You can't go bankrupt on student loans, unless you become completely disabled.
I am really disgusted by the credit system. I have a 79 year old client, on a modest fixed income, who refinanced his house in 2003, paid off all his credit cards ($70K!), and is now more than $50,000 in debt. I have been going through his statements, and he's paying as much as 29% interest! He charges almost nothing, the occasional restaurant meal or tank of gas. The late fees and finance charges are eating him alive.
But I see similar stories with young people. They owe $30-$40K in credit card debt and are "upside down" on their car note, and can't scrape together a down payment for a house.
BTW, almost everybody is "upside down" on their car notes. This means owing more than the car is worth. Unless you buy a car that will last a very long time and maintain it well, you're screwed, and keep digging the hole deeper.
It's insane. The entire system is insane. Save your money. Pay cash. Unless you have really, really good credit and can get a low interest rate, and aren't stupid enough to fall for a "loss leader" rate that gets jacked up in a couple of months.
Ben is living at home, going to the local college, and we pay cash for his tuition and books. No student loans. I finally paid off my own student loans only a few years ago. Crazy. |
