Wednesday, January 27, 2010

College loan debt... personal rant/vent

For those who are not wealthy, before you send your kids to college, be certain that they are the type of kids that CAN and WILL focus on repaying their debts before "affording" luxury items. If kids do not understand what taking out a loan and repaying it takes, keep them clear!

Years of frustration... stress and sleepless nights are NOT worth a college degree if your health slips away before you can even pay off your college debts.
Who wants to be 60 and STILL paying for their BA or MA when in the long run the interest is just CRAZY?
MANY in America are going to be repaying until they die or are so poor that they cannot afford a decent life! Not fair.
College loans are in some ways robbing lives not enhancing. Same for most home loans. Just don't do it!!!
 
On the flip side, many who are not well off, who do go to college on loans and are bright and responsible, who understand the responsibility- I say GO FOR IT! This is just my personal rant in light of circumstances I know about personally.



Under § 523(a)(8) of the Bankruptcy Code, student loans are nondischargeable unless repayment of the loan would impose an undue hardship on the debtor. The burden of establishing undue hardship, by a preponderance of the evidence, is on the debtor. The Code contains no definition of the phrase “undue hardship” and interpretation of the concept has been left to the courts. In this Circuit, the applicable standard is the “totality of the circumstances” test as set forth in Andrews. In applying this approach, the courts are to consider: (1) the debtor’s past, current and reasonably reliable future financial resources; (2) the reasonable necessary living expenses of the debtor and the debtor’s dependents; and (3) and any other relevant facts and circumstances unique to the particular case.
The principal inquiry is to determine whether “the debtor’s reasonable future financial resources will sufficiently cover payment of the student loan debt – while still allowing for a minimal standard of living”; if so, the indebtedness should not be
discharged. 
Bankruptcy courts are required to analyze a debtor’s student loans, and make a determination of nondischargeability of them, on a loan-by-loan basis. There is no authority in this Circuit for discharging only a portion of a particular loan. – Marie vs Citibank

2 comments:

The Josie Baggley Company said...

Hiya...I feel your pain petal! My daughter is finishing her BA degree this summer. She works full time when she's not at college during hloidays & works partime when college is open again. I fought for a whole year to get a measley entrance fee grant for her. It became a principle focus in my life to get it due to the unfair system that was thwarting my daughter's future.-a future that 'the system' would no doubt eventually BENEFIT from ie taxes etc!aaaghThe guy who'granted' it (under duress brought on by my bringing the matter to higher level) left it until 12 minutes before it was too late to give her the go ahead! The creep! Her exam results were non accessible at this time and she was sick with the anxiety. I was near to breaking someone's NECK!!lol I just don't GET it! Young people trying to better themselves, to give productively to society on a consitent basis are being penalised for doing so! arghaaaaagh I can't even type properly when I'm on this subject!I have to stop.
Being wealthy may not make you happy but being poor doesn't either!
Rainey

Pretty Things said...

My son wants to go to art school (but only if I go with him and I am soooo cool with that!).