Defaults don't tell the whole story. Just wait until loan forgiveness starts kicking in around 2035. The government is going to eat a lot of money and then again when people don't pay the tax bill. The tax bill would theoretically convert the student loan debt to a dischargeable debt via bankruptcy.

This post was edited on 3/3/14 at 1:58 pm

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Posted by MSMHater

Houston

Member since Oct 2008

22780 posts

Posted on 3/3/14 at 4:04 pm to Teddy Ruxpin

quote:
Defaults don't tell the whole story. Just wait until loan forgiveness starts kicking in around 2035. The government is going to eat a lot of money and then again when people don't pay the tax bill.

Maybe there will be a politician that stands up to change the current policy, but RIGHT NOW, the feds make more money off of your default than they do off of your timely payments. Being able to garnish your wages to the tune of the entire loan, interest, and late fees makes students in default an attractive option for the govt.

The federal student loan program is a zero risk investment for the government right now. If you can pay, they get their money. If you can't pay...they get their money plus more.

Only way I see a forgiveness program is through a populous Pres condidate with the groundswell of support that O had before his first term. And I think his presidency may have tempered that kind of excitement for a long time.

ETA: It's also why they could give two shits about a credit check.

This post was edited on 3/3/14 at 4:07 pm

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