The next big American Tax Payer Bailout: Excessive fees and penalties in the unregulated student loan industry attached to defaulted student loans. After falling behind on a loan (that you cant afford to pay due to not finding work in your field due to Collins College poor reputation) they can add upwards of $20,000 in fees alone- lump summed on. I cannot find anyway to fight this as it is unregulated.
My original loan of $32,000 after deferments and forbearances interest added over the years is now in collection with fees totaling- according to them (Regional Adjustment Bureau- another scam company) is $92,000 at last count. (For a useless degree)
I have yet to get an accounting of all of these fees, interest and penalties, even after my written request. It went into default when I couldn't send a 600.00 a month payment- offered to send less (due to being out of work recovering from 2 surgeries in a year- with documentation and I was unemployed) and was told it didn't matter what I sent if it was under the 600.00 payment it would still be sent to default.
This school (Collins College) has caused grave damage to me and many other people. It has cause stress beyond comprehension and shook my self confidence, created professional embarrassment and severe regret and had even at times caused suicidal thoughts as my dream has become my worst nightmare. It never seems to end with unscrupulous greedy corporations laughing their way to the bank with no concern for their unethical actions and the effect that it has on ones life.
You are treated as a deadbeat loser with a debt and the reality is you are a consumer who has been sold a bad bill of goods that you could never repay because the choice for you to sign up was based on lies of placement and earnings among other things. No one in their right mind would sign up for huge payments they couldn't afford- waste their time and energy for a useless degree and to be disrespected and blackballed from employment.
It continues to go on and on to thousands of people. The taxpayers will more than likely end up having to bailout this slush fund of defaults, penalties and fees racket as well. (Student Loan Collections)
The Dept of ED continues to give monies in loans to these schools despite the evidence that students have a huge default rate from them being under/un employed after graduation. I truly believe it will be our next big crisis of the economy if they are not stopped. It has created a modern day debtors prison. CEC owns and operates around 86 schools in the nation. Most are run the same way from what I have read.
I have decided to take action and get the word out. I want to be absolved of this nightmare and let other people know what is going on and help them too if I can. Please post if you are a victim and experiencing the same things. I am in process of Class Action Lawsuit