January 14, 2022
Student Loan Crash
Steven Chase
Happy about this? Think again...
While many of us celebrate this big, bad bank having to forgive the loans, some of us are pondering the precedent being set.
The loans in question are PRIVATE loans, meaning they are NOT guaranteed by the federal government.
The settlement resulted from accusations the lender gave out loans to millions of borrowers who’d be "UNLIKELY" to be able to repay them. They settled (quote) "to avoid the additional burden, expense, time and distraction to prevail in court.â€
Again, the State's (capital S) crushing process WAS the punishment. Since when is it illegal for a willing borrower and willing lender to make a contract? Apparently, now.
Student Loan Processor Navient Required to Cancel $1.7 Billion in Student Loans
Happy about this? Think again...
While many of us celebrate this big, bad bank having to forgive the loans, some of us are pondering the precedent being set.
The loans in question are PRIVATE loans, meaning they are NOT guaranteed by the federal government.
The settlement resulted from accusations the lender gave out loans to millions of borrowers who’d be "UNLIKELY" to be able to repay them. They settled (quote) "to avoid the additional burden, expense, time and distraction to prevail in court.â€
Again, the State's (capital S) crushing process WAS the punishment. Since when is it illegal for a willing borrower and willing lender to make a contract? Apparently, now.
Student Loan Processor Navient Required to Cancel $1.7 Billion in Student Loans
Posted by: Timothy Birdnow at
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And you'll remember that Bill H. pointed out that a canceled debt is treated as taxable income, and taxes must be paid on it in the year that the debt is canceled. This "forgiving student loans" ain't what everyone thinks it's cracked up to be.
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