Return Bankruptcy protections to Student Loans
  • Petitioned President Obama, Congress

This petition was delivered to:

President Obama, Congress

Return Bankruptcy protections to Student Loans

    1. Alan  Collinge
    2. Petition by

      Alan Collinge

      University Place, WA

The federal student loan system has become systemically predatory due to the deliberate removal of critically important consumer protections including Bankruptcy, statutes of limitations, Truth in Lending Laws, Fair Debt Collection Practices, State usury laws, and others.  

These protections were created for sound reason, and their absence from student loans has led to unchecked inflation, intolerably poor oversight, decreasing academic quality, a litany of corrupt practices, and an extremely high default rate. Astonishingly, the large loan companies, the guarantors, and even the federal government have been realizing more income (often far more) from defaulted loans than from loans that remain in good stead. Millions of citizens and their families have come under serious threat from this lending system. Many have been badly harmed both financially and in other ways.  Some have been destroyed financially, and others have suffered profoundly in other ways.

Certainly, President Johnson and his congressional colleagues on both sides of the aisle would wince were they to see what has become of the well intentioned, carefully designed lending system they created in 1965.  The lending and collection system we see today is intolerable in the U.S., or any country for that matter.

At a minimum, standard bankruptcy protections must be returned to all student loans, and the interests of all lending elements must be realigned to be with the borrowers, instead of against them. With no exemptions, and no qualifications.

Recent signatures

    News

    1. A bunch of people have echoed our call for bankruptcy protections

      Alan  Collinge
      Petition Organizer

      A slew of people have echoed our call for bankruptcy protections for student loans in the past week. This is encouraging, and I hope all of you will follow up this petition with a phone call, or better, a visit to your elected rep. Make them feel your pain. Don't let them off until you have made your point.

    2. Reached 1,000 signatures
    3. Read our OPED in Forbes Magazine!

      Alan  Collinge
      Petition Organizer

      This piece helps our supporters understand the critical issues surrounding this important issue.

    4. Reached 250 signatures

    Supporters

    Reasons for signing

    • Kristin Brade HOUSTON, TX
      • over 2 years ago

      I'm a newly defaulted student loan owner, I am utterly depressed thinking about what this could mean for my future. I'm signing because people need to know they're not alone.

      REPORT THIS COMMENT:
    • missie faraon GARBERVILLE, CA
      • over 2 years ago

      the system of interest rates is corrupt

      REPORT THIS COMMENT:
    • anne mercer WALNUT CREEK, CA
      • over 2 years ago

      both my children have very large student debt on top of the huge loans I have taken out to get them both through school.

      REPORT THIS COMMENT:
    • Hanna Stine TAMPA, FL
      • over 2 years ago

      Because disabled veterans, who live on a monthly pension can't afford to pay it back, and live on food stamps, at the same time. You forgive banks, give them our money to bail them out! When it comes to veterans, who get sick, and can't work anymore, you throw them under the bus! I hope knowing this is election year, will make all of the veterans think about who will go back into those offices!

      REPORT THIS COMMENT:
    • Nathan Smith BURBANK, CA
      • over 2 years ago

      I have over $100,000. in student loan debt with no end in sight. I am not working in my field because jobs are scarce and I don't believe my college prepared me. Westwood is a horrible school, they took my money then kicked me out. There is no assistance from them or any real attempt at helping me find a job. I feel that I'm being punished for trying for the American dream, and now I will probably never own a house or a new car or any of the other things. I would have been better off not going to college at all.

      NS (California)

      REPORT THIS COMMENT:

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