BS: The magic of student loans

Subject: BS: The magic of student loans
From: Donuel
Date: 16 Mar 07 - 09:10 AM

DIANAVAN might be interested...

I borrowed $2,800 from the state student loan program during the Viet Nam war.

I had $280 left to pay off my student loan.

I lost track of the student loan bank toward the end of the Viet Nam war and begab a long trek through abject poverty.

When I had finally crossed the desert of poverty, the student loan people said I owed them $38,780.54

While I thought I had crossed the desert, I still had sand in my mouth.

I learned that it is normal and legal to "CHURN" these State student loans.

CHURNING is a practice of selling deliquent loans from one bank to another bank and adding thousands of dollars of bank fees and penalties each time it is churned. Once the loan is sold, the new bank can even change the interest rate.

The last time I checked, my student loan is now held by a bank in America with Japanese ownership.

Like murder, there is no statute of limitations on student loan churning. IT would take a special act by a Congressman to seek a limited amount of justice regarding a churned student loan.

Why buy a delinqwuent loan?

These deliquent loans are valuable and highly prized by banks since the banks passed legislation to take any and all Federal tax refund checks for the lifetime of the debtor - or until the balance is paid.

Buying and selling and churning these loans make billions of dollars for the banking industry.

Subject: RE: BS: The magic of student loans
From: Donuel
Date: 16 Mar 07 - 09:44 AM

*I just had a wild speculation:

Since America is on the brink of having 2,000,000 foreclosures this year (the subprime mortgage crises) , many people will be seeking bankruptcy this year.

The bankruptcy laws have been changed by banks who lobbied the Republican Congress GIVING DEBTORS MUCH LESS PROTECTION to those who file bankruptcy. There was a 12% increase in bankruptcy this year and about a 20% increase in bankruptcies expected this year.

Banks will buy and trade forclosed properties and delinquent loans.

*I wonder if bankrupt people will have their tax refund checks claimed by the banks as they do with student loans.