Seeking The American Dream, Crushed By The Debt That Gets You There
Career College Central summary:
About 60 percent of all undergraduates take out loans to pay for school. Nicole Stockdale of The Dallas Morning News writes: "A student cannot be denied a federal student loan because of a bankruptcy or low credit scores, and no collateral is needed. Basically, as long as you apply, stay enrolled in school and aren’t in default on another education loan, the money is yours. There are limits on how much you can borrow, of course (which could be as high as $57,500 for undergrads). But for students who need even more cash, there are plenty of private options available (with more stringent requirements)."
With ever-rising college costs, Stockdale suggests we can’t allow our higher education system to be available only to the rich who can pay out of pocket. But there’s a downside, too: All that readily available money to borrow means students often don’t fully grasp the obligations that go along with paying it back. It’s easy come, but not easy go.
Stockdale writes that can turn a quest for the American Dream into a recurring nightmare. Federal student loans stay with you no matter what, until you repay them. Like with other loans, going into default may mean harassing calls from collection agencies and a ruined credit score. But unlike with other loans, filing for bankruptcy will offer no protection; it’s virtually impossible to get a student loan discharged. And the feds can take money for repayment out of tax returns. They can garnishee wages.
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THE DALLAS MORNING NEWS