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Many have predicted for a while now that the next big crisis will be the default of student loans (approximated at over $1 Trillion). Perhaps the Law professio
by breitling 11y ago
Many have predicted for a while now that the next big crisis will be the default of student loans (approximated at over $1 Trillion). Perhaps the Law profession will lead the way, but there must be many other professions where people are getting degrees but not jobs. After-all, it takes a lot of people to accumulate $1 Trillion in debt.
- sunstone 11y agoMBA's probably supply quite a few of these.
- StillBored 11y agoBut, in the US you can't "default" on student loans, they just keep accruing until the government starts to take it out of your social security payments. My step father is close to being in this situation, he went to medical school in his late 30's, didn't pay his loans for a couple years, and now nearing his 60's faces the probability that he won't actually manage to pay them off before he retires. The one loan you never want to take out is student loans, its total debt slavery.
- zaccus 11y agoYou can definitely default on student loans; plenty of people are. You just can't get them discharged in bankruptcy.
- StillBored 11y agoI was trying to differentiate default on a student loan from defaults on pretty much everything else. I'm not sure your credit card company can block a professional license or garnish your wages. Plus, as I understand it, its pretty common for bankruptcy judges to adjust the principal, or remove fees/unpaid interest from other forms of defaulted debt, when the debt isn't directly discharged. This is apparently really rare for student loans.