Now it's Student Loans
How many of you are still paying for that lunch in the Student Union twenty or more years ago, the one you paid for with money you borrowed via a Student Loan? Face it, those Student "Loans" have been bullshit from their inception. Why? Because the government guaranteed to banks that the loan would be paid off. And what happens when the government eliminates credit risk? Everybody can borrow without a credit check. So all who borrowed are now going to find that collection agencies will be hounding their asses. But this is very serious. Other than GI Bill students, everyone other than the sons and daughters of the well off hooks themselves on student loans. I would say that it's looking like every category of loan may be in record default territory. Several years ago a fifty something guy informed me that,"I'm still paying for that lunch I had in the Student Union twenty five years ago."
I'd say a hell of a lot of people are in the same boat and just might jump out. The number of us living beyond our means (income) is incalculable. We will know soon enough.
1 comment:
Howard, student loans are a little different than other types of loans. For one thing, you can't erase them with a bankruptcy. There's no way to "jump out".
I knew a guy in college (twenty years ago) who was essentailly financing a decade of drunken debauchery through student loans. He didn't have any real interest in school - he just didn't want to work. He kept changing his major, and he eventually went off to grad school to postpone the inevitable.
His plan was to graduate, then declare bankruptcy. After more than $100,000 in debt, Congress changed the law because too many people were doing just that. I didn't (and don't) have too much sympathy.
Eric
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