Student Loans

Juice Box

Diamond Member
Nov 7, 2003
9,615
1
0
So, I was talking to someone the other day, and he was telling me about how student loans really are. He claims that you technically dont ever have to pay them off, because the bank has no collateral on you. The only thing they can do is take your tax refund check each year till you have payed them off. And he also claimed it does not affect your credit rating in any way if you dont pay them off. Is this true, or is this guy full of sh*t?
 

Demon-Xanth

Lifer
Feb 15, 2000
20,551
2
81
Uhh, yeah. It'll affect your credit rating. And the courts CAN garnish your wages. No-collateral doesn't mean nothing is going to happen if you don't pay.
 

Rallispec

Lifer
Jul 26, 2001
12,375
10
81
now -- i have heard of people who keep deferring them for more than 5 years after they're out of school...
Im not sure how long you could do that before the bank said no more.
 

BigJ

Lifer
Nov 18, 2001
21,330
1
81
Originally posted by: Rallispec
now -- i have heard of people who keep deferring them for more than 5 years after they're out of school...
Im not sure how long you could do that before the bank said no more.

This is what I've heard, but yea the bank eventually says the buck stops here, and then you are in a world of trouble.
 

Feldenak

Lifer
Jan 31, 2003
14,090
2
81
Originally posted by: digitalsnare
Originally posted by: Feldenak
He's a dumbass.

ok, thats what I figured. What about his statement is not true btw?

It will affect your credit rating and they can go to court to garnish your wages.
 

jagec

Lifer
Apr 30, 2004
24,442
6
81
The only thing "no collateral" means is that it's easier to flee the country if you can't pay.

Kind of a drastic step, though. I'd just pay.
 

FoBoT

No Lifer
Apr 30, 2001
63,084
14
81
fobot.com
and student loans are one of the things that are exempt from personal bankruptcy. if you run up CC's and stuff and file for bankruptcy, you'll still owe your student loans, just like back taxes
 

Juice Box

Diamond Member
Nov 7, 2003
9,615
1
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Originally posted by: FoBoT
and student loans are one of the things that are exempt from personal bankruptcy. if you run up CC's and stuff and file for bankruptcy, you'll still owe your student loans, just like back taxes

wow that sucks! good to know
 

DAGTA

Diamond Member
Oct 9, 1999
8,172
1
0
I know a woman that had her paycheck garnished to pay back her student loans. It took 10 years of her not paying before getting to that point, but it does get there.

 
Sep 29, 2004
18,656
67
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Originally posted by: digitalsnare
So, I was talking to someone the other day, and he was telling me about how student loans really are. He claims that you technically dont ever have to pay them off, because the bank has no collateral on you. The only thing they can do is take your tax refund check each year till you have payed them off. And he also claimed it does not affect your credit rating in any way if you dont pay them off. Is this true, or is this guy full of sh*t?

You sign a "promisary note". It's not a "real" agreement as promises are broken. But I also view this as an urban legend.
 

Doggiedog

Lifer
Aug 17, 2000
12,780
5
81
Originally posted by: digitalsnare
So, I was talking to someone the other day, and he was telling me about how student loans really are. He claims that you technically dont ever have to pay them off, because the bank has no collateral on you. The only thing they can do is take your tax refund check each year till you have payed them off. And he also claimed it does not affect your credit rating in any way if you dont pay them off. Is this true, or is this guy full of sh*t?

Did your friend go to college?

Is he your friend or enemy?
 

Juice Box

Diamond Member
Nov 7, 2003
9,615
1
0
Originally posted by: Doggiedog
Originally posted by: digitalsnare
So, I was talking to someone the other day, and he was telling me about how student loans really are. He claims that you technically dont ever have to pay them off, because the bank has no collateral on you. The only thing they can do is take your tax refund check each year till you have payed them off. And he also claimed it does not affect your credit rating in any way if you dont pay them off. Is this true, or is this guy full of sh*t?

Did your friend go to college?

Is he your friend or enemy?

hes in college now, and hes just an online acquaintince
 

SP33Demon

Lifer
Jun 22, 2001
27,928
142
106
I've deferred for two years now, taking classes through my company part time. Not a big deal knowing I will have to pay them back for the rest of my life, I'll probably be retired and still paying them! lol
 

DAGTA

Diamond Member
Oct 9, 1999
8,172
1
0
Originally posted by: SP33Demon
I've deferred for two years now, taking classes through my company part time. Not a big deal knowing I will have to pay them back for the rest of my life, I'll probably be retired and still paying them! lol

Be aware that interet accrues while you are in deferment.
 

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
Originally posted by: digitalsnare
Originally posted by: Doggiedog
Originally posted by: digitalsnare
So, I was talking to someone the other day, and he was telling me about how student loans really are. He claims that you technically dont ever have to pay them off, because the bank has no collateral on you. The only thing they can do is take your tax refund check each year till you have payed them off. And he also claimed it does not affect your credit rating in any way if you dont pay them off. Is this true, or is this guy full of sh*t?

Did your friend go to college?

Is he your friend or enemy?

hes in college now, and hes just an online acquaintince

Just say he's right and laugh at him 2 years from now