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I think this quote from the first segment sums it up "I think at this point I owe about $40,000. I really, truly, honestly don't want to pay it back. Sure, I r
by Aloha 10y ago
I think this quote from the first segment sums it up
"I think at this point I owe about $40,000. I really, truly, honestly don't want to pay it back. Sure, I realize the responsibility I took on when I signed the papers and agreed to take out the loans, but I should have never had to do it in the first place. I feel some sort of civic duty not to pay them back, as if my small protest will make any kind of difference."
Emphasis added.
I am sympathetic however - people under 35 were sold a bill of goods - we were told "go to college, get a degree, and they will be a good job waiting for you" which turned out to be a load of malarkey - the problem isn't that you need to take loans out, its that student loans are not dischargeable - if normal lending standard applied, you'd see a whole lot less student debt, and the cost of education would likely drop precipitously.
But most of these examples in this piece have small amount of debt, something along the size of a car loan, with generous and long repayment terms - its much harder for me to accept someone crying hardship when they owe less than 40k. Even if the amounts were larger, once you take on the debt, it's yours, you own it, no matter if you want to pay it back or not.
- deleted 10y ago[deleted]
- mywittyname 10y agoI posted this up elsewhere, but $40k can be paid off in five years if you toss $800/mo at it. That's hardly an insurmountable debt burden. Sure, it sucks, but it's gone before well before most people would turn 30. But yes, bankruptcy should absolutely apply to student loan debt if the individual can't pay.
- qopp 10y agoI think the reason bankruptcy doesn't apply is so that lenders are more willing to give out student loans (which is good, more educated society, more opportunities) and also so they lend them out at a lower rate. Without this, banks might require very good credit to give out loans (hard for young students to acquire).
- mywittyname 10y agoActually, the government guarantees the loans on behalf of the student. So if the student fails to pay, then the government will foot the bill. The reason bankruptcy doesn't apply to student loans anymore is because a bunch of a-holes in the 70s started getting massive loans for their graduate degrees and immediately declaring bankruptcy after graduation (but before getting a job).
- oarsinsync 10y ago> Actually, the government guarantees the loans on behalf of the student. So if the student fails to pay, then the government will foot the bill. The reason bankruptcy doesn't apply... So what are the conditions in which the guarantor will be required to take ownership of the loan? Death? Anything else?
- zaroth 10y agoIf any of these examples had anywhere near $800/mo of disposable income I would be shocked. I'd guess less than 10% of student loan holders could afford to pay $800/mo on their loans.
- arcticfox 10y agoMan, I don't want to pay back my car loan either but those are the rules for getting a loan. They're taking a super irresponsible approach to the problem IMO.