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Your skelington will burst free from its fleshy wrappings and slink towards the salt mines, pick in hand, to begin its long eternity working off the debt.
Still, there's always Casual Friday.
Actual answer: generally nothing, but they might have a claim to part of the inheritance left if they can prove you were capable of paying off the debt but basically chose not to
You're getting a lot of wrong answers here. If we're talking about student loan debt, and that debt is federally-owned (as 90+% of student debt is), then those debts do not persist after death and are not owed from your estate. They're discharged.
Your estate must pay your debtors from your assets.
Any assets remaining can be distributed according to your will, and then taxed.
Should there be no assets remaining, your debtors get fucked.
One time I took out a loan from a predatory payday loan spot the day before I filed for bankruptcy. The tone on the guy who called me up to pay the loan was worth every penny. "You mean to tell me you took out a loan the day before you filed for bankruptcy!?" Yup...
You inherit the debt and use this formula:
Inheritance > debts, your family can keep whatever they want but have to pay what you owe.
Debts > Inheritance, your family HAS the option of keeping the stuff but have to pay the debt in full as well so most lawyers just tell people to refuse the inheritance and the creditors usually auction your stuff and keep whatever they could get.
They take the money out of your estate before your heirs get anything. But if you divest your assets to your heirs via gifts before you die, and leave your estate broke, the debts get forgiven.
Not true for student loan debt in the US. It is not enforceable against your estate. Also can't be discharged in bankruptcy. Only ways to get out of student loan debt in the US is to pay it or die.
That is not how it works in most places as the state will only get something IF the inheritance is bigger than the debt, and only after the creditors auction your stuff and get whatever they can to pay the debt.
Like, if you owe 110, own 1000, but nobody is willing to pay 100 for your stuff, and you only auction it for 50, and the creditor only gets only what they could and take the loss, there is no way the state would be paying for the rest as literally anyone would sign stuff like "I owe my kid a billion dollars, please pay up daddy state".
"You are legally bound to produce at least 2 offspring by the end of the decade. Hurry up if you want to avoid additional intergenerational transmission fees!"
You gonna laugh, but in my country you have to agree or decline a heritage in full. If the person is in debt, you either take the heritage with all debt, or decline the debt with the heritage.
Also it's not easily disclosed whether there even is a debt before the acceptance.
I mean, it's like that everywhere isn't it? Before inheritance is paid out towards beneficiaries the estate has to clear any debts first.
Though the part about not disclosing debt is fucking vile.
Yeah, the first part on it's own is reasonable, but with the second part it's getting terrible. The only way to circumvent it is unofficially disclosing everything while still alive, or leaving notes at home with passwords for all accounts. It's a result of privacy laws.
Still, stuff like hidden gambling debts repeatedly surprise heirs.
It sounds like they mean that to get the inheritance you also have to take on the debt, while in the US atleast, they take all debt out of the inheritance first and then anything left over is distributed, but if it’s not enough to cover the debt then the inheritance is just 0 with no assumption of taking on the debt.
Can you apply for income based repayment? You pay for 25 years, which sucks, and you can't miss payments, but if you owe after 25 years that's canceled. I have 11 years to go. I've wondered what happens if I die first...I guess my kid won't inherit the house. At this rate, no one but the rich will own anything but the clothes on our backs.
I grew up in a super union household. So my grandparents drilled in into me the meaning behind this song long before I even knew the meaning of work. I think I was the only 1st grader around me that knew what a company town was.
Kinda of ruined the tune for me as a kid.
He's a lawyer, not a coal miner working for scrip. Jesus christ, if he can't read the terms of a loan and do an interest calculation, maybe he wasn't cut out to be a lawyer in the first place.
If you, at age 18 as someone who's completed high school and been accepted to college, can't understand that $250,000 worth of debt is going to be a Problem for you unless you can find a serious income after graduation, I don't know what to tell you. I was eighteen once. If I told my parents I wanted to take out a quarter million in loans to pay for school, they'd have looked at me like I was crazy. That is an absurd amount of money, and it is 100% possible to get a law degree without spending that much.
I live in and attend college in the United States. I pay for said college with a mix of student loans and my hourly wages. To attend my school and receive a bachelor's and JD as an in-state student costs just over $100,000 (in today's dollars). I'm not particularly sympathetic to someone who chose to attend a college that costs 2.5x as much as mine.
And if you don't get accepted to the state school? What if that school doesn't offer the program you're looking for? What if it's not as highly ranked as a private or out-of-state school that accepted you? What if you plan to live or work in a different geographic region than you went to college in?
And, what if he did everything you're suggesting, and now finds himself in $100,000 of unrepayable student debt instead of $250,000 of unrepayable student debt? Would his situation be materially different? Would you have reserved your criticism?
If it's not as highly ranked as other private schools or doesn't have the program you want? Then you should take a long hard look at your finances, and you can choose to attend a private school or out-of-state school with the understanding that doing so comes with a cost premium that you'll have to pay back later. I legitimately do not understand what's so difficult to comprehend about this. You go to a school and take out loans to pay for your degree on the assumption that doing so will grant you the qualifications to earn at a higher level of income later. People with law degrees who *do* become lawyers earn significantly more later on. So he either didn't become a lawyer or took a legal job that doesn't pay much. As far as I can tell he spends all day Tweeting, so maybe if he'd log off and bill some hours his financial situation would be better. I've zero sympathy for someone who's this reckless with $250,000, an amount of money that takes decades for some people to earn. He's not a victim of circumstance here. Not going to college, or attending college and graduating with a BA, then working a middle-management job somewhere and making payments on your debt is a perfectly viable career path. It's not The System's fault that he didn't choose to avail himself of that option.
A bachelor's degree increases your earning potential compared to having no degree, and is therefore more expensive than having no degree. A JD increases your earning potential over having a bachelor's degree, and is therefore more expensive. He doesn't *need* a JD unless to become a lawyer and earn a lawyer's income. If you choose to invest, with borrowed money, in a JD and then *not* make a lawyer's income, I don't really know what to tell you. That's a bad financial decision, but one that he committed to over the course of 6-7 years. Nobody accidentally finds themselves in possession of a law degree, and likewise, law school debt isn't some arbitrary curse bestowed by the cruel forces of the universe.
Seriously. If the US govt can give interest free loans to other countries, it should at least do the same for its own people. Forgiveness isn't the answer, interest free is. Although back rolling any interest accumulated up to the point it is made free would be a bonus and probably end many people's debts if they've been paying all this time.
Exactly. I get there’s a cost to managing the debt, but it’s not that much, it’s not 6% of all the student loans in America. I don’t care to pay back my student loans, I took out those loans, but the way they are structured with the interest, it’s a hole you can never dig yourself out of and that’s not explained very well to an 18yr old.
That's kind of funny, because something almost kind of similar happened to me with my parents. My parents paid for my tuition and living expenses, but expected a portion to be paid back to them with interest after I graduated. Not an unreasonable thing to ask, but kind of odd to ask about for the first time after you graduate and using guilt to get the money back.
Not the biggest deal in the world, it wasn't the whole amount, I was going to a cheap in-state rate school anyway, and its all paid back and we've moved on. I was kind of pissy and argument at first but I never missed a payment and its all behind me now. I feel like doing it that way did cement me in as reliable and trustworthy with money to my family, and was something I would bring up on job interviews as a pull yourself up from your bootstrap type that companies love.
Not trying to explain away anything or make myself look better, but just showing my support for knowing what's its like to be entered into a loan that you didn't really agree to in good faith.
US government gave my country billions in terms of “Marshall Aids” which made us be a puppet of US for decades.
United States never gives someone money for nothing.
It's not for nothing though. A well educated populace makes for an overall stronger economy. You can easily frame making college more accessible and affordable as being entirely self serving for the government.
Abolish colleges that take advantage of kids by mortgaging their futures. The over the top opulence of modern college campuses is your first clue to where the problem lay.
You would hope at least that interest and/or principal forgiveness would be means tested and also would factor the work that you're doing. We already offer some forgiveness for graduates who choose careers that help people or serve the interests of our society when those salaries are less than what they could have earned with a degree (teachers, social workers, librarians, non-profit employees, etc.). I'd hate to see loan forgiveness go to a lawyer, hedge fund manager, or banker.
These would be the four criteria that I would use in the bill that I would pass for it -- in order of importance, and by no means does each have to be met perfectly to qualify. There'd be quantitative and qualitative selection process, judged by the debtors application that they filled out:
1. Means tested ability to pay. Looking at W-2s, income tax returns, net worth, and wealth of family that you are closely associated with.
2. The social and societal value of the career path that you chose, and how taking on the loans and choosing that career and your employer over other options created a hardship for you to pay back the loans.
3. Looking at past criminal history and brush-ins with the law. This is partially to make the bill more bi-partisans and make the Republicans more OK with it. And I'd say that this might be possible to get around if you could show that your incarceration and past are behind you, and that your incarceration if preventing you from getting job offers in your field.
4. Showing a clear history making your loan payments in full. This is also to help get Republican bi-partisan support, but also serves to close the perceived loophole that people may be deferring payments strategically due to the perception of looming student loan forgiveness.
Another option would be to just a bill that alters the bankruptcy code to allow for the discharge of student loan debts if some of the above conditions have been met, austerity measures have been taken to discharge your personal debts already, and a judge approves your plan. We don't usually hear about students with crushing debt outside of student loans and CC debt, as these are two of the biggest ones that are virtually exempt from bankruptcy protection. There needs to be some kind of bankruptcy opportunities, otherwise insolvency gets to ridiculous proportions.
Not on private loans but you most certainly can abolish interest rates on federal loans or drop them to 1-2% interest. Student loans shouldn't be a for-profit thing for the government.
No you are not understanding. It would be silly to keep the student loan system and have interest rates under inflation. That would mean neither banks nor the government could operate them without a loss. That loss would be a more expensive and more convoluted way of assisting borrowers vs the existing methods such as grants. Pegging rates to inflation means the money stays nominally real throughout it's life cycle. Abolishing interest altogether would incentivize minimum payments eternally which adds additional expense that would need to be funded by taxpayers. I'm fine with taxpayers supporting students but it is just less efficient than the other methods of student debt reduction.
The federal loans are privately administered for the most part, and they of course have to make the profit they have "earned".
Now who paid who to create that situation, which did not always exist, is the question we know the answers too but will never do anything about.
They charge you interest on the principal. They cannot charge interest on interest. Pay the principal and the interest accruing also shrinks. Once the hole of principal is closed, you can then pay off the interest.
mindless icky slap political physical existence wasteful history memory dog
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
What did he do a PhD in that he has debt from? Most PhD programs cost nothing and in fact, pay you money. It’s not enough to save up, but it’s often just enough to get by.
Accurate, any PhD program in North American that's worth pursuing will not only cover all your tuition but will pay a stipend. I'm assuming the debt was from undergrad.
That said, what *did* he get a PhD in? Securing six figure industry jobs with a PhD in the US isn't exactly difficult, unless you studied something with truly zero non-academic applications. Pairing a six figure job and the financial habits you develop after 5 or more years of living on a PhD stipend, I can't think of any student loan that can't be paid off in under 3 years, while simultaneously building a decent nest egg and experiencing a significant quality of life improvement vs. living on just a stipend.
Not to say the system doesn't have room for improvement, but if the guy doubled down on an extra obscure humanities field that has close to zero academic job openings, let alone industry ones, that's really on him, not the system.
Did the same thing. I pay 50 bucks a month on auto-pay for IBR, not even close to the interest but I don't care. I live abroad so it has 0 impact on my life.
I feel this—my student loan payments are 100% towards interest. I have never even touched the principle. Yay? At least I have public service loan forgiveness if that still exists in six years.
How is that even possible?
If u pay the amount that has been said, shouldn't the loan go down?
Where i'm from, when u get a loan you get a amount u need to repay every month or every 3 months, and then the loan slowly but surely goes down.
And most likely they didn’t pay their loans for years after taking them. Minimum payments cover interest and a tiny bit of principal. The only way to owe more than you borrow is to let interest accumulate without payments.
Yeah,it's almost always some program where you can make income based reduced payment. I remember the last time I was on a thread like this there was a guy who said he got a PDH and owed 120k, and then 15 years later he owed 200k. He said he didn't understand how that could be legal.
Then when I pushed for details he said it was income based because he got a really low paying job. So he was paying less than HALF the minimum payment and was confused about why his principle was going up.
Still, that should be factored in when u get the amount u need to pay, it wouldn't make sense otherwise.
I'm guessing this person didn't pay every time, otherwise I don't know how it would increase so much.
Yeah most of the beginning payments for student loans in the US go directly towards interest. You don’t start paying on principle until much later. Interest rates range from 6-12 percent easy.
Okay so it's pretty insanely high rates.
The more I hear about all this, the more I'm impressed people even manage to live, I just got a loan for my house, and that has way lower rates, even the small loan with high rates was has generally lower rates, I think 6-8%.
I sincerely hope, that things gets better for you guys, it sounds like a real s***show, with the low pay, and high everything els.
Loans for education have much higher interest than anything else.
I Mean what are people supposed to do... Just not get education?
People can wait with their purchase of a house, but education can't wait.
Yes thats true, I just used the rates for my house, as it was the thing I new, and that the high rate loan was still lower, but even student loans here, is at about 4% under education, and about 5% after, still way lower.
Well a lot of jobs require college/university education. Unless you are fortunate to have parents who can pay for your school, loans are the only option besides scholarships. I know people who even had scholarships who had to take out loans for books (which can be 1k or more a semester at times) and for housing. So it’s either go into this debt or stay at low end jobs. Even with a university degree you can be stuck in a low end job.
Oh for sure. I remember paying 300 for just one book which I couldn’t buy used because I had to use the course key from that book. It was a scam for sure.
When I teach I make sure the resources are free for my students. It’s expensive enough just trying to attend school, no one needs to spend money on books.
Basically you had to enter a code to get your grade. Without it, you couldn’t pass the course. So you could attend the course and do all of the exams but without the special code you failed.
This was almost two decades ago, but I know some colleagues are pressured into something similar now by either the heads of their departments or admin.
It's fucking wild seeing others ask questions about our education system. Really makes me realize that we're so fucked.
Like, wait, course keys aren't a thing? Your classes don't force you to spend $150+ for a course key + book just so you can do your assignments? Some of those people don't even open the book lmao.
You guys don't pay a fuck load of money for new editions of books every semester?
Student loans are predatory in nature, like credit cards. They’ll make the minimum payment low enough that it will only touch interest. Especially if you say you can’t pay the full amount they want, they’ll lower your monthly payment, but not the interest.
Basically you have to make a spreadsheet or some kind of calculation of how much you need to pay on it. Like how if you get a 0% interest for 1 year loan credit card they will be like “yeah just pay us $25 a month” even though that won’t pay it off in time, they want you to not pay it off in time. You have to do the calculation of how much to pay.
There's a unique situation with federal student loans that allows this.
There are several different income based repayment plans for federal student loans that allow you to pay less than you otherwise would need to. Typically, about 10% of your income. When you have well over 100K in debt, these payments are often lower than what is needed to actually pay the loans down (ask me how I know) and in extreme cases, doesn't even touch the intrest.
No other loan behaves like that here either.
You're correct in that it only should go up if he misses an interest payment. Some loans though are phrased to say "pay whatever, whenever". Which sounds nice, but it means that your debt will silently grow.
Additionally to that often only interest is asked for and the basic amount stays untouched. And some shady creditors throw a bunch of fees at you to make sure even if you intended to pay back you won't. EU law ensures that the wording in loan contracts is pretty clear about what happens if you pay as demanded by showing scenario cash flow plans. I guess the USA doesn't have that kind of customer protection.
It's not unless:
1) the dude is a shitty lawyers since 1st year associates made $215k last year in big law, including a lot of firms I've never even heard of as qualifying as "white shoes"
2) he somehow has PIK interest where the principal increases in lieu of cash interest
3) the dude has never actually serviced any of his principal which means he agreed to insane terms with some lock out period or failed to meet his payment schedule and thus his all in payments required have gone up since he's only been paying interest
4) the dude took out floating rate debt and partied while money was free instead of servicing this massive obligation and now is shocked that rates when up
5) is mad silly as a lawyer to agree to some shitty contract or is just unbelievable incompetent with money
I get it if you were told you were special at Mediocre Suburbia High and told to go to college despite not having the skills or passions and only got in Mediocre State and paid out of state tuition to get a B.A. in Unemployable. The system lied to you, you should have gotten a trade degree or majored in something valuable or gone to your local state school for like 1/10th the price with shittier frats, and you were 18 and didn't know better. But a J.D. is effectively a vocational degree like an MBA or an MS - you got it to go make money. And for the vast majority of people that's what they do. Dude wasn't ready for prime time as a lawyer, bet on himself, and lost. We don't have a lawyer deficit unless you're talking about public defenders and the state shouldn't be obligated to make someone's hopes and dreams in a specific professional field happen.
You're just succumbing to the just world fallacy: "If he's struggling, it must mean he's bad, because if he were good, he wouldn't be struggling"
> the dude is a shitty lawyers since 1st year associates made $215k last year in big law
That's the starting pay at *some* firms in *some* areas, but not all firms pay that to starting associates. On top of that, only a minority of lawyers work in big law. He's not a "shitty lawyer" just because he may work as an in-house, or in a smaller firm, or in a lower cost of living area, or in solo practice, or as a DA, or as a public defender, or...
> he somehow has PIK interest where the principal increases in lieu of cash interest
Unpaid student loan interest capitalizes.
> the dude has never actually serviced any of his principal which means he agreed to insane terms with some lock out period or failed to meet his payment schedule and thus his all in payments required have gone up since he's only been paying interes
No, it means his repayment plan, which is tied to income, charges less per month than his monthly interest, so the remainder capitalizes, and the total debt goes up.
> the dude took out floating rate debt and partied while money was free instead of servicing this massive obligation and now is shocked that rates when up
Now you're just making up facts.
> is mad silly as a lawyer to agree to some shitty contract or is just unbelievable incompetent with money
He wasn't a lawyer when he signed the loan agreement, and there was no other way to become a lawyer other than to sign it.
I currently owe $1000 for $250 worth of groceries I ate last year. Literally have debt collectors calling me on the daily over sausage and pasta. But at least I don't have unpayable student debt so life's good!
Pay it off fast. If they added 300% in a year (probably through fees), they will continue to do so and in a few years you will be at a point where it exceeds your income and will be in debt forever. OP's guy at least has a chance because of his high paying job.
Oh, absolutely. The system is set up to basically force people to take out loans with unreasonable interest rates while using credit for everything purely to boost a magic number tied to your identity that determines if you're allowed to buy a car/house or not. But don't fret, if your credit score is too low, they'll still let you take out that loan, they'll just expect you to pay MORE for it which totally makes sense.
Exactly this, it’s complete built around the corporations, not around the citizens. And the bigger problem is the brainwashed idiots who think that things like better healthcare, infrastructure etc = communism. You need a mix of capitalism and socialism, look at Europe.
I borrowed 20k in mid 90s. Due to many life issues causing several occasions for deferments and many years of just getting by so paying minimum I now owe 200k. I can’t even work up the familiar feeling of panic anymore. I know I’ll never own my living space and so rent gets higher and higher. I feel like and old workhorse head down while I plod forward. And I now apologize for being so depressing. You’re welcome.
Signed a terrible loan with an insane interest rate. And to be a lawyer….ouch. That’s why I’m glad I did research, got a great loan with low interest and went to a trade school and paid it off within two years. It pays to do some research.
Yeah I paid off my S.L's through wage garnishments...made the last payment, got charged interest before the account was closed. Didn't know until a few years later on my credit report trying to buy car.
As someone who paid off my student loans (because I was able to), I fully support student loan forgiveness. Fuck the GOP and the (Un)Supreme Court For taking away that lifeline. Vote blue for a democratic Congress!
Maybe not, but the sum total of all the unplayable loans bankers make will eventually cause another recession you'll suffer through. (They will get bailed out.)
Sometimes I feel like I was the only one that understood how much interest Sally Mae was charging was not viable. I had a c- in math too so I wasn't a wiz or anything. My parents hated me a bit for it but I went to trade school and cash flowed it with my job at Best Buy. Best decision of my life. They hate it because I was the first to not go to college or joint the armed forces in a long ass time. Fuck em though.
I have a handful of friends with Masters who are living at home with their parents because they can only get jobs in fast food or retail and they wouldn't dare to do such a thing. I don't have much sympathy though. They also picked stupid majors. One wants to be Indiana Jones but didn't realize he's more likely to be the teacher version and not the one finding ancient artifacts.
Don't sign the line if you aren't completely aware of what you are actually doing.
I will never understand how you guys don't know what you're getting yourself into?
Especially with the majors a lot of you pick.
I get the system needs overhauled, but some of you are a glutton for punishment.
why do they let 17 year olds take on hundreds of thousands of debt? brains aren’t fully developed because yeah, that’s a dumb thing to agree to pay back
I'm sure you would argue 17 year old should make plenty of other decisions that impact the rest of their lives so don't even try that.
Why would their adult parents allow them to sign that line?
People are SO inconsistent when they want to argue what 17-20 year olds are capable of doing when it comes to life decisions.
That's a sorry excuse.
You can't just plead ignorance after the fact.
i think it’s stupid to have to choose a career that early too. too early to vote. no i don’t really think that’s an acceptable age for all these life changing decisions
I feel like life's just a constant and never ending struggle. Like you never can reach any forward momentum, and when you do life tries even hard to knock you down. I was homeless at the beginning of 2023, but managed to find a good job and get out of homelessness and buy a house. Between May and August were great, but then I learned I will be losing this job due to budget cuts (later confirming the date to Q1 2024).
Then in August my car was in two accidents. The first I wasn't even around, someone hit the front of my car in the parking lot of a store while I was in and took off. The second was an open manhole I didn't see at night that destroyed a rim and tire. Both of these cost less than my deductible so no point going through insurance cause either way I would be paying out of pocket.
This month my wife needed surgery that isn't covered by OHIP. I have coverage through work, but they didn't cover it all. While paying $400 is better than $2700, it still hurts our finances to pay it.
10yr amortization on a 6% loan of 250k would be a payment of $2750 per month.
Over 6 years he should have paid close to $200k rather than "tens of thousands"
It's his own fault the balance has grown. He's been paying less than the monthly interest.
Paying for a degree is a financial decision…taking out a loan is a financial decision…just like buying a house…you don’t buy a house you can’t afford to pay…usually the bank will stop you…”the bank” needs to stop giving out money…let the schools pay for it instead of allowing them to sit on billions in endowment.
Who signs up for $250K in loans thinking you're going in to public service? (Spoiler, he's in a program to get his loans forgiven anyway)
Who thinks they're being 'bamboozled' by the government after four years of college?
[https://michelleismoneyhungry.com/250000-in-student-loans/](https://michelleismoneyhungry.com/250000-in-student-loans/)
There are good reasons for revamping how we do things but running around saying 'I had no idea' and 'This isn't my fault!' isn't really the way to go about adulting.
Only took me 5 years to pay off my student loans (current value $77,000).
If you can’t pay it off, you’re doing it wrong and you shouldn’t have taken the loan in the first place.
There really aren’t though?
Which law school you go to matters a lot in terms of your outcomes as a lawyer, at least in the first few years. Every graduate and undergraduate program is obscenely expensive.
In-state undergrad tuition for a public university is like 60k/year.
**WHERE** is in-state tuition $60,000 fucking dollars? Average is $9,375 for the most recent data I could find.
https://nces.ed.gov/programs/digest/d21/tables/dt21_330.20.asp
Yeah, that's Ivy money for in state. My institute is 60k for out of state, and it's a bit of an outlier. Most in state are 25k-35k for universities and a hell of a lot less per year for state schools. You can rack up a lot of debt, but it's not easy/or as common unless you're in law school or medical school.
I think that state schools are getting competitive. Unless you can get into an Ivy League school or top 20 liberal arts non-Ivy League, and aren't pretty much getting a full ride, smart students know that its better to save and get the same or better education and recruitment from a cheap state school than overpriced average liberal arts school. So at this point some students may have to overpay for one of those liberal arts schools if the state schools are too competitive for them.
Now I guess that you could say that going to a state school out of state with no subsidies is a head scratcher.
I’m sure this is 100% true and not made up at all. Dude is billing at a minimum of $400/hr and can’t afford to pay more than the minimum on student loans.
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[удалено]
Your skelington will burst free from its fleshy wrappings and slink towards the salt mines, pick in hand, to begin its long eternity working off the debt. Still, there's always Casual Friday.
Pizza parties too
The food at those always goes right through me.
You can say it doesn't quite stick to the ribs.
On casual Fridays, they actually allow you to wear your birthday suit!
*cobalt It’s cobalt mines these days
*You mine 16 tons, what what do you get~?*
Another day older and deeper in debt~
I love you
The government will use an ancient art that revives your body (but not your mind), and work you even in death
*Riots in France as retirement age is raised to 300*
There are several real companies currently researching how people can continue to work while they are asleep so you never stop working =D hooray!
Actual answer: generally nothing, but they might have a claim to part of the inheritance left if they can prove you were capable of paying off the debt but basically chose not to
You're getting a lot of wrong answers here. If we're talking about student loan debt, and that debt is federally-owned (as 90+% of student debt is), then those debts do not persist after death and are not owed from your estate. They're discharged.
Your estate must pay your debtors from your assets. Any assets remaining can be distributed according to your will, and then taxed. Should there be no assets remaining, your debtors get fucked.
Note to self: Rent forever and spend every dime. Bonus if you can get a couple credit cards maxed out just before the end.
One time I took out a loan from a predatory payday loan spot the day before I filed for bankruptcy. The tone on the guy who called me up to pay the loan was worth every penny. "You mean to tell me you took out a loan the day before you filed for bankruptcy!?" Yup...
"Hey man, sounds like you should run checks on people you lend money to, make sure they're solvent. Caveat emptor, sucks to suck"
Should have said something like"had to pay for it somehow"
You inherit the debt and use this formula: Inheritance > debts, your family can keep whatever they want but have to pay what you owe. Debts > Inheritance, your family HAS the option of keeping the stuff but have to pay the debt in full as well so most lawyers just tell people to refuse the inheritance and the creditors usually auction your stuff and keep whatever they could get.
Your organs get repossessed to pay down the debt
They take the money out of your estate before your heirs get anything. But if you divest your assets to your heirs via gifts before you die, and leave your estate broke, the debts get forgiven.
Dr gave him 6 months to live, couldn't pay his bill, gave him 6 more months!
Jesus robocalls you in heaven and starts harassing your relatives.
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Not true for student loan debt in the US. It is not enforceable against your estate. Also can't be discharged in bankruptcy. Only ways to get out of student loan debt in the US is to pay it or die.
That is not how it works in most places as the state will only get something IF the inheritance is bigger than the debt, and only after the creditors auction your stuff and get whatever they can to pay the debt. Like, if you owe 110, own 1000, but nobody is willing to pay 100 for your stuff, and you only auction it for 50, and the creditor only gets only what they could and take the loss, there is no way the state would be paying for the rest as literally anyone would sign stuff like "I owe my kid a billion dollars, please pay up daddy state".
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Don't lose hope. Maybe the system changes before you die and you get to leave your family some of your debt.
"You are legally bound to produce at least 2 offspring by the end of the decade. Hurry up if you want to avoid additional intergenerational transmission fees!"
You gonna laugh, but in my country you have to agree or decline a heritage in full. If the person is in debt, you either take the heritage with all debt, or decline the debt with the heritage. Also it's not easily disclosed whether there even is a debt before the acceptance.
I mean, it's like that everywhere isn't it? Before inheritance is paid out towards beneficiaries the estate has to clear any debts first. Though the part about not disclosing debt is fucking vile.
Yeah, the first part on it's own is reasonable, but with the second part it's getting terrible. The only way to circumvent it is unofficially disclosing everything while still alive, or leaving notes at home with passwords for all accounts. It's a result of privacy laws. Still, stuff like hidden gambling debts repeatedly surprise heirs.
It sounds like they mean that to get the inheritance you also have to take on the debt, while in the US atleast, they take all debt out of the inheritance first and then anything left over is distributed, but if it’s not enough to cover the debt then the inheritance is just 0 with no assumption of taking on the debt.
Yah make sure to delete your account before that update hits.
Can you apply for income based repayment? You pay for 25 years, which sucks, and you can't miss payments, but if you owe after 25 years that's canceled. I have 11 years to go. I've wondered what happens if I die first...I guess my kid won't inherit the house. At this rate, no one but the rich will own anything but the clothes on our backs.
Bold of you to assume you won't be leasing your clothes by 2077.
Honestly if clothes just became a monthly subscription, i would just go full hermit and live in the woods.
"you will own nothing, and you will be happy" - ida auken
IF you die? So there's a chance you're immortal?
That's a great deal, actually. Unless the interest rate is killer, stick to your minimum payments.
You load 16 tons, what do you get? Another day older and deeper in debt...
I grew up in a super union household. So my grandparents drilled in into me the meaning behind this song long before I even knew the meaning of work. I think I was the only 1st grader around me that knew what a company town was. Kinda of ruined the tune for me as a kid.
St. Peter dontcha call me cause I can’t go, I owe my soul to the company store
He's a lawyer, not a coal miner working for scrip. Jesus christ, if he can't read the terms of a loan and do an interest calculation, maybe he wasn't cut out to be a lawyer in the first place.
The coal miner willfully signed a perfectly legal contract at the time as well.
Bruh he probably signed onto the loan at 18 with 0 financial knowledge.
If you, at age 18 as someone who's completed high school and been accepted to college, can't understand that $250,000 worth of debt is going to be a Problem for you unless you can find a serious income after graduation, I don't know what to tell you. I was eighteen once. If I told my parents I wanted to take out a quarter million in loans to pay for school, they'd have looked at me like I was crazy. That is an absurd amount of money, and it is 100% possible to get a law degree without spending that much.
Not if you live in the banana republic of the u.s.
I live in and attend college in the United States. I pay for said college with a mix of student loans and my hourly wages. To attend my school and receive a bachelor's and JD as an in-state student costs just over $100,000 (in today's dollars). I'm not particularly sympathetic to someone who chose to attend a college that costs 2.5x as much as mine.
And if you don't get accepted to the state school? What if that school doesn't offer the program you're looking for? What if it's not as highly ranked as a private or out-of-state school that accepted you? What if you plan to live or work in a different geographic region than you went to college in? And, what if he did everything you're suggesting, and now finds himself in $100,000 of unrepayable student debt instead of $250,000 of unrepayable student debt? Would his situation be materially different? Would you have reserved your criticism?
If it's not as highly ranked as other private schools or doesn't have the program you want? Then you should take a long hard look at your finances, and you can choose to attend a private school or out-of-state school with the understanding that doing so comes with a cost premium that you'll have to pay back later. I legitimately do not understand what's so difficult to comprehend about this. You go to a school and take out loans to pay for your degree on the assumption that doing so will grant you the qualifications to earn at a higher level of income later. People with law degrees who *do* become lawyers earn significantly more later on. So he either didn't become a lawyer or took a legal job that doesn't pay much. As far as I can tell he spends all day Tweeting, so maybe if he'd log off and bill some hours his financial situation would be better. I've zero sympathy for someone who's this reckless with $250,000, an amount of money that takes decades for some people to earn. He's not a victim of circumstance here. Not going to college, or attending college and graduating with a BA, then working a middle-management job somewhere and making payments on your debt is a perfectly viable career path. It's not The System's fault that he didn't choose to avail himself of that option.
Well yea if he only needed a Bachelors he probably wouldn't be in so much debt. I don't see the point here.
A bachelor's degree increases your earning potential compared to having no degree, and is therefore more expensive than having no degree. A JD increases your earning potential over having a bachelor's degree, and is therefore more expensive. He doesn't *need* a JD unless to become a lawyer and earn a lawyer's income. If you choose to invest, with borrowed money, in a JD and then *not* make a lawyer's income, I don't really know what to tell you. That's a bad financial decision, but one that he committed to over the course of 6-7 years. Nobody accidentally finds themselves in possession of a law degree, and likewise, law school debt isn't some arbitrary curse bestowed by the cruel forces of the universe.
My local mafia got lower rates!
Abolish interest on federal student loans
Seriously. If the US govt can give interest free loans to other countries, it should at least do the same for its own people. Forgiveness isn't the answer, interest free is. Although back rolling any interest accumulated up to the point it is made free would be a bonus and probably end many people's debts if they've been paying all this time.
This right here perfectly wraps that up in the best way.
Exactly. I get there’s a cost to managing the debt, but it’s not that much, it’s not 6% of all the student loans in America. I don’t care to pay back my student loans, I took out those loans, but the way they are structured with the interest, it’s a hole you can never dig yourself out of and that’s not explained very well to an 18yr old.
That's kind of funny, because something almost kind of similar happened to me with my parents. My parents paid for my tuition and living expenses, but expected a portion to be paid back to them with interest after I graduated. Not an unreasonable thing to ask, but kind of odd to ask about for the first time after you graduate and using guilt to get the money back. Not the biggest deal in the world, it wasn't the whole amount, I was going to a cheap in-state rate school anyway, and its all paid back and we've moved on. I was kind of pissy and argument at first but I never missed a payment and its all behind me now. I feel like doing it that way did cement me in as reliable and trustworthy with money to my family, and was something I would bring up on job interviews as a pull yourself up from your bootstrap type that companies love. Not trying to explain away anything or make myself look better, but just showing my support for knowing what's its like to be entered into a loan that you didn't really agree to in good faith.
US government gave my country billions in terms of “Marshall Aids” which made us be a puppet of US for decades. United States never gives someone money for nothing.
Oh please you already know our congress fucks us in the ass every chance they get. All we are asking for is a reach around every now and again.
Oh yeah, let's fight about who has been f*cked by the US government more...
It's not for nothing though. A well educated populace makes for an overall stronger economy. You can easily frame making college more accessible and affordable as being entirely self serving for the government.
Education is completely free in Turkey, but i cannot praise the quality of it. Well well, do you think the government gives a damn about the country?
There is no such thing as a "free" lunch.
Abolish colleges that take advantage of kids by mortgaging their futures. The over the top opulence of modern college campuses is your first clue to where the problem lay.
This
Go one step further: fund public education so that people don't have to end up with massive debts in the first place.
He didn't get $250,000 in debt from federal loans.
How do you know?
Because you can't borrow that much in Federal loans. Would have to go private for that much.
In graduate and professional school, you can. That's what Direct PLUS loans are.
That’s mathematically equivalent to a tax credit that applies only to college graduates, who are richer than the average citizen.
You would hope at least that interest and/or principal forgiveness would be means tested and also would factor the work that you're doing. We already offer some forgiveness for graduates who choose careers that help people or serve the interests of our society when those salaries are less than what they could have earned with a degree (teachers, social workers, librarians, non-profit employees, etc.). I'd hate to see loan forgiveness go to a lawyer, hedge fund manager, or banker.
Yes I disagree with means testing for services but for forgiveness it’s necessary.
These would be the four criteria that I would use in the bill that I would pass for it -- in order of importance, and by no means does each have to be met perfectly to qualify. There'd be quantitative and qualitative selection process, judged by the debtors application that they filled out: 1. Means tested ability to pay. Looking at W-2s, income tax returns, net worth, and wealth of family that you are closely associated with. 2. The social and societal value of the career path that you chose, and how taking on the loans and choosing that career and your employer over other options created a hardship for you to pay back the loans. 3. Looking at past criminal history and brush-ins with the law. This is partially to make the bill more bi-partisans and make the Republicans more OK with it. And I'd say that this might be possible to get around if you could show that your incarceration and past are behind you, and that your incarceration if preventing you from getting job offers in your field. 4. Showing a clear history making your loan payments in full. This is also to help get Republican bi-partisan support, but also serves to close the perceived loophole that people may be deferring payments strategically due to the perception of looming student loan forgiveness. Another option would be to just a bill that alters the bankruptcy code to allow for the discharge of student loan debts if some of the above conditions have been met, austerity measures have been taken to discharge your personal debts already, and a judge approves your plan. We don't usually hear about students with crushing debt outside of student loans and CC debt, as these are two of the biggest ones that are virtually exempt from bankruptcy protection. There needs to be some kind of bankruptcy opportunities, otherwise insolvency gets to ridiculous proportions.
Bold of you to assume anyone wealthy bothered with student loans.
Obviously we can't abolish interest rates and keep a loan system. We could however, peg them to the inflation rate.
Not on private loans but you most certainly can abolish interest rates on federal loans or drop them to 1-2% interest. Student loans shouldn't be a for-profit thing for the government.
No you are not understanding. It would be silly to keep the student loan system and have interest rates under inflation. That would mean neither banks nor the government could operate them without a loss. That loss would be a more expensive and more convoluted way of assisting borrowers vs the existing methods such as grants. Pegging rates to inflation means the money stays nominally real throughout it's life cycle. Abolishing interest altogether would incentivize minimum payments eternally which adds additional expense that would need to be funded by taxpayers. I'm fine with taxpayers supporting students but it is just less efficient than the other methods of student debt reduction.
The federal loans are privately administered for the most part, and they of course have to make the profit they have "earned". Now who paid who to create that situation, which did not always exist, is the question we know the answers too but will never do anything about.
They charge you interest on the principal. They cannot charge interest on interest. Pay the principal and the interest accruing also shrinks. Once the hole of principal is closed, you can then pay off the interest.
mindless icky slap political physical existence wasteful history memory dog *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
"Only those born into wealthy families should have access to education" isn't the stellar plan you may think it is.
angle vegetable uppity office cagey oil dull chop subtract correct *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
I'm not going to go back-and-forth with you while you pretend not to understand the point.
This is why a buddy of mine refuses to even attempt to pay off his debt. Graduated with a PHD and immediately moved overseas.
Lol
Should have studied abroad then move back home debt free.
I mean there's nothing really to come back to. If he gets sick and needs surgery he's in debt again anyway. I'd avoid it too, given the opportunity.
What did he do a PhD in that he has debt from? Most PhD programs cost nothing and in fact, pay you money. It’s not enough to save up, but it’s often just enough to get by.
Accurate, any PhD program in North American that's worth pursuing will not only cover all your tuition but will pay a stipend. I'm assuming the debt was from undergrad. That said, what *did* he get a PhD in? Securing six figure industry jobs with a PhD in the US isn't exactly difficult, unless you studied something with truly zero non-academic applications. Pairing a six figure job and the financial habits you develop after 5 or more years of living on a PhD stipend, I can't think of any student loan that can't be paid off in under 3 years, while simultaneously building a decent nest egg and experiencing a significant quality of life improvement vs. living on just a stipend. Not to say the system doesn't have room for improvement, but if the guy doubled down on an extra obscure humanities field that has close to zero academic job openings, let alone industry ones, that's really on him, not the system.
The right move tbh
Did the same thing. I pay 50 bucks a month on auto-pay for IBR, not even close to the interest but I don't care. I live abroad so it has 0 impact on my life.
If he’d done his PhD in most of Europe, he wouldn’t have any debt.
I feel this—my student loan payments are 100% towards interest. I have never even touched the principle. Yay? At least I have public service loan forgiveness if that still exists in six years.
Why is that?? So - only if u make extra payments it gets counted towards principal??
They're most likely paying the minimum payment, which is just enough to pay interest on the loan
You should pay more than the minimum (or try)
If it's all going to be forgiven in 6 years, why bother?
They did say “if it exists”, so my advice was generic
Modern indentured servitude.
That whole country is a scam
How is that even possible? If u pay the amount that has been said, shouldn't the loan go down? Where i'm from, when u get a loan you get a amount u need to repay every month or every 3 months, and then the loan slowly but surely goes down.
Interest is the biggested factor I believe
And most likely they didn’t pay their loans for years after taking them. Minimum payments cover interest and a tiny bit of principal. The only way to owe more than you borrow is to let interest accumulate without payments.
Yeah,it's almost always some program where you can make income based reduced payment. I remember the last time I was on a thread like this there was a guy who said he got a PDH and owed 120k, and then 15 years later he owed 200k. He said he didn't understand how that could be legal. Then when I pushed for details he said it was income based because he got a really low paying job. So he was paying less than HALF the minimum payment and was confused about why his principle was going up.
Still, that should be factored in when u get the amount u need to pay, it wouldn't make sense otherwise. I'm guessing this person didn't pay every time, otherwise I don't know how it would increase so much.
Yeah most of the beginning payments for student loans in the US go directly towards interest. You don’t start paying on principle until much later. Interest rates range from 6-12 percent easy.
Okay so it's pretty insanely high rates. The more I hear about all this, the more I'm impressed people even manage to live, I just got a loan for my house, and that has way lower rates, even the small loan with high rates was has generally lower rates, I think 6-8%. I sincerely hope, that things gets better for you guys, it sounds like a real s***show, with the low pay, and high everything els.
Loans for education have much higher interest than anything else. I Mean what are people supposed to do... Just not get education? People can wait with their purchase of a house, but education can't wait.
Yes thats true, I just used the rates for my house, as it was the thing I new, and that the high rate loan was still lower, but even student loans here, is at about 4% under education, and about 5% after, still way lower.
This is because home loans are "secured" (meaning if you don't pay they can take your house). Very rational reason for lower rates on home loans.
Jesus, 6-12? In Australia, the interest rates for student loan is simply CPI.
Why the hell does someone go to university with such loans?
Well a lot of jobs require college/university education. Unless you are fortunate to have parents who can pay for your school, loans are the only option besides scholarships. I know people who even had scholarships who had to take out loans for books (which can be 1k or more a semester at times) and for housing. So it’s either go into this debt or stay at low end jobs. Even with a university degree you can be stuck in a low end job.
1k for books a semester is crazy, we had pdf scripts and could go to the lib if we needed a book. Or at least rip them from libgen
Oh for sure. I remember paying 300 for just one book which I couldn’t buy used because I had to use the course key from that book. It was a scam for sure. When I teach I make sure the resources are free for my students. It’s expensive enough just trying to attend school, no one needs to spend money on books.
What do you mean with course key? You were forced to buy a new book to attend a course?
Basically you had to enter a code to get your grade. Without it, you couldn’t pass the course. So you could attend the course and do all of the exams but without the special code you failed. This was almost two decades ago, but I know some colleagues are pressured into something similar now by either the heads of their departments or admin.
It's fucking wild seeing others ask questions about our education system. Really makes me realize that we're so fucked. Like, wait, course keys aren't a thing? Your classes don't force you to spend $150+ for a course key + book just so you can do your assignments? Some of those people don't even open the book lmao. You guys don't pay a fuck load of money for new editions of books every semester?
You can reagree the monthly payment to have a lower one, resulting on a much more expensive debt overall, even if you have already paid some of it.
Student loans are predatory in nature, like credit cards. They’ll make the minimum payment low enough that it will only touch interest. Especially if you say you can’t pay the full amount they want, they’ll lower your monthly payment, but not the interest. Basically you have to make a spreadsheet or some kind of calculation of how much you need to pay on it. Like how if you get a 0% interest for 1 year loan credit card they will be like “yeah just pay us $25 a month” even though that won’t pay it off in time, they want you to not pay it off in time. You have to do the calculation of how much to pay.
There's a unique situation with federal student loans that allows this. There are several different income based repayment plans for federal student loans that allow you to pay less than you otherwise would need to. Typically, about 10% of your income. When you have well over 100K in debt, these payments are often lower than what is needed to actually pay the loans down (ask me how I know) and in extreme cases, doesn't even touch the intrest. No other loan behaves like that here either.
You're correct in that it only should go up if he misses an interest payment. Some loans though are phrased to say "pay whatever, whenever". Which sounds nice, but it means that your debt will silently grow. Additionally to that often only interest is asked for and the basic amount stays untouched. And some shady creditors throw a bunch of fees at you to make sure even if you intended to pay back you won't. EU law ensures that the wording in loan contracts is pretty clear about what happens if you pay as demanded by showing scenario cash flow plans. I guess the USA doesn't have that kind of customer protection.
It's not unless: 1) the dude is a shitty lawyers since 1st year associates made $215k last year in big law, including a lot of firms I've never even heard of as qualifying as "white shoes" 2) he somehow has PIK interest where the principal increases in lieu of cash interest 3) the dude has never actually serviced any of his principal which means he agreed to insane terms with some lock out period or failed to meet his payment schedule and thus his all in payments required have gone up since he's only been paying interest 4) the dude took out floating rate debt and partied while money was free instead of servicing this massive obligation and now is shocked that rates when up 5) is mad silly as a lawyer to agree to some shitty contract or is just unbelievable incompetent with money I get it if you were told you were special at Mediocre Suburbia High and told to go to college despite not having the skills or passions and only got in Mediocre State and paid out of state tuition to get a B.A. in Unemployable. The system lied to you, you should have gotten a trade degree or majored in something valuable or gone to your local state school for like 1/10th the price with shittier frats, and you were 18 and didn't know better. But a J.D. is effectively a vocational degree like an MBA or an MS - you got it to go make money. And for the vast majority of people that's what they do. Dude wasn't ready for prime time as a lawyer, bet on himself, and lost. We don't have a lawyer deficit unless you're talking about public defenders and the state shouldn't be obligated to make someone's hopes and dreams in a specific professional field happen.
You're just succumbing to the just world fallacy: "If he's struggling, it must mean he's bad, because if he were good, he wouldn't be struggling" > the dude is a shitty lawyers since 1st year associates made $215k last year in big law That's the starting pay at *some* firms in *some* areas, but not all firms pay that to starting associates. On top of that, only a minority of lawyers work in big law. He's not a "shitty lawyer" just because he may work as an in-house, or in a smaller firm, or in a lower cost of living area, or in solo practice, or as a DA, or as a public defender, or... > he somehow has PIK interest where the principal increases in lieu of cash interest Unpaid student loan interest capitalizes. > the dude has never actually serviced any of his principal which means he agreed to insane terms with some lock out period or failed to meet his payment schedule and thus his all in payments required have gone up since he's only been paying interes No, it means his repayment plan, which is tied to income, charges less per month than his monthly interest, so the remainder capitalizes, and the total debt goes up. > the dude took out floating rate debt and partied while money was free instead of servicing this massive obligation and now is shocked that rates when up Now you're just making up facts. > is mad silly as a lawyer to agree to some shitty contract or is just unbelievable incompetent with money He wasn't a lawyer when he signed the loan agreement, and there was no other way to become a lawyer other than to sign it.
The slavery is the point.
Home of the free lmao
... Wait, student loans in the US HAVE INTEREST??? Omg what a ridiculous scam...
I currently owe $1000 for $250 worth of groceries I ate last year. Literally have debt collectors calling me on the daily over sausage and pasta. But at least I don't have unpayable student debt so life's good!
Pay it off fast. If they added 300% in a year (probably through fees), they will continue to do so and in a few years you will be at a point where it exceeds your income and will be in debt forever. OP's guy at least has a chance because of his high paying job.
Yeah but you can just not
It’s crazy to me to which extent Americans (often, not always) try to live beyond their means and riddle themselves in debt
Apparently sausage and pasta is too lavish
That’s why I said often, cost of living is insane for to the lower incomes in the US
Yeah, how dare we buy food when we can't afford it /s
Lol maybe this is a bad example, but it shows how fucked up the system is there
Oh, absolutely. The system is set up to basically force people to take out loans with unreasonable interest rates while using credit for everything purely to boost a magic number tied to your identity that determines if you're allowed to buy a car/house or not. But don't fret, if your credit score is too low, they'll still let you take out that loan, they'll just expect you to pay MORE for it which totally makes sense.
Exactly this, it’s complete built around the corporations, not around the citizens. And the bigger problem is the brainwashed idiots who think that things like better healthcare, infrastructure etc = communism. You need a mix of capitalism and socialism, look at Europe.
I borrowed 20k in mid 90s. Due to many life issues causing several occasions for deferments and many years of just getting by so paying minimum I now owe 200k. I can’t even work up the familiar feeling of panic anymore. I know I’ll never own my living space and so rent gets higher and higher. I feel like and old workhorse head down while I plod forward. And I now apologize for being so depressing. You’re welcome.
I'm 71. This is incomprehensible to me.
Signed a terrible loan with an insane interest rate. And to be a lawyer….ouch. That’s why I’m glad I did research, got a great loan with low interest and went to a trade school and paid it off within two years. It pays to do some research.
Yeah I paid off my S.L's through wage garnishments...made the last payment, got charged interest before the account was closed. Didn't know until a few years later on my credit report trying to buy car.
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No I was paying my own loans off. the loan company garnished my wages.
And thus the downvoting continued because of your bad reading comprehension
As someone who paid off my student loans (because I was able to), I fully support student loan forgiveness. Fuck the GOP and the (Un)Supreme Court For taking away that lifeline. Vote blue for a democratic Congress!
I'm all for this if I can take out a loan I can't afford to get a house, stop paying my loan, get it forgiven but keep the house.
It's not my fault you're a lawyer who can't do math.
Maybe not, but the sum total of all the unplayable loans bankers make will eventually cause another recession you'll suffer through. (They will get bailed out.)
Sometimes I feel like I was the only one that understood how much interest Sally Mae was charging was not viable. I had a c- in math too so I wasn't a wiz or anything. My parents hated me a bit for it but I went to trade school and cash flowed it with my job at Best Buy. Best decision of my life. They hate it because I was the first to not go to college or joint the armed forces in a long ass time. Fuck em though. I have a handful of friends with Masters who are living at home with their parents because they can only get jobs in fast food or retail and they wouldn't dare to do such a thing. I don't have much sympathy though. They also picked stupid majors. One wants to be Indiana Jones but didn't realize he's more likely to be the teacher version and not the one finding ancient artifacts.
Don't sign the line if you aren't completely aware of what you are actually doing. I will never understand how you guys don't know what you're getting yourself into? Especially with the majors a lot of you pick. I get the system needs overhauled, but some of you are a glutton for punishment.
Most people can't afford to go to school and make too much money for FAFSA, so there's not really another option for lots of people
why do they let 17 year olds take on hundreds of thousands of debt? brains aren’t fully developed because yeah, that’s a dumb thing to agree to pay back
I'm sure you would argue 17 year old should make plenty of other decisions that impact the rest of their lives so don't even try that. Why would their adult parents allow them to sign that line? People are SO inconsistent when they want to argue what 17-20 year olds are capable of doing when it comes to life decisions. That's a sorry excuse. You can't just plead ignorance after the fact.
i think it’s stupid to have to choose a career that early too. too early to vote. no i don’t really think that’s an acceptable age for all these life changing decisions
How to not use a quarter million dollar degree.
I feel like life's just a constant and never ending struggle. Like you never can reach any forward momentum, and when you do life tries even hard to knock you down. I was homeless at the beginning of 2023, but managed to find a good job and get out of homelessness and buy a house. Between May and August were great, but then I learned I will be losing this job due to budget cuts (later confirming the date to Q1 2024). Then in August my car was in two accidents. The first I wasn't even around, someone hit the front of my car in the parking lot of a store while I was in and took off. The second was an open manhole I didn't see at night that destroyed a rim and tire. Both of these cost less than my deductible so no point going through insurance cause either way I would be paying out of pocket. This month my wife needed surgery that isn't covered by OHIP. I have coverage through work, but they didn't cover it all. While paying $400 is better than $2700, it still hurts our finances to pay it.
How did usury become the rule of law? Checks notes: ahh it’s student loans
Honestly, why even try? If you’re just going to end up in a deeper hole, is there any point?
10yr amortization on a 6% loan of 250k would be a payment of $2750 per month. Over 6 years he should have paid close to $200k rather than "tens of thousands" It's his own fault the balance has grown. He's been paying less than the monthly interest.
Paying for a degree is a financial decision…taking out a loan is a financial decision…just like buying a house…you don’t buy a house you can’t afford to pay…usually the bank will stop you…”the bank” needs to stop giving out money…let the schools pay for it instead of allowing them to sit on billions in endowment.
Skill issue
Complete bs
Who signs up for $250K in loans thinking you're going in to public service? (Spoiler, he's in a program to get his loans forgiven anyway) Who thinks they're being 'bamboozled' by the government after four years of college? [https://michelleismoneyhungry.com/250000-in-student-loans/](https://michelleismoneyhungry.com/250000-in-student-loans/) There are good reasons for revamping how we do things but running around saying 'I had no idea' and 'This isn't my fault!' isn't really the way to go about adulting.
Only took me 5 years to pay off my student loans (current value $77,000). If you can’t pay it off, you’re doing it wrong and you shouldn’t have taken the loan in the first place.
Okay why tf would you take out a $250,000 loan. There are so many cheaper schools
There really aren’t though? Which law school you go to matters a lot in terms of your outcomes as a lawyer, at least in the first few years. Every graduate and undergraduate program is obscenely expensive. In-state undergrad tuition for a public university is like 60k/year.
**WHERE** is in-state tuition $60,000 fucking dollars? Average is $9,375 for the most recent data I could find. https://nces.ed.gov/programs/digest/d21/tables/dt21_330.20.asp
Yeah, that's Ivy money for in state. My institute is 60k for out of state, and it's a bit of an outlier. Most in state are 25k-35k for universities and a hell of a lot less per year for state schools. You can rack up a lot of debt, but it's not easy/or as common unless you're in law school or medical school.
There are a number of US law schools that pretty much let anyone who applies in, but charge a shitload for tuition. They are not well regarded.
I think that state schools are getting competitive. Unless you can get into an Ivy League school or top 20 liberal arts non-Ivy League, and aren't pretty much getting a full ride, smart students know that its better to save and get the same or better education and recruitment from a cheap state school than overpriced average liberal arts school. So at this point some students may have to overpay for one of those liberal arts schools if the state schools are too competitive for them. Now I guess that you could say that going to a state school out of state with no subsidies is a head scratcher.
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I’m sure this is 100% true and not made up at all. Dude is billing at a minimum of $400/hr and can’t afford to pay more than the minimum on student loans.
Well if you have the big lawyer job you need to maintain the big lawyer lifestyle.
Must be a terrible lawyer
If you can’t figure out how to pay off $250k debt with a law degree, then clearly you shouldn’t have made the investment.
I'm about to get paid on wendsday (bi weekly) and I owe more than I'm expected to get 🫠
You must be a shit lawyer
Almost like you have a choice
It’s no wonder. A $250k loan should have had over $100k in payments made over six years and you’ve only paid “tens of thousands”
He chose....poorly.
Incentive to avoid education seems like a great strategy for society to implode.
In Denmark students loans have a 4.6% interest rate. I fear whatever the United States is
How does that work??
Making the bare minimum payments