On Wed, Jun 13, 2012 at 11:06 AM, Cameron Childress <[email protected]> wrote: > > You can, and you should pay your loan off, and I am totally completely fine > with having them at a very low interest rate. But again, this has zero to > do with the rate. It could be perpetually pegged to inflation, or less, or > zero percent interest for all I care. > > The problem here is defaulting on the loan, or perpetual forbearance for > the length of someone's lifetime, essentially never paying it back. > > Regardless of it's cause, the reason it's a bubble is that this money will > continue to go out of the government and lots of it isn't coming back. That > creates an imbalance that will eventually need to be bailed out.
Student loans aren't forgiven in bankruptcy. If they go into default, any money owed to you by the federal government (tax refunds, etc) will be seized and applied to the outstanding balance of your loan. It is true that it isn't secured by real property, so you can't foreclose on an education. However, shy of fleeing the country, it is almost impossible to avoid paying back your student loan, so I'm not sure where your above statement comes from. Mind you, it may not be a good idea economically to have large debts that you can't escape following a large chunk of our populace. That could represent a significant drain on the economic activity going into the private sector. But that is a whole nother matter. Judah ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:351934 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
