Dangers of Student Loan Debt - Page 2Register Today!
- Aug 21, '11 by ParkerBeanCurdRN,BSNfirst of all, there shouldn’t be a single person defaulting on a federal student loan. the interest rates are ridiculously low for an unsecured debt. there are also multiple payment plans to pay back the student loans. http://www.direct.ed.gov/repaycalc/dlindex2.html there are also ways in which the person can cancel a portion of the loan balance http://www.direct.ed.gov/cancellation.html there are also forbearance and deferment options http://www.direct.ed.gov/postpone.html
i am sorry to sound harsh, but if you default on a federal student loan, you deserve to get your ass sued off. there is no other credit product on the market with the same flexibilities as government student loans. students enter college and decide upon a major. it is the student’s responsibility to research the major to determine job market needs and whether or not he/she will be able to secure a job after graduation. there is no written law or rule that says if you earn a college degree, you are guaranteed a job. the job market is simple economics (supply and demand). that is what happened to the nursing field. when the economy went south in 2008, everyone went back to school to become nurses. now the market is saturated. because of that, employers are in the driver’s seat in hiring practices.
the debtor signed a promissory note that he/she will pay back the debt. it may be necessary to live with parents and continue driving the beater until better opportunities come. in other words, if you rushed out to buy that new car and rent the loft downtown and now you can’t pay back your loans, that is your fault!
my student loan debt is 130k, but i don’t complain. i earned a bachelors and masters before going back to school for nursing. i accepted full responsibility for the debt even if it takes me the next 25 years to pay back. everyone else should do the same. i don’t think there should be bankruptcy protection for student loans. in fact, except for rare circumstances, bankruptcy laws should cease to exist.
- Aug 21, '11 by SwiftrightIn a nut shell my mom got sick and died. Not to long after that my wife nearly died in child birth. In both cases I was so impressed with nurses that I decided to become one.
Also the idea of having to choose sitting in the basement of an hospital or deaingl with retail drug seekers the rest of my working life was depressing.
- Aug 22, '11 by hiddencatRNQuote from elkparkNo, you're not forced to take out student loans. But when I was 18, they were presented as a great way to be able to pay for school in addition to the grants and scholarships I had. I knew I'd have to pay them back, but I didn't really understand the implications of non-dischargeable debt or how to estimate my monthly expenses post graduation (and our school gave us HIGHLY inflated examples of what we could "expect" our income to be with our liberal arts degrees). Luckily I've never defaulted, but I have friends who have run in to financial difficulty (because sometimes **** happens that radically changes your financial security) and it is a hard road to rehabilitate those loans.I don't mean to sound heartless, but nobody holds a gun to anyone's head and makes them take out student loans, and nobody forces anyone to sign loan papers without reading all the fine print carefully and making sure they understand what they're taking on ...
I think individuals still need to be responsible for their financial decisions, but I wish there had been better education available when I was first starting school. Even though I was legally an adult at 18, like most other 18 year-olds, I was still very inexperienced and reliant on authorities like my parents and the financial aid office at school. My parents went to college in a very different era than I did, and I was the first kid in college, so it was as new to them as it was to me. And my school's financial aid office....well, I realize now that they have their own interest in the matter that's not necessarily MY interest.
Student loans are a good tool, and I've continued to use them judiciously to continue my education and we'll probably use them to some extent with DH's education. I think the entrance counseling for new loans needs to be a little more detailed, and I'm all in favor of financial management classes for young adults and high schoolers.
- Aug 22, '11 by mazyQuote from ParkerBeanCurdRN,BSNThere is no bankruptcy protection for student loans. Federal loans are exempt from bankruptcy, private loans need to be secured. You default on a private loan they will sweep in and take all your assets. You have a co-signor, they will take their assets. You get married and default, they will take your spouse's assets. There is no way out of a student loan.Everyone else should do the same. I donít think there should be bankruptcy protection for student loans. In fact, except for rare circumstances, bankruptcy laws should cease to exist.
I suppose you could use your credit card to pay for school, but I don't know many credit card companies that will extend that level of credit to a student.
The bottom line is that people need to accept responsibility for their actions. There was a thread on this site awhile back about people who had taken out insane amounts of money to fund completely ridiculous degrees and were completely astonished when they graduated, couldn't find work, and were faced with the reality of hundreds of thousands in debt that they would never be able to pay off in their lifetime.
There is a difference though, between taking out money to cover necessary tuition expenses, and taking out money to have the whole "college experience" complete with semesters abroad, new car, a new wardrobe, and wild vacations.
I don't see why everyone has to suffer because of irresponsible borrowers.