ONE late summer afternoon when I was 17, I went with my mother to the local bank, a long-defunct institution whose name I cannot remember, to apply for my first student loan. My mother co-signed. When we finished, the banker, a balding man in his late 50s, congratulated us, as if I had just won some kind of award rather than signed away my young life.
By the end of my sophomore year at a small private liberal arts college, my mother and I had taken out a second loan, my father had declared bankruptcy and my parents had divorced. My mother could no longer afford the tuition that the student loans weren’t covering. I transferred to a state college in New Jersey, closer to home.
Years later, I found myself confronted with a choice that too many people have had to and will have to face. I could give up what had become my vocation (in my case, being a writer) and take a job that I didn’t want in order to repay the huge debt I had accumulated in college and graduate school. Or I could take what I had been led to believe was both the morally and legally reprehensible step of defaulting on my student loans, which was the only way I could survive without wasting my life in a job that had nothing to do with my particular usefulness to society.
I chose life. That is to say, I defaulted on my student loans.
As difficult as it has been, I’ve never looked back. The millions of young people today, who collectively owe over $1 trillion in loans, may want to consider my example.
It struck me as absurd that one could amass crippling debt as a result, not of drug addiction or reckless borrowing and spending, but of going to college. Having opened a new life to me beyond my modest origins, the education system was now going to call in its chits and prevent me from pursuing that new life, simply because I had the misfortune of coming from modest origins.
Am I a deadbeat? In the eyes of the law I am. Indifferent to the claim that repaying student loans is the road to character? Yes. Blind to the reality of countless numbers of people struggling to repay their debts, no matter their circumstances, many worse than mine? My heart goes out to them. To my mind, they have learned to live with a social arrangement that is legal, but not moral.
Maybe the problem was that I had reached beyond my lower-middle-class origins and taken out loans to attend a small private college to begin with. Maybe I should have stayed at a store called The Wild Pair, where I once had a nice stable job selling shoes after dropping out of the state college because I thought I deserved better, and naïvely tried to turn myself into a professional reader and writer on my own, without a college degree. I’d probably be district manager by now.
Or maybe, after going back to school, I should have gone into finance, or some other lucrative career. Self-disgust and lifelong unhappiness, destroying a precious young life — all this is a small price to pay for meeting your student loan obligations.
Some people will maintain that a bankrupt father, an impecunious background and impractical dreams are just the luck of the draw. Someone with character would have paid off those loans and let the chips fall where they may. But I have found, after some decades on this earth, that the road to character is often paved with family money and family connections, not to mention 14 percent effective tax rates on seven-figure incomes.
Moneyed stumbles never seem to have much consequence. Tax fraud, insider trading, almost criminal nepotism — these won’t knock you off the straight and narrow. But if you’re poor and miss a child-support payment, or if you’re middle class and default on your student loans, then God help you.
Forty years after I took out my first student loan, and 30 years after getting my last, the Department of Education is still pursuing the unpaid balance. My mother, who co-signed some of the loans, is dead. The banks that made them have all gone under. I doubt that anyone can even find the promissory notes. The accrued interest, combined with the collection agencies’ opulent fees, is now several times the principal.
Even the Internal Revenue Service understands the irrationality of pursuing someone with an unmanageable economic burden. It has a program called Offer in Compromise that allows struggling people who have fallen behind in their taxes to settle their tax debt.
The Department of Education makes it hard for you, and ugly. But it is possible to survive the life of default. You might want to follow these steps: Get as many credit cards as you can before your credit is ruined. Find a stable housing situation. Pay your rent on time so that you have a good record in that area when you do have to move. Live with or marry someone with good credit (preferably someone who shares your desperate nihilism).
When the fateful day comes, and your credit looks like a war zone, don’t be afraid. The reported consequences of having no credit are scare talk, to some extent. The reliably predatory nature of American life guarantees that there will always be somebody to help you, from credit card companies charging stratospheric interest rates to subprime loans for houses and cars. Our economic system ensures that so long as you are willing to sink deeper and deeper into debt, you will keep being enthusiastically invited to play the economic game.
I am sharply aware of the strongest objection to my lapse into default. If everyone acted as I did, chaos would result. The entire structure of American higher education would change.
The collection agencies retained by the Department of Education would be exposed as the greedy vultures that they are. The government would get out of the loan-making and the loan-enforcement business. Congress might even explore a special, universal education tax that would make higher education affordable.
There would be a national shaming of colleges and universities for charging soaring tuition rates that are reaching lunatic levels. The rapacity of American colleges and universities is turning social mobility, the keystone of American freedom, into a commodified farce.
If people groaning under the weight of student loans simply said, “Enough,” then all the pieties about debt that have become absorbed into all the pieties about higher education might be brought into alignment with reality. Instead of guaranteeing loans, the government would have to guarantee a college education. There are a lot of people who could learn to live with that, too.
The author is neglecting to mention that one way or another, the government will get their money (assuming it's federal loans, which it sounds like). They'll take it out of his/her social security. I have a lot of sympathy for people who get sucked into the SL hole, but I would NEVER recommend walking away from repayment, for that reason.
Look, I agree that the whole credit system in this country is bullshit, but you have to find a middle ground. Bad credit will get you a 20% interest rate on a car with a shady subprime lending company and a whacked out housing agreement where you probably end up paying double the asking price.
Also, student loans companies can garnish up to 15% of your paycheck and I'm pretty sure tax refunds and social security can be seized for federal loans.
So I don't know, it seems like there's quite a few ways this could come back to bite him in the ass. I would think paying the loans would be an easier route than spending your entire life dodging the possible consequences of being in extreme default.
"where I once had a nice stable job selling shoes after dropping out of the state college because I thought I deserved better,"
Yeah, the author lost my sympathy right there. Too good for a good solid education at a state college that won't leave you with crippling SL debt? So sorry, Special Snowflake, STFU and live up to your obligations.
Post by cookiemdough on Jun 7, 2015 12:35:29 GMT -5
So yet another unsympathetic person used to overshadow the valid concerns of many as it relates to student loans and the untenable rising costs of education.
I am 42 years old and I am still paying my student loans. My DH and I have had some times when the payments weren't possible. There are years of built in forbearance time, you just have to ask. I am on an income based repayment now. There are way too many programs available with a federal loan to default. This woman chose to default because she felt she was wronged in some way. Choices, it is all about choices. Even if you think the system is rigged against you.
Post by secretlyevil on Jun 7, 2015 12:46:40 GMT -5
I feel a sense of deeja vu. There are alternatives to going in debt up to your eyeballs. There's plenty of blame to go around, the lendees, the lenders, the colleges. However, like pp said one way or another they're going to get their money. I don't think screwing up your credit it worth it.
I hate this so much. This is a serious and important issue, and this guy is just a spoiled brat who can't poooooooossssibly do a job he doesn't love because he's a super special snowflake.
No sympathy for this guy, and I'm angry at whoever published this piece because there are so many more important and more meaningful stories that need to be told on this issue and now everyone's going to focus on this entitled jerk.
The Department of Education makes it hard for you, and ugly. But it is possible to survive the life of default. You might want to follow these steps: Get as many credit cards as you can before your credit is ruined. Find a stable housing situation. Pay your rent on time so that you have a good record in that area when you do have to move. Live with or marry someone with good credit (preferably someone who shares your desperate nihilism).
^o) ^o) ^o) ^o) ^o) Yeah, you're a great catch with that moocher attitude.
I feel a sense of deeja vu. There are alternatives to going in debt up to your eyeballs. There's plenty of blame to go around, the lendees, the lenders, the colleges. However, like pp said one way or another they're going to get their money. I don't think screwing up your credit it worth it.
If it were just screwing up his credit, I'd say yeah, it's worth it. Bankruptcy is an important component of our legal system - it gives people a fresh start and prevents us from having a society with citizens mired in impossible debt with no hope and no way out. It also gives an important incentive to lenders to be responsible with their lending standards.
But this is way more than screwing up your credit. Way more. You cannot get out of this obligation by just not paying it. You cannot get out of it through bankruptcy. You cannot get out of it, period, except by dying or becoming a paraplegic. And they WILL get their money - for the rest of your life, they will be squeezing it out of you, plus adding interest and penalties, and you will likely be paying for it literally until you die. That's no way to live.
Now, I completely agree that it SHOULDN'T be this way and it's unconscionable that we have excluded both government AND private student loans from bankruptcy. But until that changes, it's completely wrong and unethical to tell people "it's totally fine! Just don't pay them! It's not a big deal!" It is a big deal, and it ruins people's lives.
Are there significant issues with rising tuition costs, student loan interest rates being so much higher than the prime lending rate, effective tax rates of only 14% on a 7-figure income? Absolutely. But this author, by virtue of his (her?) entitled attitude, erodes support for the valid concerns raised.
So yet another unsympathetic person used to overshadow the valid concerns of many as it relates to student loans and the untenable rising costs of education.
EXACTLY what I thought. I didn't even get halfway through it.
"Not gonna lie; I kind of keep expecting you to post one day that you threw down on someone who clearly had no idea that today was NOT THEIR DAY." ~dontcallmeshirley
I hate this so much. This is a serious and important issue, and this guy is just a spoiled brat who can't poooooooossssibly do a job he doesn't love because he's a super special snowflake.
No sympathy for this guy, and I'm angry at whoever published this piece because there are so many more important and more meaningful stories that need to be told on this issue and now everyone's going to focus on this entitled jerk.
This is what got me. He didn't want to work at something he didn't like/didn't want to do.
"Not gonna lie; I kind of keep expecting you to post one day that you threw down on someone who clearly had no idea that today was NOT THEIR DAY." ~dontcallmeshirley
Uh yes, sometimes in life you need to work jobs that aren't your dream job. Sorry dude. Plenty of people get up in the morning and go to a job that doesn't fulfill them. They find fulfillment in other parts of their life, and find a way to either turn their ideal job into a hobby, or find ways to further their dream career goals while still working. And being a writer is one of the easier careers to do part-time or on the side.
I agree with all the above posters SL debt is a huge problem. This man-child does not even come close to addressing the problem.
Uh yes, sometimes in life you need to work jobs that aren't your dream job. Sorry dude. Plenty of people get up in the morning and go to a job that doesn't fulfill them. They find fulfillment in other parts of their life, and find a way to either turn their ideal job into a hobby, or find ways to further their dream career goals while still working. And being a writer is one of the easier careers to do part-time or on the side.
I agree with all the above posters SL debt is a huge problem. This man-child does not even come close to addressing the problem.
And don't tell me going in he was fed with how easy it is to get a high paying writer job right out of college. Those jobs just don't exist straight out of college.
"Not gonna lie; I kind of keep expecting you to post one day that you threw down on someone who clearly had no idea that today was NOT THEIR DAY." ~dontcallmeshirley
Google tells me this guy is 69, highly educated, won numerous awards, and authored five books.
I'm going to guess the impact of him having shitty credit is a little different than a 30 year old middle class couple struggling to make ends meet. Money talks, and for a young couple with meager savings, not being able to finance a car at a decent rate, get a regular mortgage or decent rental without a huge down payment, or being declined a position due to credit, is vastly different than the experience of an elderly guy who started out his young life before credit was even a thing.
SLs blow, but you can also be smart about how you get into them. Deciding that "state college" isn't exotic enough for your CV is just naive and stupid; it's like dropping your whole paycheck on a name brand when Ross has a blouse that's just as nice but cheaper.
I'm 40 and am paying off the debt incurred by my ridiculous higher ed choices. No one to blame there but me.
I would like her to mention the stress that has to go along with constant collection attempts never leaving her life. Or when she gets turned down for a car or job due to her score.
I won't lie, I sometimes dream about not paying my student loans. I wish I had made different choices even though mine weren't actually bad.
But this author can suck it. He sounds like an entitled brat. We need real reform and education before you take out your loans. Not some crappy here is your list of SL exit interview.
share.memebox.com/x/uKhKaZmemebox referal code for 20% off! DD1 "J" born 3/2003 DD2 "G" born 4/2011 DS is here! "H" born 2/2014 m/c#3 1-13-13 @ 9 weeks m/c#2 11-11-12 @ 5w2d I am an extended breastfeeding, cloth diapering, baby wearing, pro marriage equality, birth control lovin', Catholic mama.
Google tells me this guy is 69, highly educated, won numerous awards, and authored five books.
I'm going to guess the impact of him having shitty credit is a little different than a 30 year old middle class couple struggling to make ends meet. Money talks, and for a young couple with meager savings, not being able to finance a car at a decent rate, get a regular mortgage or decent rental without a huge down payment, or being declined a position due to credit, is vastly different than the experience of an elderly guy who started out his young life before credit was even a thing.
I have to wonder if defaulting on your loans in the 1970s or 1980s came with fewer negative consequences, or if the negative consequences weren't as devastating (i.e. housing being cheaper, jobs being more stable, etc.). Because the OP's advice is really shitty to offer in 2015.
Here's the other thing - he got his student loans back in the 70s, right? All student loans WERE dischargeable in bankruptcy prior to 1976. And until 1998, they could be discharged after a five year waiting period. And it wasn't until 2005 that private student loans were no longer dischargeable too. So he likely could have simply filed for bankruptcy to get rid of these loans. That's an option that today's student have had taken away from them (BY HIS GENERATION I might add).
Here's the other thing - he got his student loans back in the 70s, right? All student loans WERE dischargeable in bankruptcy prior to 1976. And until 1998, they could be discharged after a five year waiting period. And it wasn't until 2005 that private student loans were no longer dischargeable too. So he likely could have simply filed for bankruptcy to get rid of these loans. That's an option that today's student have had taken away from them (BY HIS GENERATION I might add).
Plus the Google tells me that tuition in the 70's at a private college was a mere $10K.
There are some things that you just don't get in life when you're both too poor to pay and not exceptional enough to get it for free. A private liberal arts college is one of those things. I'm so over people thinking they're too good for public school. Especially 40 years ago when you didn't even NEED college to support yourself and many state universities were basically free. Next.
Here's the other thing - he got his student loans back in the 70s, right? All student loans WERE dischargeable in bankruptcy prior to 1976. And until 1998, they could be discharged after a five year waiting period. And it wasn't until 2005 that private student loans were no longer dischargeable too. So he likely could have simply filed for bankruptcy to get rid of these loans. That's an option that today's student have had taken away from them (BY HIS GENERATION I might add).
Well that answers my question above! There ya go - horrible advice for today's SL-indebted people.
Post by mrsukyankee on Jun 7, 2015 14:02:43 GMT -5
I'm in flipping England without a full time job and I'm still paying off my university/post-graduate loans. I want to say FU to this person. There are ways to deal with it that don't include defaulting.
I hate this so much. This is a serious and important issue, and this guy is just a spoiled brat who can't poooooooossssibly do a job he doesn't love because he's a super special snowflake.
No sympathy for this guy, and I'm angry at whoever published this piece because there are so many more important and more meaningful stories that need to be told on this issue and now everyone's going to focus on this entitled jerk.
Not only your excellent points on dumbass author, but also the fact that I'm almost positive this article is being shared, heartily agreed with, & falsely validating similar GenX/Y'ers/Millenials (are they there yet?). Ugh, that part makes me even sicker. "See?!? Someone understands! We weren't wrong in defaulting!! Told you so, Dad!"
"where I once had a nice stable job selling shoes after dropping out of the state college because I thought I deserved better,"
Yeah, the author lost my sympathy right there. Too good for a good solid education at a state college that won't leave you with crippling SL debt? So sorry, Special Snowflake, STFU and live up to your obligations.
I really do not get the negative attitude so many people have towards state schools. I feel like it's more prevelant in certain parts of the country than in others. I know that here in Texas, nobody bats an eyelash at someone saying they went to A&M, UT, or Tech.