OCCUPY STUDENT DEBT

Student debtor stories submitted by the 99%

130k grew to 175k in

I borrowed about $120,000 for law school (and had a little over 10k from undergraduate school), graduating in 2009.

I currently owe approximately $175,000. My daily interest is $31.56. I barely make that much after taxes!

Over $50,000 dollars in loans are graduate loans with an interest rate of 8.5%. My credit was in the mid 700’s when the government/ banks issued the loans to me- at such a high percentage rate.

My loans fell into default and the lender said that, unless I agreed to capitalize the interest or pay two past due payments, they would have to keep me in default. The lender bombards me with emails regularly, and I did not receive notice to resubmit my Interest-Based Payment application from the lender because I assumed it was an advertisement- one of the many encouraging me to go back to school and take out more loans. My license can be revoked for falling into default on my student loans. I was underemployed and did not have the thousands of dollars necessary to bring the loans current (yes, two months resulted in over 3k in payments due). Thus, I had no choice but to agree that I would be charged interest on interest at between 6.8 and 8.5% on over 100k in debt in order to convince the lender to review my income based repayment options and reinstate my loan to good standing.

A system that puts a young person in this situation is wrong. I am not asking for the right to file bankruptcy. I am simply asking that the government either cap the loans or give an honest and reasonable interest rate. Furthermore, capitalization should NEVER be required to bring you loan into good standing. This seems like an UNFAIR AND DECEPTIVE TRADE PRACTICE.

I feel like I have done everything right, have been lied to by society, and am a prisoner to my debt. I am not alone. My best friend owes $60,000 at 9.5%, with her mother as a co-borrower, and she works as a preschool teacher.

If your license does not require good-standing on your student loans to maintain it, why would you not default in my situation? As a debt settlement/ collections attorney, I do not have that option. The Florida Bar will take my license if I default. Despite that, it is an option that crosses my mind every single day that I work 12 hours a day- six days a week! I love my job as much as I love my husband. I can’t imagine giving up the right to help people out of debt because I couldn’t manage to pay mine. But, at the end of the day, I know I can’t go to jail for not paying my debt. So, I will keep slaving away to pay. But I pray that the rest of the world will not, and will force change on this ridiculously corrupt system.

Why all this debt? Because banksters infiltrated and took over the higher education system

What is needed is not blind subservience to the banksters and millionaire-run, corrupt colleges, what’s needed is a new higher educational system that is not designed to fleece people and put them in lifelong debt.

Clearly the current educational system has been infiltrated and taken over by the banksters and others with a Neoliberal, corporatist agenda. They have locked down 95% of the educational system, turning it into a debt slave factory. The American Empire has inflicted debt slavery on entire countries throughout the world, so there should be no surprise that they’ve done it here at home.

But it need not be this way. Educators reading this: You can take the initiative to begin new colleges that do away with nonsense like luxury student apartments, football teams, millionaire executives and all other unnecessary burdens. Bare minimum schools like we used to have are as possible today as they were in the 1970’s.

Your charge is to not just liberate the mind, but the person as well. Debt slavery is antithetical to the true purpose of academia.

Class action against student loan guarantor ECMC for financial fraud SANTA ANA, CA, March 21, 2024 – Investigation of financial fraud by banks in the mortgage industry abounds, but financial fraud by guarantor agencies in the student loan industry remains largely undetected thanks to laws that help insulate the industry from consumer laws and debt disclosure. However, in a federal action in Orange County California, a student loan debtor has evidence of financial fraud. He alleges Educational Credit Management Corporation (“ECMC”) refused to provide him access to documents, refused to correct an inflated interest amount, refused to allow payoff, and refused to provide a hearing and due process prior to garnishment and intercepting federal income tax refunds. The defendant student loan debtor has filed a third party class action complaint against ECMC and others on behalf of himself and similarly situated debtors. The class certification motion is now set for May 7, 2012. Student debtors have long complained of obstruction from ECMC. The ripoffreport.com alone lists more than twenty complaints against ECMC. ECMC recently assigned the debt to the U.S. Department of Education which is the plaintiff in the suit. Thus far, plaintiff has been unable to produce the key documents regarding the debt. Further, the plaintiff has asked the court to deny the defendant a jury trial based solely on the alleged application pages and a bureaucrat’s declaration that the amount demanded is accurate (based on unidentified documents that have not been produced). That motion is set for April 2, 2012. If you or someone you know has been the victim of obstruction from ECMC, contact the Law Offices of Jerold M. Gorski, at PO Box 60740, Irvine, CA 92602 or jeroldmgorski@yahoo.com. Press Contacts: Law Offices of Jerold M. Gorski jeroldmgorski@yahoo.com PO Box 60740, Irvine, CA 92602 714-928-2842 Details: U.S.A. v. Jerold Gorski, Case No. 2:11-cv-04252-AG, U.S. District Court, Central District - Santa Ana, Judge Andrew Guilford; court documents available online at pacer.gov. Class action: First amended third party class action complaint at Court Docket Item #35. Financial fraud evidence: Court Docket Item #89-1 and exhibits. Motion to compel documents denied: Discovery request quoted at Court Docket Item #39, at page 13 of 35 through page 17 of 35. Discovery request filed at Court Docket Item #63-1, at page 6 of 22 through page 12 of 22. Government’s written responses filed at Court Docket Item #39-1. Sworn uncontested testimony of documents not produced filed numerous times, including at Court Docket Item #39, at page 18 of 35, and Court Docket Item #63-1, at pages 2-3 of 22. ####

Class action against student loan guarantor ECMC for financial fraud
SANTA ANA, CA, March 21, 2024 – Investigation of financial fraud by banks in the mortgage industry abounds, but financial fraud by guarantor agencies in the student loan industry remains largely undetected thanks to laws that help insulate the industry from consumer laws and debt disclosure. However, in a federal action in Orange County California, a student loan debtor has evidence of financial fraud. He alleges Educational Credit Management Corporation (“ECMC”) refused to provide him access to documents, refused to correct an inflated interest amount, refused to allow payoff, and refused to provide a hearing and due process prior to garnishment and intercepting federal income tax refunds.
The defendant student loan debtor has filed a third party class action complaint against ECMC and others on behalf of himself and similarly situated debtors. The class certification motion is now set for May 7, 2012.
Student debtors have long complained of obstruction from ECMC. The ripoffreport.com alone lists more than twenty complaints against ECMC.
ECMC recently assigned the debt to the U.S. Department of Education which is the plaintiff in the suit. Thus far, plaintiff has been unable to produce the key documents regarding the debt. Further, the plaintiff has asked the court to deny the defendant a jury trial based solely on the alleged application pages and a bureaucrat’s declaration that the amount demanded is accurate (based on unidentified documents that have not been produced). That motion is set for April 2, 2012.
If you or someone you know has been the victim of obstruction from ECMC, contact the Law Offices of Jerold M. Gorski, at PO Box 60740, Irvine, CA 92602 or jeroldmgorski@yahoo.com.
Press Contacts:
Law Offices of Jerold M. Gorski
jeroldmgorski@yahoo.com
PO Box 60740, Irvine, CA 92602
714-928-2842
Details:
U.S.A. v. Jerold Gorski, Case No. 2:11-cv-04252-AG, U.S. District Court, Central District - Santa Ana, Judge Andrew Guilford; court documents available online at pacer.gov.
Class action: First amended third party class action complaint at Court Docket Item #35.
Financial fraud evidence: Court Docket Item #89-1 and exhibits.
Motion to compel documents denied:
Discovery request quoted at Court Docket Item #39, at page 13 of 35 through page 17 of 35.
Discovery request filed at Court Docket Item #63-1, at page 6 of 22 through page 12 of 22.
Government’s written responses filed at Court Docket Item #39-1.
Sworn uncontested testimony of documents not produced filed numerous times, including at Court Docket Item #39, at page 18 of 35, and Court Docket Item #63-1, at pages 2-3 of 22.
####

My son Ben borrowed approximately $156,875.00 in private and Federal student loans which has now grown to over $223,000.00 and is suffering severe psychological problems. He has major depression, major anxiety, anorexia and exercise bulimia and is now in very dangerous physical condition. The stress of this debt is affecting his health so badly that we are having difficulty finding medications that will lessen his symptoms. He was told the loan companies would work with him, which is completely untrue. We have had to change our phone number twice because they were calling 7 days a week from 8 am to 9 pm sometimes every hour which caused Ben to spiral downward. After graduating in 2008 with a Physics degree he started trying to find a job, but with the economy he could find nothing. As more and more time has gone by his health has worsened, and he is unable to work. At one point he was purging but then started eating very little and exercising to the point of exhaustion. Finally today he is 5’ 11” and 145 pounds. His muscles have become atrophied, and he looks skeletal. Our lives revolve around trying to get him to eat and not exercise too much. It is a struggle every day, every minute of every day. He talks about killing himself because he feels there is no hope for him to have a normal life, buy a home, have a family or a successful career. He feels like a complete failure. Ben borrowed this money in good faith and fully intended to pay it back, but things have not worked out as he planned. Those who have racked up debt on any other debt can discharge in bankruptcy, but students who have borrowed to better themselves are sentenced to a lifetime of poverty. In order to recover Ben must get this debt discharged now! Recently, Rep Hansen Clarke introduced H.R.4170: Student Loan Forgiveness Act of 2012. This bill would help my son, and I am asking my representative, John Carney to sign it.

My son Ben borrowed approximately $156,875.00 in private and Federal student loans which has now grown to over $223,000.00 and is suffering severe psychological problems. He has major depression, major anxiety, anorexia and exercise bulimia and is now in very dangerous physical condition. The stress of this debt is affecting his health so badly that we are having difficulty finding medications that will lessen his symptoms. He was told the loan companies would work with him, which is completely untrue. We have had to change our phone number twice because they were calling 7 days a week from 8 am to 9 pm sometimes every hour which caused Ben to spiral downward. After graduating in 2008 with a Physics degree he started trying to find a job, but with the economy he could find nothing. As more and more time has gone by his health has worsened, and he is unable to work. At one point he was purging but then started eating very little and exercising to the point of exhaustion. Finally today he is 5’ 11” and 145 pounds. His muscles have become atrophied, and he looks skeletal. Our lives revolve around trying to get him to eat and not exercise too much. It is a struggle every day, every minute of every day.

He talks about killing himself because he feels there is no hope for him to have a normal life, buy a home, have a family or a successful career. He feels like a complete failure. Ben borrowed this money in good faith and fully intended to pay it back, but things have not worked out as he planned. Those who have racked up debt on any other debt can discharge in bankruptcy, but students who have borrowed to better themselves are sentenced to a lifetime of poverty. In order to recover Ben must get this debt discharged now!

Recently, Rep Hansen Clarke introduced H.R.4170: Student Loan Forgiveness Act of 2012. This bill would help my son, and I am asking my representative, John Carney to sign it.

Source change.org

After completing my first semester at the University of Michigan in 2001, I was assaulted and suffered a closed head / mild traumatic brain injury. It was recommended by my doctors that I continue with school – exercising my brain was the best chance I had at recovering. And so, I went right back to Michigan.

In my following semesters there, I struggled in my classes. I began to lose scholarships and turned more and more to student loans as time went by. After several years, I recovered, but I still had to pay for classes that I ended up not getting any credit for in the meantime – the university expunged classes I failed due to my circumstances. I tried four different schools to complete my degree, though for about a year and a half had given up and joined the workforce, then later returned to college and finally graduated from Wayne State University in 2009.

Today, my family and I can barely make ends meet. I have a student loan debt, with interest, of about $190,000. I obtained a judgment against my assailant for $250,000, but of course he’s unable to pay that amount, and I currently receive about $160 every quarter.

I’m 28 and can’t look forward to when I may ever be able to afford to move out of my parents’ house. They generously help as much as they can and had to file bankruptcy on their other debt to keep up with my loans – they are cosigners for my private loans. My dad retired ten years ago, but took on another job and goes garbage picking nearly every night to find metal and hidden treasures to sell.

When I took out the loans, I was focused on healing, gaining financial independence and moving forward from the assault. While going to school helped me recover, and was a necessary means to this end, the student loans have added insult to injury and severely prolonged my suffering and attachment to the horrific incident that caused my college career to take so much money and time from me and my family in the first place.

—-Approximate Original Amount Borrowed: $135,000 federal and private.

—-Approximate Current Balance: $190,000 federal and private ($170k private - $20k federal).

Citibank - Ruining Lives

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.

Support H.R. 4170 - The Student Loan Forgiveness Act of 2012 Greetings, I just signed the following petition addressed to: Rep. John Kline, The U.S. Congress & President Obama.————————Support H.R. 4170 - The Student Loan Forgiveness Act of 2012Since 1980, average tuition for a 4-year college education has increased an astounding 827%. Since 1999, average student loan debt has increased by a shameful 511%. In 2010, total outstanding student loan debt exceeded total outstanding credit card debt in America for the first time ever. In 2012, total outstanding student loan debt is expected to exceed $1 Trillion. In short, student loan debt has become the latest financial crisis in America and, if we do absolutely nothing, the entire economy will eventually come crashing down again, just as it did when the housing bubble popped. Reasonable minds can disagree as to the solutions, they cannot, however, disagree on the existence of this ever-growing crisis, as well as the unsustainable course we’re on towards financial oblivion. As a result of more than 30 years of treating higher education as an individual commodity, rather than a public good and an investment in our collective future, those buried under the weight of their student loan debt are not buying homes or cars, not starting businesses or families, and they’re not investing, inventing, innovating or otherwise engaged in any of the economically stimulative activities that we need all Americans to be engaged in if we’re ever to dig ourselves out of the giant hole created by the greed of those at the very top. Now for the good news: there’s finally hope on the horizon! Representative Hansen Clarke of Michigan has just introduced H.R. 4170, The Student Loan Forgiveness Act of 2012, in the House of Representatives - legislation designed to lend a helping hand to those struggling under massive amounts of student loan debt. For a brief summary of H.R. 4170’s main provisions, please copy & paste this URL into your browser: http://tinyurl.com/7akydbk To read the full version of the actual bill itself, please go here: http://tinyurl.com/6txure8 To read answers to some of the most frequently asked questions about The Student Loan Forgiveness Act of 2012, please go here: http://tinyurl.com/8xh4csd Student loan debt has an undeniable and significant suppressive effect on economic growth. The Student Loan Forgiveness Act of 2012 directly addresses this enormous boot on the neck of the middle class and represents a glimmer of hope for millions of Americans who, with each passing day, find that the American Dream is more and more out of reach. Therefore, we, the undersigned, respectfully request that Congress bring H.R. 4170, The Student Loan Forgiveness Act of 2012, up for consideration and commit to holding a straight, up-or-down vote on it this year. Thereafter, we, the undersigned, respectfully request that President Obama sign this legislation into law.

Support H.R. 4170 - The Student Loan Forgiveness Act of 2012

Greetings,

I just signed the following petition addressed to: Rep. John Kline, The U.S. Congress & President Obama.

————————
Support H.R. 4170 - The Student Loan Forgiveness Act of 2012

Since 1980, average tuition for a 4-year college education has increased an astounding 827%.

Since 1999, average student loan debt has increased by a shameful 511%.

In 2010, total outstanding student loan debt exceeded total outstanding credit card debt in America for the first time ever.

In 2012, total outstanding student loan debt is expected to exceed $1 Trillion.

In short, student loan debt has become the latest financial crisis in America and, if we do absolutely nothing, the entire economy will eventually come crashing down again, just as it did when the housing bubble popped. Reasonable minds can disagree as to the solutions, they cannot, however, disagree on the existence of this ever-growing crisis, as well as the unsustainable course we’re on towards financial oblivion.

As a result of more than 30 years of treating higher education as an individual commodity, rather than a public good and an investment in our collective future, those buried under the weight of their student loan debt are not buying homes or cars, not starting businesses or families, and they’re not investing, inventing, innovating or otherwise engaged in any of the economically stimulative activities that we need all Americans to be engaged in if we’re ever to dig ourselves out of the giant hole created by the greed of those at the very top.

Now for the good news: there’s finally hope on the horizon!

Representative Hansen Clarke of Michigan has just introduced H.R. 4170, The Student Loan Forgiveness Act of 2012, in the House of Representatives - legislation designed to lend a helping hand to those struggling under massive amounts of student loan debt.

For a brief summary of H.R. 4170’s main provisions, please copy & paste this URL into your browser: http://tinyurl.com/7akydbk

To read the full version of the actual bill itself, please go here: http://tinyurl.com/6txure8

To read answers to some of the most frequently asked questions about The Student Loan Forgiveness Act of 2012, please go here: http://tinyurl.com/8xh4csd

Student loan debt has an undeniable and significant suppressive effect on economic growth. The Student Loan Forgiveness Act of 2012 directly addresses this enormous boot on the neck of the middle class and represents a glimmer of hope for millions of Americans who, with each passing day, find that the American Dream is more and more out of reach.

Therefore, we, the undersigned, respectfully request that Congress bring H.R. 4170, The Student Loan Forgiveness Act of 2012, up for consideration and commit to holding a straight, up-or-down vote on it this year. Thereafter, we, the undersigned, respectfully request that President Obama sign this legislation into law.

Source change.org

Senior Citizen and Handicapped to Boot!!l

My original loan was $11,000 back in 1987 and 1988!! Now, the balance with interest and penalties is over $49,000!! Wow!! What a Difference of $39,000!! I am currently living off of Social Security of $1,100 a month with my rent of almost one-half tat $500 a month.

Social Security is currently garnishing my wages for $165 leaving me with only $935 to live off with one half going to rent alone!!

So, It is not hard to see that this puts me in financial hardship by being garnished by the Department of Education. I have paid over $2,000 in Interest Alone nothing on the Principal which was only $11,000 to start. This is a Crime and a Shame the Federal Government is garnishing my Social Security!!
-Mr. Eugene R. Johnson, Senior Citizen!! and Handicapped to Boot!!l