I'm thinking about reneging on my student loans
#21
This post should have came to mind...so much to do nowadays. By hiring certain professionals I will have to stay one step ahead of the bastards that seek to enslave me and my descendants.

http://www.returnofkings.com/8595/how-to...easy-steps
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#22
(09-22-2019, 06:54 PM)ChicagoFire Wrote: This post should have came to mind...so much to do nowadays. By hiring certain professionals I will have to stay one step ahead of the bastards that seek to enslave me and my descendants.

http://www.returnofkings.com/8595/how-to...easy-steps

That article is already out-of-date.

As someone with a shitload of student debt, more than I feel comfortable disclosing out loud because I don't feel like being vilified, I'll mention a few options.

Forbearance again. You know you have the option of extending a hardship forbearance for up to 3 years, right?

IBR, listed in the article above, is "okay" by student loan payment standards, but if you owe a lot and and you're making any amount of money in the future, it can balloon significantly.

PAYE is a better option. I had to apply for this recently and I don't pay anything at the moment. You don't need to hire a professional to tell you to do a PAYE or even an IBR. Do it yourself online through your student loan portal.

That said, I've been in the same boat as you. The difference being defaulting on a student loan is one of the worst things you can do because they can later on garnish your wages. Unless you're living out of the country like me, that's a pretty big deal. I don't plan to ever return and even I make sure to have my student loans in some kind of positive status. There's also no guaranteeing that one day they won't go after all the American immigrants abroad in the future for defaulting. Almost all of Europe and Asia complies with FATCA, right? So there's no reason to believe that won't be the case later with people who have defaulted on student loans.

tldr apply for another forbearance period or PAYE

Quote:I don't want to fund the evil Department of Education with a degree I'm not using

You'll be funding it and then some if you default and they begin garnishing your wages.
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#23
^^

Thanks for the reply. My IBR timeframe is going to inspire in a couple months. I never knew about PAYE. Will have to fill out an application.
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#24
(09-17-2019, 02:31 PM)ChicagoFire Wrote: Hey all, would love advice for my predicament. 

I'm currently unemployed (so far for 3 months) and am focusing on studying for a new career. About a month ago my student loan creditor informed me my forbearance term is up so I fortunately got it pushed back a couple more months. I'm asking around and weighing my options. Once I'm done with this post I'm contacting a professional that I've known for years and may have to hire some more advisers. For hiring advisers it's not overkill since 5-10 years from now I want to open up my own company. I already got my income set up in a way that I can go on income based repayment and pay as little as possible. Bottom line is if I can get away with it I wouldn't pay up my loans. 

Pros: 
I don't want to fund the evil Department of Education with a degree I'm not using
Would make an epic david v goliath story
Politicians may introduce student loan forgiveness 

Cons: 
Credit score is fucked which will affect future loans and employment
Government might enact a law punishing deadbeats should I decide to flee America

Walking away from a loan, doesn't build good habits like perseverance. If you hope to build a successful business in the future, perfect those good habits now. And, your first two "pros" listed are WEAK. I'm not trying to be insulting, just keeping it real. If you aren't in a bankruptcy situation, pay the loan back.
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#25
I went net-worth positive early this month almost exactly seven years after graduation from my undergraduate program.

I think the only feeling that will be better than having the money to do so, will be how I’ll feel when I make the final payment in a month or two.

Sure, it sucks turning over another 20Gs of money that I worked hard to earn, but the desire to be debt free was a powerful motivator that led to career growth and I’ll be proud to be able to say that I succeeded in paying off 50K in student loan debt as soon as that final payment goes in.

At the end of the day, I made the decision to borrow that money knowing that I would be expected to pay it back and no one forced me to go to school, choose to study what I did, or make any of the many life choices I made along the way.
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#26
I did this and they came after me 2.5 years later. Just started having money garnished from my paycheck. I owed $9000 and I had to origonally pay $15500. Then 6 months after I had everything payed off. They started garnishish my wages again. I had contacted them multiple times. But the creditor just took it. They said they found other funds I owed. My loan was a federally subsidized loan. So if you get bank loans. They might not come after you like me.

You are better off to just take 6 hours of classes at a community college each semester and just defer the loan payment.
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#27
Couple of thoughts on this topic:

- If you're up to date and otherwise have good credit, it's a good time to refinance into a fixed-rate loan since rates probably won't get much better and if you've been paying for a while, you can reduce your payment overhead by extending the timeline back out to 20 years or whatever. Citizens Bank does refis even if you didn't finish a degree.

- Do not do this with federal loans just yet, since there's probably going to be a hot policy debate coming up about student loan forgiveness. Sorry to say, but if the government is handing out that kind of free money, uh, enjoy the decline.

- Forbearance by taking classes again is a legitimate option, too.
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#28
I had low six figure debt, back when almost nobody incurred a debt even close to six figures.  I made maybe one or two loan payments, then completely blew them off for at least eight years.  I've always been a really difficult guy to locate, since very often, the most I do at home is take a shower and change my clothes.  When I put the money together to pay them off, actually more than pay them off, I rose from the dead and offered them maybe seven cents on the dollar.  They took it, but of course, the amount which was forgiven was taxable.  All those years of being completely irresponsible with regard to my student loans obviously completely screwed my credit, but I have never really used credit and since almost ten years have passed since I paid off my loans and I have been debt free ever since, I actually have really good credit now.  Not that I use it or even need it.
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#29
One thing I will say is that the government never reported the wage garnishment or negative impact on my credit score.

One weird thing is I had a collection from the university I went to...pop up on my credit about 8 years after I defaulted. I never paid it or responded. It dropped off a year later. Some collection agency named Williams and Fudge tried to collect this. I have no idea what it was for? They just said I owed $1500 8 years after I attended there and I was like yeah. Fuck you.
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#30
So, have "professionals" been called and advisers been "hired" yet? Inquiring minds want to know...

(01-22-2021, 04:45 AM)Suits Wrote: I went net-worth positive early this month almost exactly seven years after graduation from my undergraduate program.

I think the only feeling that will be better than having the money to do so, will be how I’ll feel when I make the final payment in a month or two.

Sure, it sucks turning over another 20Gs of money that I worked hard to earn, but the desire to be debt free was a powerful motivator that led to career growth and I’ll be proud to be able to say that I succeeded in paying off 50K in student loan debt as soon as that final payment goes in.

At the end of the day, I made the decision to borrow that money knowing that I would be expected to pay it back and no one forced me to go to school, choose to study what I did, or make any of the many life choices I made along the way.

Feels good man. I hope to be in the same position in 2-3 years. The system here in NL is different, loans are dished out and debts collected directly by the government. It's far more generous. Interest is basically zero now, you can defer any payments for years after graduation, and the minimum payments are so low that I look back in amazement to think that this gave me any stress when I was a student. Your perception of the world is totally different when you're some broke ass student. The debt doesn't get added to our credit score-like system and you can deduct the owed amount from your savings and pay less or no wealth tax as a result. You can even claim a drop of income in the new year and pay less or nothing at all for yet another year. They're supposed to check this with the tax office the year after and make you pay the difference retroactively, but this never seems to happen. Maybe an understaffing thing at the department. The main thing the debt affects is the maximum amount of yet another debt, the mortgage, which is why some people prioritise paying off the student loans.

Anyway, at the end of the day it's still a debt and they have similar mechanisms as described here to make you cough up if you're going to be a dick about it. Basically the best option to escape them is also the same as for Americans, which is to emigrate permanently and not give them your new address, but you have to be goddamn sure about it or they can pick you up at passport control if you do ever decide to come back to NL.

Especially considering the zero interest and generous payment conditions, it's almost always better to just play ball and honour the debt that you took on willingly. In the US with the interest rates, private collection agencies, and the system of credit score it kinda sucks as far as I can understand, but reading the posts here I guess it only costs more if they make you pay through the ass instead of you paying them voluntarily. Feels much better to just have a good plan to get rid of this thing so you can feel the satisfaction at the end, rather than having to scurry around trying to wriggle out of it.

I read an article the other day about a woman who had somehow contrived to borrow €30k only to end up working as a journalist for a regional newspaper in my area, which I assume doesn't make you rich. She decided to make a plan to pay it all off within only two years by living extremely frugally and she did it. Personally I think that would be terrible financial advice as the debt just sits there at zero-interest while the stock market and crypto are booming, but at least she took the responsibility, which is more than many people can say for themselves.
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#31
I have almost completely paid off my student debt because a portion in proportion of my gross income is involuntarily used to pay off my student loans.
The interest rate of the student debt is tied to inflation in addition to early pay off bonuses no longer being around discourages me from paying it off faster.
A convenient part of one of my exit plans.

https://www.abc.net.au/news/2021-01-25/p...c/13057628

Meanwhile with job competition at least here increasing, when this soy looking engineering graduate isn't that much different from the many other soy looking engineering graduates and going against female graduates who automatically have the advantage purely to balance the gender disparity in the technical workforce via positive discrimination little wonder does he struggle more than others to find a job.
In Asia I hear further postgraduate education helps but here in Australia anything more than a Bachelor's degree provides significantly diminishing returns or worse makes you look overqualified.
Someone didn't do their research or go where the demand is as both technical and street smarts as they say can only go so far and it's easier to simp more to university and plunge yourself deeper in student debt.

Luckily some of these HR bitches are still women who are somewhat still gamable which helps throughout the face to face interview process and this forum is such a place where this concept can be understood and applied.
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#32
If your parents co-signed, the government and banks will go after them too. Do not default on US student loan debts unless you are positively sure of never filing taxes or having a us bank account or US asset, ever, for the rest of your life.

Now, if you plan to have all your savings transferred to Thailand or Mexico in cash, then it would also be fraud and other criminal offenses, but if you don't have co-signers and NEVER return, well...
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