Quote:
Originally Posted by 1970 silver art
Quote:
Originally Posted by MNeagle
Part of it, is student loans cannot be discharged in a bankruptcy, if I understand it correctly.
Student loans cannot be discharged in a bankruptcy, however, I am sure that there are some very rare exceptions to this rule. Student loans will follow a student until they are completely paid off. Since student loan balances are getting much bigger (some into the $100,000 range or higher) with the increase in college tuition, then these student loans can follow a student for the rest of their lives. I could be wrong on this but I think that since the student loans are backed by the gov't is the reason why student loans cannot be discharged in a bankruptcy.
SLs never disappear, go away, or are forgiven.
Yes, b/c the gov sponsors them they cannot be dishcarged b/c of bankruptcy.
Some people who just reached Social Security recipient age realized that the US gov is garnishing their social security monthy payments because they still ow (or stopped paying) their student loan.
There have been articles on this recently and I'm sure they can be found on google.
For the younger generation that is graduating with an average debt of $24,000 this will have repercussions, as the job market is so weak.
Same for vocational schools and the culinary schools noted in this thread.
Sadly, education in the US has become a
business. The education industrial complex (as Celente says).
Unis and vocational/trade schools know federal FAFSA money is available for students to borrow --> schools raise tuition --> the gov raises the debt the students can borrow because of the rise in tuition --> and so on, and so on.
I went to a state public Uni in the late 80s and early 90s. Tuition was pretty cheap, and my parents helped me with rent, and I usually worked a job like making sub sandwhiches and the like during the school year and construction in the Summer.
I gradudated with $0 SL debt, or any debt. I was lucky. (I also abhor debt.)
I am basically debt free now - except - ding! ding! for a student Loan I took out 7 years ago when I started an MA program but quit after one quarter because the cost to benefit return being low (field: education).
I still have $50 usd taked out of my saving account on an automatic withdrawal to cover the $4,800 I borrowed at 4% 7 years ago.
Stupid to keep the loan? Yes. But it keeps my credit current, as I'm living in Vietnam and have not filed for taxes in 8-9 years.
