Bring Back Private Student Loan Consumer Protections

This petition is to get back standard consumer protection - including bankruptcy to Private Student Loans.

Private Students Loans are not federally insured and therefore should be treated like any other private debt (Credit Cards, Mortgage, Car Loans etc...)


FACTS:

Bankruptcy protection was removed from Private Student Loans in 2005 after intense Lobbying by Student Loan giants. Congress amended Title 11 of the Federal Financial Insolvency Codes which took this protection away. Student Lending Giants claimed that adding private student loans to this would help them offer lower interest rates and more favorable terms to student borrowers who did not qualify for federally insured loans. This has in fact had the opposite effect and instead is used as a huge money making tool for student lenders.

The Department of Education can tack on collection fees of 25\%, and collection commissions of 28\% onto the principle plus any penalties and interest you already owe.

The Department of Education can garnish your wages, tax returns and future social security earnings.

There is no statue of limitations on Private Student loans (or any student loan for that matter) yet there is for every other type of consumer debt.

The Department of Education can take up to 15\% of any federal benefit you are entitled to.

The Department of Education can sue you for the loan balance and place liens on your property.


Now that there is a 700 Billion buyout of our financial system in the United States you can be absolutely certain that Student Lenders will be holding their hand out for help - help which they do not offer to students. People who have not kept up mortgage, car, and credit card payments are given the possibility to start over and Students deserve that right as well.

If you aren't sure about this I urge you to research this issue yourself before you sign.