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Why I Defaulted on My Student Loans

33 点作者 mapleoin将近 10 年前

10 条评论

leereeves将近 10 年前
Repost from yesterday:<p><a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=9674606" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=9674606</a>
ben336将近 10 年前
As somebody who is currently struggling with a huge amount of student debt, this strikes me as quite... self-righteous?<p>I can understand the idea that the government should give free education, or that they should support education with grants instead of loans, or that college tuition should be cheaper. I&#x27;m all for people advocating for those causes.<p>But if you take a loan, you&#x27;ve entered a contract. Breaking that contract isn&#x27;t something to be proud of. Saying that his options were boring career with debt and soul crushing career without debt is disingenuous. If you took $60k (or whatever) of somebody elses money, be willing to put in the work to pay it off, then you get to do what you want. If you aren&#x27;t willing to do that, then find a way to subvert the system that doesn&#x27;t involve you taking large amounts of other peoples money, or at least admit that you made a poor decision.
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deedubaya将近 10 年前
I understand why someone would do this....<p>but as someone who paid their student loans, pays their mortgage, and other bills, I sure feel like I&#x27;m getting the raw end of the deal for honoring my commitments.<p>Making it acceptable to default on or get bailed out of debt (whatever the source) is a recipe for financial ruin for us AND our children.<p>In the end, your decision to take a loan commitment (under whatever pretenses or promises) and then default, is fucking the honest American. Thanks!
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ryandrake将近 10 年前
Default is an option specifically written into any loan contract, the terms of which (and the actions that happen upon default) presumably agreed to by all parties. There is no reason to artificially bring morality into a debtor&#x27;s decision to default. The loan-writing industry, of course, loves that we attach shame to the option that most hurts their business.<p>Saying it&#x27;s immoral to default on a loan is like saying it&#x27;s immoral to exercise a put option that happens to bankrupt the option writer.
nate_meurer将近 10 年前
This bit is from comment on the NYT site:<p>&gt; &quot;Banks love it when people default on their government backed student loans. At the time of default they are paid in full by the government and then they are able to turn around and sell that debt to collection agencies.&quot;<p>Is this true?
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tomsun将近 10 年前
The author of this piece is self-rightous. But the bigger problem isn&#x27;t his inability or his relent to honor the student loan debt. The bigger problem is the detachment of the value of education, and prospective students&#x27; understanding of which.<p>When students enter university, they understand that it is a place that will challenge their intellects, but what they don&#x27;t understand is the amount of financial value it will provide after they graduate. Unless they go into a lucrative field, the return on investment in liberal arts (not picking on this specific major) is not worth it.<p>Unless you&#x27;re going into a top program in a top university (Engineering at Ivy League, CS at Stanford, MIT, CalTech, etc), it&#x27;s better to enroll into an STEM program at a reputable in-state college. Otherwise it&#x27;s almost not worth it.
t0mbstone将近 10 年前
The trick to getting around student loans is simple:<p>1. Open lots of credit cards<p>2. Take out cash advances on the cards<p>3. Use the cash to pay off your student loans (or just pay for college directly, using the cash)<p>4. Pay on credit cards until the interest has ballooned out of control and you can&#x27;t pay them anymore<p>5. Declare bankruptcy and default on all your debt<p>If someone should be able to buy a house and cars and toys and shoes and designer clothes and then just declare bankruptcy and walk away from their debt totally free, why shouldn&#x27;t you be able to do the same for other types of debt?<p>Why do we treat educational debt as the one type of debt that is able to enslave you for the rest of your life, while it&#x27;s ok to default and walk away from debt caused by crazy consumer spending?
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acomjean将近 10 年前
Student Loans are not like loans for tangible things (homes and cars). When you default on your student loan they don&#x27;t take your diploma back. You keep your degree, the increased earning potential. You keep your experiences and education.<p>Student loans are a complex web of federal guarantees, but if basic capitalism works, by defaulting you are going to make it more expensive for the next students, who have to pay more to cover the defaulters. Some students won&#x27;t be able to afford it with the added interest rates.<p>Seems his education helped him be successful. So why should he pay for it?<p>&quot;Lee Siegel is the author of five books who is writing a memoir about money.&quot;
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malka将近 10 年前
&gt;I am sharply aware of the strongest objection to my lapse into default. If everyone acted as I did, chaos would result. The entire structure of American higher education would change.<p>This is not an objection. This is an argument in favor.
JonFish85将近 10 年前
Well this is excellent. I look forward to the day when the responsible members of society (people who pay their bills on time, who save for retirement, who don&#x27;t over-buy) are pushed even further to take care of the people who were immature and planned incredibly poorly. Our society works fine when it&#x27;s assumed that a small portion of its members are irresponsible. But when it&#x27;s systemic, there isn&#x27;t enough money to go around.<p>That&#x27;s what happened with the housing bubble. Blaming banks is easy, and certainly they did a lot of shady stuff. But nobody forced people to take on mortgages they couldn&#x27;t hope to pay. Nobody forced kids to take out $100k in loans to go to a dream school instead of a state school.<p>The student loan debt burden is enormous. And I suspect that the people who make out the worst in it will be the ones who actually PAY on time. And I&#x27;m terrified of what will happen when it&#x27;s time to start cashing out my 401k. After years of saving, a person who has faithfully saved $5M should have a nice retirement ahead of them. But I suspect that so many more people will have nothing, and those people will still be voting, and cut themselves a hefty slice of the pie from those who actually planned ahead. And because of the way 401k&#x27;s are set up, it&#x27;s a multi-trillion dollar pot of money that can be re-assigned from the &quot;$5m retirement rich&quot; people to those who didn&#x27;t bother to think ahead and save.<p>One person defaults on an irresponsible debt, no big deal. But the more people do it and the more acceptable that becomes, the worse it is for everyone (especially the responsible people that a society relies upon to keep the money flowing).
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