It continues to baffle me how this president who was elected thanks to the overwhelming support of young people can’t see the crushing effect of student debt. I honestly think that President Obama has a blind spot on this issue because he was able to pay off his debts with a book deal. Not everybody gets a book deal.

Heck, in this economy, not everybody gets a job.

And if you don’t have a job, paying off your student loans is the last thing on your list. First comes shelter, then food, then dating, then internet (so you can look for jobs), then all the bills where they take something away from you if you don’t pay, then alcohol, and then you see if you have any money left over to pay your student loans.

I didn’t make that last paragraph up. That’s a pretty standard hierarchy of human needs.

For some reason, Obama doesn’t understand that. He seems to think that if you pester people more, they’ll pay off their loans. Thanks to this flawed logic, expect debt collection calls to be coming to a cell phone near you….

This is the kind of subtle change that massively increases the government’s intrusion into our lives that neither the Tea Party, NOR the Occupy Wall Street people notice, because they are too busy screaming absolute nonsense about issues they don’t understand. From the Huffington Post:

To the dismay of consumer groups and the discomfort of Democrats, President Barack Obama wants Congress to make it easier for private debt collectors to call the cellphones of consumers delinquent on student loans and other billions owed the federal government.

The change “is expected to provide substantial increases in collections, particularly as an increasing share of households no longer have landlines and rely instead on cellphones,” the administration wrote recently. The little-noticed recommendation would apply only to cases in which money is owed the government, and is tucked into the mammoth $3 trillion deficit-reduction plan the president submitted to Congress.

It’s just an ass backwards way of trying to get money that shows a distinct lack of understanding of what student debtors are facing:

“Enabling robo-calls (to cellphones) is just going to lead to more harassment and abuse, and it’s not going to help the government collect more money,” said Lauren Saunders of the Boston-based National Consumer Law Center. “People aren’t paying their student loans because they can’t find a job.”

It’s really not that complicated: if you want people to pay their student debts, then they need to have a job. The mafia understands this concept! The mob will not loan money to people who have no ability to pay it back, and they won’t destroy a person’s ability to earn the money they need to pay back their loans.

Evidently the federal government is more financially illiterate than your average bookie. The government doesn’t understand that you can call these people as much as you want, but if they don’t have any money, they won’t be paying back student loans.

Whatever. I wonder how long it takes politicians to figure out that robo-calling isn’t going to help the government collect on the billions of dollars that it’s owed either. The student loan market has already crumbled, folks. We’re just waiting for everybody else to figure it out.

Obama Plan Includes Measure To Make It Easier For Debt Collectors To Call Cellphones [Huffington Post]


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