Another Federal Program in the Red, . . .

Unless poor old DonDiego is mistaken the correct spelling in some of the above posts is "cum".

(Such knowledge is the result of DonDiego's college education, paid for about 1/3 by his parents, 1/3 his own meagre earnings, and 1/3 his student loans - paid in full on schedule.
Compared to today, even a top schools was affordable in The Good Old Days.)

The future of all education is in the Cloud. A few top college professors will be teaching tens of thousands of students over the Internet at a time. There will be artificially intelligent digital assistants following up with each student....and all the coursework will be on-line and available 24 hours a day. You'll achieve the same learning as today's 4 year degree in 1 year.

The cost of this college education will be a fraction of today's brick and mortar model...pennies on the dollar...if not free. The only things you won't get are the beer and pot parties, rampant sexual promiscuity and college sports. I know it's a tough trade off, but tougher times will call for drastic measures. In the end, people will decide that it's going to be better than being saddled with a lifetime of debt not to mention eliminating the collectively wasted resources of our obsolete system of higher education.

Here's the beginning of the paradigm shift....Every undergrad course at MIT for free...


MITOPENCOURSEWARE

What free-market education looks like:

Bluto Blutarski just rolled over in his grave! "Seven years of college down the drain".

I knew several professional students when I was in school. I wasn't far behind, I spent 6 1/2 yrs in school, loved evry minute. I had one loan for 600 something bucks. I couldn't believe they would give me any money at all, considering my financial situation, but my roommate came home with a couple grand so I thought what the hell, I'll apply. Blew it all partying and some food. It eventually got paid.

My younger brother decided to become a professional, got his MBA in business. He couldn't find a job at all. Extremely smart bookwise, but lacks a bit in the common sense dept., not much but a little. Currently answering phones at a AAA center. Lived with us for a year working servicemaster before that.

Kids today can get loans at the drop of a hat where back in the early 1980's it wasn't easy to get loans for school. Although it was waay less expensive than it is today.

I got my loans, starting in 1978. There was no means test. I simply had to show I was enrolled in a college. Back then, you didn't pay until six months after you left school, and interest didn't accumulate. As I went into the Service after college, my loans were deferred until I got out. Many of my Brothers stayed twenty years in the army and didn't pay a dime in interest the whole time they were in. Six months later, they mostly paid them off in a lump sum as they'd been squirreling money
away the last twenty years. I was pretty remiss about paying mine back, paying interest only for awhile and constantly asking for deferments.

Why is it OK to default on payments to the government but not to a bank? For some reason, the IRS will put you in jail for not paying, but a college student can default? WTF!

When a society decides only to apply penalties for certain laws, the society will become lawless.

1) Immigration
2) College Loans
3) Wall Street Fraud
4) City streets closed for protests without a permit

Somehow, the laws only apply to people who follow the laws!

No one defaults on loans to a bank? You might want to reconsider that thought.
The penalties for defaulting on a Federal Student loan are pretty strict.
They withhold any tax refunds you might otherwise get, they can deny you any license you might need- medical, financial, put liens on your property and as far as I know you cant discharge them thru a bankruptcy in almost all cases.

What Happens If You Default on Your Student Loans


Know what to expect if you fall behind on student loan payments.
The government has powerful tools to use against borrowers who don't make student loan payments. Here's what you can expect if you are in default on a student loan.

(Learn how to get out of default on student loan payments.)

Tax Refund Offsets

The IRS can intercept any income tax refund you may be entitled to until your student loans are paid in full. This is one of the most popular methods of collecting on defaulted loans, and the Department of Education annually collects hundreds of millions of dollars this way. In some cases, you can challenge a tax refund offset. You can learn how at www.studentloanborrowerassistance.org. You may need the assistance of an attorney. (You can find a legal expert near you on Nolo's Lawyer Directory.)

Your Paycheck Garnished

The government can take ("garnish") a limited portion of the wages of a student loan debtor who is in default. It can take up to 15% of your disposable income. However, it cannot take more than the equivalent of 30 times the current federal minimum wage.

As with the tax refund offset, you can object to a wage garnishment. Another way to avoid wage garnishment is to contact the holder of your loan and negotiate a repayment schedule. For more information, see Nolo's articles on Student Loan Repayment Options and Student Loan Consolidation.

Your Federal Benefits Taken

The government can take some federal benefit payments (including Social Security retirement benefits and Social Security disability benefits, but not Supplemental Security Income) as reimbursement for student loans.

The government cannot take any amount that would leave you with benefits less than $9,000 per year or $750 per month. And, it cannot take more than 15% of your total benefit.

For example, if Doug receives monthly federal benefits in the amount of $900, the government may take either $150 (the amount of Doug's $900 benefit that is over $750) or $135 (15% of Doug's total benefit of $900), whichever is less. So, in this case, the government can take only $135 each month.

You Get Sued

The government and private lenders can sue you to collect defaulted student loans. Unlike other debts, there is no time limit on suing to collect student loans -- you can be sued indefinitely.

For information on various defenses to student loan collection lawsuits, see the Student Loan Borrower Assistance website at www.studentloanborrowerassistance.org. To get legal representation, look for an attorney on Nolo's Lawyer Directory.





Where to Get Help