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Tag Archives: forbearance

Should You Choose Student Loan Default?

student loan debt never goes away

I read a controversial op-ed piece recently from a writer who made the conscious decision to default on his student loans. The main reason was to¬†pursue a low paying career he was passionate about rather than take a job he loathed to afford paying back borrowed money. His rationale was that if everyone followed suit then universities, lenders, and the government would have to change the policies regarding student loan repayment or make higher education more affordable or even free to all. While he makes some interesting points, I don’t think anyone should choose student loan default, and here’s why. No One Forces Students To Borrow Money First of all, humans of sound mind possess something called free will. Obviously in some parts of the world, choices are fewer and further between, but here in the U.S., no one can put a gun to our heads and make us borrow money. This is true of mortgage, credit card, or consumer debt. While people like to go on and on about evil lenders or trickery employed by credit companies, we are not lemmings. Somewhere along the line, personal responsibility has gotten lost. Everyone has the power and obligation to educate ourselves ...

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How Can You Still Have Student Loans at Age 40?

Since closing on the first part of my business sale, we now have enough money to pay off our student loans. Before you start congratulating me, remember that I am 39 years old, and my husband is 43. How on earth do you have student loans in your 40’s? Start Late My husband didn’t decide to become a teacher until he had one failed attempt at college and several different jobs. He was 27 before he started college for real. He graduated at age 31, and then went right into a master’s program. He did work while getting his master’s, but didn’t really finish school until age 33. I finished my residency and started repaying my loans when I was 27. Most four year college graduates would already have 5-10 years on us. While I never think it’s too late to change careers, and I think our loans were worth it , it’s wise to think about how much debt you want to be paying off as you get older. Take Deferments and Forbearances When I was a resident, I put my loans into forbearance. The $600 a month payment seem like too much at the time, although I probably ...

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