Posted on 07/20/2012 4:01:31 PM PDT by Oldeconomybuyer
The Obama administration urged Congress to make it easier for people to discharge a portion of certain student debt by filing for bankruptcy protection.
The recommendation, in a report by the Education Department and the Consumer Financial Protection Bureau, wouldn't affect the vast majority of student debt, which is issued by the federal government. It would apply only to the roughly $150 billion, or 15% of total outstanding student debt, issued by private lenders such as SLM Corp.'s Sallie Mae and Wells Fargo & Co.
Consumer bureau chief Richard Cordray said Congress should consider modifying a 2005 law that, except in rare circumstances, prohibits discharging private student loans through bankruptcy.
(Excerpt) Read more at online.wsj.com ...
Wow. I am sorry to hear your son made those decisions. You may not like my reply, so feel free to tell me to take a walk. I have not been in your son’s situation, but I have made mistakes; and I (as all Christians), have been humbled and saved.
What he did is a textbook example of folly. He did it; no one else. The solution is for your son to go Dave Ramsey on his debt. It will be a difficult and miserable period. He is free to contact the holder of the debt and work out a settlement schedule, if possible. Maybe they will agree to a lower amount.
But if he does go Dave Ramsey, in full, I know he will (a) pay off the debt sooner than one thinks, (b) learn character and financial lessons that will benefit him for the rest of his life, (c) be able to teach others from his mistakes, and (d) know that for the rest of his life no one on the planet can take away his self worth and confidence, no matter what.
Or he can vote for Obama. His life, his choice.
A couple of things to keep in mind here:
1) Just about all other deadbeats get off without paying, so it does get difficult to understand why these losers shouldn’t get a free ride also.
2) Keep in mind that ANYTHING this clown proposes will add to the national debt, so if these loans are forgiven guess who has to pay them back (and no, not the taxpayers, but their kids and grand kids).
What if we really let the free market work? For example, a top student gets a loan for a mechanical engineering degree at a top school at low interest. A high school dropout, if they can get one at all, pays a lot for a loan to get an English degree, less for something practical and doable.
The loan underwriters would get to see your school records (acedemic and diciplinary), and any community or work records. Maybe young people would get the message that actions have consequences. Maybe it’s just too late.
“Maybe young people would get the message that actions have consequences. Maybe it’s just too late.”
Yea, you slipped up BIG TIME. There is no way that this government will do ANYTHING at all to cut down on the useless degrees. They will MAKE CERTAIN that people will continue to get paid to get useless degrees.
“Keep in mind that ANYTHING this clown proposes will add to the national debt.”
Worth repeating - but when is the last time you heard a Democrat politician publicize a proposal to SAVE money?*
* (unless it involved cutting the military).
4% with collateral ~ actually you can get mortgages for less but given the amount of equity you need to have the actual rate (since you won't be earning interest on that equity) is nearer 4%.
“The recommendation, in a report by the Education Department and the Consumer Financial Protection Bureau, wouldn’t affect the vast majority of student debt, which is issued by the federal government. It would apply only to the roughly $150 billion, or 15% of total outstanding student debt, issued by private lenders such as SLM Corp.’s Sallie Mae and Wells Fargo & Co. “
See above, where this is coming from. The Coffee Server Puppet not close to any brains making up these recommendations.
Inside bureaucratic-fascism, just like what’s coming with Extortion-Care.
The rates charged to students were still very favorable.
“Student loans used to be dischargeable.” Yes, that was almost 40 years ago, and the laws have changed continuously since then.
Prior to 2005, student loans from gov or from a non-profit were not dischargeable. That’s where the lower rates came from [from Congress-a/k/a tax dollars]. Post 2005, loans from for profit entities (a/k/a banks) also were not dischargeable.
But back in the 70s, 80s, and 90s, student loans were dischargeable after a certain period of time (you mentioned 7 years) if they had been in payment during that time. I may have the details wrong, but this case was intended to capture a student who paid for a number of years and then had some unexpected hardship; it was designed to prevent a student from racking up big loans and declaring BK soon after graduation. Of course, remember that these loans were primarilly gov programs (or a non-profit) and that tuition was not outrageously high.
Public school tuition is way too high these days. I have a bunch of kids, and this is something I watch carefully. U. Texas is about 10K a year tuition for an in-state student! 25 years ago it was about 500 per year tuition. Heck, back then one did not need big loans to attend a public university—a part-time job during school and summer jobs could just about cover the entire thing.
In fact, I remember that it used to be rare for anyone to have large student loans, except for those who just graduated from medical school.
There is no rule of law currently in the USA it is flexible depending on the politicians latest whim. Disgraceful.
I agree with you completely.
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