Graduating with debt isn't the best way to start out in the real world, but it's a reality that many college graduates face. Most grads set up a plan to pay off their student loans within a certain time period, but some of the educated and in-debt have become too overwhelmed by their loans to repay them.
Instead of facing debt collectors, some students with massive debt are choosing to flee the country after they've defaulted on their loans. Grads who escape the US are running away from a problem that won't go away unless they figure out a way to fix it. There are certain cases in which some student loans are discharged or partially discharged because of hardship, and payment plan solutions for those who don't qualify for debt forgiveness — both of these are much better options than seeking a new address in another country.
Cartier
wth! that's so irresponsible. i swear, they should start teaching ethics and a sense of community obligation to kids.
1They were talking about this on Suze Orman the other day. A woman's mother was confused about how to handle her legacy, because leaving money to minor grandchildren is not totally safe if the custodian of the minor (in this case, the daughter) has outstanding debt. Irresponsible and rotten...hell, it's theft!
2Ooh boy. Another thing that contributes to the credit crisis.
3i wasn't surprised by this one at all to be honest. i knew this girl in college who kept moving to avoid creditors and paying off loans. if they couldn't find her then she didn't have to pay it back. that was her mindset and thought process on that one. too bad it doesn't alleviate the problem.
4When I changed from sending in a paper check to automatic withdrawl, I asked about defaulting on student loans. They said they don't report it to credit agencies. But a student loan is an item that cannot be removed through bankruptcy, and they will go so far as to garnish wages, pensions, social security, 401(k)s, IRS returns, whatever. That gov'ment is a beast! And Social Security is the greatest Ponzi scheme ever!
5Everybody bashes the students who flee, what about the corporations who loaned them money for useless degrees? The same corporations that closed down jobs in the USA and moved them overseas to save money. What about the fact that you can buy a house and walk away from the debt, or do the same with a credit card, but with a student loan you can never walk away from it?
It's not theft to walk on a student loan. It's the only option for many people. If people lose their job then they can't make the payments. And if you can't make the payments then you go into default and the loan balloons in size.
I don't blame people for leaving at all. Hell I'm considering it myself. I've got 100 k in student loans which I took out TO GET A GOOD PAYING JOB. I didn't take this damn loan to get drunk. But there are no jobs and now I'm going into default.
If you think I'm a thief, that's fine. But don't be walking away from your underwater mortgage or bad credit cards and then bash on student loans. Don't keep your job at Citibank, Bank of America, or Morgan Stanley if bail outs offend you so much. Quit NOW!!!
6I am one of those who can't even get into classes because they are FULL of people...given college handed to them by our gov't (many came here illegally) ....yet I as a taxpayer of over 30 years get to be last in line.
7No, the "hardship" exemption is impossible to get in Bankruptcy unless you are 100% unable to work any job.
With garnishment everything above minimum wage is taken away - yet you still have to pay taxes on the full amount.
So how can anybody live on minimum wage trying to repay $94,000 in student loans? You'd barely be able to pay the interest, and never reduce the principal at all. All incentive for working is removed.
Let's face it, the student loans might work for some, but they don't work out for all. If I borrowed $100,000 and opened a restaurant that failed, I could file bankruptcy and start over again. But if a dumb student is fooled into borrowing $100,000 to go to school, the bank (or the government) has him as a slave forever!
This is NOT right. Bankruptcy is one of our rights that was written into the constitution.
The fractional-reserve-banking system means the banks create money out of thin air to ensnare people into debt bondage. With this comes inflation which makes the repayment all the more difficult as prices for living go up faster than wages do. Government income taxes are on a percentage basis and go up with inflation. All of this is why our forefathers outlawed money-lending and charging of interest.
The total cost of the "bailout" of the banks could reach $23 Trillion!! That is "STEALING"! A borrower who can't repay and takes advantage of his RIGHT to bankruptcy is not stealing, he is being honest with the situation (and the bank willingly took that risk when they lent the money in the first place). Yet they won't allow poor students to bankrupt their student loan debts when the chosen career doesn't work out? Insane! Unethical.
And to add insult to injury, that $23 trillion will be repaid by TAXES paid by the very students out trying to pay off the student loan while eating cat food and living in a slum with the heat turned off.
Why are the wages in my career being suppressed by immigrants that this same government lets in by the millions? Since they let all the world come here and bankrupt me, so why shouldn't I move to Canada where I can bankrupt and fully discharge my student loans? I don't see anything wrong with it since they don't.
Too many other people are competing for the same jobs because they have graduated too many of us students (many not even from the US originally) and over-charged us tuition.
Why didn't the school teach me how to make money running my own business or something worthwhile? The degree was worthless!
It is demoralizing to sit under $100,000 in debt and try to pay it off. It saps the energy and a person feels really lousy. Bankruptcy is to give people a fresh start so they can again be contributing members of society. Without a bankruptcy option, leaving the USA is a great option.
I know Canada will BK the loans. I think England and Australia might also (they have excepted their own state student loans from discharged, but their law doesn't preclude "foreign student loans" from being discharged.) Other states in Europe have very tough bankruptcy laws that are NOT debtor friendly at all. The best bet in these states would not be BK, but to just change your name once you get there, and hope the English-speaking US collectors don't bother trying to hunt for you. I think that's probably the best strategy for South America or Asia also.
8There are those who would criticize people with student loan debt. However consider that the educated class produces most of the resources and tax base. Imagine not having computers, modern medicine, iPods, the Internet, or the security of an advanced military. It is easy to assume people with mounting student loan debt made a bad choice or spent too much on college. Keep in mind academics have the lowest anti-social, or amoral tendencies of any measurable group. Also keep in mind financial aid limits the amount a full time student can work so the loans are needed just for living expenses. How much would you need to live for 4 years (rent, food, cloths etc...). $40,000 can easily balloon into over $100,000 in a decade even if you are making payments. Most students would never apply for the student loans if the interest and fees were properly explained. Most students would never apply for the student loans they knew they were giving up all consumer rights. Most students would never apply for the student loans if they knew how corrupt the system of lending is. Most students would never apply for the student loans if they knew there are no workable fail safes. Most students would never apply for the student loans if they knew they would be lied to and lead astray. Most people would not choose to be in debt until there were dead. Before passing judgment or writing this off imagine having to physically go the DMV every day and pay some fines; that is what it is like to be caught in the student loan sinkhole.
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