The politicians in Washington, the congress of the United states, always "claim" to have the answers to "help" American citizens deal with their "problems".
We all know, or should know by now, that the truth of the matter is that all the politicians and congress seem to care about in reality is the well being of their masters in the financial sector.
Check the two articles below for the flavor of how this goes down..
Congress / politicians apparently KNEW Student Loans were a problem (bubble) in the 1970's and moved, in 1998, to exempt student loans from bankruptcy courts.
Apparently they KNEW the economy was in even bigger trouble in 2005 when they made major changes in bankruptcy law to protect creditors.
What we have now is nothing new.. This is the way it has ALWAYS worked in Washington.
What matters to Washington, politicians, bankers and corporations is MONEY, not you..
These so-called laws are nothing short of crony capitalism tyranny.
Enjoy the free education below..
From Wikipedia, the free encyclopedia
Bankruptcy Abuse Prevention and Consumer Protection Act
Full title An Act to amend title 11 of the United States Code, and for other purposes.
Colloquial name(s) Bankruptcy Reform
Enacted by the 109th United States Congress
Public Law Pub.L. 109-8
Stat. 119 Stat. 23—217
Introduced in the Senate as S. 256 by Chuck Grassley (R-IA) on February 1, 2005
Committee consideration by: Senate Judiciary, House Judiciary
Passed the Senate on March 10, 2005 (74–25)
Passed the House on April 14, 2005 (302–126)
Signed into law by President George W. Bush on April 20, 2005
Relevant Supreme Court cases
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) (Pub.L. 109-8, 119 Stat. 23, enacted April 20, 2005), is a legislative act that made several significant changes to the United States Bankruptcy Code. Referred to colloquially as the "New Bankruptcy Law", the Act of Congress attempts to, among other things, make it more difficult for some consumers to file bankruptcy under Chapter 7; some of these consumers may instead utilize Chapter 13. Voting record of S. 256 .
It was passed by the 109th United States Congress on April 14, 2005 and signed into law by President George W. Bush on April 20, 2005. Most provisions of the act apply to cases filed on or after October 17, 2005.
It was widely claimed by advocates of BAPCPA that its passage would reduce losses to creditors such as credit card companies, and that those creditors would then pass on the savings to other borrowers in the form of lower interest rates. These claims turned out to be false. After BAPCPA passed, although credit card company losses decreased, prices charged to customers increased, and credit card company profits soared.
Read more on WikiPedia
The Fall of Consumer Protections for Student Loans
In the 1970's, Congress began to remove standard consumer protections from student loans at the urgings of industry. Entities including Sallie Mae, USA Funds,(which was to be purchased by Sallie Mae in 1999), The Consumer Banker's Association, and others engaged in a deliberate long term strategy to make student loans inescapable, hugely profitable through not only loan payments, but also late fees, and default penalties. This campaign culminated in watershed legislation in 1998 that made student loans not only risk free, but also far more profitable when students defaulted on their loans.
However, the campaign did not end there. By 2006, student loans had become the most absent of consumer protections of any type of loan instrument in the nation's history.
Read more on StudentLoanJustice.org