Some rich people have no common sense.
A student can earn an accredited college B.A. or B.S. degree for around $15,000. Maybe a little less. Yet we read of this guy’s supposed dilemma. He says he will end up spending about 1.5 million dollars on college expenses for his five daughters.
These days, average student loan debt at graduation is estimated to be about $28,720
If you do not pay your loans when you graduate, you could send up having your wages, your tax refunds and even your Social Security benefits garnished.
In addition, your account could be turned over to the debt collectors and they can be absolutely brutal.
The kids have no sense, just as their parents don’t. Here is one eye-witness report from a professional debt collector, as reported in a debt collection industry publication.
As I wandered around the crowd of NYU students at their rally protesting student debt at the end of February, I couldn’t believe the accumulated wealth they represented – for our industry.
It was lip-smacking.
At my right, to graphically display how she was debt-burdened, was a girl wearing a t-shirt emblazoned with the fine sum of $90,000, another with $65,000, a third with $20,000 and over there a really attractive $120,000 was printed on another shirt. Guys were shouldering their share, with t-shirts of $20,000, $15,000, $27,000, $33,000 and $75,000.
One out of six student loans is in default. About 5.9 million Americans are at least 12 months behind on their student loan payments.
The default rate is so high that the U.S. government in 2011 spent a billion dollars just to track down defaulting ex-student debtors.
The following is from a recent article in the New York Times….
Hiding from the government is not easy.
“I keep changing my phone number,” said Amanda Cordeiro, 29, from Clermont, Fla., who dropped out of college in 2010 and has fielded as many as seven calls a day from debt collectors trying to recover her $55,000 in overdue loans. “In a year, this is probably my fourth phone number.”
Unlike private lenders, the federal government has extraordinary tools for collection that it has extended to the collection firms. Ms. Cordeiro has already had two tax refunds seized, and other debtors have had their paychecks or Social Security payments garnisheed.
It is hitting professionals. A Business Insider article reported on this law school graduate.
She remains on food stamps so her social life suffers. She can’t afford a car, so she has to rely on the bus to get around Austin, Texas, where she lives. And currently unable to pay back her growing pile of law school debt, Gilmer says she wonders if she will ever be able to pay it back.
“That has been really hard for me,” she says. “I have absolutely no credit anymore. I haven’t been able to pay loans. It’s scary, and it’s a hard thing to think you’re a lawyer but you’re impoverished. People don’t understand that most lawyers actually aren’t making the big money.”
Then there are boomerang kids. “One poll discovered that 29 percent of all Americans in the 25 to 34 year old age bracket are still living with their parents.”
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