The Phaserl


It Begins: Obama Forgives Student Debt Of 400,000 Americans

[Ed. Note: Welcome to the slippery slope into the debt abyss. What moral mile marker puts one class in front of another? Are single moms next? What about transgender students? Now let’s talk home owners. Debt jubilee for all? Who makes the rules for this astounding new “right” of debt forgiveness?]

from Zero Hedge:

Joining the ranks of “broke lawyers” who can cancel their student debt, “Americans with disabilities have a right to student loan relief,” now according to Ted Mitchell, the undersecretary of education, said in a statement. Almost 400,000 student loan borrowers will now have an easier path to a debt bailout as Obama primes the populist voting pump just in time for the elections.

On top of “the student loan bubble’s dirty little secret,” here is another round of student debt relief…as MarketWatch reports,

The Department of Education will send letters to 387,000 people they’ve identified as being eligible for a total and permanent disability discharge, a designation that allows federal student loan borrowers who can’t work because of a disability to have their loans forgiven. The borrowers identified by the Department won’t have to go through the typical application process for receiving a disability discharge, which requires sending in documented proof of their disability. Instead, the borrower will simply have to sign and return the completed application enclosed in the letter.

If every borrower identified by the Department decides to have his or her debt forgiven, the government will end up discharging more than $7.7 billion in debt, according to the Department.

“Americans with disabilities have a right to student loan relief,” Ted Mitchell, the undersecretary of education, said in a statement. “And we need to make it easier, not harder, for them to receive the benefits they are due.”

About 179,000 of the borrowers identified by the Department are in default on their student loans, and of that group more than 100,000 are at risk of having their tax refunds or Social Security checks garnished to pay off the debt. Often borrowers losing out on these benefits aren’t even aware that they’re eligible for a disability discharge, said Persis Yu, the director of the Student Loan Borrower Assistance Project at the National Consumer Law Center.

“Borrowers just frankly don’t know about this program,” she said. “In the past it’s been incredibly complicated to apply and that process has been getting better over time, but some people just assume that it’s not going to work.” The letters will help make more borrowers aware of their rights, Yu said.

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So it’s a start – “broke lawyers” ,the poor” and “disabled Americans” get student debt relief. What about models that suddenly become too ugly to work? Or Petroleum Engineers no longer able to work because of The Fed’s over-indulgent easy money creating a glut in oil prices? Don’t they have a right to relief from their student debt? Seems like not granting students debt relief would violate all of their “safe spaces” – so cancel it all! Student Debt Jubilee here we come.

As we detailed previously, however, this is a drop in the bucket…

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1 comment to It Begins: Obama Forgives Student Debt Of 400,000 Americans

  • Windrunner56

    I think I should qualify for a debt jubilee cuz I was responsible and saw this shit coming, so we paid off our debts (including our rental properties), lived within our means, drive newer (not new) vehicles, renovated our home instead of buying new, and made our children fend for themselves when they moved out. The we stacked like crazy!!!!

    I feel shame 🙁 I should qualify.

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