student loan forgiveness programs alternative

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MrBonita

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Anyone successfully find a way to avoid paying them loans?

I had a friend who took out a home equity loan and the lender used an appraiser that overvalued his home. He was able to take out 100k from the equity loan and paid off his student loans. However in 2008 his house went underwater and walked away from his house. This was 10 years ago and now his credit is clean. Luckily for him he married someone who had a house so he never had to get another one.

Anyone else know of other successful ways to get rid of them student loans.
 
No, it's not. With the student loan situation in this country, the government is responsible for it since they, too, are trying to profit off poor students with an interest rate of ~8% and doing nothing to stop uni's greed.
Who held the gun to your head and asked you to go to school with loans?

This is totally ridiculous. Just pay them off and be done with it.
 
No, it's not. With the student loan situation in this country, the government is responsible for it since they, too, are trying to profit off poor students with an interest rate of ~8% and doing nothing to stop uni's greed.

The crazy idea was to pay them off. No one forced you to borrow as much as you did. You are an adult, you're the responsible one not the government.

Stafford loans are 6.8%. If you borrowed higher than that then your school was too expensive, which is no one's fault but your own for choosing to go there.
 
How far are you going to shift the blame? Blame your distant ancestor for abstaining from procreating so that you would never exist and endure this burdensome existence?

Things like PSLF, employer-based health care, unfettered student loans, etc are just bad policy and/or poorly implemented but no one forced you to do anything or forces you to do anything in the U.S., like buy a house, start a family, take on a crap-ton of student loans, resign yourself to golden handcuffs or a crap-paying clinical pharmacist job. If you will argue that this is what society expects of you or your peers expect of you, and the U.S. government is incentivizing all those choices, well, succumbing to societal expectations and peer pressure just shows your weak-mindedness.
 
No, it's not. With the student loan situation in this country, the government is responsible for it since they, too, are trying to profit off poor students with an interest rate of ~8% and doing nothing to stop uni's greed.
Why is your interest rate so high?
 
Refinance your loans and pay them off asap. Work OT if possible, go live in BFE and work 60 hour weeks while your young. This is a really good paying job when you don't have 6 figure loans hanging over your head
 
Unfortunately, you can't do the home equity trick anymore because the selection of appraiser is random. You can try to get 95-100% equity loans now but you'd end up burning your down payment, so it's a wash AND your credit is trashed.

You CAN open a bunch of credit cards and unsecured consumer loans, pay off the student loans (via those balance transfer and convenience checks) and default on the unsecured loans.

There is a minuscule chance you'll get taken to court and a judgment would attach, but bankruptcy would wipe that out, or you negotiate for like $0.50 on the dollar. Chances are, if you spread out the amounts, they'll just charge it off and sell to a debt collector. Make weird breathing noises and they'll never call back.

Credit would be trashed for a few years, but that's about as bad as it gets.


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Jesus, people. Tuition is high and interest rates should be lower; I will not argue that one bit. But to find a roundabout way to default on loans just screws everyone else too. I'm taking about 12 years to pay mine off by paying double. Did a large home improvement project in there that we paid cash for so would have been done long ago if I'd gone all Dave Ramsey on it, but YOLO or something.
 
I think it's a bit of a shame though. Loan forgiveness is supposed to allow you to take a fancy education and put it towards a less than fancy job that might make a real difference for people. I don't want that to go away.
 
Anyone successfully find a way to avoid paying them loans?

I had a friend who took out a home equity loan and the lender used an appraiser that overvalued his home. He was able to take out 100k from the equity loan and paid off his student loans. However in 2008 his house went underwater and walked away from his house. This was 10 years ago and now his credit is clean. Luckily for him he married someone who had a house so he never had to get another one.

Anyone else know of other successful ways to get rid of them student loans.
Walked away from his house? Lost his house? How much did he put in house including down payment?
If he didn't have a bad credit, he could buy a cheap house in 2008 and it could be double its value about 5-6 years later in 2014.
 
I think it's a bit of a shame though. Loan forgiveness is supposed to allow you to take a fancy education and put it towards a less than fancy job that might make a real difference for people. I don't want that to go away.
Agreed. MSW? School psych? Teachers? Not for 6 figure earners.

I just calculated that I will have paid 90K in daycare in a low CoL area, part-time and I don't have a million kids, just 2. Makes me even less sympathetic towards people bitching about their loans.
 
Agreed. MSW? School psych? Teachers? Not for 6 figure earners.

I just calculated that I will have paid 90K in daycare in a low CoL area, part-time and I don't have a million kids, just 2. Makes me even less sympathetic towards people bitching about their loans.
It would let you decide on the job that doesn't pay 6 figures (or high end of 5 figures which is probably more realistic). This isn't a description of my situation, but someone with >$200,000 in loans probably can't take a $60,000 a year salary with a grant funded clinic.
 
Anyone successfully find a way to avoid paying them loans?

I had a friend who took out a home equity loan and the lender used an appraiser that overvalued his home. He was able to take out 100k from the equity loan and paid off his student loans. However in 2008 his house went underwater and walked away from his house. This was 10 years ago and now his credit is clean. Luckily for him he married someone who had a house so he never had to get another one.

Anyone else know of other successful ways to get rid of them student loans.

Go officer in military, take advantage of what they offer for loans, enjoy the health coverage and "perks" you get for food/flights/credit cards/home mortgage etc etc, do your 20 yrs investing 80% stocks - 20% bonds and collect a hefty pension the first of each month for the rest of your life while being registered in a state of which you don't pay state income taxes and then of course likewise for your pension...then pick up a second hobby-of-a-job just to cover the payment of the monthly cost of your bass boat and small cabin on a lake (wildlife ranger spit ballin' with locals may be a job to consider).

If service and early retirement isn't your thing, then live off pork n beans or make fishin' and huntin' your means of eating and before you know it your debt free...anything else requires jail time with bad credit in this market. Not sure what else (if anything) you were expecting.
 
Another alternative is to flee the country and never come back.
 
Working in a non-profit institution for years.
 
Another alternative is to flee the country and never come back.

I actually know someone who did this. Probably not entirely because of loans, but she has indeed stopped paying.


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I was just talking to my friend about this last night who works for accounting firm. She told me to file for bankruptcy and all my loans would be wiped out. But my credit would be non-existence for 7 years. I haven't really researched it though
 
I was just talking to my friend about this last night who works for accounting firm. She told me to file for bankruptcy and all my loans would be wiped out. But my credit would be non-existence for 7 years. I haven't really researched it though

(a)A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt—

(A)
(i)
an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or
(ii)
an obligation to repay funds received as an educational benefit, scholarship, or stipend; or
(B)
any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;
 
I was just talking to my friend about this last night who works for accounting firm. She told me to file for bankruptcy and all my loans would be wiped out. But my credit would be non-existence for 7 years. I haven't really researched it though

Student loans are not bankruptable in any way. Unless the individual becomes severely handicapped with section evidence (even this could take months or years to validate and become sanctioned for the individual) them student loans won't go away. Fastest way to freedom is pay them dues
 
It all depends on your loan amount, for me going on PAYE and saving for the tax bomb in 20 years means I'll pay the same as if I did for the 10 year standard plan, only spread over 20 years. Either way the gov makes a crap ton of money on the interest and taxable income forgiven after 20 years.
 
Student loans are not bankruptable in any way. Unless the individual becomes severely handicapped with section evidence (even this could take months or years to validate and become sanctioned for the individual) them student loans won't go away. Fastest way to freedom is pay them dues

But....but... Student Loans interest rates are just like car loans and you should be charged a high interest rate because there isn't any collateral!!!

/sarcasm
 
(a)A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt—

(A)
(i)
an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or
(ii)
an obligation to repay funds received as an educational benefit, scholarship, or stipend; or
(B)
any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;
My mom worked for a student loan collection company. Student loans are never discharged in a bankrupcy. The only way out is dying (and your death certificate needs to be sent to the student loan company), or becoming mentally/physically disabled (eg: you are on social security disability) an again, your official documentation is then sent to the loan collection company.
 
I was just talking to my friend about this last night who works for accounting firm. She told me to file for bankruptcy and all my loans would be wiped out. But my credit would be non-existence for 7 years. I haven't really researched it though

This person sucks as an accountant.

*gender fix


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I was just talking to my friend about this last night who works for accounting firm. She told me to file for bankruptcy and all my loans would be wiped out. But my credit would be non-existence for 7 years. I haven't really researched it though

LoL everyone knows that student loans are nondischargable upon bankruptcy, that's econ 101. Are you sure she works in accounting?
 
LoL everyone knows that student loans are nondischargable upon bankruptcy, that's econ 101. Are you sure she works in accounting?
Lol she said "could possibly" wipe out my loans. But I knew it was too good be true
 
ATTN:

Looks great... Dunno graduate degree is eligible or not, I haven't checked the detail. Now, roll out to every state.
 
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