Old man must repay student loans

[stevepaa]

http://news.yahoo.com/s/ap/20051207/ap_on_go_su_co/scotus_student_loans

All seems reasonable until you read that he is 67, in public housing, has several health ailments and the loan is $77k for college loans when he was in his late 40's.

Possible questions:
Isn't this just moving public money around in a shell game?
Why would we give someone in their late 40's $77k in college loans? Has someone misread actuarial tables?

[legion]

How the heck is it possible to rack up $77K in student loans?

[RANDY P]

Probably interest is what did it.

FYI - there's no way to BK or remove government debt. Whether it's a tax lien or unpaid student debt - you're stuck with it.

rjp

[Phat Ham]

Originally posted by legion
How the heck is it possible to rack up $77K in student loans?

Have you looked at tuition rates lately? I have a couple friends who go/went to George Washington University. $45k a year.

[legion]

So what I'm hearing, is because he successfully ran from this debt for 20 years, and found himself in a bad place, he should be absolved?

[Christien]

Ok, maybe it's because I'm taking a break from chasing down deadbeat customers, but if he racked up the debt, including interest, why the hell shouldn't he have to pay it back? What, because he's old and sick we should just say ok, fine, forget it? Granted, the reality of it is that the gov't will never see all of the money (blood from a stone) but the principal of the issue remains the same. He NEEDS $874 a month? C'mon. It's true that I'm unaware of what drugs cost (gotta love free medicare) but nobody living by themself NEEDS $874 per month.

Man, I must be cranky today. I've been phoning deadbeats all afternoon, and I have NO tolerance right now for people owing money!! Time to get out the baseball bats...

[Eric 951]

Boo Hoo.

Nobody relieved me of my student loan payments. Although the day I paid them off was a great time of celebration.

[island_dude]

I don't think I have a good handle on all of the issues:

Did the guy make an effort to pay off the loan? Could he have filed for bankruptcy?
If he made no attempt to pay the thing off, I don't have much sympathy. Losing 15% of his benefit doesn't seem unfair.

[legion]

I've got a mortgage, three car payments, two student loans. I'll feel significantly richer as much of this stuff gets paid off in the next few years.

---

On the one hand, we do have the principal of a statute of limitations: if you can get away with a crime for long enough, you can no longer be prosecuted for it. On the other hand, I have little simpathy for people who cheat the system and expect foregiveness.

[Nathans_Dad]

Agree with what has been said above. Bottom line is that the government is taking 15% of his SSI benefit. That's $131 of his $874 per month. He sued because he says he needs it all. Think of it this way: He signed up for a student loan at an already below market interest rate at the age of 40. Got his college degree (presuming he finished the degree) at the age of 44-45. He has had 22 years to pay of this debt and has not. The government stands to recoup less than HALF of the money he owes, if he lives to age 90. More likely scenario is he lives another 5 years or so (given his health problems) and ends up paying $8000 of the $77000 he owes.

And you think this isn't fair???

Seems like we are back to the argument on your other thread Steve. Somehow you think that people who make poor choices in life should be bailed out by the rest of us when those choices have consequences...

[Tobra]

I paid off $75K in education loans, with interest it was somewhere north of $100K. I did not get to write off the interest because they did not make it deductible until congress fell into the hands of the evil republicans

I knew a guy in school who was in the hole $100K before he was halfway through, he was really screwed when the new car he paid cash for and did not insure got stolen. He was in his forties, maybe it is the same guy, if it is, the hell with him.

[stevepaa]

um, I need to be more clear.
I have no issue with this. Student loans should be repaid.
I just thought it would be interesting to read about it.
But I was wondering what education he got for $77k and is a retired postal worker.

[dd74]

Originally posted by stevepaa

Why would we give someone in their late 40's $77k in college loans? Has someone misread actuarial tables?

Why do you ask this? Should age be a determination as to who gets student loans?

[Jeff Higgins]

Sounds like the perfect liberal. Spends some one else's money (ours) to get a degree he doesn't use (or can't because it's some artsy-fartsy liberal arts degree) and does not feel he needs to repay the loan. You guys should run him in '08.

[nostatic]

ha...dollars to donuts he voted for GW

[Christien]

Originally posted by dd74
Why do you ask this? Should age be a determination as to who gets student loans?

Well, yes, to a certain extent. Age could be one of the criteria come lenders might look at, as it may have a bearing on how long a person may have to pay back a loan. For example, you'd be safer loaning a large sum to a younger person who has their whole life in front of them to pay back a loan if it goes to something like wage garnishing. On the other hand, a senior citizen might not be around much longer, and if they default on unsecured loans (like student loans) there's not as much time to collect.

Sounds cold and calculating, but that's how banks work.

[pbs911]

Originally posted by legion
How the heck is it possible to rack up $77K in student loans?

I had over $100k

[kycarguy 935]

Originally posted by tcar
Student loans, like IRS taxes owed, are not dischargeable in bankruptcy

I found this online:

Student loans in bankruptcy

The borrower's bankruptcy options on student loans have shrunk to a very few. Changes to the Bankruptcy Code in late 1998 made student loans non dischargeable, regardless of the age of the loan, unless the borrower can establish substantial hardship. Changes in 2005 will make even private student loans non dischargeable.

And:

Tax relief in bankruptcy

Bankruptcy can provide relief from the tax man. Some taxes and penalties are dischargeable; those that can't be discharged can be paid without interest in Chapter 13.

The automatic stay in bankruptcy stops even collection actions by taxing authorities, including garnishment and seizure. These provisions of the law apply equally to state and federal tax agencies.
How much relief?

The precise measure of the relief available in bankruptcy depends on a number of factors including

1) the kind of tax involved ,

2) the age of the tax,

3) whether a return was filed, and

4) the chapter of bankruptcy selected.

In general, unsecured income taxes that were first due more than three years before the bankruptcy is filed, for which a timely and non fraudulent return was filed, can be discharged in full in any chapter of bankruptcy.

[Nathans_Dad]

Oooo, I can see it now...Chuck Shumer on the Senate floor screaming about how the evil Republicans want to restrict student loans to the older citizens in our country and keep them from educating themselves. Funny that a liberal brought this idea up...it's a very un-liberal idea to have...

[cstreit]

Originally posted by Christien
... but nobody living by themself NEEDS $874 per month....

Not sure where the guy lives, but lets say its a decent sized city:

Rent a single room studio: $550
Heat and light: $125
80 cans of tuna per month: $90
3 loaves of bread: $5

That leaves $104 and I'm being ridicluous...