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Giving Up Paying Off $186,000 Student Loan Debt

businessinsider.com

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Re: Giving Up Paying Off $186,000 Student Loan Debt

#21

Post by chopsueyar »

steven2012 wrote: post #4

I'm not sure what sort of choice she has, besides not working again. You can't clear student loan debt through bankruptcy, so unless she decides to not work again, I'm not sure what her options are to never pay off the debt. Maybe this is a negotiation tactic with the debtors to pay a fraction of the loan instead?

It wasn't until 1991 that student loan debt was no longer dischargeable through bankruptcy.

So, although unlikely, she may have based her decision on the possibility that, worse case scenario, she could have declared bankruptcy.

Now the $20,000 personal loan for living expenses, I assume would still be dischargeable in bankruptcy.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#22

Post by sparky »

elmuchoprez wrote: post #11

This story is mostly about TERRIBLE money management, not the cost of education. Her parents paid for her undergrad in full and she got a full scholarship to law school. So really, none of this money went directly to education. Apparently she couldn't work and focus on school at the same time, so she started taking out loans to cover living expenses. She took out $26k in federal loans each year (starting in 1994) to…

> it took her at least three years (isn't that a long time for a full time law student with no other job?).

Nope, that's the standard.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#23

Post by bjornsteffanson »

gangst wrote: post #2

Son of a bitch that is a lot of debt. It stresses me out just reading about it. I guess few people do the math correctly when they go get a degree. Can anyone here who opted to take a student loan for a technical degree speak to whether it is daunting to them or they are comfortable with the trade?

Daunting. I made a mistake, and am literally paying for it. It's not that I feel the degree itself was not worth it, but I chose my path poorly. I could have just as well gone to a public school and received an equal or better education than a private one. That rude awakening did set a more intense course of determination for the rest of my life however.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#24

Post by saalweachter »

kclay wrote: post #6
gangst wrote: post #2

Son of a bitch that is a lot of debt. It stresses me out just reading about it. I guess few people do the math correctly when they go get a degree. Can anyone here who opted to take a student loan for a technical degree speak to whether it is daunting to them or they are comfortable with the trade?

It was the worst thing I ever did. I'm not as bad off as this women but I have around 80-90k in debt for school loans and whats worst is one of them is a private loan so it has some ungodly high interest rate compare to my others.

Pay close attention to politics.

The reason your federal loans don't have an ungodly interest rate right now is that as part of the economic stimulus student loan interest rates were lowered. The temporary extensions have kept it down since then, but they could jump back up at almost any moment.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#25

Post by nkwiatek »

gangst wrote: post #2

Son of a bitch that is a lot of debt. It stresses me out just reading about it. I guess few people do the math correctly when they go get a degree. Can anyone here who opted to take a student loan for a technical degree speak to whether it is daunting to them or they are comfortable with the trade?

I took on 6 figure debt to go to school. I'm happily employed and grateful for the life I have.

The way I see it: every option available to me coming out of high school had risk. Taking on debt to go to college is a risk. Not going to college is a risk. For some, these risks are low, due to a fortunate upbringing with financially stable parents. That wasn't the case for me — but I can appreciate having the choice at all, which many people don't.

I achieved the goals that were important to me given the risk I took: to get a job doing something that challenges me, makes me happy, and allows me to live comfortably. The debt is the cost I chose to pay in order to achieve this goal — one of many I could have taken, but there was always going to be a cost.

The article meanders a bit but I think the story is a pretty common one for those of us in a lot of debt: it's a long term partnership. The "amount of debt you're in" is abstract and barely fathomable. It manifests monthly as a force that pushes against you and your bank account, and how you choose to respond to that reflects your priorities at that moment.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#26

Post by sensibletouches »

gangst wrote: post #2

Son of a bitch that is a lot of debt. It stresses me out just reading about it. I guess few people do the math correctly when they go get a degree. Can anyone here who opted to take a student loan for a technical degree speak to whether it is daunting to them or they are comfortable with the trade?

For realistic people, it's not that big of a deal and speaks more to how people value money and things. However, I'll admit that I wish, as a 22 year-old kid, I was more knowledgeable about all those loan papers I was signing at the time.

I'm a doctor who had about $160,000 in student loan debt by the time I finished residency (during which I paid $1,000/month on a $45,000/year salary and lived like a student). After residency, my wife and I started throwing about $4-5k/month at it. Yes, that means I didn't go out and buy a brand new S55 AMG fresh out of residency, but I didn't care. I know plenty of people who will lose more on mortgages when their house doesn't appreciate like they thought it would. Or when (not if) the market crashes again.

It doesn't bother me one bit that many people on here get to ride the tech money train that I don't have a ticket for. Enjoy it, homies! But never forget (but don't stress about) the fact that the party music can stop at any time.

Everyone should enjoy what they've got and be reasonable about expenses. There's already enough to be worried about.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#27

Post by usea »

gangst wrote: post #2

Son of a bitch that is a lot of debt. It stresses me out just reading about it. I guess few people do the math correctly when they go get a degree. Can anyone here who opted to take a student loan for a technical degree speak to whether it is daunting to them or they are comfortable with the trade?

I was a high school dropout with no job, car or money. I decided to go to college. I qualified for need-based grants, but I did have to take out some loans to bridge the gap. It's less than 20k. I went to a cheap state school, nowhere in the top 100 list for CS.

All things considered, I am happy with my decisions. My loan payments aren't that bad. Rent and car-related expenses are worse. I do live check-to-check, but I could probably get a much higher paying job if I looked.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#28

Post by nickff »

sliverstorm wrote: post #20
modarts wrote: post #18

Earlier quoted context omitted.

Exactly; how much of a "surprise" could the kids really have been?

Well, twins probably would have been a surprise. That's probably what the article was referring to; who expects twins?

Twins are much more common among people using fertility drugs than the majority of the population; so if you are on those drugs, you might expect them.

P.S. not trying to be snarky, just thought it was an interesting fact

Re: Giving Up Paying Off $186,000 Student Loan Debt

#29

Post by joeblossom »

saalweachter wrote: post #24
kclay wrote: post #6

Earlier quoted context omitted.

It was the worst thing I ever did. I'm not as bad off as this women but I have around 80-90k in debt for school loans and whats worst is one of them is a private loan so it has some ungodly high interest rate compare to my others.

Pay close attention to politics. The reason your federal loans don't have an ungodly interest rate right now is that as part of the economic stimulus student loan interest rates were lowered. The temporary extensions have kept it down since then, but they could jump back up at almost any moment.

That jump is for new loans, fortunately. All previous federal loans are locked in at the rate they were originally signed for.

Re: Giving Up Paying Off $186,000 Student Loan Debt

#30

Post by warmwaffles »

Irregardless wrote: post #9

> She graduated in 1994 with more than $100,000 of debt. Within three years, she had one daughter, a surprise set of twins, and was earning less than $50,000 per year. 3 kids while earning $100k in debt? If that's not the embodiment of America's dire lack of financial and family planning skills, then I don't know what is. > "I’ve stressed to my daughter the importance of not borrowing any money." Maybe she should jus…

> Also, it would help not to have 3 kids when you're up to your ears in debt

if she fails to pay it off in her lifetime, do her children pick up the debt?

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