This September 17, Rolling Jubilee Will Buy Back – And Abolish – Student Debt

[eridani]

(Crossposted from Occupy Unerground)_

http://www.nationofchange.org/september-17-rolling-jubilee-will-buy-back-and-abolish-student-debt-1408280503


As part of our effort to buy private, unsecured student loans, we talked to Doug St. Peters, the Vice President of Portfolio Management at Sallie Mae, who packages that company’s debt into securities and sells your loans on the secondary market. He confirmed that Sallie Mae does sell its private loans to two large debt buying companies.

He would not name names, and he refused to sell us any of these portfolios when he learned that we intended to abolish the debt.

According to St. Peters, private Sallie Mae loans are sold for as little as 15 cents on the dollar. We repeat: a Vice President at Sallie Mae confirmed that they sell private loans for 15 cents on the dollar.

One goal of the Rolling Jubilee campaign has been to educate ourselves and others about how little our debts are actually worth to the creditors who control our lives. If you have a private Sallie Mae loan, you should know that it may be sold at pennies on the dollar, even as the lender and debt collectors demand full payment, plus interest, from you.

Though we were not able to purchase Sallie Mae loans, we have had some success with other portfolios, and we think those who have been petitioning us to buy student debt will be pleased with the results. We will share all of the details on September 17.

[Orrex]

1. What a bunch of disgusting predators

Why can't I buy my wife's loan for $0.17 on the dollar? And why can't she buy mine?

Hell, why can't I buy my own at that rate?

Fuck SallieMae and all of its fellow predators.

[SammyWinstonJack]

2. +1

[abelenkpe]

4. +1000

[daleanime]

5. Hell yes.....

this shit is ridiculous. TPTB want to insure that we remain profitable to them and that their boot stays on are neck.

[closeupready]

13. Yes. It IS debt bondage. Point blank.

I don't see any wiggle room on that point.

[FBaggins]

9. You can

You can settle a bad debt with Sallie Mae... you can also settle with whoever purchased the debt if SM sells it.

Of course, neither is good for your credit rating.

[Orrex]

11. Heh. Yeah, I've had that conversation.

SallieMae: Looks like you owe $5 zillion, but we can offer a one-time settlement of $4.75 zillion.

Me: You're kidding, right?

SallieMae: We can accept as little as $4.5 zillion. Are you able to make that payment today?


In short, if the average human being were able to afford the settlement cost, then that average person wouldn't likely have trouble making monthly payments against the full amount, either. This is yet another aspect of the system that screws the middle- and lower-income borrowers.

[FBaggins]

14. Every settlement is different

You often need to have several conversations before you get to the level of someone who knows what the debt is about to be sold for... and therefore what amount from you would be preferable.

And, of course, it's always an estimate on their side of how much you can actually pay. The author implies that they sell the debts for 18 cents on the dollar, but that's really not the case for the vast majority of debts.

That's a key area of difference with Sallie Mae. With other lenders, you can leave them with the impression that there is a point where bankruptcy is preferable to you than using your last dollar to pay them back. If you've missed lots of payment and your credit report makes clear that you've missed lots of them with everyone else... then they know that they won't be repaid in full and they start to estimate how much they can get. Sallie Mae isn't put off by bankruptcy threats. I'd imagine that it might even make them happy (since it gets your other debts out of the way and possibly leaves you something to pay them with).

[loudsue]

3. It seems like they could take that to court, for interfering in free commerce, or some such.

There should be a law. And isn't Sallie Mae some sort of government sanctioned contractor, or something?

[AllyCat]

6. Fascinating that this debt master wouldn't sell to them

Not keeping people subjugated enough I guess.

[Ilsa]

7. There are DUers that would insist that the

New owners of the discounted debt try to collect the full 100% of the face value of the debt. At least, if it's Argentina's debt. Why would they excuse one and not the other?

[Finishline42]

8. Somewhat related - NY Times - Paper Boys - Inside the World of Consumer Debt Collection

It's very, very, VERY, long story about how consumer debt collection gets bought and sold and not by the best of companies.

[link:http://www.nytimes.com/interactive/2014/08/15/magazine/bad-paper-debt-collector.html?_r=0|

There are law firms that specialize in buying this debt, take you to court, pay someone to serve a summons, swear that they did (they didn't in my two cases) and then get a judgement that allows them to go after you and collect interest on the debt.

There is case in my city where an elderly lady had her house foreclosed on based on an unpaid tax bill of less than $700, which is absolutely criminal in my mind.

[gtar100]

10. Just to be clear - if they had told officials at Sallie Mae that they were going to go after the

the people with the loans for 100% of their value, plus additional interest, they would have been okay with that.

Wow. What sick assholes.

Shows what a game this is to all of them.

Also just to be clear... these bankers, investors, (whatever nice name you want to give them), are living off of our young people; their hopes for a better future; and basically telling them "Fuck you and your future, we own you."

Never forget that with each payment you send in.

[closeupready]

15. Exactly. Student loan debt should be treated more leniently

than any other kind of debt, but certainly exactly the same as others kinds of debt, i.e., fully dischargeable in bankruptcy.

But in fact, for most student borrowers, their loans will NEVER be dischargeable, and the debt will follow them to their graves. I think it's scandalous.

[PowerToThePeople]

12. Fuck Capitalist Pigs!! n/t