<p>I think tax returns are also garnished if fed student loans aren’t paid. I think I remember a thread awhile back where a family was shocked to have its tax return “taken” to pay the wife’s old student loan.</p>
<p>Von, thank you, yes you are correct. But the private student loan companies wont go away. So unless you are prepared to live on nothing but SS, count on seeing them.</p>
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A common misconception. If the federal government didn’t provide grants and guaranteed student loans to anyone who applies for them, you’re correct, nobody would be able to afford today’s ridiculously inflated tuition prices. However, this would mean that schools would no longer be able to fill their classes with the previously expected number of incoming freshmen, and so they’d be forced to lower their prices to the point where people could afford them. When the government does not interfere in a market for a good or service, prices go down (like in electronics or elective surgeries, for example). </p>
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I suggest you take a look at this two-part video:
[Peter</a> Schiff: Why government guaranteed student loans are a terrible idea. (Part 1) - YouTube](<a href=“http://www.youtube.com/watch?v=VTNFfzUsptI]Peter”>http://www.youtube.com/watch?v=VTNFfzUsptI)
[Peter</a> Schiff: Why government guaranteed student loans are a terrible idea. (Part 2) - YouTube](<a href=“http://www.youtube.com/watch?v=yk0DJ5WUSU8]Peter”>http://www.youtube.com/watch?v=yk0DJ5WUSU8)
A financial economist interviews a girl that took out nearly $200,000 in government-backed student loans to get a B.A. in Sociology from Northeastern University. Would anybody be able to attend this school without government-backed loans? Absolutely not… it’s too expensive. Remove this interference with the free market and Northeastern would be forced to either lower tuition to reasonable levels or go out of business.</p>
<p>A financial economist interviews a girl that took out nearly $200,000 in government-backed student loans to get a B.A. in Sociology from Northeastern University. </p>
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<p>That is not possible. The most a student can borrow as an undergrad is $54,500 in Stafford loans … and that is only independent students; dependents are limited to $31,000. Even if she were awarded large Perkins loans each year, she still couldn’t get near the $200,000 mark. Undergrads cannot borrow PLUS loans. Her PARENTS might have borrowed PLUS loans, but this is NOT STUDENT DEBT. Students really do not get to borrow $200,000 from the government for undergrad degrees.</p>
<p>As for taking away grants from the poorest, even if market forces were to magically stabilize the tuition mess we have gotten ourselves into, the poor would still be out in the cold without assistance. Tuition would never stabilize UNDER the amount the average student could afford. Thus, there would always be those who could not afford it.</p>