3 ms·

> I do find it a bit ridiculous that during a period when you could finance a house at 3%, a car at 2%, and could only get 0.5% or 1% on a savings account that

> I do find it a bit ridiculous that during a period when you could finance a house at 3%, a car at 2%, and could only get 0.5% or 1% on a savings account that the government was collected 6.5% of student loans. You can't repossess an education... yet.

kefka 11y ago
That's not entirely true either. They can attack your licensure if you aren't current on your student loans. And for certain high-scholastic-debt careers, also makes you lose your job, and therefore further ability to pay said loans. The scary part is the revocation doesn't have to be for the degree the loan was for. For example, if you tried being a lawyer, and couldn't find a job, you look elsewhere. You decide to join the pipefitters and steamfitters union for plumbing, which requires a license. Later on, the state can remove your license to practice plumbing. List of states with such laws on the books: http://www.jwj.org/wp-content/uploads/2015/02/State-Laws-and-Statutes-That-Suspend-Professional-Licenses-and-Certificates.pdf http://www.jwj.org/wp-content/uploads/2015/02/State-Laws-and... Bloomberg discussing the particulars of license revocation due to default: http://www.bloomberg.com/news/articles/2015-03-25/these-states-will-take-your-license-for-not-paying-student-loans http://www.bloomberg.com/news/articles/2015-03-25/these-stat... Findlaw discussion: http://blogs.findlaw.com/greedy_associates/2015/04/defaulting-on-a-student-loan-can-cost-you-your-law-license.html http://blogs.findlaw.com/greedy_associates/2015/04/defaultin... ... But you still owe the loans, because even the private educational loans were also federally backed.
ssharp 11y ago
You can't erase student loan debt with bankruptcy either, so its not something you can really walk away from like a car or house.
- dragonwriter 11y ago
  > You can't erase student loan debt with bankruptcy You can, though its harder than many other categories of debt. That you can't is a popular myth which makes the problem worse, since it discourages people from looking into the possibility of doing so.

kefka 11y ago

That's not entirely true either. They can attack your licensure if you aren't current on your student loans. And for certain high-scholastic-debt careers, also makes you lose your job, and therefore further ability to pay said loans. The scary part is the revocation doesn't have to be for the degree the loan was for. For example, if you tried being a lawyer, and couldn't find a job, you look elsewhere. You decide to join the pipefitters and steamfitters union for plumbing, which requires a license. Later on, the state can remove your license to practice plumbing. List of states with such laws on the books: http://www.jwj.org/wp-content/uploads/2015/02/State-Laws-and-Statutes-That-Suspend-Professional-Licenses-and-Certificates.pdf http://www.jwj.org/wp-content/uploads/2015/02/State-Laws-and... Bloomberg discussing the particulars of license revocation due to default: http://www.bloomberg.com/news/articles/2015-03-25/these-states-will-take-your-license-for-not-paying-student-loans http://www.bloomberg.com/news/articles/2015-03-25/these-stat... Findlaw discussion: http://blogs.findlaw.com/greedy_associates/2015/04/defaulting-on-a-student-loan-can-cost-you-your-law-license.html http://blogs.findlaw.com/greedy_associates/2015/04/defaultin... ... But you still owe the loans, because even the private educational loans were also federally backed.

ssharp 11y ago

You can't erase student loan debt with bankruptcy either, so its not something you can really walk away from like a car or house.

dragonwriter 11y ago
> You can't erase student loan debt with bankruptcy You can, though its harder than many other categories of debt. That you can't is a popular myth which makes the problem worse, since it discourages people from looking into the possibility of doing so.