Despite the story spread all over about federal marshals arresting a man for an unpaid student loan, people aren’t arrested for debt. And Fox News got the story wrong. The man was not arrested because he owed money he hadn’t paid. He was arrested for blowing off a court order that he appear in court. […]
Financial Literacy Building Block: Compound Interest
Albert Einstein said compound interest is the 8th wonder of the world. Those who understand it, earn it. He who doesn’t, pays it. In other word, it’s a double edged sword. Terrific if you’re earning it. Debilitating if you’re paying it. And compound interest is a fundamental building block of personal financial literacy. […]
The Killer Rule That Zaps Private Student Loans
Got private student loans? I’ve got good news and bad news. Bad news first. Private Student Loans Inflexible Private student loans have no built in mechanisms for deferment and forbearances, like government-backed loans do. There are no income based repayment plans, as there are with federal student loans.’ No “outs” for disability or schools that close […]
Congress Considers Making Student Loans Dischargeable in Bankruptcy
A newly introduced bill in Congress would make student loans dischargeable in bankruptcy, as they were decades ago. The bi-partisan bill is sponsored by Democrat John Delaney of Maryland and Republican John Katco of New York. Any change to the law touching discharging student loans is a long way down the pike. But this is a […]
Why These Student Loans Got Discharged In Bankruptcy
Discharging the student loans of a truck driver who lived in his employer’s truck or in a homeless shelter, the bankruptcy court found that repaying $37,000 in student loans from 20 years ago would be an undue hardship. Good call, but why does the decision excite? Student loans do get discharged in bankruptcy, sometimes. This […]
Get Out From Under Student Loans In Half The Time
Work full time for a governmental agency or non-profit, and you can discharge your federal student loans after 10 years of payments. Regardless of the balance. Tax free. And regardless of the job you hold in a qualifying employer. Rich man, poor man, Beggar man, thief. Doctor, lawyer, Indian chief ! Not sure about these […]
Student loans: sinking the parents
The numbers on repayment of a student loan for four years at a private university are brutal. No matter how enriching the education, the loan may be the financial death of the graduate. But what sorrows me is the plight of the parents of those same students who have guaranteed or cosigned those loans. Cosignor equally liable […]
Student loans ensnare parents
Should you guarantee a student loan, asks my good friend Doug Jacobs. His is the cool, reasoned analysis. I want to jump up and down and say DON”T DO IT. It pains me to say that. My undergraduate education was funded in part with modest student loans. I believe education is the key to much […]
