I am sure most if not all of you have read about the increasingly serious student loan problem. Perhaps some of you have direct knowledge of former students struggling with student loan re-payment. It is too late to point fingers at the source of the problem, the fact remains, there is a problem. As I understand the situation: even BK does not wipe the slate clean for obvious reasons as there would be multiple BK just to eliminate a student loan obligation
My 1st question
What happens if a formeer student makes no payment, as there is no money for a payment
What happens if a former student makes regular but smaller than required payments. Same senerio, there is not enough money for a full paymeent
Does somebody do an audit and determine if the former student could pay some or more on the loan
I hear about default on these loans. How can somebody be in default, if the loan stays with the student for life. Is there a date at which the loan is considered in default and then what happens
If a student makes no or a small token payment, who lent the money to the student. Does the lender own the loan.
If the lender is not receiving sufficient money to retiree the loan, can the lender demand the tax payer pay the loan. I doubt the lender got a general security agreement from the tax payer. I doubrt the tax payer agreed to a general security agreement as happens when I pledge collateral, with a lender, for my grandson needs for operating capital
It looks to me as if you can't get blood out of a stone and the lender should have got sufficient re-paymentt security. It looks to me as if the lender is on the hook for un paid student loans. That is, if this is the same as any general security agreement I am familiar with, if a loan goes into arrears.. In this situation the lender has no such general security agreement
So why are some saying the student loans will be on the tax payer dime. I would think only if the law was changed to demand tax payer payment for unpaid student loans, as Bernie would do, if elected
I wish that I could help you on this but I have very little insight to offer. There are dozens of links on the internet that have information about student loans.
That's the cool thing about the internet. We can get the answers to any questions and information about anything if we spend a bit of time doing the research.
student loans information
Here's just one pick: