Because you can't default on federal student loans. They garnish your wages. So just not paying isn't (currently) an option.
Sure, if never having any income and living off someone else is an option, you can do that.
Sure, if never having any income and living off someone else is an option, you can do that.
So, 15% for the rest of your life or until you can leave the country and are beyond their reach (if an option) if you cannot afford to pay them off. The reality for many is they will never have enough income potential to pay off this debt, so the best course of action is to bail on it to optimize for quality of life if you’ll never be able to pay it back. The developed world is hungry for young, educated talent.
https://www.cnbc.com/2019/05/25/they-fled-the-country-to-esc...
"STEM graduates, often hailed as the golden ticket to career success, are facing unemployment rates that might make you double-take. For instance, computer engineering majors are grappling with a 7.5% unemployment rate, while art history majors—yes, the ones often mocked for their “impractical” degrees—are sitting pretty at just 3%. What’s going on here?"
[1] https://capwolf.com/why-stem-grads-struggle-to-find-jobs-in-...
immigrating to another country, even as an American with an in-demand degree, is not easy.
We set these citizens up to fail, and they’re the bad guys? Hardly. If you can escape the torment nexus, go, don’t look back. The torment nexus does not care about you. “The purpose of the system is what it does.”
America chose to do this, banks make big money from the loans. Colleges make big money from students.
We have a similar system with medical care. We have regulatory capture of our medical system by the drug sellers, medical groups, etc. We pay way way way more than other countries with worse outcomes. And the reaction of half the country, the republicans, it is we'll fix this by eliminating a lot of coverage for poor people. Democrats try to control costs, cover more poor people, get on a better trajectory and it's demonzied as destroying democracy. Meanwhile, our recently passed BBB bill takes billions out of medicare, ie coverage for poor people, many of whom voted for Trump. This whole thing is disgusting. I'm angry because of the loss of potential here, just like for student debt.
My dad says colleges are corrupt because they "waste money on dei things" and that's why they have high costs (sadly not making this up). I try to explain college is not subsidized like it used to be when you went to college in the 60s. Similar thing with young people not affording housing, not having kids as much.
That seems like a losing strategy, like shooting yourself in the face to save your foot.
I mean, there's millions of people with student debt - there's bound to be a few edge cases, but that really isn't relevant.
Are you also implying that it's non-edge case to say, oh, I'll just not pay my student loans and then leave my country?
Why would that be any more an option than people doing that for credit card debt?
I mean, sure, there's some very small percentage in some table factored into the interest rate.
Everyone else is either paying or getting their wages garnished (unless something in the future changes).