IRS offsets that have been applied

to the interest of my student loans.

In January of 2002 I was in a repayment program with the Aman Collection Agency, an instrument of the Department of

Education. Aman set up a direct payment program for $100 per month that was drafted from my checking account. After 7

months of my repayment program, Aman was to send Sallie Mae paper work for me to sign to further my repayment program. I

was consolidating my original three loans plus penalties, interest and collection fees that totaled approximately $14,000.

Mysteriously a fourth loan appeared at Aman in almost the same amount of my consolidation. Upon receipt of this fourth

alleged loan Aman abruptly stopped my consolidation program citing that I owed approximately $28,000 in total and they could

not continue with my consolidation program until all of the loans were added together. This was in August of 2002. At that time

I tried to explain that I believed a mistake had been made and the fourth loan was really the first three loans consolidated into

one amount. At one point the note grew to approximately $33,000 and the DOE had a garnishment order imposed at that time.

I couldn’t get anywhere with Aman nor the Department of Education. These two organizations insisted they were right and I

was wrong. At that point a local attorney started communicating with Aman and the Department of Education. This attorney

has not charged me to date because he has understood that I didn’t have the money to pursue this issue. Two years later and

many threats of garnishment and almost a ream of documentation the Department of Education has now determined that I owe

the $14,000 that I originally agreed to pay in January of 2002. However, to add insult to injury I am now being charged a

$3600 commission fee owed to Aman for collection cost in regards to this situation. I feel that this whole situation is criminal

and I have no recourse because the Federal Government is right and I have been wrong this whole time. I am very frustrated

by the way I have been treated and I am appalled that I have to pay an extra $3600 because of their mistake. I do have the

option to take this to Federal Court at my expense and of course the interest is still clicking away on these loans at my

expense.

In my defense I was attempting to repay this debt in 2002. I recognize that I did not responsibly address the issues of my

student loans in the past, but I still cannot get beyond the fact that I think that the way I have been treated is criminal. If I were

to do the same things that the Aman Collection Agency and the Department of Education have done to me I do believe that I

would be criminally charged. My credit has been ruined for years because of this situation.

I can’t help but wonder how many other women are in the same shoes that I am in. I have been fortunate to have the support

of a local attorney to assist me in this matter but how many other women have not been so fortunate? If the local attorney

hadn’t taken pity on me I am sure that I would be in a forced repayment program, garnishment, exceeding $33,000.

I understand that this is a confusing situation but I do have documentation to support all of my claims. I would somehow like to

get my story told because I feel like I have been threatened, badgered and unjustly treated in this situation. I have been in

contact with the Aman Collection Agency in attempt to negotiate some reasonable solution to this issue. However, neither

Aman nor the Department of Education have been receptive. I had until Feb. 6, 2005 to raise $14,500 or else the garnishment

order was to go into effect. I offered to pay the loan in the same manner that was agreed upon in January of 2002. I also

asked that the duplicated note be taken off my credit report to which the reply was “it will take at least 3 months if it will

happen at allâ€

Are these atrocities only happening to American students, or are the same indignities being inflicted on foreign students? I ask because as with everything else, Americans are continually getting the short end of the stick, while foreigners are realizing the American dream at our expense.

I suspect the free ride continues for non-citizens while we drown in the debt and poverty inflicted on us by outsiders.

This aspect should certainly be investigated, if for no other reason than as an arguing point as to the fairness or lack thereof, of the system.

Foreign students are not eligible for any student loans or grants. They have to provide proof of funds (tuition and living expenses) before being accepted to a college or university.