Cafifornia's "Student Borrower Bill of Rights"

[Slater]

"Frotman asserted that with student loan borrowers “defaulting every 28 seconds, I urge the California State Senate to act quickly and advance this critical legislation.”


A borrower defaults every 28 seconds? What happened to the hefty salaries these kids are supposed to be making with these expensive degrees?


https://www.yahoo.com/finance/news/student-borrower-bill-rights-california-160551661.html

[flenna]

"Frotman asserted that with student loan borrowers “defaulting every 28 seconds, I urge the California State Senate to act quickly and advance this critical legislation.”


A borrower defaults every 28 seconds? What happened to the hefty salaries these kids are supposed to be making with these expensive degrees?


https://www.yahoo.com/finance/news/student-borrower-bill-rights-california-160551661.html

Not much demand for those with degrees in underwater basket weaving or LGBQRSTUV studies.

[fledge]

But but California is world’s FiFtH lArGeSt EcOnOmY... nOn-cOmPeTiTiVe jObS eVeRyWhErE.

[FromMyColdDeadHand]

They keep on talking about "Free College", but when something is free is it by definition 'worthless'. I hate the concept of universal income, but when you listen to Yang and look at how AI might make the middle class shrink even more- and IF you can get rid of the welfare state complex at the same time (a huge IF), you can make an argument for it. Depends on a lot of 'maybes'.

[AKDoug]

They keep on talking about "Free College", but when something is free is it by definition 'worthless'. I hate the concept of universal income, but when you listen to Yang and look at how AI might make the middle class shrink even more- and IF you can get rid of the welfare state complex at the same time (a huge IF), you can make an argument for it. Depends on a lot of 'maybes'.

Free to me means you take it from me without asking. Meanwhile my responsible kids drive $500 POS cars, and religiously make double payments on their student loans.... AND pay taxes so other people can get free shit.

[duece71]

I heard (or read) somewhere that under certain terms, student loan debt is completely forgiven and credit is wiped clean. Coming soon to every other credit Ponzi scheme in our society.

[flenna]

Free to me means you take it from me without asking. Meanwhile my responsible kids drive $500 POS cars, and religiously make double payments on their student loans.... AND pay taxes so other people can get free shit.

^^^That is a good summary.

[SomeOtherGuy]

The value of college has been utterly destroyed by the people running colleges and promoting college for everyone. It was only ever valuable because of (a) scarcity and (b) quality. Both of those have been eliminated, directly and tautologically by making it "college for everyone," while the cost has increased exponentially.

The false promise of college and student loan bubble has given an illusion of wealth to much of the country, ESPECIALLY the coastal "D" strongholds. It is going to pop just like the housing bubble in 2008, but many of the people promoting it realize that will be apocalyptic and are doing everything possible to delay and deny the reality.

Meanwhile those of us who paid for college by working and/or actually paid off our student loans at 100% principal (and far more interest) are getting royally screwed by the useless degree crowd and income-based cancellation of loans, whether outright (rare yet) or indirect (various .gov programs).

N.B. I am not anti-education, and have two degrees like most of my relatives and in-laws, other than the handful who have three degrees (BA/MA/Ph.D.). But we need to be realistic.

[26 Inf]

Did anyone actually read the article and what the protections entail?

Despite it being Kalifornistan, this doesn't sound unreasonable:

According to the SBPC, the bill essentially hopes to establish the following:

Ban “abusive” student loan servicing practices that take unreasonable advantage of borrowers’ confusion over loan repayment options;

Create minimum loan servicing standards to ensure fair application of payments, improved record-keeping on borrower accounts, and proper staff training so borrowers are informed of more affordable payment
options;

Establish a Student Loan Advocate to review borrower complaints, gather data, and issue reports to the state legislature; and

Grant the Department of Business Oversight additional “market monitoring” authorities to collect better data about the student loan servicing industry.

Ultimately, it hopes to “create the first comprehensive, industrywide ‘rules of the road’ for the student loan industry, offering student loan borrowers the same kinds of strong, enforceable protections available to consumers with mortgages and credit cards,” the SBPC explained.

I also believe that them saying 'someone defaults every 28 seconds' was brought up to highlight the problems which need correcting, not excuse them.

[jpmuscle]

Considering the Predative nature of the industry then yea unfvcking it isn’t a terrible idea.


Navient et al can eat a giant bag of diks


Sent from my iPhone using Tapatalk

[P2000]

According to the article this particular bill seems reasonable, it is directed against predatory student loan practices. Shady used car dealership/payday lending stuff like hard selling borrowers towards repayment options that are worse for them, not better. It isn't a handout, a subsidy, charity, "free" repayment or other garbage being touted and spouted by some of the dems.

As someone who has had a run in with Sallie Mae, where they falsely accused me of missing a payment and wanted to therefore increase my interest rate 0.5% as a penalty, I'm happy to report my huge student loans were paid in full 5.5 years after graduation. The burden of that kind of debt on a reasonable goal oriented person is intense and life changing. But I chose a field where it would be worth it and would do it again. Dave Ramsey's radio station helped continually motivate me to repay asap and learn how other people find themselves in a disaster or success. Now I'm the weirdo who would rather die than borrow a dime for anything ever again.

[pinzgauer]

But but California is world’s FiFtH lArGeSt EcOnOmY... nOn-cOmPeTiTiVe jObS eVeRyWhErE.Know you were joking, but that whole concept is a big lie. If you factor in where the companies are incorporated the situation changes entirely. And that is where the dollars officially flow through.