Essay on student loan debt

Leaving them with worthless degrees. It is not a question of bankruptcy but of sheer greed and power perpetuated by a never ending drive of bureaucracy out of control.

Essay on student loan debt

Consequences[ edit ] Defaulting on a loan can adversely affect credit for many years. Default typically occurs when a loan receives no payment for days. The loan leaves repayment status and is due in full when the lender requests.

New collection costs are added to the loan's balance and the loan becomes drastically more expensive or eliminated through negotiation or legal action. There are other negative consequences resulting from a defaulted loan.

Essay on student loan debt

A student who wishes to return to school cannot qualify for federal aid in the United States until satisfactory payment arrangements are made on the defaulted loan or the loan is rehabilitated, a process that can take as long as a full year of on-time payments.

There are few options available for American students other than payment in full. The Bankruptcy Abuse Prevention and Consumer Protection Act makes discharging student loans through bankruptcy virtually impossible.

Critics have noted that this lack of bankruptcy protection for consumers results in a "risk-free" loan for creditors, removing pressure on creditors to negotiate lower payments. Garnishment of wages and tax refund[ edit ] In addition, the IRS can take the borrower's income tax refund until the defaulted loan is paid in full.

To object, a written statement must be presented within 65 days of the IRS' notice, and must give evidence of any of the following: The loan has been repaid. Payments have been made under a negotiated repayment agreement, or a cancellation, deferment or forbearance has been granted.

The borrower has filed for bankruptcy. The borrower is totally and permanently disabled. The loan in question is not the borrower's loan. The borrower dropped out of school and the school owes a refund. The borrower attended a trade school and the school closed.

The school falsely certified the borrower as being eligible for a loan. The government can also garnish wages as a way to recover money owed on a defaulted student loan.

The loan holder does not have to sue the borrower first. The government and private lenders can sue in order to collect on loans.

Wanted: High Quality College Prep Curriculum

There is no time limit on suing to collect on federal student loans, and the borrower can be sued indefinitely. Private student loans, in most cases, are subject to statute of limitations laws depending on the state.

Essay on student loan debt

Getting out of default[ edit ] There are rehabilitation programs designed to help borrowers get out of debt. Rehabilitation is a federally mandated program that gives federal student loan borrowers a way to bring their loans out of default. Rehabilitation can reverse the many negative consequences of defaulting on a student loan, and participation is one of the few rights granted to federal education loan borrowers.

He or she must make at least 9 qualifying, on-time student loan payments. If any payments are missed, the borrower must begin the repayment schedule from the beginning. After borrowers complete the agreement, the guarantor transfers the loan to a lender and servicer.

Salt: Education Unlocked. Dreams Unlimited.

The default status will be removed from your loan. You will regain eligibility for benefits that were available on the loan before you defaulted, such as deferment, forbearance, a choice of repayment plans, and loan forgiveness, and you will be eligible to receive additional federal student aid.Default: the Student Loan Documentary chronicles the stories of borrowers from different backgrounds affected by the student lending industry and their struggles to change the system.

Overview. For , National Debt Relief is offering a scholarship for college students and high school seniors.

You Might Also Enjoy

National Debt Relief is a leading debt relief company that helps consumers who need help with their unsecured debt. Many consumers think their only options for debt relief are credit counseling, debt consolidation loans or bankruptcy. How to Apply. Provide a unique solution to the following issue: Come up with a unique way to solve the $1+ trillion dollar student loan crisis.

You can be creative and create a YouTube video, write an essay or create an infographic for your solution. Ascent Independent is a revolutionary private student loan that may help you pay for college without a cosigner.

Updated: January 25th, Out of all the methods available to pay for college, scholarships are by far the most attractive. The rapidly rising costs of higher education have made affording college difficult for everyone, so earning free money for school can really help.

The Student loan debt crisis not only affects the graduates of the university but also the future students as well. The future students who have one day dreamed about going to college are now taking a second look on attending school because of this debt problem.

KunstlerCast - The College Loan Crisis with Richard Fossey - Kunstler