<p>In a perverse way, moving the SL debt to CC debt has the advantage of discharging the debt in bankruptcy. These days I don't know if that's an unethical thing to do given that it's all the rage with our best companies and banks. Maybe our cities and states will go that way too. Just partially kidding there. Maybe.</p>
<p>I wasn't suggesting that mom go further into debt. I sugested that mom temporarily pay off the bill with her credit card and wait for the spring financial aid to come in at a community college.</p>
<p>If the student qualified for the full 2350 per semester Pell, the subsidized loans(1250 stafford per semester and possible a perkins), the unsubsidized stafford(another 1000 per semester) work study and whatever state aid for next semester at a community college where tuition could be as low as maybe 1500 for the semester she may end up with enough "extra" money to pay down her mother's credit card debt of 8000. Then she could remain in school (albeit a CC), and reassess where she is going in the fall and how she will pay for it.</p>
<p>BCeagle - I just reread your post. OMG do you think people will really start to do that when we get this new generation of kids graduating with loans they can't pay??? What a mess.</p>
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<p>OMG do you think people will really start to do that when we get this new generation of kids graduating with loans they can't pay???</p>
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<p>We've already given them a good example.</p>
<p>Real</a> Estate | Walking away from a mortgage no longer unthinkable | Seattle Times Newspaper</p>
<p>I don't usually quote this particular source but here is yet another escape the student loan scheme. I guess folks will do what they must.
Students</a> escape loan debt by living overseas - Oct. 24, 2008</p>
<p>
[quote]
Today, he estimates his private loans are more than $70,000. Though he hopes to move home one day, for now, staying abroad is the only option he can see.</p>
<p>"If it means I have to live in exile from friends and family...well, that's the breaks. So be it. But I won't put my family in a situation where they are afraid," he says.
[/quote]
</p>
<p>I generally don't agree with this guy but I'd agree with him here:</p>
<p>Jackson</a> urges 1 percent student loan rate - UPI.com</p>
<p>People are getting paid nothing in their money market accounts as it is - the Fed and Treasury are trying to force savers to recapitalize banks. Since real savings rates are zero or negative, why not reduce interest rates on student loans to something comparable?</p>
<p>Do a gap year and enlist in Americorps. I think that will pay half of the old balance. Then transfer to a state school.</p>
<p>Community colleges will also enroll without much of anything. Not even a high school diploma. Well in my days they did. Today jobs to pay the tuition off are hard to come by.</p>
<p>I agree that student loan rates are WAY too high. We're throwing good money after bad to the banks, mortgage rates are way down, CD rates have dropped. </p>
<p>WHY in Heck does the government need to soak students with a minimum of 5% interest and Up and Parents Plus loans at something like 8%</p>
<p>I know NOTHING about bankruptcy law nor student financial issues. But in case this has any value, some relatives of mine went into bankruptcy two years ago, they were able to discharge ALL their debt, EXCEPT their student loans.</p>
<p>That's why washing the student loan through a credit card was spotlighted, because credit card debt is discharged through bankruptcy.</p>
<p>^Ah, thanks. I get it now. Sorry for the digression (I'm sure everyone on here knew this already but me).</p>
<p>S1's college won't let us pay via credit card. (too bad -- would love the frequent flyer miles!)</p>
<p>Is it possible that when looking at the FA given to OP's daughter, loans were already listed there ($8K) and they were mistaken for aid? Just a thought.</p>
<p>I know when looking at S2s offers from different schools you really had to look at them line by line...there were a number of loans listed.</p>
<p>CelesteJam::I'm not a parent but my mom and I are in this situation. I have a balance of 4,000. Obtaining private loans aren't an option because I don't have credit-worthy cosigners. I planned to transfer to a new school in August, but most schools have a fall admission deadline from anytime between January and mid-March. So returning in the fall might not be an option, she might have to wait until the Spring semester. During the time gap, finding a job and saving up may be the best bet. I'm working and will be taking courses to become a nail technician at my local beauty school; it'll take only 16weeks to get certified. I'm not sure if you're daughter is into things like that but learning a trade(Culinary, Comestology, Etc) may be a good thing. At least when she returns to college and decides work while there to get some extra cash she won't have to settle for a minimum wage paying job...Hope this somwhat helped...=]</p>
<p>The disgrace is not transferring student loans to CC and then filing for bankruptcy; the disgrace is that our bankruptcy laws were changed in 2005 to allow even private student loans not to be forgiven in bankruptcy. That law, which Obama did NOT vote for. It has encouraged irresponsible lending in the home mortgage and the SL arena.</p>
<p>S transferred from OOS private to local CC for one semester half way through soph year, planning to go to In-State Public in the fall. Told the IS Public he was at CC for a semester. Went for fall semester, ready to register for spring, OOOPS. We didn't realize he never paid the last $300 at CC and S ignored emails from the school, thought the transcript was coming. PA has a law prohibiting a school from registering you for more than one semester without a transcript from all schools you have attended according the the IS Public. Of course, it took the CC a couple weeks to get around to crediting the account and send a transcript. S had very little to choose from class wise when it was all over. Had to rely on professors giving him an add to the classes. IS Public said their hands were tied, they could not do anything for him even when we showed them the receipt and online grades without an official transcript from the CC.</p>
<p>According to the article about students escaping loans by living overseas, you can discharge student debt in bankruptcy. I thought it was a no how, no way proposition.</p>
<p>"While getting student loans discharged through bankruptcy is no easy task, that doesn't mean it can't be done.</p>
<p>"There's a mythology that private student loans can't be discharged. But sometimes they can and should," says Kantrowitz.</p>
<p>To get your student loans discharged, you must file an undue hardship petition. To qualify, you have to satisfy three conditions: First, you must not be able to repay your student loan and also maintain a minimal standard of living based on your income and your expenses. Second, your situation must likely persist for a significant portion of the repayment period of the loan. Finally, you must have made good faith efforts to repay the loans.</p>
<p>In about half of cases of people who do file for this hardship petition, debt will be partially or totally discharged, says Kantrowitz."</p>
<p>From Student</a> Aid on the Web</p>
<p>It's possible to have your student loan debt discharged (canceled) or reduced, but only under certain specific circumstances: </p>
<p>You die or become totally and permanently disabled.
Your school closed before you could complete your program.
For FFEL and Direct Stafford Loans only: Your school owes your lender a refund, forged your signature on a promissory note, or certified your loan even though you didn't have the ability to benefit from the coursework.
You work in certain designated public school service professions (including teaching in a low-income school).
You file for bankruptcy. (This cancellation is rare and occurs only if a bankruptcy court rules that repayment would cause undue hardship.) </p>
<p>Effective July 1, 2006, a false certification discharge was created authorizing a discharge if the borrower's loan was falsely certified as a result of a crime of identity theft. Until the discharge regulations can be developed, lenders may provide administrative forbearance and guaranty agencies may suspend default collections if a borrower presents evidence showing that the borrower's loan may have been falsely certified as a result of a crime of identity theft. The lender or guaranty agency must believe the evidence is reasonably persuasive.</p>
<p>sk8ermom,</p>
<p>I think, but agian, could be wrong, but if you show that loans were in excess of schools COA (and subtracting fed loans and grants, etc. from COA), the excess will not be subject to bankruptcy protection. There was some kid on 60 Minutes who borrowed tons so he could participate in the Equistrian Club -- I would wonder if those expenses go into COA. I think they look at official school numbers</p>