One of the strongest indictments against the
value of college is the astonishing number of
folks who think they will not have to pay their
According to a new survey, almost half of all college students believe they won’t be burdened with repaying student loans after they graduate. Spoiler alert: They will, unless Democrats — and some Republicans — are able pass a student loan forgiveness program.
At this point, this is worse than thinking you will not have to pay for your house or your car.
It is a piece of cake to get rid of those compared to discharging student loans in bankruptcy court.
Now, if you complete ten years of qualified public service, you are eligible for Public Service Loan Forgiveness. (PSLF) Or, if you show you are permanently disabled.
This is not what these people are counting on.
“With maybe 14 percent of the American workforce in a public service job,” LendEDU co-founder Nate Matherson told the Post, “the actual numbers of those who may qualify for student loan forgiveness or discharge is maybe below 10 percent.”
He added: “The fact that many students do not understand this means that they may be significantly underestimating the cost of financing a college education.”
It seems parents share the blame for their kids’ ignorance.
The LendEDU study also found that most college students rely heavily on their parents for loan information, despite the fact that parents don’t always fully understand the loan process themselves. “It is concerning that current college students are underestimating the cost of student debt today and tomorrow,” LendEDU noted.
You Are More Likely To Be Sued On Your Student Loans
Yeah, the government is getting more, not less, aggressive in collecting student loans.
Every day, 3,000 people default on their federal student loans — and those lack of payments amount to an unpaid bill of $137 billion for the federal government. For decades, the government has tried to get borrowers to pay up by hiring debt collection agencies to call and send letters. But now the government is trying this new lawsuit strategy.
Legislation is pending to make student loan debt more easily dischargeable, but, that has not even come out of committee, let alone passed Congress.
The government has long been able to garnish wages, take income tax returns and divert Social Security and disability benefits. But targeting property is a way of applying even more pressure to get former students to pay up.
So do NOT assume you will get out of repaying your student loan debt.