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Student Loans

J

Juice Box

Diamond Member
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?
 
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.
 
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.
 
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.
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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.
 
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.
 
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
 
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
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wow that sucks! good to know
 
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.

 
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?
Click to expand...

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

Did your friend go to college?

Is he your friend or enemy?
 
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?
Click to expand...

Did your friend go to college?

Is he your friend or enemy?
Click to expand...

hes in college now, and hes just an online acquaintince
 
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
 
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
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Be aware that interet accrues while you are in deferment.
 
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?
Click to expand...

Did your friend go to college?

Is he your friend or enemy?
Click to expand...

hes in college now, and hes just an online acquaintince
Click to expand...

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