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By "default," GP means simply not paying - not bankruptcy. If someone can't afford to pay their student loans, they probably don't have assets in excess of thei
by culturestate 10y ago
By "default," GP means simply not paying - not bankruptcy. If someone can't afford to pay their student loans, they probably don't have assets in excess of their debt anyway.
- coredog64 10y agoI'm not going to claim it is an epidemic, but I know a few people in this boat. Generally speaking they are able to get by with a few life hacks: Cohabitate rather than marry, work jobs under the table, and/or be the stay-at-home parent.
- ensignavenger 10y agoWhy would they allow their student loans to default in such a situation instead of enrolling in an income based repayment plan? If they have 0 income, they would have a payment of 0 dollars, still get their tax refund, and have their loans forgiven after a some time on the plan.
- kaitai 10y agoNot all federal loans allow income-based repayment. For instance, parent PLUS loans aren't eligible, nor are other loans made to or through parents. Moreover, there are tons & tons of private loans (often with high interest rates) pushed at these places, and none of those need to offer income-based repayment.
- ensignavenger 10y agoPLUS loans are to the parents though, not the students- do they even count as "student" loans? They are more "parent" loans.