student loan justice.org

988,079 supporters

Our mission is to compel Congress to return standard consumer protections to student loans.

Started 3 petitions

Petitioning Joseph R. Biden, Miguel Cardona

President Biden: Cancel student loans in the first 100 days.

Trillions could be injected into the economy with no money needed from the Treasury, and nothing added to the national debt.   Federal student loans have become a national threat.  Before the Pandemic,  One in every 5 adults in the U.S. had student loans, and over 80% of them were either unable to pay, or were paying but their balances were going up.  The default rate for 2004 students is 40%, and they took out less than a third of what today's students have to borrow.  Nineteen U.S. states owe more in student loans than their entire state budgets.  The default rate for current borrowers will likely exceed 75%.  This is more than four times the default rate of sub-prime home mortgages.   By every reasonable metric, this is a catastrophically failed lending system. This is not a partisan problem.  More than half of all student loan borrowers identify as being politically independent, or republican. More than 40% never graduated.  "Red" states are being hurt significantly worse than "Blue" states.   All are trapped by a uniquely predatory lending system from which nearly every consumer protection has been stripped- including  bankruptcy rights that the Founders called for ahead of the power to raise an army and declare war in the Constitution.  The predatory, hyper-inflationary lending system that has resulted is what the Founders feared. The citizens must not, and should not tolerate this unconstitutional lending scam any longer. The President and Secretary of Education have all the authority needed issue an executive order cancelling all federally owned student loans- about 85% of all student debt. Nothing would be added to the national debt, and no tax appropriation would be needed.  This is, by far, the least expensive, and most expedient way to inject trillions into the economy.  President Biden must to do this in his first 100 days in office.  He must also issue an executive order returning bankruptcy protections to federally owned loans, and urge Congress to do the same for ALL student loans. Analysts have predicted that cancelling student loans will increase GDP by about $100 billion for the next ten years, but they do not take into account the borrowing capacity (and thus spending) that such a move would free up. This would be another $1 Trillion injected into the economy in the near and medium term.  Some experts even believe that debt cancellation is the only way to avoid a depression. Claims that cancelling loans will largely benefit people who don't need it are completely wrong.  100% of all borrowers were determined to be "financially needy" as a condition for federal loans. 80% were never going to be able to repay them before the pandemic.  The highest balance borrowers are over 50.  They outnumber people under 25 with student loans and owe 3 times more, despite having borrowed far less.  Importantly: the most successful student loan borrowers tend to refinance their loans out of the federal system, so would not benefit from federal loan cancellation. There simply is no easier, cheaper, more effective, or better targeted way to stimulate the economy. Rest assured, the taxpayers will be fine.  The federal government has been profiting wildly on these loans for many years, and decades of White House Budget data show that the Department of Education has even been making a profit on defaulted loans.  On balance, the taxpayer will have very little- perhaps no- net loss when these loans are cancelled. This is YOUR PETITION.  It requires more than your signature to succeed.  Please get everyone you know to sign, and paste the link to it wherever student loan borrowers are likely to see it (Twitter, Facebook, etc.)  Also, contact your local media, and tell them to cover it. THE SUCCESS OF THIS PETITION DEPENDS ENTIRELY UPON YOUR EFFORTS TO MAKE IT GROW.  PLEASE DO YOUR PART! Petition created by Alan Collinge, founder of StudentLoanJustice.Org and author of The Student Loan Scam (Beacon Press).  

student loan justice.org
983,899 supporters
Petitioning Donald J. Trump, Nancy Pelosi, Mitch McConnell

Return Bankruptcy Rights to All Student Loans: PASS HR. 770

The Founding Fathers called for uniform bankruptcy laws ahead of the power to declare war, raise an army, and coin currency when they gave Congress its powers in Article 1, Section 8 of the Constitution.  This right, however, has been stripped uniquely from student loans.  The results have been disastrous.  The lending system has turned predatory, the federal government now makes obscene profits on the backs of the students, and the colleges have raised their prices recklessly.  This is ruining the lives of tens of millions of people.  People are now being forced off the grid en masse.  Some are fleeing the country.  Others are committing suicide.  All feel the predatory weight of this viciously predatory lending system on their backs.  These people vote. This cannot continue.  We are asking President Trump to immediately issue an executive order instructing the Department of Education and its contractors to not challenge bankruptcy filers on student loans in court.  We are asking Congress to immediately repeal 11 USC 523(a)(8) by passing HR. 770, a REPUBLICAN-sponsored bill that does precisely this. The Founding Fathers saw how predatory lending could be used to conquer and enslave a country.  The student loan example proves their wisdom in spades.   Please go to StudentLoanJustice.Org to find out more.     

student loan justice.org
1,800 supporters