Law Office of Bahin Ameri, PLLC

     Student loan defaults are increasing at an alarming rate.  So much so that many fear student loan debt will be the next mortgage crisis.  In fact, one could argue that a student loan debt crisis would be worse than the mortgage crisis since unlike mortgages, student loans are typically not dischargeable in bankruptcy. 
     The student loan problem has many causes.  First, students borrowed more than they could ever afford due to lax credit requirements and low interest rates.  Next, college grads are either unable to find work or don’t earn enough to make their monthly payments.  Lastly, student loan debt is basically impossible to get rid of.   It is not dischargeable in bankruptcy and for federal loans, the government can garnish your wages, dock your benefits, and even deny you security clearance. 
     To be fair, the government has tried to remedy some of these issues by offering an income-based repayment plan (IBR) and creating a partial loan forgiveness program for borrowers who spend 10 years working full time in public service.  These efforts are a good start but much more is needed if we want to prevent another financial crisis.  The IBR plan only helps those of us lucky to be working. It does nothing for the millions of 25-30 year olds who are unemployed and have no income. Worst yet, the IBR plan and loan forgiveness program only apply to federal loans.  People with private loans are forced to pay once there grace period expires, no exceptions.
     The current state of the economy and ever-growing popularity of the “occupy wall street” movement makes it a great time to move this issue to the forefront of political debate.  It is time that average Americans get bailed out for a change.  We need a comprehensive loan forgiveness program which would erase student debt and stimulate the economy.  If you feel as strongly about this issue as I do there are a few things you can do to help.

1)   Visit the site ForgiveStudentLoanDebt.com  and sign a petition urging the President to enact a forgiveness program that would forgive most student loan debt.  The site was created by Robert Applebaum, a Fordham law school grad who champions erasing student debt to stimulate the economy.  He has already secured 25,000 signatures but we need more. 

2)   Email Michigan Democrat Hansen Clarke and show him your support for a bill he recently introduced which includes a provision about forgiving student loans. 

3)   Email your state and local representatives and urge them to support Congressman Clarke’s bill.