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Hell no! You took the loan as an adult, then you pay it back as an adult!
It's called personal responsibility. Don't take out a crapload of student debt if you don't have a (realistic) plan to embark on a solid career and pay it all back.
Student loan money should NOT be allowed for "Basketweaving" or "The Music of the Beatles" degrees.
I am so sick of honest, hardworking people struggling and paying their debts while others spend the same effort trying to dismiss theirs.
Hell no! You took the loan as an adult, then you pay it back as an adult!
It's called personal responsibility. Don't take out a crapload of student debt if you don't have a (realistic) plan to embark on a solid career and pay it all back.
Student loan money should NOT be allowed for "Basketweaving" or "The Music of the Beatles" degrees.
I am so sick of honest, hardworking people struggling and paying their debts while others spend the same effort trying to dismiss theirs.
Nonsense. A very different standard due to the restrictions on bankruptcy. We basically lend money to the young that we know they could not repay to our normal standards.
That is an entirely different level of personal responsibility than we normally require.
Nonsense. A very different standard due to the restrictions on bankruptcy. We basically lend money to the young that we know they could not repay to our normal standards.
That is an entirely different level of personal responsibility than we normally require.
Exactly. Why should student loans be the only debt that is essentially never dischargable in bankruptcy? Why should 18 year olds with zero real world experience in handling large sums of money be held to a higher standard of personal responsibility than a 40 year old who's bought more house than he can afford and has run up tens of thousands of dollars in credit card debt?
It shouldn't be easy to discharge student loan debt in bankruptcy court (as it was in the past), but it should be possible in some cases where the debt is excessive and causing extreme hardship.
Exactly. Why should student loans be the only debt that is essentially never dischargable in bankruptcy? Why should 18 year olds with zero real world experience in handling large sums of money be held to a higher standard of personal responsibility than a 40 year old who's bought more house than he can afford and has run up tens of thousands of dollars in credit card debt?
It shouldn't be easy to discharge student loan debt in bankruptcy court (as it was in the past), but it should be possible in some cases where the debt is excessive and causing extreme hardship.
yes, these kids are taken advantage of because they are totally ignorant of what they are getting themselves into.
Again, here's a teaser intro - I don't want to violate the C-D copyright policies:
Quote:
DRAPER, Utah—Mike Meru, a 37-year-old orthodontist, made a big investment in his education. As of Thursday, he owed $1,060,945.42 in student loans.
Mr. Meru pays only $1,589.97 a month—not enough to cover the interest, so his debt from seven years at the University of Southern California grows by $130 a day. In two decades, his loan balance will be $2 million.
He's not a wasteful guy. He's a pretty smart guy. But, according to the article, dental school is the costliest higher-education program in the U.S. The USC program, where Mike Meru went for dental school, now costs $91,000 a year, and $137,000 when living expenses are included.
Quote:
Mr. Meru’s financial records—provided to The Wall Street Journal—show he borrowed $601,506, a debt that swelled to more than $1 million by fees and interest.
Nope. A career lasts your lifetime. That's how long the debt should last. I can see deferring it (although how on earth can anyone measure "sustained and honest efforts") until a certain income level. But that is it. And after a certain amount of time, even that deferment should go away.
You used my money to get a degree. I get to demand that you pay it back.
Years ago, before loans were exempt from bankruptcy, I worked with a woman whose husband had gone to med school. They had a clear and unethical plan to avoid paying the loan back. He took low paying jobs in out-of-the-way locations, turning down good paying jobs that required a lot of work. They applied for, and got, the loan discharged in bankruptcy. The day it happened, they gleefully threw a party, because now they were "going to be rich". He immediately found a high-paying job in a good location. Before they moved, they were very vocal about how they had screwed the "sucker taxpayers".
That scenario has stuck with me all these years later.
Just a thought here...If I went to a bank and said, "I want to borrow $20,000 for a car," they would ask what kind of car and its mileage and year before I got the loan. If I said, "Its a 2017 Toyota Camry with 12K miles on it, I'd likely get the loan." If I said, "I want to borrow $20,000 on a 1997 Coupe De Ville with 25 inch rims and a bangin sound system," they'd tell me to find another bank, or at the very least, give me very strict terms.
And I likely could find a bank that would lend on the old Cadillac, but you can be sure I would have a lot more skin in it, and the deal wouldn't be nearly as lucrative. And of course, the bank would go in with the full knowledge that I could wreck it and walk away, BK, they repo it, etc...
Its one thing to loan someone money for medical or nursing school. Its one thing to loan a few grand for barber school or medical assistant program or something.
So why have we coded it into our civil code that a banker need not worry lending to a med student as they do someone with a GED that's been oversold the benefits and earning potential of a Medical Assistant at a For Profit college?
The Medical Student is an example of the worst of the worst behavior on the students behalf, really, fraudulent behavior if you could prove it.
Again, here's a teaser intro - I don't want to violate the C-D copyright policies:
He's not a wasteful guy. He's a pretty smart guy. But, according to the article, dental school is the costliest higher-education program in the U.S. The USC program, where Mike Meru went for dental school, now costs $91,000 a year, and $137,000 when living expenses are included.
Do you work for WSJ? Second one with the paywall.
This is one of those where I don't feel as bad. He made a decision as a 22 year old, not an 18 year old. He chose to go to USC, which presumably isn't the easiest dental program to get into, and the man is an Orthodontist, average salary $200K.
That's the other thing. At a certain point, your income will allow you far more discretionary money to make the payment if you adjust for lifestyle. I can't speak from experience, but I have to imagine the optics change if your an Orthodontist that borrowed $600K, compared to a teacher that borrowed $100K. Orthodontist might not drive an Orthodontist Porsche for awhile, but all the same.
This is one of those where I don't feel as bad. He made a decision as a 22 year old, not an 18 year old. He chose to go to USC, which presumably isn't the easiest dental program to get into, and the man is an Orthodontist, average salary $200K.
That's the other thing. At a certain point, your income will allow you far more discretionary money to make the payment if you adjust for lifestyle. I can't speak from experience, but I have to imagine the optics change if your an Orthodontist that borrowed $600K, compared to a teacher that borrowed $100K. Orthodontist might not drive an Orthodontist Porsche for awhile, but all the same.
Actually he is making no attempt to repay the loans. He is in fact not paying enough to keep up with the interest. What he is doing is using various features of the loan program to minimize the present value of the loans. The result is he will eventually get them cancelled in a distant year and use the investment results from the money he is not paying to cover the mammoth tax bill that will result.
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