Posted on 09/18/2023 10:17:33 AM PDT by davikkm
This situation could be quite concerning for several reasons:
Credit Score Damage: When people default on their student loans, it can wreak havoc on their credit scores. This means they’ll have trouble accessing credit in the future for things like buying a home, a car, or even just getting a credit card. It’s like a financial scar that can take years to heal. Financial Instability: Defaulting on loans often leads to financial instability. Borrowers may struggle to make ends meet, and this can impact their overall financial well-being. They might have to put off important life decisions like getting married or starting a family, and that has broader economic implications. Less Money to Spend: As folks grapple with loan defaults, they’ll have less money to spend on goods and services. This reduction in consumer spending can hit local economies hard. Businesses might suffer, leading to potential job losses or slower economic growth. Government Budget Challenges: Most student loans in the U.S. are backed by the federal government. When borrowers default, the government takes a hit. This can strain government budgets and resources, potentially leading to increased taxes or cuts in funding for other important programs. Education Access Concerns: The fear of student loan debt and the risk of defaults may deter some people from pursuing higher education. This could limit opportunities for career growth and affect the skill level of the workforce. Potential Policy Changes: A high rate of student loan defaults might push policymakers to rethink student loan forgiveness programs or other interventions. These changes could have long-term economic consequences, including how we deal with the burden of student debt.
In a nutshell, a significant increase in student loan defaults could have a ripple effect, impacting borrowers’ financial stability, spending habits, government finances, education accessibility.
For one thing they are paying their “perfesers” entirely too much money. Way too much money. Most of them don’t even teach.
Good luck funding new college loans.
Good luck getting a job.
Uh...isn’t the point of a co-signer to have a place to collet if the original borrower defaults? If Mom & Dad cosigned they should be paying, if the loan is uncollectable the schools should pay out of their endowments.
One thing they could possibly do would be to take out a personal loan in the amount of the student debt (big "IF" concerning loan qualification.
That money could then pay off the student loan.
The drifter could then go bankrupt to get rid of the personal loan. Destroyed life for 7 years, but no student loan dangling for 30 or 40 years.
“Credit Score Damage: When people default on their student loans, it can wreak havoc on their credit scores. This means they’ll have trouble accessing credit in the future for things like buying a home, a car, or even just getting a credit card.”
Good. You’ve PROVEN yourself to be unworthy of future CREDIT because you didn’t pay back what you owed in the first place!
I paid for college via MasterCard and (Army) Uncle Sam. Screw these deadbeats! Stupid SHOULD hurt!
They’ll whine about paying back a student loan at $350 a month whole spending twice that for a new car. And spend $300 on streaming, $150 for unlimited smart phone service. Go out to eat 3 or more nights a week blowing hundreds on booze,
Zero out their credit ratings and add permanent entries into their credit report. Garnishments. Double/Triple the usury credit card fees and interest, if not kill their cards outright, they are high risk. I can probably come up with a few more things to hammer them with until they are old and gray. Show them how the world works.
Duh.
Refusing to repay a loan will certainly dissuade lenders from lending you money in the future.
Additionally: interest rate on the loan should be higher for borrowers who plan to study subjects unlikely to lead to well-compensated work. In general, the prospective student's probable ability to repay the loan should be a deciding factor in whether the prospective student receives a loan at all.
Then garnish their wages.
They signed an agreement to pay the money back. Too bad, so sad, but they owe it.
I have often wondered what happened to that lad, though I suspect that today he occupies an important office in the Biden administration.
Suffering the consequences of their actions is better than any lesson they could have learned while acquiring the student debt overload. Hope it’s a lesson well learned
The Gov. should never have gotten into the loan business.We have private companies that could have done a far better job at it.
The goal was never to succeed, it was for the government to subsidize leftist ivory towers.
It was never about the students, their learning, their job market offerings, nor about legitimate loans.
Awww. Well we can’t have these poor poor college graduates with student loan debt get a bad credit score for refusing to pay their debts. Obviously Biden needs to forgive their debts regardless of how unconstitutional it is.... Poor poor college graduates.
gotta cut back on giving loans to people who won’t repay them
That may work ... but it requires actually taking action ... it requires thinking and planning, things which often don’t exist in a deadbeat’s reality. They’ll just continue to stall, hoping that someday, somewhere a Democrat/Communist politician desperate to retain power will come to their rescue.
Any parent STUPID ENOUGH to co-sign on a student loan for their child deserves whatever consequences befall them.
Parents have to know their precious child is a lazy slug. Hell, they at least saw them once in a while while they pretended to raise them for 18 years. Time to collect from not only the child but their STUPID parents too.
Once that money runs out go after College Endowments with a 75% tax. NO UNIVERSITY needs millions or billions of $$$$$ sitting in the bank while crying for government money.
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