Qualified Mortgage Standard Should Be Applied to Student Loans
I think the Department of Education should start holding every University and College to the new "qualified mortgage standards" regarding borrowers ability to repay. What chance does a psyc major or future social worker have to repay their student loan debt over 20k.
As far as those bad lenders think about all of those university admission offices selling to uneducated (i.e. typical 18 year kid just like you and me) a loan that they bear no risk at all if it doesn't perform and probably know will never be paid back.
Every Loan Officer in this country sees this when they pull credit and see $50k or more in student loan debt, with an income based repayment of $100 a month. Talk about the next big credit bubble waiting to burst. Worse thing is that we see this bullet coming at us at one mile an hour and can't seem to move out of the path.
by MarylandDave January 12, 2013 7:16 AM
Sorry to break the news to you Dave but federal student loans are fully collectable forever. They can't discharged in a bk. They can attach your paycheck, your retirement, your social security, your 401k and the change in your pocket.
The gubment will get theirs, do not worry.
by BuySide January 12, 2013 3:50 PM
50k...that's nothing...I've seen 130k+ from a girl working part time in a freaking video store.
It's beyond insane.
by XpressOH January 14, 2013 7:49 PM