Today is the last day to put in comments to the CFPB about its proposal to federalize private student loans. We are opposed to this sort of bailout without full, free, and fair bankruptcy protections being returned to the debt. This sort of proposal is being thrown up in multiple places right now, because the banks would LOVE to be able to dump their horrible private loans (for which they will probably be lucky to get back 50 cents on the dollar) onto the taxpayers at full book value, or even more. If I thought there was any benefit to having federal loans as opposed to private, I might support this, but the various repayment programs are absolutely not a basis for thinking this. I could see people attracted to this if they had large private loans with huge interest rates, and had cosigners to protect. Otherwise, I think I'd probably rather fight for bankruptcy protections before allowing my loans to be federalized. (I do not have private loans, btw, so you know).
What really sickens me, however: This is pretty clearly an initiative by the banks and their lobbyists. It is hurtful to see the CFPB be so easily corrupted, and captured in this way. Shameful is probably a better word.
Anyhow, Read the proposal for yourself, and if nothing else, TELL THE CFPB TO STOP LETTING ITSELF BE SCHMOOZED BY THE BANKS: DO WHAT IS RIGHT AND PUSH FOR THE RETURN OF BANKRUPTCY PROTECTIONS TO ALL STUDENT LOANS!