Just thinking about people who struggle with student loans....

[Prodyson]

If you are in a situation where you are having trouble with paying off your student loans, you have made most of your big purchases (i.e. house and car), or you just don't have any plans to make any major purchases... How feasible would it be to pay off your loan with another line a credit and later file bankruptcy. I'm not into Finance and all the intricacies of this, and my student loan payments are only $200/month and will be paid off in 5 years if I only pay that, so I have no desire to do any major research.

But just out of curiosity... Is that possible? Or logical?... Cause it sure makes sense to me for someone who is seriously struggling.

 

[MikelArteta]

Feasible but what bank is going to give you such a big like of credit in this day and age

 

[alpo]

GET THAT BACK STRAIGHT!!!!!

 

[Rawtid]

That's considered fraud.

The only way to get out of your student loan payment is to pay it off, die or become so severely injured that you can't work anymore.

 

[Prodyson]

Feasible but what bank is going to give you such a big like of credit in this day and age

Well I didn't really specify an amount... but banks offer personal loans for stuff like paying medical bills, auto repairs, and other personal expenses all the time. If you tell them you're doing it for a better interest rate, I don't see what the big deal is, as long as you've still been making all of your payments.

That's considered fraud.

The only way to get out of your student loan payment is to pay it off, die or become so severely injured that you can't work anymore.

Is it still fraud if your intention isn't to immediately file for bankruptcy. What if I get a personal loan for 20K for a better interest rate and pay on that loan for 2-3 years. Then something happens and I can't even pay on the better loan anymore. Aren't I in a better situation now with 17K left on a personal loan than 17K on a student loan?

 

[Rawtid]

Well I didn't really specify an amount... but banks offer personal loans for stuff like paying medical bills, auto repairs, and other personal expenses all the time. If you tell them you're doing it for a better interest rate, I don't see what the big deal is, as long as you've still been making all of your payments.



Is it still fraud if your intention isn't to immediately file for bankruptcy. What if I get a personal loan for 20K for a better interest rate and pay on that loan for 2-3 years. Then something happens and I can't even pay on the better loan anymore. Aren't I in a better situation now with 17K left on a personal loan than 17K on a student loan?

Even if it's unintentional, once you start bankruptcy proceedings they will ask what that 20k loan was originally for. If you say student loans they will consider it nondischargeable and you'll still owe. It could slip through the cracks but from my understanding of the process of bankruptcy, they do require those details.

If you're unemployed and unable to make debt payments, then no 17k in personal debt is not better than 17k in student loan debt, imo. For one you'll still be required to make minimum payments with the personal debt and if you can't pay it goes to collections and so on and so on and has a negative impact on your credit score whereas with student loans you can get deferment or forbearance without any impact and you won't have to make payments.

 

[Prodyson]

Even if it's unintentional, once you start bankruptcy proceedings they will ask what that 20k loan was originally for. If you say student loans they will consider it nondischargeable and you'll still owe. It could slip through the cracks but from my understanding of the process of bankruptcy, they do require those details.

If you're unemployed and unable to make debt payments, then no 17k in personal debt is not better than 17k in student loan debt, imo. For one you'll still be required to make minimum payments with the personal debt and if you can't pay it goes to collections and so on and so on and has a negative impact on your credit score whereas with student loans you can get deferment or forbearance without any impact and you won't have to make payments.

Ahh... good point. So maybe it's not a good idea if you're struggling paying for student loans. But if you have the means, it may be better to get a personal loan with a better interest... You would just have to hope you don't fall into a bad situation where you can't make payments

 

[Rawtid]

Ahh... good point. So maybe it's not a good idea if you're struggling paying for student loans. But if you have the means, it may be better to get a personal loan with a better interest... You would just have to hope you don't fall into a bad situation where you can't make payments

If you have it, toss all you can at it every month...way beyond the minimum and get it paid off very quickly. Depending on the interest rate you could save more by doing a cash advance on a credit card but most likely if you're looking to do this, you wouldn't have a high enough card limit to pay off the entire student loan balance with this method.

If you have a family member that's balling you could ask them to pay it off and pay them back interest free as well.

 

[Prodyson]

If you have it, toss all you can at it every month...way beyond the minimum and get it paid off very quickly. Depending on the interest rate you could save more by doing a cash advance on a credit card but most likely if you're looking to do this, you wouldn't have a high enough card limit to pay off the entire student loan balance with this method.

If you have a family member that's balling you could ask them to pay it off and pay them back interest free as well.

Hmmm... trying to think of ways to help my people out. I only have like 9k in student loans. Part of which were subsidized so like 4/5 of my loans are at 6.5% and the rest at 3.1%, better than I'm going to get for any personal loan, even with my great credit. But only went to undergrad and went to work right out of school. I got like 5 or 6 friends that went to law school/med school/PA school or got other graduate degrees with over 100K in student loans, and some of them are barely making more than I'm making.
:bron:

I feel sorry for them.... until they get all that paid off in 10-15 years and they got them good good salaries. But by that time I'd be making almost as much as them anyway and my business should be up and running. But I'm going off on a tangent now... I just don't personally understand going to law school/med school unless you really love those fields, because if you still major in a decent field (IT, IS, Engineering) I don't think you see any real benefit of being a lawyer/doctor over one of those other positions until you're well into your career. Then you still have to work rediculous hours....

 

[froggle]

Just starve, delay gratification and pay everything off as quickly as possible. Luckily I have no student loans but my homie rode the bus, lived with his parents and worked 2 jobs just to get rid of loan. Some of our friends clowned him so badly and a couple had about the same amount owed, went on to buy bmws, rent some really plush places...essentially living the coli life, wid dem IT certs.

Now my said homie is loan free and balling, while those idiots......well

 

[EQ.]

That's considered fraud.

The only way to get out of your student loan payment is to pay it off, die or become so severely injured that you can't work anymore.

or leave the country and never return?

 

[Rawtid]

Hmmm... trying to think of ways to help my people out. I only have like 9k in student loans. Part of which were subsidized so like 4/5 of my loans are at 6.5% and the rest at 3.1%, better than I'm going to get for any personal loan, even with my great credit. But only went to undergrad and went to work right out of school. I got like 5 or 6 friends that went to law school/med school/PA school or got other graduate degrees with over 100K in student loans, and some of them are barely making more than I'm making.
:bron:

I feel sorry for them.... until they get all that paid off in 10-15 years and they got them good good salaries. But by that time I'd be making almost as much as them anyway and my business should be up and running. But I'm going off on a tangent now... I just don't personally understand going to law school/med school unless you really love those fields, because if you still major in a decent field (IT, IS, Engineering) I don't think you see any real benefit of being a lawyer/doctor over one of those other positions until you're well into your career. Then you still have to work rediculous hours....

They can do a part-time job like delivering pizza or something until their career kicks off. Maybe even move with relatives for a year or so until they get themselves straight. Just anything to start knocking that debt down.

 

[who_better_than_me]

I started paying my off toward the end of my undergrad. Worked a part time job tht paid me 15 k a year And put about 10k of that on my last year. Ppl can't help but stunt. Me and friends all had this plan. Them nigguh's instead used the money to go on lucrative spring break trip (when we done this every year before)and buy other shyt. And then took back the refunds checks when we said we was going do it. I just let them do them. Now some of them got kids and having trouble paying it off.

 

[DF is BUSY]

i honestly was thinking about the same subject few days ago.

imo
isnt it feasible to have a well off relative pay/help pay

rather owe the relative and not stress over "payment times"