Money

What Americans Don’t Know About Student Loans: A Lot

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Student Loan Debt College University

The survey covered 1,029 people, including those with and without debt. Only 28 percent of respondents knew that if student loans aren’t repaid, the U.S. government can garnish wages, withhold Social Security payments and tax refunds, and report the debt to credit bureaus. Even more people—35 percent—incorrectly thought the government couldn’t do any of those things or said they didn’t know what the government could do. Only 37 percent of those surveyed knew that students loans are extremely hard to shed in bankruptcy, a reality that differentiates student loans from other debts, such as mortgages and credit cards.

 

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  • DJohn1

    When my step daughter started college many years ago, the first thing these colleges did was to establish them with credit cards.
    The key here is not to have student loans. I suggest we need a Coop system that allows students to work two weeks, go to school two weeks from their sophomore year on in college. That allows them to pay as they go. But it also is going to require very cheap housing and very cheap living while in college. That requires discipline and hard decisions as to what you are going to buy and what you are not going to buy while in poverty.
    The trick right now is to be an eternal student. Never ever quit changing your degree to something new that requires more classes. Then the loans never come due. By the time they come due, you have died a natural death in your 70s or 80s and no one is left to collect from.
    The U.S. Military started all of this at the end of World War II by demanding that any combat commissioned officer be required within 4-6 years to complete a college degree to keep their officer’s commission. The entire idea being that anyone that could not do so did not deserve to be a commissioned officer of the United States Armed Forces. I guess experience does not count.
    Like most government sponsored programs it did not differentiate as to what degree you had to have. One industrious officer got a degree in ceramics. In plain language, he got a degree in making ceramic pots. In the early 60s, years later, he was put in charge of the transistor program because of his degree in pot making. I think he retired a two-star general.