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[-] TimewornTraveler@lemm.ee 26 points 6 months ago* (last edited 6 months ago)

Not sure why they report on one person doing this.... isn't this the norm nowdays? Work two jobs to pay a debt that ought never have existed?

Me, I got the 100k debt but I just pretend it doesn't exist and I'm fine!! We'll pay the minimums til I die....

[-] Maggoty@lemmy.world 17 points 6 months ago

This is CNBC. This series exists to gaslight people about their finances and the economy. In this article they have normalization of hustle culture and admonishment of her getting a degree based on passion instead of ROI.

In the past it's been used to gaslight readers into thinking their budget problems are solely due to their own inadequacy. They do this by highlighting people who are usually in marginal areas, like disabled people, and show how they make their budget work. Every single article has something like, "lives rent free with parents" somewhere in there. Others have straight up given ridiculous numbers for rent and utilities.

[-] LifeOfChance@lemmy.world 3 points 6 months ago

It's absolutely the norm. I work with loads of people who jumped ship on their degree because they couldn't find good enough pay in the field. I'd say maybe 40% of my team is in this situation most of them over 35. One of the younglings gave up after his first semester after researching his FOS and learning he didn't stand a fincial chance. It's pretty fucking sad honestly. Great kid with nothing but ambition and hard work to give.

[-] clearedtoland@lemmy.world 23 points 6 months ago

As a near 40 year old with the same amount of student loan debt, I have absolutely considered a part-time gig to help pay down the loans. But the amount seems so enormous, and the repayment would be so comparatively small, that the little free time with my family is far more valuable.

[-] gravitywell@sh.itjust.works 19 points 6 months ago* (last edited 6 months ago)

I will never understand why people work so hard to pay off student loans..If you've been paying off a loan for years and the balance just keeps going UP, the sensible thing to do is default on the loan, accept the consequences of that (which is minimal with student loans) and move on with your life

Edit: everyone saying they will garnish your wages, this is not something that is common, its fear mongering. If anyone has personal antidotes about having their wages garnished I'd love to know how long that process took and what it was like but I doubt we will see any.

[-] Fester@lemm.ee 53 points 6 months ago

You can’t escape student loan debt by default, bankruptcy, etc.

The best thing you can do is sign up for IBR and accept that 5% of your income is lost for 20 years, and hope that whoever is president at that time isn’t a sadist cunt. Also try to save some extra money for possible income tax on the forgiven amount.

That’s assuming your loans are subsidized. If they’re private, try delivering for DoorDash on the side!

[-] gravitywell@sh.itjust.works 7 points 6 months ago* (last edited 6 months ago)

I'm saying you can stop paying, Im not saying you won't still owe them, but I know people who owe tens of thousands in student loans and have not paid them a cent in over ten years, they have a credit score of around 800, its never affected their ability to get any kind of credit or housing.

I think people over estimate how important they are or what kind of consequences there are for not paying as if it ruins your credit score forever or something, and its just not true.

[-] takenaps@lemmy.world 31 points 6 months ago

You may have missed this link someone else posted, but if you stop paying, your employer may be required to withhold some of your wages to make the payments

https://studentaid.gov/help-center/answers/article/what-is-wage-garnishment

[-] gravitywell@sh.itjust.works 6 points 6 months ago* (last edited 6 months ago)

Okay but what I'm saying is, why work extra hard and take a second job? Why not just make a single minimum payment every 270 days to avoid them moving to the next steps? There are just so many other options besides working a second job to pay them, and so many delay tactics you could employ to avoid getting to the point of garnished wages.

[-] interrobang 5 points 6 months ago

You're right. Im late 30s, took out tons of loans at 17yo, and my dad swindled me out of anything that didnt go directly to tuition.

I stopped paying a decade ago, keep waiting for my checks to be garnished, but hasn't happened yet.

I don't use credit, im financially not an adult in many ways, but i kept waaaaay more of my money than anyone else i know.

[-] gravitywell@sh.itjust.works 2 points 6 months ago

thank you! Ive yet to hear a single story from anyone who's actually defaulted and had wages garnished for student loans. Sure it can happen but its pretty rare.

[-] Jonnynny@lemm.ee 5 points 6 months ago* (last edited 6 months ago)

I've had two employees at my work get their wages garnished for defaulting on student loans. It definitely happens.

Edit: One of the guys told me flat out that he will never willingly give a cent towards his student loans ever again. The other guy was going through some financial hardship after leaving here and we got a notice to garnish but he was no longer employed with us so we just had to respond back to the notice.

[-] gravitywell@sh.itjust.works 1 points 6 months ago

Interesting to hear, and yeah one of the main issues with garnishing someones wages is, even the government has to do a bit of work to actually track down your employer and people who default on student loans don't tend to have very good employment (i'm not at all arguing you shouldnt pay them if you can actually afford to, just that you shouldnt go out of your way for it if you're struggling).

I wonder how much they got from 15% of that one employees wages, I'll bet it was less then they'd have to pay to actually pay off the loan... and of course if that person ever changes jobs they have to track down the new employer each time. also wonder how common it is for wages to be garnished over say child support compared, or back taxes to student loans..

[-] interrobang 2 points 6 months ago

Same- all threats, don't know anyone actually being garnished.

When my choice was pay loans or eat, i ate, and i sure af am not going to call someone and offer them money just because it got slightly better a couple years later. Ive never owned a new couch, i am not well off.

If debtors prisons come back, I'm fucked, but until then, frankly, what can they do? I can't afford a house or kids either way, and i am not throwing away anything on interest that will only grow and stress me out.

I have no idea what i must owe now, over triple my salary, min.

They sold a for-profit bullshit degree.

Fuck em

[-] BruceTwarzen@kbin.social 46 points 6 months ago

Or just flee to a developed country

[-] Kecessa@sh.itjust.works 9 points 6 months ago

Yep, learn to do something in high demand, move the fuck out and don't look back.

[-] sparkle@lemm.ee 1 points 6 months ago

Be sure not to say that out loud before you do it though... taking out loans with the intention of jumping the country and never repaying them could end up with you wanted for fraud. Unlikely it'll matter if you never come back, but it could bite you in the ass.

[-] roofuskit@lemmy.world 20 points 6 months ago
[-] JiveTurkey@lemmy.world 14 points 6 months ago

You can't do this with student loan debt which seems incredibly dumb. I also don't understand borrowing 100k for school.

[-] Viking_Hippie@lemmy.world 11 points 6 months ago

I also don't understand borrowing 100k for school

Other than the fact that college tuition has become absurdly expensive, the predatory fees and interest structures of student loans means that most people who have been paying theirs to the best of their ability for several years actually still owe MORE than the original amount borrowed, which I'm guessing is the case here.

The terms and conditions that people who are usually 17-18yo and know fuck all about contract law are coerced into agreeing to in order to "ever make something of themselves" would make Franz Kafka disown The Trial for being utopian sentimentalism in comparison.

[-] ripcord@lemmy.world 4 points 6 months ago* (last edited 6 months ago)

Are in-state tuitions not a thing anymore? I'm old but when I went to school it was the difference between something like $30k a year and $5k a year.

Edit: for one local major university in a kinda shitty state (but a good school), I guess now it's 10k/year vs 30k/year

Also, how many 17-18yos are deciding on this stuff without parents' help?? I mean, clearly not all, but surely most?

[-] interrobang 9 points 6 months ago* (last edited 6 months ago)

My parent encouraged me to take out loans including housing, then overcharged me rent from it lol

Not all parents are helpful

[-] Dkarma@lemmy.world 1 points 6 months ago

State university in my city is 10k a year

Stop lyin

[-] sparkle@lemm.ee 4 points 6 months ago

Most 4-year universities in the US average around $15k after federal aid, plus rent in a city like Boston or Atlanta will probably cost you a lot more than $15k per year, not including cost of living. Interest rates for student loans can range between 4% and 17% monthly. $100,000 is a little high but very realistic.

[-] Viking_Hippie@lemmy.world 2 points 6 months ago

Which part of "most people who have been paying theirs to the best of their ability for several years actually still owe MORE than the original amount borrowed" didn't you understand?

10k/y for 4 years comes out to 40k and it's not at all unusual for people to end up owing 2.5 times the original amount or more in spite of doing the literal best they can to pay it off. That's how awful the terms and conditions of student loans are.

[-] gravitywell@sh.itjust.works 1 points 6 months ago

You're thinking of bankruptcy, you can absolutely stop paying student loans, you'll still owe them but they can't force you to pay them.

[-] RainfallSonata@lemmy.world 19 points 6 months ago

They sure as fucking hell can garnish your wages.

[-] Deceptichum@sh.itjust.works 2 points 6 months ago

I’d love a little extra on top of my wages. I just hope it’s not parsley.

[-] SeedyOne@lemm.ee 4 points 6 months ago

I will never understand...

You might try reading up on it (or the link someone posted) as you've got it wrong. That's why this has been such a huge issue, they are unlike other loans.

[-] some_guy@lemmy.sdf.org 6 points 6 months ago

I thought no one wants to work anymore? /s

[-] Surp@lemmy.world 3 points 6 months ago

Education is for becoming more and more just for the rich

this post was submitted on 01 May 2024
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