Occupy abolishes $4 million in other people's student loan debt-- OOOHH! Me next!

[ICStats]

chocoloco said:

badgenome said:

That's almost like saying collectors are taking the bank's business away, though. Banks have given up by the time they actually sell debt to collectors (vs. just hiring the collectors to collect), and those collectors have given up by the time they are willing to sell it to other collectors at this low of a rate.

So this gets a few people off the hook, but probably only the most dedicated of deadbeats, which I'm not sure is such a good thing. And the number is so insignificant that it does nothing at all to undermine the system in practical terms since getting your bad debt forgiven by OWS is about as likely as winning the lottery.

You obviously did not read the article. I scanned it, but picked up this. An example of what was paid of was for a woman with 18,000 in debt who got $600 paid off. Talk about a free ride and a belief-preserving bias on your part.

No, he wasn't biased.  The article clearly states that the Occupation people bought these loans for pennies on the dollar.  Loans are not sold for pennies on the dollar until they are heavily delinquent.  Note it says they bought $3.8 million worth of loans for $100,000.

The woman who got a $600 loan paid off doesn't mention the loan was delinquent or not, but given the earlier implication then it probably was, and they bought the delinquent loan for $15 or whatever, and then told her she doesn't have to pay anything.