Creative financial plan....?!?!?

Abrowneyegirl · ‎03-15-2010

We got together with a friends who have a 25 yo son ‘Ben” the other day and this is an excerpt of a conversation:

Ben’s girlfriend “Ann” is 32- she is very smart and has come up with a plan to avoid paying her student loans (warning your head may spin off)

She has 3 degrees (one is a MS). Her parents, both well educated, paid for the first 4 years and after that said, “you are on your own.” Ann preferred to stay in school and now has, she thinks $65,000 or more in loans.

Her plan is to stay in school so she can continue to defer her loan payments “until she retires”

In the meantime, she lives off of child support payments from baby 1’s father. She and Ben have a 7 month old baby. Ann as a FT student and single mother of 2 gets free healthcare, subsidized housing and free daycare. (So she and Ben cannot get married.) Ben has a degree in Social Studies but works in a kitchen as a prep cook.

She works a few hours a week at a tanning salon, as she a figured out you must work to get a tax refund- she can file an “earned income credit” for the 2 children and she gets a refund of about $5000 a year.

My husband and I were astonished! I have to admit -I am REALLY puzzled about “deferring her student loans until she retires from being a student.” huh?

My head is still spinning.....

CANDLEQUEEN · ‎03-09-2010

@Abrowneyegirl Wow! Some people just know how to work the system!!!!!

Laura14 · ‎06-09-2014

I hate to burst her bubble but you can't defer loans indefinitely. It's been a long time but I think it was a few years (5 maybe?) before no matter what, they wanted their money back.

And if she is on federal student loans, I want MY money back. I paid it all back so she and her generation could then go on my dime. Her turn!

2blonde · ‎03-10-2010

@Abrowneyegirl I work at a college, so I can assure you I'm very familiar with this type of behavior. I also agree it's disgusting and shocking to anyone who has worked hard all their life and been a contributing member of society. Think what the world would be like if everyone was like her.

As a college employee familiar with admissions, registration and financial aid; let me assure you her plan is flawed, and she will be the one who will be surprised.

Laura loves cats!

Abrowneyegirl · ‎03-15-2010

@2blonde Good, I hope it bites her in the behind!!!

RetRN · ‎10-01-2013

That girl needs a wakeup call, a reality check. She is deplorable.

Abrowneyegirl · ‎03-15-2010

@Laura14 wrote:
I hate to burst her bubble but you can't defer loans indefinitely. It's been a long time but I think it was a few years (5 maybe?) before no matter what, they wanted their money back.

And if she is on federal student loans, I want MY money back. I paid it all back so she and her generation could then go on my dime. Her turn!

@Laura14

Great point! I paid mine back and it is NOT free money (as she seems to think)

Some of her loans are Federal because she talked about after 20 years Fed. student loans are forgiven. ???

I think that may be true for those who pay the minimum monthly payment.

Not free-loaders.

Laura14 · ‎06-09-2014

@Abrowneyegirl wrote:
@Laura14 wrote:
I hate to burst her bubble but you can't defer loans indefinitely. It's been a long time but I think it was a few years (5 maybe?) before no matter what, they wanted their money back.

And if she is on federal student loans, I want MY money back. I paid it all back so she and her generation could then go on my dime. Her turn!
@Laura14
Great point! I paid mine back and it is NOT free money (as she seems to think)
Some of her loans are Federal because she talked about after 20 years Fed. student loans are forgiven. ???
I think that may be true for those who pay the minimum monthly payment.
Not free-loaders.

@Abrowneyegirl It takes a lot to really burn my butt but THIS does it.

So I looked it up because I didn't think the federal government would be that stupid and yes they will take her $5000 tax refund if she has federal loans.

There goes her 8 hours at the tanning salon. I'm sure the community will suffer greatly without her employment there. The sun will take over for her instead and it doesn't pay taxes either.

Abrowneyegirl · ‎03-15-2010

@Laura14

Happy Dance!!

I wonder how many years it will take in arrears until they cut off her UNEARNED refund?

It is like the deadbeat dads, take their refunds!!

Laura14 · ‎06-09-2014

@Abrowneyegirl wrote:
@Laura14
Happy Dance!!

I wonder how many years it will take in arrears until they cut off her UNEARNED refund?

It is like the deadbeat dads, take their refunds!!

@Abrowneyegirl That's the other thing that burns my butt! My father is the reason NJ started the garnishment system. I don't get parents that don't pay for the kids they made. At all. But that's another subject.

I hope they also take away her license and her public assistance without a real job path program. With three degrees, I'd love to see the welfare staff's faces when she made the application for our money.

They must have a Wall of Shame with her front and center.