Personal reflections on the student loan forgiveness policy

I got some very good news last week. An email was tagged: “Your student loans have been forgiven.” First I thought it was fake and then I checked it out and yessiree, no more student loan payments. I have been paying off $20,000 in grad school loans since 1993. Successfully, at first, and then as our financial situation experienced some serious ups and downs, I worked with my student loan provider, one of the businesses that the government contracts to provide this service. I would get them down to a payment I could afford and then they would suddenly, as if some invisible switch was pulled, jack it up to a higher level I couldn’t pay. I then would request a forbearance for six months or a year and that would expire, the company added in all of the unpaid interest, and my payments would be higher than ever. Or I would sign on to a payment plan and suddenly my company shuffled me over to another and I had to start all over again. When my wife's coffee shop/art gallery business failed (she was ahead of her time) 20 years ago, we declared bankruptcy which I thought would include my student loans. I neglected to read the fine print.

I consolidated my loans in 2012 when they reached the $102,000 mark and worked out payments with Nelnet and the amount with accrued interest and fees reached $165,000. Interesting to note that the federal government paid off the student loan servicer and it, conceivably, was very happy to have the money and scratch me off their to-do list. Not such a great deal for the feds and my fellow taxpayers. But, as a taxpayer, I was also supporting the government to contract with this servicer which didn’t seem to give a damn about me and millions of others in debt for attending college. One of the worst servicers is FedLoan Servicing, an arm of the Pennsylvania Higher Education Assistance Agency, a company co-owned by Betsy DeVos, Trump’s “secretary of education.” The PHEAA was, for a short while, my loan servicer. DeVos made millions while arguing forcefully against student loan forgiveness. She now is back under the rock she came out from under. A very fancy rock to be sure.

But, in good faith, I was paying off my debt. All I asked is that the servicer find me a level I can afford and I will pay it until its paid off or Doomsday arrives, whichever comes first. We all got a reprieve when Covid hit and payments were suspended. According to Mohela, a new loan servicer that picked up my account under President Biden’s watch, when my future payments resumed, I would be billed $1,963 a month. My Social Security deposit (I am 72 and retired) each month is $1,940, slightly above the average Social Security check of $1,701. My wife, who volunteered to go on this journey with me, gets $1,240 a month, below the national average because her working years were spent with childbearing and childcaring and household management, none of which enhanced her Social Security benefits. I am disabled and my wife in a Type 1 diabetic and breast cancer survivor. It’s ludicrous to think that a retiree should remit his Social Security check to the government which deposits it into his credit union account every month. But there you have it. Then again, we have GOPers who believe that Americans should not be allowed to retire at 65 or should never retire and, if they do, don’t deserve the funds that came from their paychecks for 40 years.

The Supreme Court aided by GOPers such as Wyoming's entire Congressional delegation and Governor Gordon, stymied Biden’s forgiveness plan so he found new and interesting ways to relieve the burden of millions, many of whom are senior citizens. Because I made a certain number of payments and loans older than 20-25 years were considered time enough to pay, I was forgiven. My loans were 30 years old. I also worked in public service so I was credited with monthly payments I made which go toward forgiveness. All of Biden’s positive ideas to solve this crippling debt were fought by Republicans because CRUELTY is their middle name. Also, they despite higher education, education of any kind – witness the New College fiasco and GOP-mandated public education requirements in Florida. GOPers, even Harvard-educated ones such as DeSantis, have used the loan forgiveness issue as another cudgel for the MAGA crowd to use against the so-called elites.

I send thanks to Pres. Joe Biden and his allies. 

Remember that the Loan Forgiveness Program could be reversed if the wrong people take control of governance in 2024. 

Fill in the blank: "_________ should not be a debt sentence"

Sign seen at the Medicaid Expansion rally held Thursday in Cheyenne:

"Cancer should not be a debt sentence."

You could customize that in a number of ways:

"Heart disease should not be a debt sentence."

"Diabetes should not be a debt sentence."

And so on. Plug in the malady that may be afflicting your family. I have heart disease and my wife is a diabetic. We have insurance. Still, my health care costs topped $200,000 in 2013. I ended up paying several thousand dollars out of my own pocket. Heart disease may have been a debt sentence, or possibly even a death sentence if I wasn't able to afford a stent and an ICD and a two trips to the hospital and rehab and many medications, some of them pricey.

Some of the people testifying at Thursday's rally face debt sentences for hospital bills they can't afford. Fate decrees that the insured and the uninsured alike keel over from heart attacks, wreck their cars, contract horrible infections, slip on the ice and break a leg, get a Big C diagnosis, etc.

We got news on Friday that two Medicaid expansion bills made it out of the Joint Labor, Health and Social Services Interim Committee for consideration during the legislative session.

"I think it is the responsibility of this committee bring it forward for a full discussion," said committee chairwoman Rep. Elaine Harvey, R-Lovell. "I would hate to think that 12 people would decide for the whole state to not do any kind of Medicaid expansion at all." 

Sometimes it seems that there is just one person one person on that committee who wants to deny health coverage to everyone in the state. This from Saturday's Wyoming Tribune-Eagle:

Co-chairman Sen. Charles Scott, urged the committee Friday to table the pending Medicaid expansion bills. He said the federal government's proposal to Medicaid brings out the worst in the American health-care system.

"It encourages excessive utilization of health-care services to the extent that they're not good for people," Scott said.

Wonder what Scott considers "excessive utilization?" Preventive care? Taking your kids to the doctor when they're sick? Riding in the ambulance to the emergency room when you could walk there on the two good legs the Lord gave you?

Sounds to me as if Sen. Scott is arguing for government oversight of what is "excessive utilization" and what isn't "excessive utilization." He wants to be the sole arbiter who decides if 17,000 uninsured Wyomingites get health insurance coverage under Medicaid expansion, a plan that will save the state $50 million, according to Wyoming Health Department Director Tom Forslund.

What is good for people and what is not -- and who decides?

Next thing you know, Sen. Scott will be advocating for death panels.

Maybe he already is.

Strike that debt with Rolling Jubilee

This is a great idea, and yet another offshoot of Occupy Wall Street:

Rolling Jubilee is a Strike Debt project that buys debt for pennies on the dollar, but instead of collecting it, abolishes it. Together we can liberate debtors at random through a campaign of mutual support, good will, and collective refusal. Debt resistance is just the beginning. Join us as we imagine and create a new world based on the common good, not Wall Street profits. Learn more or contribute.

Who increased the debt?

Al Simpson interview: Obama smarter than those "trying to hammer him"

Denver Post political editor Curtis Hubbard landed a great interview with former Wyoming Sen. Al Simpson. Some highlights are in today DP with the whole interview appearing on Sunday. Go to http://blogs.denverpost.com/thespot/2011/08/05/simpson-guys-trying-to-hammer-obama-ought-to-give-it-up/35502/

Here's my favorite quote thus far:

This guy (Obama) is a little bit smarter than some of the guys who are trying to hammer him. They ought to give it up.

This one, illustrating the reason that Pres. Obama didn't publicly endorse the Simpson-Bowles commission findings, is pure Big Al:

So along came (Rep. Paul) Ryan (R-Wis.), who’s got guts, too, and Ryan knew, he’d been on the commission, and the biggest extraordinary engine that will eventually just eat up America is Medicare. And it doesn’t matter if you call it Obamacare or Elvis Presleycare or I-don’t-give-a-damn-care. It can’t work. It’s totally on autopilot, so, Ryan said, ‘Well, I know I’m going to get ripped, but I’m going for the jugular, of the mastodon in the kitchen,’ and he got ripped. That’s exactly what would have happened to Obama.

"Obamacare or Elvis Presleycare or I-don’t-give-a-damn-care." Good one, Big Al.

Letter from D.C. -- and my response

Letter from Wyo. Rep. Cynthia Lummis, with her comments in red and mine in blue:

Dear Michael:

Thank you for contacting me regarding healthcare reform. It is good to hear from you.

Congressional Democrat leaders are working to create a new government-forced healthcare system that would put government bureaucrats between you and your doctor. The House Democrats' proposal - the Affordable Health Care for America Act of 2009 (H.R. 3962) - requires all individuals to purchase health insurance and all employers to provide health insurance to their employees or face steep tax penalties. The bill creates at least 111 new offices, programs and other bureaucracies - including a "Health Choices Commissioner" - that together will dictate to all Americans what health insurance they will be forced to purchase and how much the government should pay medical providers. The bill contains no prohibitions on federal bureaucrats denying access to life-saving treatments for patients.

No prohibitions exist at this time to prohibit health insurance company bureaucrats from denying access to necessary life-saving treatments to patients. Often, those insurance flunkies have no medical background and are making some pretty big decisions on long-term hospital stays, operations, and mental health treatment. You could call this rationing, and is exists now.

I don't know how many times I've chided Republicans for using "Democrat" instead of "Democratic" when referring to the party. We don't say "Republic Party," although some 10th amendment teabaggers might prefer the term. One of these days, the Republics will learn.

I agree with President Obama that people should be able to keep their health coverage if they like it, but this is not the case under H.R. 3962. While estimates range from several million to up to 114 million, experts agree that millions of Americans will end up being enrolled in the new government-run health plan created by H.R. 3962, many not because of choice but because of coercive government policies. Members of Congress, however, will not be required to enroll in the government-run health plan. Members of Congress who support this bill should be subjecting themselves to the same big government policies they wish to impose on the American people.

Members of Congress such as Rep. Lummis now are enrolled in a government-run health care system. Don't hear many complaints. Rep. Lummis underwent an operation earlier this year in Casper. Wonder if she used her taxpayer-funded health insurance to cover the bills.

To partially finance this over $1 trillion expansion of big government, the House Democrat health reform bill imposes over $700 billion in new taxes on individuals and businesses of all sizes. This includes $135 billion in taxes on individuals and businesses who cannot afford to purchase government-approved health insurance. Individuals would be subject to this tax regardless of their income, violating President Obama's pledge not to raise taxes on anyone making less than $250,000 a year.

I agree with Rep. Lummis that this tax issue is disturbing. I do think that some of that $700 billion in new taxes will come from rescinding Pres. Bush's tax cuts for the wealthy. I will check this.

Our nation's seniors would also have to foot some of the bill. The non-partisan Congressional Budget Office estimates that H.R. 3962 will raise seniors' Medicare prescription drug premiums by 20 percent, even as Social Security benefits are estimated to stay flat for the next few years because of the bad economy. H.R. 3962 also slashes $150 billion from the Medicare Advantage program in which nearly 3,000 seniors in Wyoming are enrolled and from which they can obtain extra benefits and lower copayments.

Translation: seniors vote -- don't cross them.

I joined both Democrat and Republican Members in calling for the final language of H.R. 3692 to be posted online 72 hours before the House is expected to vote. Within this 72 hour period, I offered amendments to H.R. 3962 to allow states to protect their citizens from government-forced insurance, unfunded mandates, taxes and possible imprisonment for not buying bureaucrat-approved coverage, and government policies that come between patients and their doctors. My amendments and dozens of others were not allowed consideration on the House floor by the House Rules Committee, which also made several last minute changes to the bill the night before it was considered on the House floor. I voted against H.R. 3962, which passed by a vote of 220-215. A similar bill is now pending in the Senate.

I am urging our senators to vote for the Senate health care bill. They will not, but I shall continue urging them on until I am blue in the face. All over my body, and in my heart, too.

As an alternative, I support the Empowering Patients First Act (H.R. 3400). Under H.R. 3400, low-income, uninsured individuals would receive a tax credit to help them purchase private insurance. All Americans would receive a tax deduction for healthcare insurance costs, not just those that receive coverage through their employee. H.R. 3400 would devote more federal funds for state-based high-risk pools for those with pre-existing conditions that are unable to obtain private insurance. The plan would also allow small businesses to join together across state lines and create their own affordable health insurance plans. To safeguard access to medical care for Wyoming's seniors, H.R. 3400 prevents a scheduled 20 percent cut in Medicare payments to physicians. Perhaps most importantly, H.R. 3400 respects and upholds the notion that individuals, not the government, should be in charge of their healthcare dollars.

This sounds like more Republican dithering. This is supposed to be reform, not tinkering.

H.R. 3400's cost to the taxpayer is fully offset. It accomplishes this in part by imposing a one-percent cut in non-Defense spending and repealing unspent economic stimulus funds. H.R. 3400 would also step up efforts to eliminate waste and fraud in our entitlement programs and reduce defensive medicine through targeted medical liability reforms.

Let's impose a 1 percent cut in non-Defense spending and a 2-percent cut in Defense spending. This can be accomplished by finally getting the hell out of Iraq. It's time to stop bringing democracy and security and higher education and better healthcare to Iraqis and start bringing it to Americans.

As the healthcare reform debate continues, I will continue focusing on patient-centered and not government-centered solutions to improve access to affordable healthcare in rural and frontier America. In Wyoming, it's not just cost that gets in the way of your healthcare, it's a lack of providers, whether for primary, specialty or mental health care. I have joined the House Rural Health Care Coalition to address the unique healthcare challenges we face in Wyoming that are not fully understood by our urban counterparts, such as reimbursing doctors and hospitals more fairly for Medicare patient procedures.

I am impressed that Rep. Lummis addresses accessibility to health care in Wyoming. I'm even more impressed that she mentions mental health care in our 97,000-square-mile state with not one pediatric psychiatrist. Thank you for joining the House health Care Coalition.

As for government-centered vs. patient-centered care... How can she call the current system "patient-centered?" Yes, Wyomingites with insurance can make the claim that they can visit the doctor or dentist or surgeon of their choice. I do that. Often those professionals are located down I-25 in Fort Collins, Loveland and Denver. Still, most are in the Great West/CIGNA network and I usually pay only the 20-percent deductible. I am employed and am lucky to have insurance for myself and my diabetic wife and my daughter with epilepsy and mental health issues. I also have the advantage of living in the state's largest city, Cheyenne, and right on the border of a more populous and more health-conscious state

But Wyomingites in small towns don't have much choice. The town may only have a few doctors and maybe a dentist. That's their choice. They can drive 50 or 100 or 300 miles to the nearest cancer or pulmonary specialist. Veterans have a choice of V.A. Hospitals in Cheyenne and Sheridan, and across the border in Rapid City. The V.A. sponsors shuttles to get these vets to a doctor. Sometimes they don't have a choice of doctors, but... Hold on. Vets have the best health care system that taxpayer funding can buy. Popular with Vets, too. Just ask one. Doggone that terrible government-centered health care!

Speaking of government-funded solutions... Thousands of the state's citizens get Medicaid funding. These are people with no insurance, or insurance that's inadequate for required medical or mental health treatments. Approximately 75,000 of our people are covered under Medicaid, including 50,582 children (2008 Children's Defense Fund figures).

Thank you again for sharing your thoughts with me on an issue of importance to all of Wyoming's citizens. Please keep in touch, and I look forward to seeing you in Wyoming.

Sincerely,

Cynthia M. Lummis
Member of Congress

You're welcome, Rep. Lummis. Be seeing you next time you're in Wyoming.

Free online college textbooks? Shazam!

Crooks & Liars explores the burgeoning world of online educational resources, especially for college students. A great option for middle-aged working people thrown out of their jobs and wanting (at long last) to get their degrees.

For more, go to http://crooksandliars.com/susie-madrak/technology-brings-new-life-education

Michael and me: Angry White Men

Good news: Senate passes credit card reform. Bad news: All credit card holders must wear loaded guns

New credit card bill passed 90-5 today in the U.S. Senate. It includes some much-needed restrictions on credit card companies.

Anne Flaherty reports this in an AP story:

If enacted into law as expected, the credit card industry would have nine months to change the way it does business: Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone without an added fee. They'd also have to give consumers a chance to spare themselves from over-the-limit fees and provide 45 days notice and an explanation before interest rates are increased. Some of these changes are already on track to take effect in July 2010, under new rules being imposed by the Federal Reserve. But the Senate bill would put the changes into law and go further in restricting the types of bank fees and who can get a card. For example, the Senate bill requires those under 21 who seek a credit card to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default.... Under the bill, a cardholder would have to opt to be allowed to go over a credit limit. If customers don't agree and the bank authorizes a charge that would push them over their limit, the lender couldn't levy an over-limit fee. Another boon for consumers is limiting a practice known as "universal default," when a lender sharply increases a cardholder's interest rate on an existing balance because the customer is late paying that bill or other, unrelated bills. Under the new legislation, a customer would have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance. Even then, the credit card company would be required to restore the previous, lower rate after six months if the cardholder pays the minimum balance on time.

This is good news for all of us who've been gouged by credit card companies, which probably includes 99.9 percent of all Americans.

One odd things about the bill, though. A provision was added at the last minute that allows people to carry loaded guns in national parks and wildlife refuges. The purpose of the amendment listed in the U.S. Senate's official record is this: "To protect innocent Americans from violent crime in national parks and refuges." Oklahoma Republican Sen. Tom Coburn proposed the gun measure as an amendment and it passed, 67-29.

What does this have to do with credit card companies? Some of us, even peaceniks, have been driven apoplectic by the credit card companies and their obscure rules. I do admit that it's a far cry from apoplexy to gunplay, but the latter has been contemplated.

So, if all this becomes law, expect to see lots of gun-toting westerners this summer in Yellowstone and Grand Teton and Devils Tower and Fossil Butte and Mount Rushmore and Dinosaur N.M. and Rocky Mountain N.P. and the wildlife refuge near you. A perfect time for threats of random gunplay in parks which have been reporting a downturn in visitors by Internet-absorbed Americans and by those strapped for cash by the economic downturn.

While this "gun-toting act" could backfire, it might add to the tourism numbers. Let's face it, tourists, especially the foreign variety, have become jaded by fake Old West gun fights in places such as Jackson and Cheyenne. They are looking for a more genuine experience. So what could be better than a real gunfight breaking out amongst two gun-toting citizens jockeying over the same RV hook-up? Better yet, two fellows decked out in Wranglers, Tony Lamas and Glocks get into a scrape over a woman at the Yellowstone Lake Lodge. They're told to take it outside and they do, much to the delight of a busload of tourists from Kyoto. They get it all on film and it's on YouTube within seconds.

That may be fine for tourists from overseas. For me, this makes a staycation look better and better.

First, we kill all the credit card company lawyers execs

This comes intact from Crooks and Liars:

I expect a bit of deja vu, in which Obama tells them he's the only thing between them and the pitchforks:

This afternoon President Obama will tell top executives from 14 credit card companies -- including American Express, Bank of America, Discover, MasterCard and Visa -- that greater consumer protections are coming for their customers, with or without their cooperation.

The House Financial Services Committee on Wednesday passed "The Credit Cardholders' Bill of Rights," a bill from Rep. Carolyn Maloney, D-NY, that would require companies to provide a 45-day notice before any rate increase; prevent the companies from retroactively imposing higher interest rates to existing balances; and ban "universal default," which the companies use to raise interest rates on consumers late in payments to completely different creditors.

Oh yeah, universal default. That's the policy that allows them to jack up your credit card rate because your payment to the phone company was late!

Treasury Secretary Tim Geithner, senior adviser Valerie Jarrett, and National Economic Council director Larry Summers will join the president at the meeting.

An industry source tells ABC News that the executives expect to hear from the White House that "the industry is unpopular right now." The source forecasts that the meeting will be "a carrot-and-stick" deal -- the administration will tell the executives that they need their help in dealing with problems such as high interest rates, but they will emphasize the threat of legislation.

"It will be a come-to-Jesus type of meeting," the source said

Let's not forget to include the always witty Capitol One in these proceedings.

Unveiling corruption in student loans

A New York Times’ story on April 7 carried this lede:

A senior Education Department official who owned stock in a student loan company while helping oversee the federal lending program was placed on leave yesterday, the department said.

And in today's NYT:

The CIT Group said today that it had put on leave three top executives of its student loan unit, Student Loan Xpress, after revelations last week that stock in that company had once been held by financial aid administrators at three universities and by an Education Department official who helps oversee the federal student loan program.... Separately, the office of Andrew M. Cuomo, the New York attorney general, sent letters to three universities — Johns Hopkins University, Widener University and Capella University — raising concerns about relationships they had with Student Loan Xpress. At each school, according to Mr. Cuomo’s office, the loan company is a lender recommended to students.

Closer to home, Matt Singer at Left in the West out of Montana wrote about the corruption in the U.S. student loan program on April 6 and tipped his readers off to Anya Kamenetz's blog, calling it "a must-read for more info." Kamenetz is the author of "Generation Debt: How Our Future Was Sold Out for Student Loans, Bad Jobs, No Benefits, and Tax Cuts for Rich Geezers – And How to Fight Back."

Haven’t read the book but love the title. All of us with student loan debt up to our eyeballs – for us and our college-age kids – knew there was something rotten in the system. Thanks to the Times and Ms. Kamenetz for cluing us in.

According to Student Loan Justice, Wyoming Senator Mike Enzi and his PAC have benefitted handsomely from contributions from Sallie Mae, NelNet, and other student lenders. This report came out last October when Enzi was chair of the Senate committee that oversees the student loan system. He's been demoted since, so who knows whether the contributions are still rolling in.