Jump to content

15 posts in this topic

Posted

Needy U.S. borrowers are defaulting on almost $1 billion in federal student loans earmarked for the poor, leaving schools such as Yale University and the University of Pennsylvania, with little choice except to sue their graduates.

The record defaults on federal Perkins loans may jeopardize the prospects of current students since they are part of a revolving fund that colleges give to students who show extraordinary financial hardship.

Yale, Penn and George Washington University have all sued former students over nonpayment, court records show. While no one tracks the number of lawsuits, students defaulted on $964 million in Perkins loans in the year ended June 2011, 20 percent more than five years earlier, government data show. Unlike most student loans -- distributed and collected by the federal government -- Perkins loans are administered by colleges, which use repayment money to lend to other poor students.

"If you borrow to go to school, it may not be just the government that ends up coming after you if you can't pay," said Deanne Loonin, an attorney with the National Consumer Law Center, a nonprofit advocacy group in Boston. "We offer credit very easily." If the student doesn't benefit financially from the education, "the government or the school comes after them very aggressively."

[url="http://finance.yahoo.com/news/yale-suing-former-students-shows-050100496.html"]more[/url]

Share this post


Link to post
Share on other sites

Posted

Wait, so they can't pay their loans off, and the solution is to sue them for money they don't have...
1 person likes this

Share this post


Link to post
Share on other sites

Posted

^ Yale isn't strong in Math skills. :p

Share this post


Link to post
Share on other sites

Posted

[quote name='nik louch' timestamp='1360157977' post='595504874']
Wait, so they can't pay their loans off, and the solution is to sue them for money they don't have...
[/quote]
Which I really don't understand why you would default on student loans because student loans can easily go into forbearance due to not being able to escape not paying them (declaring bankruptcy won't even clear them).

Share this post


Link to post
Share on other sites

Posted

I am not a fan of our current system. Higher education should be free to any and all who want it. As it stands, only the rich can go to the best schools. The poor borrow money and they can't afford to pay it back.

Share this post


Link to post
Share on other sites

Posted

^ Sounds nice -- but how will the higher education be paid for ? Print more govt. funny money ... ?

Share this post


Link to post
Share on other sites

Posted

[quote name='Hum' timestamp='1360202300' post='595506582']
^ Sounds nice -- but how will the higher education be paid for ?
[/quote]

Other nations manage it so why can't we?

Share this post


Link to post
Share on other sites

Posted

[quote name='Growled' timestamp='1360202643' post='595506602']
Other nations manage it
[/quote]
You'd be surprised, actually.

Share this post


Link to post
Share on other sites

Posted

[quote name='Growled' timestamp='1360202643' post='595506602']
Other nations manage it so why can't we?
[/quote]

What countries are able to provide free higher education to anyone who wants it ?

And many other countries are financially in trouble as well.

Share this post


Link to post
Share on other sites

Posted

Gee if you are the son/daughter of a Senator or Congressmen you do not have to repay student loans.

Share this post


Link to post
Share on other sites

Posted

[quote name='Hum' timestamp='1360202957' post='595506630']
What countries are able to provide free higher education to anyone who wants it ?[/quote]

Maybe not completely free but the government pays a substantial portion, like France does.

[quote]And many other countries are financially in trouble as well.
[/quote]

Yes, the entire global economy is still sputtering.

Share this post


Link to post
Share on other sites

Posted

[quote name='Growled' timestamp='1360202023' post='595506564']
I am not a fan of our current system. Higher education should be free to any and all who want it. As it stands, only the rich can go to the best schools. The poor borrow money and they can't afford to pay it back.
[/quote]
What's wrong with a public school? You don't have to go to MIT, Yale, Harvard, etc. And actually, schools generously reward the poor and the people that actually want to go to university. It's only the middle class average students that get screwed.

Share this post


Link to post
Share on other sites

Posted

[quote name='Xilo' timestamp='1360171612' post='595505410']
Which I really don't understand why you would default on student loans because student loans can easily go into forbearance due to not being able to escape not paying them (declaring bankruptcy won't even clear them).
[/quote]

The reason is once you have a judgement against you, any future inheritances & tax refunds and so on are subject to seizure to pay towards the suit.

Share this post


Link to post
Share on other sites

Posted

[wyoutube]ymsHLkB8u3s[/wyoutube]

Share this post


Link to post
Share on other sites

Posted

Clearly, the solution to this crisis is more loans!

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.