Carl Person, Reform Party Candidate for NYC Mayor, Has a Ballot Initiative to Condemn Student Loan Notes to Cancel or Reduce Principal, and Fraud Lawsuits against Lenders

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Carl Person, the Reform Party candidate for NYC Mayor, has prepared a proposed NYC law for enactment by NYC voters at a general election. Former students and parent guarantors of any student loans, if they are now NYC residents, would have NYC condemn the notes and either eliminate the debt or reduce and resell the notes under an assumed bankruptcy standard and/or commence actions for fraud and misconduct against institutional issuers and obligees of the student loans to invalidate the student loans

Mayoral Carl Person explains how NYC can rescue victims of student loan abuse through condemnation and litigation.

NYC Mayoral Candidate Carl Person Offers Self-Help Solution to Student Loan Problem

The student-loan obligations would either be purchased and resold as a student loan with a reduced principal amount or eliminate entirely if the note has no value because of the present and future inability of the obligors to pay the note."

Carl Person, the Reform Party nominee for NYC Mayor, announced today "I have drafted and am seeking voter signatures for a proposed NYC law for adoption by NYC voters that would provide for eminent-domain condemnation by NYC of student-loan notes and guaranties executed at any time by any current NYC resident to the extent that they could have obtained relief in Bankruptcy Court but for the federal statute denying the right to list (i.e., schedule) student loans for cancellation or reduction in any bankruptcy proceeding. The student-loan obligations would either be purchased and resold as a student loan with a reduced principal amount or eliminate entirely if the note has no value because of the present and future inability of the obligors to pay the note."

Person continued describing the second part of the relief provided in his proposed law, stating that "The NYC Public Advocate or other agency established by NYC for this purpose ... shall accept and review applications by obligors and guarantors of student loans to determine how and for whom relief from student loan obligations may be obtained, within the guidelines of (i) having claims for reduction or elimination of loans or interest on loans enforceable by a court." Person explained that "this refers to claims of fraud, misrepresentation and other misconduct causing a student and his parent to enter into the student loan without realizing that the education to be purchased would not provide sufficient income to repay the loan except by remaining in poverty for an extended period of time, which constitutes a basis in law for invalidation of the entire student-loan debt, including any parent guaranty."

Person went on to explain that "the present and past elected officials of NYC (with the exception of the present NYC Mayor) are seeking election by NYC voters, but they have not done anything to help with the student loan problem and cannot be expected to do anything if elected during the November 5th election. As already elected officials they did nothing and if re-elected can be counted on continuing to do nothing. The only hope for relief for the victims of student loans is my proposed NYC statute, set forth in a ballot-initiative petition, and I need the help of students, parents, homeowners and other interested NYC voters to have my ballot initiative enacted into law to provide this relief. To go on the NYC ballot at a general election the petition will need at least 30,000 signatures by NYC registered voters, after which the NYC Council will be given the opportunity to accept or reject the proposed law and, as a practical matter will reject the proposed law because it at any time could have enacted such law if it wanted to do so, after which the supporters of the proposed law will need to obtain at least 15,000 additional signatures within a 60-day period."

Once this is done, stated Person, "the proposed law, as a "ballot initiative", will be placed on the ballot at the next general election for adoption or rejection by NYC voters.

The proposed law is available for review, downloading and printout at

Person states that a law along these lines "could be used by any other city, town or municipality in any state to help solve the student-loan crisis."

Person concluded by saying "The relief needed by victimized students and their parents is available, but requires that some of the victims volunteer their services to obtain the necessary signatures and put this proposed law on the ballot. Another alternative is to help me get elected as NYC Mayor, in which case there would be no need for the NYC law. As NYC Mayor, I would have sufficient authority to have NYC start student-loan condemnation proceedings and fraud lawsuits. Volunteers can reach me by email and should include the word 'volunteer' in the subject line."

NYC Mayoral candidate Carl Person has other NYC ballot initiatives including:

Condemnation of under-water mortgages to achieve principal reductions

Free 1-year program of broad-based information technology for high-school seniors and all NYC-resident adults to enable program graduates to obtain employment or business opportunities with the nation's 27,500,000 small business, professional and non-profit entities at hourly compensation ranging from about $25 to $100, without any licensing

Free ferry service to revitalize the economy of The Rockaways which was devastated by Hurricane Sandy in 2012

Capping fines for civil offenses at 125% of the direct cost of enforcement to reduce NYC's excessive regulation of business

A bill of rights for restaurant owners and the food service industry to reduce regulation and corruption

A bill of rights for taxi and limousine drivers to reduce regulation and corruption

A North-Dakota type state banking system for NYC using deposit of NYC funds to encourage bank to make loans to small business, farmers and other back-to-the-land and other agricultural businesses, and students

No insurance to be required by NYC as a condition for anyone exercising his/her 1st Amendment rights in any public area or building; no licensing by NYC for demonstrations of 25 or fewer; arresting officers required to provide affidavit to arrested demonstrators or risk losing their jobs

NYC Council and each of its members are required to disclose all contacts to influence their actions

Elect all members of the 59 Community Boards in NYC; salaried; 2-year terms; 6-year maximum

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Carl Person

Carl E. Person
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