What is happening to the United States?
In March 2017, the Trump administration changed an Obama-era rule, opening a new market for private debt collectors to make money on the backs of those who are least able to pay.
Federal officials are now farming out student-loan collection to private firms, who win fees to collect bank debt, in part by pressing home foreclosures. Which student loans are the sharks going after? Not those who earned professional degrees and are well-positioned today.
A review of dozens of the suits indicates that almost all the targeted borrowers are “at the bottom,” people who took out loans for relatively small amounts decades ago, allowing them to get through community college, for example, to obtain and keep their low-wage jobs.
Often these borrowers are still low-income, but have “some kind of asset, like a home,” which today’s federally mandated collectors can go after.
This from a chief executive who has gotten rich by buying properties, using hundreds of millions of dollars that he’s borrowed since the 1980s, and has refused to repay! (His excuse? “These lenders … are total killers. These are not the nice, sweet, little people that you think, OK?”)
Making America ‘great’ again, raising the fortunes of ‘killer’ banks and debt-collectors, on the backs of the poor and middle-class.