4 ms·

Given that you can't get out of student loan debt through bankruptcy, they're at basically no risk. It might take them your entire lifetime to collect, but the

by tw04 11y ago

Given that you can't get out of student loan debt through bankruptcy, they're at basically no risk. It might take them your entire lifetime to collect, but they'll get it eventually unless you happen to kill yourself at a young age.

lxmorj 11y ago
What happens if you stop living in the US? (I realize very few people would do this, but I'm curious)
- cpursley 11y ago
  If you leave the US, you don't stop being a US Citizen unless you revoke your citizenship. And most nations won't allow you to become a citizen if you have foreign debts. Also, expect to see more of these types of rules, since many student loans are backed by US Government entities: http://www.usatoday.com/story/money/personalfinance/2015/12/22/irs-gains-power-get-tax-scofflaws-passports-revoked/77417570/ http://www.usatoday.com/story/money/personalfinance/2015/12/... > A new enforcement provision passed by Congress and signed into law earlier this month allows the government to revoke the passports of seriously delinquent tax scofflaws — people who owe more than $50,000 to Uncle Sam.
  - GFischer 11y ago
    "most nations won't allow you to become a citizen if you have foreign debts" How will they know? AFAIK, my country, which has pretty lenient rules, only asks for proof of no criminal record at the time the application is filled. On the other hand, you can and will be extradited to the U.S. if you were found breaking their laws and their legal system does ask.
alextgordon 11y ago
Time value of money: they don't just have to collect the original amount, but the interest they would have gotten from putting the money somewhere else. So even a lifetime may not be enough time if the borrower cannot keep up with interest.
- nightski 11y ago
  Except the money they loan is generally created on the spot. Not sure they could simply invest it elsewhere.
cryoshon 11y ago
And we should expect the suicide rate of young people to rise accordingly. http://www.huffingtonpost.com/c-cryn-johannsen/student-loan-debt-suicides_b_1638972.html http://www.huffingtonpost.com/c-cryn-johannsen/student-loan-...
will_brown 11y ago
>Given that you can't get out of student loan debt through bankruptcy... Yes you can, that is a myth perpetuated by lenders. And for Plus loans there are multiple programs available for parents to discharge their loans directly with the US Dept of Education, and as the baby boomers continue to age more and more will qualify for discharges.

by tw04 11y ago

lxmorj 11y ago

What happens if you stop living in the US? (I realize very few people would do this, but I'm curious)

cpursley 11y ago
If you leave the US, you don't stop being a US Citizen unless you revoke your citizenship. And most nations won't allow you to become a citizen if you have foreign debts. Also, expect to see more of these types of rules, since many student loans are backed by US Government entities: http://www.usatoday.com/story/money/personalfinance/2015/12/22/irs-gains-power-get-tax-scofflaws-passports-revoked/77417570/ http://www.usatoday.com/story/money/personalfinance/2015/12/... > A new enforcement provision passed by Congress and signed into law earlier this month allows the government to revoke the passports of seriously delinquent tax scofflaws — people who owe more than $50,000 to Uncle Sam.
- GFischer 11y ago
  "most nations won't allow you to become a citizen if you have foreign debts" How will they know? AFAIK, my country, which has pretty lenient rules, only asks for proof of no criminal record at the time the application is filled. On the other hand, you can and will be extradited to the U.S. if you were found breaking their laws and their legal system does ask.

alextgordon 11y ago

Time value of money: they don't just have to collect the original amount, but the interest they would have gotten from putting the money somewhere else. So even a lifetime may not be enough time if the borrower cannot keep up with interest.

nightski 11y ago
Except the money they loan is generally created on the spot. Not sure they could simply invest it elsewhere.

cryoshon 11y ago

And we should expect the suicide rate of young people to rise accordingly. http://www.huffingtonpost.com/c-cryn-johannsen/student-loan-debt-suicides_b_1638972.html http://www.huffingtonpost.com/c-cryn-johannsen/student-loan-...

will_brown 11y ago

>Given that you can't get out of student loan debt through bankruptcy... Yes you can, that is a myth perpetuated by lenders. And for Plus loans there are multiple programs available for parents to discharge their loans directly with the US Dept of Education, and as the baby boomers continue to age more and more will qualify for discharges.