OCCUPY STUDENT DEBT

A terrorist organization has nothing on Citibank.

I co-signed the private student loans for both of my children with no doubt in my mind at the time that they would be able to re-pay the loans. Then 2008 happened. My daughter graduated in 2010 with a BFA; my son completed his Masters the same year.

The only job my daughter has had since her graduation is in a retail art supply store at $10 an hour; my son accepted a job teaching English in China last August when all of his attempts at securing employment in the US failed. Although his wages are adequate for life in China, in American currency it’s equal to about $800 a month.

I lost my job in 2008 and since have vacillated between temporary employment and unemployment. After three years, I managed to scrape enough money together to file for bankruptcy. In the process, my house almost went into foreclosure. After being turned down under the “Make Home Affordable Plan” (for not having sufficient income…the very reason I applied), I contacted a person from HUD, and (magically), it was approved, so I know the importance of having an advocate.

Both my son and daughter pay their Citibank loans every month without fail; they just can’t pay the exorbitant amount they’re requesting. Both of them had their federal loans deferred without a problem. Both of them have called Citibank so many times, we’ve lost count. They continue to send letters asking them to call to make arrangements, but when they do, they are told that they can only help with the federal loans, not the private. Citibank personnel have told us that it makes no difference what their incomes are, or even if they have an income; they still have to make these huge payments each month.

We are barraged with constant phone calls, emails, regular mail and, at least twice a week, hand delivered UPS threatening letters. Because I am the co-signer, I receive the same amount of harassment as my children. After going through all the expense and trauma of bankruptcy, because student loans are non-dischargeable, Citibank continues their relentless psychological warfare on me and my family (and I’m sure, hundreds of thousands of others).

Citibank referred my daughter’s loans to a debt collector. After this debt collector contacted one of our neighbors (appalling!), she sent a “cease and desist letter”. After sending that letter, the same debt collector called a different neighbor (isn’t this illegal?!!) asking for me, as they’ve now referred my son’s loans to the same debt collection agency. Now I’ve had to send another “cease and desist” letter. These are loans both my son and daughter make payments on every month.

When President Obama spoke last October in Denver addressing the issue of student loan debt, we felt slightly hopeful, but I’ve heard nothing since that time regarding this issue. He was proposing that all student loans (federal and private) be consolidated, and there would be one payment, not to exceed any more than 10% of an individual’s disposable income. When my kids heard this, they both said, “I could do that.” They could do that; they can’t do this. I can’t do this – dealing with the constant threats and harassment. My son’s, my daughter’s and my credit is completely ruined. I am in desperate need of a newer car, but even though I am now employed, I can’t get a car loan after what Citibank has done to us.

I hear these same stories from my children’s friends and my friends’ children. Most of them are living at home again because they can’t rent an apartment; they can’t buy a car. They cannot do any of the things that young adults should be able to do, because these loan sharks are asking for 75% of their income.