Student loans as "good debt"

[sk8rmom]

<p>I’m in the category of those who believe the $24K figure is understated…and here’s why:</p>

<p>

For a number of reasons, the college-level data reported in CDS almost certainly understate actual borrowing. Although the CDS questions ask colleges to report cumulative debt from both federal and private (nonfederal) loans, colleges may not be aware of all the private loans their students carry. The CDS questions also instruct colleges to exclude transfer students and the debt those students carried in. Since the survey is voluntary and not audited, colleges may actually have a disincentive for honest and full reporting. Colleges that accurately calculate and report each year’s debt figures rightfully complain that other colleges may have students with higher average debt but fail to update their figures, under-report actual debt levels, or never report figures at all. Additionally, few for-profit colleges report debt data through CDS, and national data show that borrowing levels at for-profit colleges are, on average, much higher than borrowing levels at other types of colleges.

</p>

<p><a href=“http://projectonstudentdebt.org/about_state_data_class09.vp.html[/url]”>http://projectonstudentdebt.org/about_state_data_class09.vp.html&lt;/a&gt;&lt;/p&gt;

<p>As we know, many colleges simply don’t complete the CDS in full, or at all, and those that do don’t always seem to be consistent in the way they report. I’m thinking GIGO applies here…</p>

[calmom]

<p>Re post #39 – students are NOT “cosigners” on parent PLUS loans. They are in the name of the parent only. AFAIK, the PLUS loans are treated like other student loans, except that they are in the parents’ name, and they are NOT dischargeable in bankruptcy. </p>

<p>Of course a parent can make an agreement with the kid to repay the loan, but if the kid does not come through for any reason, the parent is the one who is on the hook for the payments. PLUS loans do come with the same flexibility of options for repayment as other student loans, such as the ability to defer or extend payments in some situations, so they may be attractive to parents who are uncertain about their financial future for that reason. That is, if the parent loses their job, they will be able to put off the payments with a PLUS loan in ways that might not be available with a standard loan. Otherwise, it’s just a very high interest loan with the chief benefit of being available even to parents who have good credit but whose incomes are too low to qualify for other loans.</p>

[annasdad]

<p>parent1986, you continue to make one flatly wrong statement after another. </p>

<p>Parent PLUS loans cannot be discharged in bankruptcy, except for undue hardship, the same standard used for Stafford and Perkins loans. </p>

<p><a href=“http://allmandlaw.com/bankruptcy/i-took-out-a-parent-plus-student-loan-can-i-discharge-it-in-bankruptcy[/url]”>http://allmandlaw.com/bankruptcy/i-took-out-a-parent-plus-student-loan-can-i-discharge-it-in-bankruptcy&lt;/a&gt;&lt;/p&gt;

<p>And any agreement between a student and parent that the student will take over the payment does not relieve the parent from the legal responsibility to make the payments.</p>

[Bay]

<p>

I’m in the category of those who believe the $24K figure is understated

</p>

<p>I’m wondering how you and others who believe this, think unemployed, un-degree’d 18-21 year olds can get loans substantially over this amount?</p>

[WandMParent]

<p>

In 1998 (I forget if this is Bush I or Bush II) student loans were made completely non-dischargeable in Chapter 7 bankruptcies with a very limited exception.

</p>

<p>You’re thinking of Clinton.</p>

<p>

I’m wondering how you and others who believe this, think unemployed, un-degree’d 18-21 year olds can get loans substantially over this amount?

</p>

<p>I don’t see how, unless they borrowed from the Mob or some sort of really unscrupulous bank.</p>