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Old 02-12-2013, 05:48 PM
 
Location: NJ
18,677 posts, read 16,444,743 times
Reputation: 7274

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Quote:
Originally Posted by DSOs View Post
Are you sure the debt canít be discharged? I recently heard a VERY similar story on the radio (Dave Ramsey): a temporarily disabled graduate (doctor) saying that he paid off ALL his humongous debtóin a short amount of timeó& is currently practicing medicine debt-free. Is this coincidence or a strategy?

Most EVERYONE involved in student loans are @ fault hereóthe reality of moral hazard is savvy, common knowledge!
Almost never dischargeable. Last year, just 129 discharges nationally.
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Old 02-14-2013, 07:20 PM
 
5,507 posts, read 9,007,226 times
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For-profits need to stop getting any federal aid.
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Old 02-17-2013, 01:09 PM
 
6 posts, read 5,448 times
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I just did a quick Google search and found that as of the end of 2012 student loan debt in the US was $956 billion and credit card debt in the US was $858 billion.

Student loan interest rates are approximately 5% - 10% based on the lender and when the loans were originated. They are structured debt whose interest is a tax deduction, even if not itemizing deductions.

Credit card interest rates are upwards of 24% and unstructured debt.

At least the students received an education, which can never be taken away. That's more that can be said for the billions of dollars of interest that will be paid this year on yesterday's lunch, which is already gone.
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Old 02-17-2013, 01:33 PM
 
Location: Stephenville, Texas
911 posts, read 1,357,942 times
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Quote:
Originally Posted by le roi View Post
in the long run this is the only workable solution. A lot of these people are going to die with outstanding student loans.
What will actually happen is that when these people do get jobs, their paychecks will be garnished until the loan repayment is fulfilled.
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Old 02-17-2013, 01:54 PM
 
118 posts, read 172,247 times
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nah if loan debt gets too burdensome I think students will take their degrees overseas, I know i would.
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Old 02-17-2013, 05:02 PM
 
5,507 posts, read 9,007,226 times
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Smart kids are not graduating with a lot of student loans. It is kids who should probably not be in college at poor schools.
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Old 02-19-2013, 09:11 AM
 
Location: Tallahassee
305 posts, read 734,663 times
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Quote:
Originally Posted by Gatornation View Post
Smart kids are not graduating with a lot of student loans. It is kids who should probably not be in college at poor schools.
This is not true whatsoever. One of the most misguided comments I have heard on here.
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Old 02-19-2013, 12:08 PM
 
Location: Georgia, USA
21,501 posts, read 26,116,900 times
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Quote:
Originally Posted by Gatornation View Post
Smart kids are not graduating with a lot of student loans. It is kids who should probably not be in college at poor schools.
Since students who attend graduate school, including medical school, do end up with significant loans, your first statement is false.

Medical students still burdened by high debt loads - amednews.com

Your second statement is more nearly on target.

http://www.studentloanborrowerassist...rap-report.pdf

Factors that predict default include

  • Failure to complete the degree program. This is associated with coming from a low income background, having parents with lower education levels, and lower income and higher unemployment.
  • Attending a for-profit school
  • Race and ethnicity. Differences persist even after controlling for post graduation earnings.
  • Age. The info is contradictory as to whether younger or older borrowers may be more likely to default.
  • Gender. Less clear. Females may be slightly less likely to default.
  • Lack of a high school diploma.
  • Ignorance about borrowing.
  • Other factors, including health crises, lack of academic success, more dependents, field of study, and the quality of the loan servicer.

It would seem that students who are not completing courses, or failing them and maintaining a low GPA should not be in college and should not be allowed to borrow money.

Loan proceeds should not be available for students at for profit schools with low graduation rates and whose students are unable to get jobs that will allow them to repay them. Since over 90% of the students at those schools borrow money, the bad schools would go out of business.

As others have mentioned, a student should be required to demonstrate an understanding of the loan process and the absolute need to repay the money. The person who plans to borrow $100k to pay for a theater arts degree needs to be brought down to earth very quickly.

Finally, there should be options for the person whose inability to pay is truly beyond his control, such as due to a serious illness.

We need to first keep students from digging holes that they obviously will never be able to dig themselves out of though.
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Old 02-19-2013, 03:41 PM
 
5,507 posts, read 9,007,226 times
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Quote:
Originally Posted by tallahasseehero1 View Post
This is not true whatsoever. One of the most misguided comments I have heard on here.
It's a fact actually. The top 100 schools graduate undergrads with about 15k in debt on average. So since it is a fact surely you have seen more misguided comments.
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Old 02-19-2013, 03:42 PM
 
5,507 posts, read 9,007,226 times
Reputation: 2276
Quote:
Originally Posted by suzy_q2010 View Post
Since students who attend graduate school, including medical school, do end up with significant loans, your first statement is false.

Medical students still burdened by high debt loads - amednews.com

Your second statement is more nearly on target.

http://www.studentloanborrowerassist...rap-report.pdf

Factors that predict default include

  • Failure to complete the degree program. This is associated with coming from a low income background, having parents with lower education levels, and lower income and higher unemployment.
  • Attending a for-profit school
  • Race and ethnicity. Differences persist even after controlling for post graduation earnings.
  • Age. The info is contradictory as to whether younger or older borrowers may be more likely to default.
  • Gender. Less clear. Females may be slightly less likely to default.
  • Lack of a high school diploma.
  • Ignorance about borrowing.
  • Other factors, including health crises, lack of academic success, more dependents, field of study, and the quality of the loan servicer.

It would seem that students who are not completing courses, or failing them and maintaining a low GPA should not be in college and should not be allowed to borrow money.

Loan proceeds should not be available for students at for profit schools with low graduation rates and whose students are unable to get jobs that will allow them to repay them. Since over 90% of the students at those schools borrow money, the bad schools would go out of business.

As others have mentioned, a student should be required to demonstrate an understanding of the loan process and the absolute need to repay the money. The person who plans to borrow $100k to pay for a theater arts degree needs to be brought down to earth very quickly.

Finally, there should be options for the person whose inability to pay is truly beyond his control, such as due to a serious illness.

We need to first keep students from digging holes that they obviously will never be able to dig themselves out of though.
I was speaking about only undergraduate. It gets complex when you get into masters and doctorates. 100k in debt is not much for a Pharmacist or Doctor that will make 120k a year. It is all relative.
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