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For Immediate Release February 20, 2016

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Thousands of arrests
 of student debtors
planned in Texas



Despite widespread, concerted media attempts to downplay the significance of the recent arrest by federal marshalls of Mr. Paul Akers, a citizen who borrowed federal student loans nearly 3 decades ago, the facts of this case cry out to the contrary.  Consider:

FACT: Of 7000 cases filed in the Houston area alone, 1,500 are now queued up for ARREST. The vast majority of these, if not ALL OF THESE judgements were obtained against the borrowers IN ABSENTIA.

FACT:  In this particular case they sent the summons to the wrong address, but had no problems finding the borrower when the time came to make the arrest.  This fact should be screaming out to REAL journalists everywhere.

FACT: This is a preliminary arrest rate of nearly 25%.

FACT: A similar 2003 operation in Minnesota, dubbed "Operation Anaconda Squeeze", which targeted 150 student loan debtors, resulted in only 4 arrests, or, an arrest rate of only about 2.5%

FACT: On just the current arrests planned in this Texas district alone, the court and federal marshalls stand to pocket nearly $2 million in fees from these judgements and arrests.

FACT: Never before have citizens in this country been arrested for loan debt on a scale ANYWHERE NEAR this large. We are talking about thousands of people in the Houston area alone, but the Department of Education has recently contracted with large collection lawfirms to engage in this sort of collection activity ACROSS THE COUNTRY.


These facts indicate clearly that a grave assault on the civil liberties of the citizens is underway on a scale not seen in this country since before debtor's prisons were abolished.  TRUE journalists everywhere should consider these facts, and seek the following information:

1.  How many people have already been arrested in the Texas district in question, in addition to the 1,500 people who federal marshall's already have planned for arrest.

2.  How many of the 7,000 similar cases brought have yet to be decided, and how many additional warrants are likely to be issued from these cases.

3.  Are there 7,000 federal cases in total pending in this Texas district, or more?

4.  Did the court rule against ALL 1,500 people due to be arrested in absentia?


Be advised that federal student loans are the ONLY type of loan in our nation's history to be specifically vacated of standard bankruptcy protections, statutes of limitations, refinancing rights, Fair Debt Collection Practice laws, Standard Truth in Lending laws, and even state usury laws.

There are currently 3 bills in Congress that would return standard bankruptcy protections to student loans:  HR 449, HR 3451,  and HR 1352.  The Founders of this country felt that a bankruptcy rights were so important, they placed it ahead of the power to form a military, to declare war, and even coin currency when enumerating the powers of Congress in the U.S. Constitution.

The student loan exception to this longstanding Constitutional principle has caused a structurally predatory, corrupted,  and inflationary lending system that knows no equal.  The student loan exception to discharge demonstrates clearly why the founders were so adamant about bankruptcy protections, and Congress must correct this grave error

It is critical That Congress pass these bills at once, and make all student loans treated the same as all other loans.  Please see StudentLoanJustice.Org/argument.htm to understand this more fully.
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For Questions, Please Contact Alan Collinge:

justice@studentloanjustice.org
(202) 594-1120







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