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They dont care. Also alot of people take out loans knowing well that they will use the cash to pay rent, buy the books, ect ect. Alot of people use extra lone money to live off of while in school, which really is understandable.
Also the fed government is usually the last place the defaulted loan goes.
First it goes to the issuer than to one guarentee agency, usually a state of big company like sallie mae, when the person continues not to pay it is then "paid" by the fed government who takes over admin of the loan.
Unless it is what is known as a direct loan, which comes directly from the government.
People please understand this student loans are not like regular loans people can just not pay back. I advise anyone thinking of going to college to make it their first priority to pay your student loan debt back, or even better idea dont take the money unless you absolutly need it.
Student loans are huge huge business and often very profitable and they also do serve as purpose. But they are simply just not like credit cards or something else. They follow you until you die.
"The share of borrowers who default on their student loans is bigger than the federal government's short-term data suggest, with thousands more facing damaged credit histories and millions more tax dollars being lost in the long run. According to unpublished data obtained by The Chronicle, one in every five government loans that entered repayment in 1995 has gone into default. The default rate is higher for loans made to students from two-year colleges, and higher still, reaching 40 percent, for those who attended for-profit institutions."
I debated whether the story here was the government's terrible job in estimating student loan defaults (Politics and Other Controversies) or the high number of defaults (Business and Finance) so it's here if you want to talk about government underestimating the defaults and it will be in the business and finance forum if you want to talk about the money and big numbers of defaulters issue and what that means.
"Last month the Senate education committee held what is expected to be the first in a series of hearings on the growth and risks of for-profit higher education."
Weren't these loan programs managed by private companies? Wouldn't the data used to build this report have come from them? I can think of several reasons why these companies would not report high default rates - first that comes to mind is that they want to look like they are successfully administering the programs so that the government keeps giving them money.
It's not good to breed without thinking of the consequences.
You don't think that they're a burden on the tax-paying public?
chiel,
why always so hostile towards others????...why always with the 'breed' comments???
btw as far as the burden on the taxpaying public....not 'breeding' would be a burden...like for example you, when you are a senior the you will be a burden to the taxpayer, with out having bred a new worker/taxpayer
It's not good to breed without thinking of the consequences.
You don't think that they're a burden on the tax-paying public?
Do you think your parents thought about the tax paying public when they had you or do you think maybe they wanted to start a family and raise children like every other family in America has the right to do.
It's not good to breed without thinking of the consequences.
You don't think that they're a burden on the tax-paying public?
There are many who are burdens on the tax-paying public including those in government housing, welfare, medicaid, food stamps, and every other form of public assistance.
Using the reason that my potential children might default on a student loan and become a burden to society is the LAMEST excuse I've ever heard to remain childless. And believe me, I agree that there are many good reasons to not have children, but this is most definitely NOT one of them.
How about we support responsible parenting and raise kids who actually have a sense of personal responsibility instead of rewarding welfare queens who pump out the babies for increased govt $$?
Do you think your parents thought about the tax paying public when they had you or do you think maybe they wanted to start a family and raise children like every other family in America has the right to do.
You have the right to have kids IF you can afford them.
With the job situation and cost of living in the US today, it's smart to think before you breed; there are lessening resources, fewer jobs, etc.
If you choose to have kids, then don't whine about them or the hardships for you/them. It's your selfish choice today and their problem tomorrow if they can't find work, etc.
My parents raised kids who went to parochial school, paid for college and make it on their own.
So it doesn't look like we burdened the taxpayer, does it?
How many people today can say that?
If they didn't have me, big deal, I wouldn't be here.
Oooh, that would be interesting.
Cleaning toilets and rooms at the Holiday Inn; cleaning up hospital waste; agriculture... could make people look at life a little differently.
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