Community Chat

[Bien Aimee]

The US has become a country full of bums.

[terrier3]

On 8/6/2014 Dagna said:

Well I see that they are all over the news with their grief and their "crushing debt due to the loan."

So I'm sure they are hoping either to shame the bank into writing it off or for others to step forward to pay it off for them - I'm sure all contributions are welcome.

http://wtkr.com/2014/07/29/grieving-parents-crushed-by-daughters-200000-in-student-loans/

I hadn't realized that if this were a Federal Student Loan, it would be "discharged."

So great that the taxpayers are so generous. Kind of like the family on the cruise - no need to have insurance - someone else will pay.

Have you seen the interest charged on even the government loans? When I got a federal loan back in the '70's, the interest was something like 1%. It was kept artificially low to encourage higher education. Now the federal student loan program is a huge profit center for the feds.

Do you know how SMALL the chances are that a young student will die unexpectedly? The loans are not automatically discharged...it's on a case by case basis, depending on resources.

The federal student loan program of 2014 isn't the same as the program we knew in the '60s and '70s. Back then, interest was way below that offered on conventional loans (like cars, mortgages, etc.). Now it is many times HIGHER than the interest you would have to pay on a motorcycle!

[TaxyLady]

The parents are wrong. They could however petition the school and maybe they would refund a portion of the money if she died prior to completion of her education. The contract is valid even upon death. The school provided the education. The student's estate has to pay the loan or her parents.

[pinkskates4]

On 8/6/2014 terrier3 said:

On 8/6/2014 Dagna said:

Well I see that they are all over the news with their grief and their "crushing debt due to the loan."

So I'm sure they are hoping either to shame the bank into writing it off or for others to step forward to pay it off for them - I'm sure all contributions are welcome.

http://wtkr.com/2014/07/29/grieving-parents-crushed-by-daughters-200000-in-student-loans/

I hadn't realized that if this were a Federal Student Loan, it would be "discharged."

So great that the taxpayers are so generous. Kind of like the family on the cruise - no need to have insurance - someone else will pay.

Have you seen the interest charged on even the government loans? When I got a federal loan back in the '70's, the interest was something like 1%. It was kept artificially low to encourage higher education. Now the federal student loan program is a huge profit center for the feds.

Do you know how SMALL the chances are that a young student will die unexpectedly? The loans are not automatically discharged...it's on a case by case basis, depending on resources.

The federal student loan program of 2014 isn't the same as the program we knew in the '60s and '70s. Back then, interest was way below that offered on conventional loans (like cars, mortgages, etc.). Now it is many times HIGHER than the interest you would have to pay on a motorcycle!

Well there you go. No one should have to pay off loans they can't afford.

Someone else should do it for them.

[Lipstickdiva]

Yes they should have to pay this back. They co-signed. Period.

This is why as someone else said, I would never co-sign for a loan for anyone, I don't care who it is.

We get tons of calls about this very situation here at work. People co-sign, the other person defaults and when they start getting calls and bills to pay, they call us asking if they have to pay. Inevitably they tell us they didn't think they'd *really* have to pay. They thought it was just a formality.