Wednesday, September 16, 2015

Over My Dead Body! If This Evil Letter Isn't Everything Wrong With Student Loans Then Nothing Is

There is so much rotten in the State of New Jersey. Yet few things stink to high heaven as badly as this letter sent to grieving parents regarding their deceased son's NJClass student loans. The student has died, his education and the prosperous future that loan was supposed to have purchased is tragically gone forever. But even the Grim Reaper won't stop HESAA's demons from relentlessly pursuing his parents to pay back the loan. Saddest of all, due to unconscionable legal protections for predatory student loan lenders and a lack of public outcry, there's nothing Mom and Dad can do about it. To their great credit they took the step to share this letter with the rest of us slaving under the HESAA student loan yoke. 

In this grossly hypocritical letter, devilish HESAA boss Teresa B. Gervasio attempts to offer the parents "condolences on your loss" - before she pile-drives them head first into the financial pavement. What follows is simply a reiteration of what has been quietly on the books for a long time. Even your untimely death will not prevent the relentless maw of HESAA Hell from devouring your family's peace of mind and whatever is left of their financial security after laying you in the ground. 

Gervasio's macabre letter states the facts in a monotone legalese, "In accordance with the terms and conditions of the loan note, there is no discharge of an obligation when a student is deceased, unless (emphasis added) the student is the sole borrower of the loan." That sentence exemplifies everything that is wrong with HESAA because they always require a co-signer, usually a parent. In short, this loan sharking "Authority" just like any Mafioso, will strong-arm your family to pay off nefarious student loan debts. All this for an education that is free in other countries, like K-12 (for the time being) still is here.

The letter goes on to contradict it's previous sentence by saying "A surviving party," like, for example, these poor distraught parents, are "only released from repaying the loans on an exceptional basis based on financial need." I'm sure when burying their baby the first thing they thought was "I hope our modest earnings are exceptionally low enough not to have to pay off any student loans!" HESAA in it's cold calculation reopens their wound, telling them: "After careful consideration of the information you provided, the Authority has determined that your request does not meet the threshold for loan forgiveness. Monthly bill statements will continue to be sent to you."

The living, flesh and blood person who typed this letter had to know that "the Authority" regards students, borrowers and cosigners, living or dead, simply as a means for fattening the coffers of the State of New Jersey. No matter how "legal" under the law, throughout any age, the action described in this letter was understood as a crime, whose offense is rank and smells to heaven. Be warned, dear reader, of the level of Hell we are dealing with in this so-called "Authority." In time, they will answer to a higher Authority, one who suffers no thieves or suited criminals - and who will inspire an organized army of borrowers coming to reclaim a free universal education for all.

Friday, April 17, 2015

Yelp and Google Users Bash HESAA and Their Loan Scam

I know that there is some hope for the future when I type HESAA into Google and find lot's of negative reviews on social media. I mean, it was bound to happen right? Saddle Millennial's with future crushing debt, add the internet and you have the kind of frustration and anger that is boiling up out of the depths of the Lake of Fire known as HESAA.,1

 I really liked this most recent POSITIVE review of HESAA on Yelp:

"I don't know what everyone is talking about. This place is great and their high interest rates are phenomenal. " - The Devil

Sadly a few random posts, some good stories  people venting their anger online (including on my blog) are not going to fix this demonic "Authority". Our next step is to get organized!  Stop back for next month's installment and I hope to have good news for you about our first ever HESAA HELL meetup! 

Interested in doing some advanced planning and organizing? Hit me up at

-Mark Hesaa

Thursday, March 19, 2015

Here is Something You Can Do Right Now To Change HESAA

Sign the petition for debt relief for HESAA/NJCLASS borrowers in default!

     Below you will find the text of a petition which I encourage everyone who visits this blog to sign. Written by a friend to people experiencing the depths of HESAA HELL, Deborah C. Gumpper has taken the fight to HESAA and come up with a specific demand that defaulted borrowers should be allowed access to rehabilitation loans on their way to financial health. As it is, HESAA keeps defaulted borrowers in default into perpetuity. Why not? They are a for profit company and borrowers in default have to sign over all their assets to them to make enormous punitive monthly payments. As Carney says in the petition, "I guess the real truth is that HESAA wants you default on your loans, they make more money that way."
     So far this egregious corporate behavior isn't against the law but it really should be -- so please sign now!

The Petition:

ATTN: Gabrielle Charette (HESAA boss)
DEMAND NJCLASS  OFFER REHABILITATION LOANS TO DEFAULTED BORROWERS: Amend N.J.A.C. 9A:10-6.18 and all other controlling statutes in which HESAA NJCLASS operates under, to grant rehabilitation loans to borrowers who have defaulted on their NJCLASS loans.

     HESAA's role as guarantor of roughly $1.6 billion in student loans and state aid to students, has completely misinformed unsuspecting borrowers that they are a profit making entity hawking high interest, subsidized loans, loans impossible to repay. NJCLASS loans is neither a federal loan nor private loan---they  magically fall in between the two.  NJCLASS fails to send consistent billing statements and ignores borrowers billing inquiries/disputes, allowing delinquency to add up so they can easily default.  A borrower’s whose loan has defaulted has no where to go; they can either negotiate with the collection attorney, who adds a collection fee ranging between 18% and 30%; they can file a Chpt. 13 Bankruptcy and stay the collection action for 5 years; or they can spend exorbitant amounts of money trying to litigate the matter in civil court only to lose.  The loan will FOREVER remain in a defaulted status until it is paid in full; which means a borrower will be well into their late 50’s by the time they pay off their NJCLASS loan. 

     N.J.A.C. 9A:10-6.18 specifically states “(c) An NJCLASS borrower may request the rehabilitation of the borrower’s defaulted NJCLASS Loan Program OR NJCLASS Consolidation Loan held by the Authority. The borrower shall make one voluntary full payment each month for 12 consecutive months to be eligible to have the defaulted loans rehabilitated.” Under section (d) it further states,   “the maximum period for a rehabilitated NJCLASS Loan Program loan or NJCLASS Consolidation Loan shall be the same as that of the [NJCLASS] loan prior to default.  A borrower who wishes to rehabilitate a loan in which a judgment has been entered must sign a new promissory note. The maximum repayment period of the new promissory note shall be the same as that of the NJCLASS Loan Program loan or NJCLASS Consolidation Loan prior to the default

     However, despite this plain language, HESAA claims they cannot rehabilitate NJCLASS loans as they are  "not authorized by either statute, or the bond indentures that fund NJCLASS loans at this time. The regulations allow for an NJCLASS rehabilitation program in the event that statute and market conditions change to allow for the issuance of bonds to finance rehabilitation."  Yet, I have found no such language requiring  a new bond issuance for rehabilitation of defaulted NJCLASS loans.  
 Yet, as above-stated, if a borrower rehabilitates their defaulted NJCLASS loans, the maximum repayment period stays the same as the original payment period.  Thus, why would a new bond need to be issued if the borrower is paying the same amount over the same time period in accordance with the original bond that funded the loan?  This makes little to no sense.  There can be no loss to the investor, nor should it raise the interest rate on the bonds. And, if the loan were to remain in a default status, unpaid, there would be a loss to the investor.  Consequently, I cannot comprehend the rationale HESAA retains when it allows loans to remain in a defaulted status.   

     I guess the real truth is that HESAA wants you default on your loans, they make more money that way.  And, the only issue HESAA worries about is their “investors.” What about the borrowers who signed on the dotted line when they were just 17 years old. This company is no more than a legal, loan sharking outfit run under the Seal of the State of New Jersey.  They need to come down from the high cloud they been floating on and adhere to the rules and regulations just like any other private loan lender. 
With your help, we can change this.  If we sit idly by, many young borrowers will face financial impotence and will not be able to move on with their lives or contribute to the economy in any meaningful way.  I am not asking for a handout; I am not asking for the loan to be forgiven; I am asking that HESAA NJCLASS give borrowers a chance in life by doing what is right.