< HOME  Wednesday, May 10, 2006

Methods in Student-Debt Slave Torture

I finally finished law school, and as a token of appreciation, I'm not allowed to graduate without spending 25 minutes taking this mandatory student loan exit interview, in which I am educated in all my obligations, tested on my knowledge of that information, and forced to provide my lenders with the names and addresses of at least four other people they can harass for the money I owe them, should I turn out to be a dead beat.

Excerpts from the interview:

You MUST repay your loan, even if you don't finish school, get a job after leaving school, or your education didn't meet your expectations. If you pay on time, you build a good credit history, which makes it easier for you to borrow money in the future. If you don't pay, however, you will face serious consequences. [emphasis mine]

Believe it or not, the emphasis in the first sentence is NOT mine. But, from here on all emphasis is mine.
Forbearance is a period of time during which your loan holder temporarily reduces or suspends your regular payments. You may request forbearance if you are willing but unable to make your full payment and are not eligible for a deferment. You are responsible for the interest that accrues during the forbearance period. You may pay the interest as it accrues. In the case of Stafford Loans, if you don't pay the interest, it is capitalized. Capitalized interest is applied to the principal balance and may result in a higher monthly payment upon conclusion of the forbearance period. In the case of Perkins Loans, if you don't pay the interest as it accrues, you will be responsible for paying it when the forbearance ends. Contact your school or loan holder for more information on applying for forbearance.
Notice that they call it "forebearance" as if it's some noble process by which they allow you to push back your payments for as long as you can't afford to pay it. Meanwhile, CAPITALIZED interest accrues on Stafford loans (which is by far the bulk of student loans).

This means that any interest not paid during "forebearance" is added to your debt. From there on, you must pay interest on THAT too, and so on and so forth, for as long as you can't afford to pay your loans.
Cancellation/Discharge/Forgiveness: If you die, your loan obligation will be cancelled. Your loan also may be cancelled if you become totally and permanently disabled. Loan cancellation due to disability requires certification from a physician and is subject to a conditional period of three years.

Your loan may be cancelled in other instances including school closure, false certification, or failure of the school to pay a refund if you withdraw. Generally, federal student loans may not be cancelled or discharged due to bankruptcy.
Notice that you may be forgiven if you are TOTALLY and PERMANENTLY disabled - but NOT necessarily.

And then the loan 'forgiveness' programs - amazing.
A loan forgiveness program for teachers serving in designated low-income elementary and secondary schools exists for new Stafford and Perkins Loan borrowers after October 1, 1998. The borrower must teach in a low-income school for five consecutive, complete school years to qualify for forgiveness of up to a maximum of $5,000 in Stafford Loans. You must teach in a low-income school or in a field of expertise where the state education agency determines there is a shortage of qualified teachers, or in a specific field (mathematics, science, foreign language, or bilingual education) for five complete school years to qualify for forgiveness of 100 percent of Perkins Loan principal.

A similar loan forgiveness program exists for Federal Stafford Loan borrowers who are child care providers. This is a demonstration program, and Congress appropriates funds for this program on an annual basis. Contact your lender or guarantor for more information.
Congress pays the loans!!! Lenders NEVER forgive loans. In the end, taxpayers pay for EVERYTHING. No doubt, states appropriate funds for the school program as well and it's really nothing. Basically, they make you work twice as hard in a thankless job before they "forgive" PART of your loans.

And the grand finale, threats of financial death and dismemberment at the hands of moneylenders:
Defaulting on your student loan can result in:
  • damage to your credit rating, which could impact your ability to borrow (for example, you may be denied a car loan);
  • referral of your account to a collection agency;
  • collection costs;
  • garnishment of your wages;
  • withholding of your state or federal Treasury payments (including federal tax refunds, Social Security benefits, etc.);
  • civil lawsuit, including court costs and legal expenses;
  • loss of deferment and forbearance entitlements and flexible repayment options;
  • loss of eligibility for further financial aid; and
  • suspension of your professional license.
In addition, default could lead to loss of cancellation entitlements for Perkins Loans.

When you fail to repay your student loan, the loan may be accelerated (total balance becomes due immediately). There is no statute of limitations for student loans, and your creditors will not cease in their efforts to collect this debt.
I love you too - a**hole.
Establish yourself financially by building good credit and budgeting to keep your "wants" under control
  • Open up checking and savings accounts. Don't overdraw these accounts.
  • After shopping around for the best terms and conditions, apply for a major credit card.
  • Use gas and retail cards responsibly and sparingly.
  • Make your monthly payments for loans and services (like your phone bill) on time each month.
  • Make a list of your values - the things that are really important to you - and set your goals to help you maintain those values.
  • Create a spending plan that meets your "wants" as well as your "needs." Your total expenses should be less than or equal to your total income. If your income is not enough to cover your expenses, adjust your spending plan by deciding which expenses you can change.
  • Periodically evaluate your spending plan to make sure it is still meeting your needs and achieve your goals. Update if necessary.
  • Review your credit report once a year to make sure it is accurate.
  • If things are getting out of control, contact your creditors, seek help from a reputable credit counseling service, or look into debt consolidation.
Don't feel bad. I am free to do what ever I want with the rest of my life AFTER I finish living it for MONEYLENDERS.

And NEVER forget - THAT is what I signed up for. That is the price I MUST pay to learn all about how badly moneylenders have been and continue to SCREW the world.

Nevermind that the Interest I "owe" is on fiat bills that under our Constitution are supposed to be issued by Congress on behalf of and for the benefit of THE PEOPLE - NOT "the Banks."

America has become the EVIL EMPIRE of MONEYLENDERS.


At Thursday, May 11, 2006, Blogger vper1 said...


At Thursday, May 11, 2006, Blogger qrswave said...




At Thursday, May 11, 2006, Anonymous Anonymous said...

Bright Future Beckons For Heroes, Patriots
(Mighty Thor 11 May 06)

Yes I agree with ur most eloquent argument qrswave; hence debt system must be overthrown for obvious reasons, yes?

Hence obvious answer is to destroy system--as will happen anyway, Jews & accomplices/co-conspirators guaranteed to suck it dry before anyone else, topmost conspirators "getting away" (hoping anyway) to wait to start over again in some other system-culture, "flight of capital," especially "capital" in brain-power, evidently.

Hence one must see the "bright side" for overthrow of the Jew-monetary system for debt slavery, namely the present US Federal Reserve Bank (Fed) counterfeiting scam. Note real rule-of-law will genuinely enforce sanctity-of-contract--which would by itself raise the standard of living immediately.

CONCLUSION: So that's what beckons to the revolutionary patriot--it's what justifies overthrow of present fascist Judeo-oligarchal regime founded upon Fed counterfeiting conspiracy. It's actually a bright Future possible, potentially, and quite prospective, and could only be prevented by deliberate SUBJECTIVIST-motivated saboteurs, if that. Honest elections and death to the Fed. Thor

At Thursday, May 11, 2006, Blogger Mike said...

Do you have plans for your new law degree, qrswave?

At Thursday, May 11, 2006, Blogger Yukkione said...

congratulations! Now get repaying your loan!

At Thursday, May 11, 2006, Blogger qrswave said...

bury it somewhere in my room?


No, I haven't found a job yet.

I'm going to try my best to reconcile between paying my loans and abolishing this horrendous monetary system, if at all possible.

What I do know, however, is that I will NEVER give up the latter.

At Thursday, May 11, 2006, Blogger qrswave said...

oh, thanks, thor.

Of course, the debt system must go. Let's just hope it doesn't kill us all first.

LOC, thanks for reminding me...:P

At Thursday, May 11, 2006, Anonymous Anonymous said...

"Succeeding," Making Money, Two Different Things Entirely
(Mighty Thor, 11 May 06)

Yes but thoroughgoing patriots as we are, we must not merely "hope" as u so femininely put it. Rather, we must PLAN forthrightly as we do with ur so poignant journalistic observations, good in science too.

Legally, let's face it qrswave, u haven't got a chance to succeed unless u're crooked lawyer, utterly corrupt. So get ready to suffer.

On the bright side, perhaps u actually learned something regarding real law as it starts out in nature, as in Ciceronian, then "right reason," etc., these then leading to European, British, American Common Law history.

So we see things most scientifically: observe under present circumstances (cultural, psychologic, etc.) only Jews will win any "victories." Prof. Kevin A MacDonald (Cal-Fullerton, author of "Culture of Critique," others) wrote recently, "it's getting to pt. being called "antisemite" is badge of honor.

Only possible kind of patriot has to have firm grounding in antisemitism. And yes, I know I emphasize it, antisemitism, but it deserves to be understood most pointedly.

It's not I worship antisemitism as religion--rather I recognize non-antisemitism as obvious heresy. And that's one thing (heresy) a good PLAN must help with. Note fraud system of Jews and oligarchs is built upon suchlike heresies, complex-matrix (I just like to use such neat-sounding words).

Most rationalistically, it's large battle for the soul--for culture and individual: distinctive OBJECTIVITY or Talmudic subjectivity, heresy, fraud, hubris, narcissism, etc.?

CONCLUSION: Knowledge of law is good in both Jurisprudence and Science in general, things so deterministic. Honest elections and death to the Fed. Thor

At Thursday, May 11, 2006, Anonymous Anonymous said...

Yes, Congratualtions Q, no doubt you will be a giant in the field of monetary deceit litigation. I will finally see your picture - on the cover of TIME. You will be asked to do lots of interviews on radio shows. You will need a body guard, and you will walk the corridors of power leaving only rubble behind.

At Thursday, May 11, 2006, Blogger Citisucks said...

Congradulations qrswave.

Cancellation/Discharge/Forgiveness: If you die, your loan obligation will be cancelled. Your loan also may be cancelled if you become totally and permanently disabled. Loan cancellation due to disability requires certification from a physician and is subject to a conditional period of three years.-That reminds me of a story about the corporate terrorists at Citibank-only they are still trying to rip-off the dead:

My Aunt died this past January. Citi Bank billed her for February and March for their monthly service charge on her credit card, and then added late fees and interest on the monthly charge...the balance had been $0.00... now was somewhere around $60.00)

I placed the following phone call to CitiBank:

Me: "I am calling to tell you that she died in January."

CitiBank: "The account was never closed and the late fees
and charges still apply."

Me: "Maybe, you should turn it over to collections..."

CitiBank: "Since it is 2 months past due, it already has been."

Me: "So, what will they do when they find out she is dead?"

CitiBank: "Either report her account to the frauds division,
or report her to the credit bureau...maybe both!"

Me: "Do you think God will be mad at her?"

CitiBank:"...excuse me ....?"

Me: "Did you just get what I was telling you.... the part
about her being dead?"

CitiBank: "Sir, you'll have to speak to my supervisor!"

(Supervisor gets on the phone)

Me: ''I'm calling to tell you, she died in January."

CitiBank: "The account was never closed and the late fees
and charges still apply."

Me: "You mean you want to collect from her estate?"

CitiBank: ".....(stammer)"

CitiBank: "Are you her lawyer?"

Me: "No, I'm her great nephew." (Lawyer info given... )

CitiBank: "Could you fax us a certificate of death?"

Me: "Sure." ( Fax number is given )

( After they get the fax. )

CitiBank: "Our system just isn't setup for death..."

Me: "Oh..."

CitiBank: "I don't know what more I can do to help..."

Me: "Well... if you figure it out, great! If not, you could
just keep billing her...I suppose...don't really think she will care...."

CitiBank: "Well...the late fees and charges do still apply."

Me: "'Would you like her new billing address?"

CitiBank: "That might help."

Me:" Odessa Memorial Cemetery, Hwy 129" ( plot
number given. )

CitiBank: "Sir, that's a cemetery!"

Me: "What do you do with dead people on your planet!!!!

At Friday, May 12, 2006, Blogger qrswave said...

thanks, Ruby, you're too kind!

Citisucks - ROFL!!! - that is the funniest story I ever heard! That ought to be a post. "The Dead: Billing them's easy, collecting is hard"

sorry to hear about your aunt - btw - God rest her soul.

They will probably keep her debt on the books until it grows big enough to take a big chunk off their tax liability when they write it off.

Amazing. These people never quit. Crooked to the bone.

At Friday, May 12, 2006, Blogger qrswave said...

BTW, thor, you're right about one thing, at least. Succeeding and Making Money are two entirely different things - irreconcilable in these times.

My soul is not for sale. So, yes I am ready to be "poor."

At Friday, May 12, 2006, Anonymous Anonymous said...

from what I saw on a tv "ON YOUR SIDE" news program contrary to popular belif even if lets say.. RADIO SHACK sold your debit account to some third party. It is still your legal right to pay off your bill to radio shack and not a third party.

At Friday, May 12, 2006, Blogger Unknown said...


I hear you about the student loan thing...I'm still paying on mine (I had to give up my career aspirations because no body would hire me "without experience"...a catch-22 if I ever heard one and with a moutn other than my own to feed...dizzy had to do what she had to do...). I am "this" close to getting that monkey off my back.

In any case, regardless of the student loan thing, I just wanted to say "Congratulations!"

Good luck in finding enough work and success to pay off your loans and still fight "the man".

Way To Go!

At Friday, May 12, 2006, Blogger Albion Moonlight said...

Yup, scam to the bone. I spent several years in "forbearance" and now the principle of my student loan is hovering around twice what the original amount that I borrowed. Yippee. Sallie Mae owns me in perpetuity (until it collapses and sells its debt to some even more agressive and evil firm).

Oh, and I'm getting phone calls from some company that apparently bought some petty debt I owed to some ginormous corporation. I figure it's a small enough amount, not worth taking me to court over, so I continue to ignore them. Once your credit score reaches zero, can you go negative?

At Friday, May 12, 2006, Blogger Unknown said...


At Friday, May 12, 2006, Blogger Citisucks said...


I probably should have clarified, it actually wasn't my aunt, it was a story that I saw posted on another blog.

I had my own no customer service nightmares with Shitibank. They stole my money and then when I called to complain about it I was hung up on 7 times by their no customer service department. Previous to these 7 times I was repeatedly lied to. To this day the problems remains unresolved and the corporate thieves and terrorists still have the money they stole from me.

I have also been ripped off by both Capitol One and Chase, but when I called to complain about it both of these banking terrorists fixed the problem.

Congradulations again on school. Good to be hear you plan to do something positive with your law degree.

At Friday, May 12, 2006, Blogger Citisucks said...

Albion Moonlight,

I totally agree with you and am doing something similar. I was in a car accident that was not my fault (officially, I was rear ended). This was last year. The company (Aetna) that I had medical insurance with at the time refuses to pay the pill and the other persons car insurance company (Esurance) keeps claiming they are going to pay the bill they just need more paperwork (yeah right). So if these big corporations aren't going to pay the bill why the hell should I which by the way was for a chain non-local hospital? It isn't enough to take me to court over either. I have no plans to pay it. It is in collections. I sent the collection agency a letter telling them they better stop calling me. When they called me anyway, I took the phone repeatedly slammed the part you speak into down on my desk. I haven't heard from them since.

A credit rating is a worthless number. I pay cash for things. Despite people saying you can't get an apartment unless your obsessed with your credit rating blah, blah, blah, I have never been denied for an apartment ever.

At Wednesday, March 05, 2008, Anonymous Anonymous said...

What a nightmare! My advice for students? Work like hell to avoid debt...

A good example of college student doing this can be found in this article at...http://www.eastbayexpress.com/2007-08-15/news/campus-cost-coping/

The site he uses is called Barefoot Student and can be found at...http://barefootstudent.com


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