Imagine going to college to improve your life and walking away with $500,000 in student debt. That number is no typo. A young Seattle couple ended up so mired in debt on the way to their degrees that they "couldn't even make the initial payments," says Christina Henry, of Seattle Debt Law. After the collection agencies started calling, the couple, who have two children and earn a total of $80,000, visited Henry for help. "They took out as much as they were able to and didn't even know how much they had. It's the most egregious case I've ever seen." Read more: http://www.kiplinger.com/magazine/archives/how-to-fix-student-loan-default.html#ixzz1Mw04Gutb Become a Fan of Kiplinger's on Facebook Just imagine how much he has to pay a month to cover that margin.
Looks like these greedy groups have a go at kids. And there is no mechanism left to stop them. Long tem future of US is clear.
so.. where is half a mil number come from? likely from penalties and interest? then it's looks like this couple never make any payments at all for their higher education...wtf is wrong with those people? looking for free lunch or think that they smarter than people who loan them a money? no wonder they are in deep shit..no sympathy for idiots on both sides..those who loan to couple losers and those who borrow up to hilt and can't pay for overpriced,useless education..
My has a full scholarship and no debt as a foreign student. She couldn't get a $500 visa card, not sure where this woman got her money.
Penalties/Interest. Think about it you graduate, job market is tough so you don't earn enough initially so what happens is the interest/penalties and fees compound rather quickly so the whole thing balloons quicker than an IRS penalties & interest. Kids in highschool are drilled day & night that you have to get a 4 year degree or end up unemployable. These kids 17-18 right out of highschool with no real life experience are making big financial decisions that affect them for the rest of their lives.
there is probably no way out of it at this point. it's going to grow like a snowball..even running away to another country not going to save them,since they must report their taxes in US... another option would be to cut their own arm or leg(literally)
Back in the 90's I remember hearing about international students who were getting a free ride at the State University system. They went on to become "life long learners and perpetual students. These people also had the option to go back to their home country. The people in the article were sold on a dream and the bill came in which will set them back about 20-30 years of their life making sure they will work hard and well for the system. This is nothing more than a highly sophisticated form of debt bondage. This is just the way it is.The objective is to make sure someone is so far in debt that they never get out and are subject to the rules terms and conditions in the contract. The goal is to maintain a highly skilled inexpensive labor pool, that can be scared like a bunch of sheeple. Akuma
I can't figure out why students don't just go to a community college for the first couple of years and then transfer into a university and save many thousands of dollars.