While sometimes loans are necessary and just a part of everyday living (one example being for a mortgage), sometimes they can be incredibly overwhelming. This has become the situation with many taxi drivers in New York City.
In an endeavor to facilitate this situation, a panel of individuals has been appointed by the New York City Council. A bailout for the many taxi drivers who have been exploited by loans is being proposed. The price tag could potentially hit $500m with a new partnership made up of public officials and private individuals who would take on the debt that cab drivers have which they used to buy their own cabs. Many of them fell into the category of immigrants who wanted to find a way to make money when they first came. According to City Council speaker Corey Johnson:
“We know that folks in this industry have suffered tremendously. I’m really excited that after six months of painstaking work and effort, the task force is going to be releasing a variety of recommendations that we think could stabilize the industry, plan for the future and help alleviate the suffering.”
Cab drivers aren’t the only New Yorkers who have been overwhelmed by loans. But earlier this month a very old student debt was just reversed in New York Bankruptcy Court. The argument used by the lawyer in the case was the enormity of the debt that was too unrealistic to be paid.
Between 1993-1996, Kevin Rosenberg took out student loans, then went to the Navy for five years and then needed more loans for his 2001-2004 stint in law school. All in all he owed over $116,000 which swelled to $221,000 by the end of 2019. While paying it back he ended up with negative $1,500 per month.