Student loan strategy: Kicking the can down the road

[Lexington2012]

I found an interesting thread on the fatwallet finance forums:
http://www.fatwallet.com/forums/finance/1466051/

The original poster wrote this:
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I think I may have discovered a loophole in how to get out of my student loans for a few cents on the dollar. It is your turn to poke holes in this idea. Let me know any reason why it wouldn't work.

I graduated in in June 2015 and my loan payments are supposed to be $1250 each month when I have to start paying them in December. In my case, IBR would not reduce my payments.

I was thinking that I could register at a community college for 8 credits, then withdraw after classes start. This would give me another 6 months without payments. I could repeat this process every few months forever. It would cost me less than 2k/year to do this. In my case, this would be SIGNIFICANTLY lower than my student loan payments.

In 50 or so years when I get old and die, my student loans will be discharged, so this would not effect my estate.
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The person's username is Doxazosin, so I suspect this may be a pharmacist or doctor.

Would this actually work? Seems risky, but I can't explain why.

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[BMBiology]

It is delusional to think you are going to be able to do this until you die.

People dig themselves into a hole and now they are trying to find a loophole?

 

[Ackj]

Not sure, but I think the grace period would restart once you were no longer a full time student. So maybe you would get an extra few months with your scheme until they processed that you left, but I don't think they would grant a full 6 month grace period again and again.

Plus even if this loophole does exist, you really think that it wouldn't be amended within the next 50 years? C'mon.

 

[SnickerDoodlez]

you would think the college would know something's up when they see you withdraw for the 5th time

 

[Judgment Dragon]

Someone asked this on a different forum and a user claimed that schools have software that continuously check enrollment status every hour. Schools only check for units after the deadline to drop without a W. If you drop after the no W deadline, you get a W. A W counts as an attempt at a course. You are only allowed 3 attempts per class without petitioning. After 3 W's on 1 class, you are forbidden from taking that class a 4th time. Also if you get over 25% worth of total units in W's, you are barred from enrolling at said community college without a petition. Let's say you did petition, what would you even say in the petition?

 

[rxlea]

Just pay off your damn loans and be debt free.

 

[owlegrad]

How would one semester be equal to 6 months?

 

[pezdispenser]

Why would anyone want to be in debt their whole life like that? You'll just end up juggling payments from all your debts, while hoping that all the external variables like the government, colleges, employers or any of your other lenders don't pull the plug on you because then everything will come crashing down HARD. What a horrible way to live.

The best way to get out of this trap is to spend the next 5-10 years going hard at your debts, while simultaneously learning to live on a budget and spend less than you make. Then if you keep these spending habits after all your debts are paid off, you will have the next 40+ years to build some serious wealth and have a great life without worrying about debt or money.

 

[CrCl]

"Penny Wise, Pound Foolish." - the British.

 

[BMBiology]

I am all fine with people taking risk as long as you understand what they are getting into.

The government can easily do a 180 and screw everyone over. But hey, that is life right? Some people don't want to face reality. I am pretty certain they will regret their decision.

 

[Sugoi Travis]

This is the dumbest thing I've heard regarding student loan payments.