And yet FAFSA doesn’t factor in COL

[LucyStoner]

1 hour ago, Murphy101 said:

I think there will be an equivalent to the mortgage crisis where people just started walking away from their houses. Only when the college bubble burst, it will be people saying basicly they no longer even plan to ever pay back their student loans. What ya gonna do? Put a lien on their house that most of them don’t even own because they are still living at home due to oppressed incomes?

And yes. They don’t care where the money comes from.  Because if you really loved your kid and wanted a good future for them well obviously you’d be willing to sell soul so what’s a 2nd or 3rd mortgage?

And just like with the banks, the colleges and banks will get crisis “to big to fail” emergency money and the students will get just as screwed as ever and no one will do squat to bail them out. 

Unless a person who defaults moves abroad, is totally disabled or does not work in the legit economy, the student loan servicer will get a sizable chunk of the  income, either by garnishing your wages, putting a lien on your bank accounts (not your house, your cash in the bank) and/or seizing your tax refund.  Student loans, both public and private, are not dischargeable in bankruptcy.  

When you go into default and they find you, they will go over your budget with a fine tooth comb.  I read about one man, a musician working for an orchestra and he was in court over the amount of his wage garnishment and the lawyer for the student loan servicer called into question the need for him to have A CAT, ie did he “need” to buy cat food and kitty litter.   The judge ruled he could keep the cat because he lived alone and the cat was a form of companionship.   

When I am doing payroll, it’s not at all uncommon for there to be LARGE garnishments to account for.  Big enough that I wonder how the employee lives off the rest of their check.  The employer has to comply.  The most common is child support but student loans are a major one.  Defaulting can also hurt job prospects if there’s a credit or security clearance aspect to the job.   

They will come after people in default who have been out of the paid workforce as soon as they realize they are working again.  Since the government insures most student loans, they usually know as soon as your SSN hits on an employer’s 941 quarterly payroll return.  

Given that a lot of people owe for degrees that are worthless or that they didn’t finish, I agree this is a huge issue.  It’s better to get in an IBR (some IBRs are $0) and stay on top of the loans if at all possible than to default though.  

My dad has been disabled and retired for over 10 years.  The student loan people took years to leave him alone (they can’t garnish SS, well at least not yet.)

[Murphy101]

52 minutes ago, LucyStoner said:

Unless a person who defaults moves abroad, is totally disabled or does not work in the legit economy, the student loan servicer will get a sizable chunk of the  income, either by garnishing your wages, putting a lien on your bank accounts (not your house, your cash in the bank) and/or seizing your tax refund.  Student loans, both public and private, are not dischargeable in bankruptcy.  

When you go into default and they find you, they will go over your budget with a fine tooth comb.  I read about one man, a musician working for an orchestra and he was in court over the amount of his wage garnishment and the lawyer for the student loan servicer called into question the need for him to have A CAT, ie did he “need” to buy cat food and kitty litter.   The judge ruled he could keep the cat because he lived alone and the cat was a form of companionship.   

When I am doing payroll, it’s not at all uncommon for there to be LARGE garnishments to account for.  Big enough that I wonder how the employee lives off the rest of their check.  The employer has to comply.  The most common is child support but student loans are a major one.  Defaulting can also hurt job prospects if there’s a credit or security clearance aspect to the job.   

They will come after people in default who have been out of the paid workforce as soon as they realize they are working again.  Since the government insures most student loans, they usually know as soon as your SSN hits on an employer’s 941 quarterly payroll return.  

Given that a lot of people owe for degrees that are worthless or that they didn’t finish, I agree this is a huge issue.  It’s better to get in an IBR (some IBRs are $0) and stay on top of the loans if at all possible than to default though.  

My dad has been disabled and retired for over 10 years.  The student loan people took years to leave him alone (they can’t garnish SS, well at least not yet.)

 

Given how tightly many people are living, I think all that would do is force a lot of employment underground or people will simply not work. 

The point of work is to have purpose and to be able to live a life. If it doesn’t meet that criteria, it becomes nothing more than sanctioned servitude and people tend to get fed up with that expectation.

Obviously it’s better to be gainfully employed in a manner that pays the bills. 

But if people aren’t (and MANY with student debt are not) then it doesn’t matter whether it would be better or not bc thry are still living at home, putting off families, and having difficulty being *gainfully* employed.  You can’t take what people don’t have.

[LucyStoner]

Just now, Murphy101 said:

 

Given how tightly many people are living, I think all that would do is force a lot of employment underground or people will simply not work. 

The point of work is to have purpose and to be able to live a life. If it doesn’t meet that criteria, it becomes nothing more than sanctioned servitude and people tend to get fed up with that expectation.

Obviously it’s better to be gainfully employed in a manner that pays the bills. 

But if people aren’t (and MANY with student debt are not) then it doesn’t matter whether it would be better or not bc thry are still living at home, putting off families, and having difficulty being *gainfully* employed.  You can’t take what people don’t have.

 

We don’t disagree.  While I am most concerned about people who got hoodwinked into taking loans for shitty for profit colleges, I do think there needs to be some sort of relief on the student loan front.  More IBR options, a transparent and easier discharge process for public service etc. unpaid student loan debt can push people out of the legit economy in some senses, which in turn has costs for everyone.  

[TravelingChris]

1 hour ago, Arctic Mama said:

I seriously think this is why the science and tech in the area we moved to is booming.  Like, crazy hiring increases in those professions over the last three years.  There is space for buildings, low cost of living, and all the metro amenities with less inflated cost compared to other areas.

Same here.  And many other cities too.