Student loans--another bubble waiting to burst?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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chicagolaw2013
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Re: Student loans--another bubble waiting to burst?

Postby chicagolaw2013 » Wed Aug 11, 2010 10:28 pm

vanwinkle wrote:Also, failure to pay debts can get you disbarred. Bar associations frown heavily on people who can't manage their own money for a host of reasons, not the least of which is that you can't be trusted to handle other people's money if you can't handle your own.

There's a rather famous example of someone trying to walk away from their debt, and between the loans, late fees, and default charges, ended up owing over $400K. He was denied admission to the bar. So, even if you think "not paying" is a solution, thr legal profession at least has a counteroffer: Fine, but you can't be a lawyer.


This is my issue, but only about $15k (so I guess it's not REALLY the same scale-wise lol), and I'm trying to pay it all back in full, and get the delinquent notes on all credit reports removed (I know, a lofty goal, but shit happens when you're out of work for a time, and have trouble getting back on the horn with all back bills...all I've got is hope hahaha). I should have all debts, except for college loans which have never been in default, paid off by the end of 2L. I know I obviously have to disclose on C&F, but if I've paid back everything in full, and most delinquencies have been removed from my credit (since I know having them all removed probably won't happen), do you think I would be denied admission on that basis alone? Mind you, I haven't committed any felonies, or done anything else that would get me ousted, just the financial issues. Going to call the bar admissions people on this, of course, but wanted your opinion, vanwinkle...

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vanwinkle
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Re: Student loans--another bubble waiting to burst?

Postby vanwinkle » Thu Aug 12, 2010 10:28 am

The C&F problem I was referring to was a guy who didn't make a single payment on his student loans in over a decade. He just walked away from his loans and let the fines and penalties accrue until he owed $400K. If you've been at least making attempts to service that $15K in debt, you shouldn't have too much of a problem at all.

The real issue is whether or not people try to walk away (I was attempting to address the issue of default, which someone had claimed as a solution to the excessive debt problem). You're not doing that, so you should be fine.

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chicagolaw2013
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Re: Student loans--another bubble waiting to burst?

Postby chicagolaw2013 » Thu Aug 12, 2010 11:21 am

vanwinkle wrote:The C&F problem I was referring to was a guy who didn't make a single payment on his student loans in over a decade. He just walked away from his loans and let the fines and penalties accrue until he owed $400K. If you've been at least making attempts to service that $15K in debt, you shouldn't have too much of a problem at all.

The real issue is whether or not people try to walk away (I was attempting to address the issue of default, which someone had claimed as a solution to the excessive debt problem). You're not doing that, so you should be fine.


Thanks for making me feel better, dude. :)




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