Friday, September 19, 2014

Occupy movement buys student loan debt, forgives it


The Occupy movement has introduced a new twist in the debt collection world.  It has bought some bad student loan debt for pennies on the dollar and then forgiven it.  NPR has a story on the matter by Anya Kemenetz here. This is only privately funded debt, not federal loans.  Generally, student tlon debt cannot be cleared by bankruptcy.
    
This does seem indeed very “pro-active”.  When I worked for RMA as a debt collector in 2003 while still in Minnesota, one person with “only” a $65 “small balance” asked if I would pay his debt! Sounds Biblical.  Some debtors blamed their problems then on September 11, as if a collector (not living in NY or DC) calling them hadn’t heard of it. 

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