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What happens if you stop paying your federal school loan?

By BayArea following x   2018 Sep 3, 12:26pm 1,970 views   24 comments   watch   nsfw   quote     share    


Do wages get confiscated?

Is anyone in jail for defaulting on their school loan?

🤷‍♂️

#1 The student loan debt bubble has now grown to 1.4 trillion dollars.

#2 In 2007, the total amount of student loan debt in the U.S. was just 545 billion dollars.

#3 Over the previous ten years, student loan debt has grown by a staggering 176 percent.

#4 Americans now owe more on their student loans than they do on their credit cards.

#5 In 2003, student loan debt accounted for just 3.3 percent of all household debt. Today, that number has grown to 10.5 percent.

#6 The current student loan 90-day delinquency rate is 11.2 percent.

#7 30 percent of all student loans in the United States are either in “deferment” or “forbearance”. The most common reason a loan is placed into one of those categories is because the borrower cannot pay.

#8 It is being projected that a whopping 40 percent all student loan borrowers will default on their loans by 2023.

#9 From 2007 through 2017, “college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent.”

#10 In 2001, 18.6 percent of all U.S. households led by someone in the 18 to 34 age bracket were carrying household debt. Today, that number has jumped to 44.8 percent.

#11 Each year, more than a million Americans default on their student loans.

https://www.zerohedge.com/news/2018-09-03/11-rage-inducing-facts-about-americas-wildly-out-control-student-loan-debt-bubble
1   MrMagic   ignore (11)   2018 Sep 3, 4:22pm   ↑ like (4)   ↓ dislike (0)   quote   flag        

You get Bernie Sanders to pay it for you?
2   MisterLefty   ignore (0)   2018 Sep 3, 4:29pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

You receive "counseling" from Cardinal Wuerl.
3   RC2006   ignore (0)   2018 Sep 3, 4:32pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Giving loans for worthless feel good degrees, what could possibly go wrong?
4   BayArea   ignore (1)   2018 Sep 3, 4:42pm   ↑ like (3)   ↓ dislike (0)   quote   flag        

We are now at $1.4T in school debt with massive default rates.

My expectation is that it will eventually get so high that there will be a bailout/forgiveness and we enter a massive recession.

Isn’t that how it happens when debt gets high enough, we start hand picking winners and losers?
5   BayArea   ignore (1)   2018 Sep 3, 4:43pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

What I still want to know is this, is anyone out there doing jail time for school loan default? Would we do that in the good ol USA? 🤔
6   Tenpoundbass   ignore (14)   2018 Sep 3, 4:51pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

The answer to that is simple Lower the damn interest rates.

Especially if it can be proven the School did no due diligence in informing the prospect students that the demand for Liberal Pain in the Asses occupying Society while adding absolutely nothing to it, but receiving top Union wages to do so. Requires a Liberal constituency that will always vote Democrat. That and you have to fit the racial and ethic demographics of the City you're trying to get a city job.

The most funny thing is Whites are the biggest make up of Liberal Arts classes. They really think they would be doing great work for humanity shamming Older Republican White Males through a cushy Government job that enshrines them in an impenetrable armor. But after they graduate. The pissed off Brown folk that got the same Angry Hateful eduction from Gender bent and mentally confused professors that your stupid white Ass got. And guess what Fucktards?!?! They hate your white ass too, and hell fuck no they ain't giving you one of them there cushy ass $189K a year government do nothing but fuck with the crackers City Jobs.

Claw that money back from the Universities to pay the banks that were promised the 11%+ interest rates. This all goes to the Liberal lying scumbag faculty at the American loathing Universities.
7   Patrick   ignore (1)   2018 Sep 3, 5:05pm   ↑ like (2)   ↓ dislike (0)   quote   flag        

Tenpoundbass says
The pissed off Brown folk that got the same Angry Hateful eduction from Gender bent and mentally confused professors that your stupid white Ass got. And guess what Fucktards?!?! They hate your white ass too, and hell fuck no they ain't giving you one of them there cushy ass $189K a year government do nothing but fuck with the crackers City Jobs.


I wouldn't use that language, but you have a point.

My wife works for the government as a contractor, and when visiting her at work, I've noticed that a surprisingly disproportionate number of cushy permanent government jobs do seem to be occupied by large black women in particular. You just can't help noticing after a while.

It looks like I'm not imagining that:

http://adversity.net/fed_stats/OPM2007/001_blacksFY2006.htm

8   P N Dr Lo R   ignore (0)   2018 Sep 3, 5:07pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

They'll take back your "education". So there!
9   MrMagic   ignore (11)   2018 Sep 3, 5:59pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

BayArea says
We are now at $1.4T in school debt with massive default rates.

My expectation is that it will eventually get so high that there will be a bailout/forgiveness and we enter a massive recession.


The default rate is predicted to rise substantially, like up to 40%.

..."Trends for the 1996 entry cohort show that cumulative default rates continue to rise between 12 and 20 years after initial entry. Applying these trends to the 2004 entry cohort suggests that nearly 40 percent of borrowers may default on their student loans by 2023.

Trends over time are most alarming among for-profit colleges; out of 100 students who ever attended a for-profit, 23 defaulted within 12 years of starting college in the 1996 cohort compared to 43 in the 2004 cohort (compared to an increase from just 8 to 11 students among entrants who never attended a for-profit)".


https://www.brookings.edu/research/the-looming-student-loan-default-crisis-is-worse-than-we-thought/
10   MrMagic   ignore (11)   2018 Sep 3, 6:02pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

BayArea says
What I still want to know is this, is anyone out there doing jail time for school loan default? Would we do that in the good ol USA? 🤔


I don't think, not yet, there aren't enough jails.

But, the only way those loans can possibly go away is if you die. They can garnish your wages and even garnish your Social Security checks. As a matter of fact, there are record number of people entering retirement with school debt. Either their own or because they signed on the loan for little Johnny, and little Johnny defaulted, sticking mom and dad with the bill.
11   Ceffer   ignore (1)   2018 Sep 3, 6:03pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

I know a guy who when he was in his 50's, never paid back student loans for professional school and college. He had nasty collection agencies calling him day and night, but he just got used to being an expert at evasion, shucking and diving. Eventually, he hired some legal debt collection agency and after the usual machinations, got the debt paid off at a fraction of the original plus legal fees. it wound up being something like 25 percent of what he owed with accumulated interest and penalties.
12   Tenpoundbass   ignore (14)   2018 Sep 3, 6:30pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Patrick says
I wouldn't use that language, but you have a point.


There's really no other way to state the facts.
13   HEYYOU   ignore (26)   2018 Sep 3, 6:42pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

No one would need a college education if they were born as smart as patnetters!
So There! lol
15   Booger   ignore (2)   2018 Sep 3, 7:09pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Modern slaves are not in chains, they are in debt.
16   Booger   ignore (2)   2018 Sep 3, 7:29pm   ↑ like (3)   ↓ dislike (0)   quote   flag        

The cost of education has risen as fast as health care while the cost of transmitting information has dropped to zero. There's a lot of money and political clout blocking disruption.
17   BayArea   ignore (1)   2019 Jan 3, 12:05pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Booger says
Modern slaves are not in chains, they are in debt.


And in cubicles living paycheck to paycheck
18   willywonka   ignore (3)   2019 Jan 3, 12:12pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

BayArea says
Do wages get confiscated?

Is anyone in jail for defaulting on their school loan?
.

Oprah takes a dump on your face after eating an entire bean and cheese casserole. (And she is lactose intolerant.)
20   Malcolm   ignore (1)   2019 Jan 3, 12:48pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

willywonka says
Do wages get confiscated?

Is anyone in jail for defaulting on their school loan?


It's worse than jail. Instead, defaulted loans go on credit reports. Banks, often the same ones that make the same loans, are happy then to declare these people as higher risk borrowers. They benefit from charging higher interest rates and feed the cycle. If there really was a tangible consequence to defaulting, then obviously fewer people would borrow, and a lucrative profit stream would be cut off. People would borrow more responsibly, but that would have a serious impact on the power of academia. Think how awful it would be if future students were conscientious shoppers for their education. They might actually demand a measurable value.
21   willywonka   ignore (3)   2019 Jan 3, 3:08pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Garnish your salary and SS. Talk shit about your mom.
22   WineHorror1   ignore (1)   2019 Jan 3, 6:09pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Ceffer says
I know a guy who when he was in his 50's, never paid back student loans for professional school and college. He had nasty collection agencies calling him day and night, but he just got used to being an expert at evasion, shucking and diving. Eventually, he hired some legal debt collection agency and after the usual machinations, got the debt paid off at a fraction of the original plus legal fees. it wound up being something like 25 percent of what he owed with accumulated interest and penalties.

I highly doubt that. UNLESS, it was prior to the new bankruptcy law enacted in the late 90s(?). There was a time when student loans could be discharged in bankruptcy. Not any more though.
23   KgK one   ignore (0)   2019 Jan 3, 7:35pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Batchler degree is now about high school degree. Most good jobs require master or PhD. But if you get phd in wrong area, your market yourself out of most jobs.

If you attend state college n get some scholarship most people should be ok. 20k yo 40k loan is not hard to repay. Get 2nd job n live with your parents. Out of debt in 1 to 2 yrs.

Lib degrees are worthless. U be in debt for 100k n make 20k . Might take 10 yrs or more to pay it off
24   anonymous   ignore (null)   2019 Feb 22, 7:47am   ↑ like (0)   ↓ dislike (0)   quote   flag        

BayArea says
Do wages get confiscated?


Possible - Prominent Republican wants to take student-loan payments out of your paycheck (covered somewhere else on here)

https://www.marketwatch.com/story/prominent-republican-wants-to-take-student-loan-payments-out-of-your-paycheck-2019-02-06

U.S. Student-Loan Delinquencies Hit Record - Past-due debt reached $166 billion in the fourth quarter, but may be understated



Delinquent U.S. student loans reached a record $166 billion in the fourth quarter. But since “delinquency rates for student loans are likely to understate effective delinquency rates” by about half, according to the Federal Reserve Bank of New York, the figure is probably a far cry from reality. Factoring for understatement would imply that about $333 billion in student debt has not been serviced in at least three months. Putting this into perspective, $441 billion had been disbursed under Treasury’s entire Troubled Asset Relief Program to provide financial stability during the recession.

https://www.bloomberg.com/news/articles/2019-02-22/u-s-student-loan-delinquencies-hit-record?srnd=premium

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