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> Student loans (which are much lower interest rate and nothing like these loans) can’t be discharged in bankruptcy but even those are open to modification or d

> Student loans (which are much lower interest rate and nothing like these loans) can’t be discharged in bankruptcy but even those are open to modification or discharge in the event of hardship. Student loans are not so easily discharged. Yes, in theory they can be written off in cases of "undue hardship." But in practice, good luck finding an attorney willing to take your case.

EmpirePhoenix 5y ago
Get a lot of credit cards, pay of loan that cannot bankrupt, then go bankrupt with all those credits
- deleted 5y ago
  [deleted]
- vineyardmike 5y ago
  So obviously bad advice, but the reason is that to declare bankruptcy you have to convince a judge to do it. You might have trouble with that using this terrible plan.
  - jimnotgym 5y ago
    I was offering debt advice to a young person recently in the UK. They had gone to a UK debt management company that seeks to compound your debt by asking your creditors to accept an Individual Voluntary Agreement where you agree to pay back a certain amount per month for a fixed period and then get it written off. In practice it affects your credit rating like bankruptcy. They were advised by that company to do exactly what the person above said, max their credit cards first. Cash advance if possible. Not the first time I have heard this
bredren 5y ago
They are also may not be payday-loan high interest, but the interest is not necessarily low either. Federal Plus loans were 8.5% until that program was shut down in 2010. [0][1] Graduate Direct Subsidized and Subsidized Federal loan rates were 7.9% from 2006-2013 and have not dropped below 6.3% since. [1] [0] https://en.wikipedia.org/wiki/Federal_Family_Education_Loan_Program#End_of_new_loans https://en.wikipedia.org/wiki/Federal_Family_Education_Loan_... [1] https://www.finder.com/federal-student-loan-interest-rates-by-year https://www.finder.com/federal-student-loan-interest-rates-b...
- dragonwriter 5y ago
  > Federal Plus loans were 8.5% until that program was shut down in 2010. Federal PLUS loans were never shut down, are still available [0]; what was shut down was non-Direct federal loans, including the non-Direct PLUS loans, which had a higher interest rate than Direct PLUS loans. [1] [0] https://studentaid.gov/understand-aid/types/loans/plus https://studentaid.gov/understand-aid/types/loans/plus [1] scroll down to “Interest Rates on Federal PLUS loans” which shows historical direct and non-Direct (FFEL) rates: https://www.savingforcollege.com/article/historical-federal-student-interest-rates-and-fees https://www.savingforcollege.com/article/historical-federal-...
  - bredren 5y ago
    Thank you for clarifying this.
- gambiting 5y ago
  Yeah, that's insane level of interest. My own student debt here in UK has the interest rate of 1.1%. I've just remortgaged our house at 1.29%, and our car is on 4% finance. All standard deals, nothing crazy. 7.9 or even 6.3% interest on the student loans that Americans get would be ruinous.
- rocqua 5y ago
  Dang those rates are crazy. In the Netherlands, students loans are guven by the state. The interest rate is legally set to a mix of government bond interest (10 and 5 years). They included a clause that the interest never goes negative.
sjg007 5y ago
Student loans are going to be cancelled in 2022-2023 or significantly written down. Also the enterprising student is trying to pay off their loans now at 0%. It's too bad though that Navient restructured itself to mitigate these principal payments. I would say illegal too.
- bitcharmer 5y ago
  > Student loans are going to be cancelled in 2022-2023 Any evidence to support that?
  - anonymouse008 5y ago
    Student loans have been pushed back consistently and routinely during the pandemic. The aim of kicking the payment down the road is that the economy needs the monthly payment as stimulus — and to boot we’re already writing multi trillions in stimulus to get us conditioned for the big release. The only thing that thwarts this is sky high inflation, which is not foreseeable… this is because they have the biggest inflation enhancement on full bore (these literal monthly rent payments or better in student loan deference) and it’s only caused 7% cpi or whatever… that’s anemic
    - bitcharmer 5y ago
      Thank you for your reply but it doesn't contain answer to my question.
- rblatz 5y ago
  This would increase the already high rate of inflation. So I don't think it's exactly likely. Plus there isn't the political will to give either party this win with voters.

EmpirePhoenix 5y ago

Get a lot of credit cards, pay of loan that cannot bankrupt, then go bankrupt with all those credits

deleted 5y ago
[deleted]
vineyardmike 5y ago
So obviously bad advice, but the reason is that to declare bankruptcy you have to convince a judge to do it. You might have trouble with that using this terrible plan.
- jimnotgym 5y ago
  I was offering debt advice to a young person recently in the UK. They had gone to a UK debt management company that seeks to compound your debt by asking your creditors to accept an Individual Voluntary Agreement where you agree to pay back a certain amount per month for a fixed period and then get it written off. In practice it affects your credit rating like bankruptcy. They were advised by that company to do exactly what the person above said, max their credit cards first. Cash advance if possible. Not the first time I have heard this

bredren 5y ago

They are also may not be payday-loan high interest, but the interest is not necessarily low either. Federal Plus loans were 8.5% until that program was shut down in 2010. [0][1] Graduate Direct Subsidized and Subsidized Federal loan rates were 7.9% from 2006-2013 and have not dropped below 6.3% since. [1] [0] https://en.wikipedia.org/wiki/Federal_Family_Education_Loan_Program#End_of_new_loans https://en.wikipedia.org/wiki/Federal_Family_Education_Loan_... [1] https://www.finder.com/federal-student-loan-interest-rates-by-year https://www.finder.com/federal-student-loan-interest-rates-b...

dragonwriter 5y ago
> Federal Plus loans were 8.5% until that program was shut down in 2010. Federal PLUS loans were never shut down, are still available [0]; what was shut down was non-Direct federal loans, including the non-Direct PLUS loans, which had a higher interest rate than Direct PLUS loans. [1] [0] https://studentaid.gov/understand-aid/types/loans/plus https://studentaid.gov/understand-aid/types/loans/plus [1] scroll down to “Interest Rates on Federal PLUS loans” which shows historical direct and non-Direct (FFEL) rates: https://www.savingforcollege.com/article/historical-federal-student-interest-rates-and-fees https://www.savingforcollege.com/article/historical-federal-...
- bredren 5y ago
  Thank you for clarifying this.
gambiting 5y ago
Yeah, that's insane level of interest. My own student debt here in UK has the interest rate of 1.1%. I've just remortgaged our house at 1.29%, and our car is on 4% finance. All standard deals, nothing crazy. 7.9 or even 6.3% interest on the student loans that Americans get would be ruinous.
rocqua 5y ago
Dang those rates are crazy. In the Netherlands, students loans are guven by the state. The interest rate is legally set to a mix of government bond interest (10 and 5 years). They included a clause that the interest never goes negative.

sjg007 5y ago

Student loans are going to be cancelled in 2022-2023 or significantly written down. Also the enterprising student is trying to pay off their loans now at 0%. It's too bad though that Navient restructured itself to mitigate these principal payments. I would say illegal too.

bitcharmer 5y ago
> Student loans are going to be cancelled in 2022-2023 Any evidence to support that?
- anonymouse008 5y ago
  Student loans have been pushed back consistently and routinely during the pandemic. The aim of kicking the payment down the road is that the economy needs the monthly payment as stimulus — and to boot we’re already writing multi trillions in stimulus to get us conditioned for the big release. The only thing that thwarts this is sky high inflation, which is not foreseeable… this is because they have the biggest inflation enhancement on full bore (these literal monthly rent payments or better in student loan deference) and it’s only caused 7% cpi or whatever… that’s anemic
  - bitcharmer 5y ago
    Thank you for your reply but it doesn't contain answer to my question.
rblatz 5y ago
This would increase the already high rate of inflation. So I don't think it's exactly likely. Plus there isn't the political will to give either party this win with voters.