The Guaranteed Student Loan program began in the 1960’s so
people could afford college at very reasonable rates of repayment.

Since then a collusion of banks, colleges and favorable government
laws has produced economic hardship on the future of 43 million Americans trapped in debts they cannot escape until repayment.

What follows is the history of changes that has brought us to this point.
LOAN SHARKS AT WORK
President Johnson enacts the HEA act of 1965
- 1965 -
The Guaranteed Student Loan program
was established under the Higher Education Act of 1965.
It is a liberal hallmark of a supportive government
led by President Lyndon Johnson.
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President Nixon and Congress create "Sallie Mae"
- 1972 -
President Richard Nixon and Congress
created the Student Loan Marketing Association..
or “Sallie Mae” – to use U.S. Treasury funds to
buy student loans from the banks freeing more
bank funds for student loans.
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Congress passes EA amendment in 1976
- 1976 -
Congress passed the Education Amendments of 1976
which prohibited student loans from being discharged
by bankruptcy until five years had passed from the start of
the repayment period except in cases of “undue hardship”
...opening the door to what was to come.
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US State Capitol Building Photo
- 1978 -
A comprehensive overhaul of the U.S. Bankruptcy Code
made it difficult for students to discharge their loans.
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Photo of Ronald Reagan
- 1981 to 1985 -
President Ronald Reagan, slashed Federal spending
for higher education by 25%.
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FTC Building Image
- 1988 -
The Federal Trade Commission determined
that non-profit, state-run student loan agencies
could ignore the Fair Debt Collection and Practices
Act and all aspects of that borrower-protective legislation.
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Photo of President Bill Clinton
- 1998 -
President Bill Clinton signed two amendments to the
Higher Education Act. They eliminated all statutes of
limitations for the collection of student loan debts – they
could last for a lifetime; exempted them
from state usury laws - any amount of interest could be
charged; ended coverage by the Truth in Lending Act
so banks could name their own penalties for late payment
and garnish income at any rate they chose.
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Photo of President George W. Bush
- 2005 -
President George W. Bush signed the Bankruptcy Abuse
Prevention and Consumer Protection Acts
so that student loans not guaranteed by the Federal government
were nondischargeable in bankruptcy or for any other reason.
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Photo of the 109th Congress in 2006
- 2015 -
Congress weakened the Telephone Consumer Protection Act
allowing debt collectors to make unlimited robocalls and send
automated text messages – activities forbidden for any other loan.
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These laws have removed all borrower's consumer protections
giving lenders total power and control. 
There is no other loan program like it in America's history.  None.

They must be reformed.
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