With unregulated interest rates being charged by private lenders for school loans, it behooves everyone to tread lightly in this area. My last blog showed how high interest rates on borrowed money over several years can add up to $100,000 of dollars of debt or more upon graduation.
In my travels lately, I have noticed a lot of people talking about declaring bankruptcy as an easy way out of their debt load. Bankruptcy is not a good idea and I have covered this previously. You cannot dissolve student loans through bankruptcy.
The bankruptcy law of 2005 covers this in detail. Without this exception, every student would run through a bankruptcy between graduating and starting a career.
A disproportionate number of high interest student loans go to low income students attending for profit institutions according to a study by Charlene Wear Simmons, assistant director of the California Research Bureau.
Look at medical students. A government web site names 199 doctors with $17 million in unpaid loans.
What to do to keep cost down? Attend a State college or university. Don’t go to school out of State, you will pay more. Forget private colleges or universities. By doing this you can almost cut in half your expenses.
Instead of taking out loans, work for a year or so and pay cash. If you are in school and don’t have the money for the next semester. Take time off and go to work. Take night classes or online classes.
Take this seriously or you will pay for a long, long, time!
Jacques
CreatingWealthThatLasts
1 comment:
Hi Jacques .. you do speak some wise words .. & having the experience of guiding your own children through their College years - you have some real knowledge.
Working offers people a huge advantage as they've experienced various work arenas & learnt commitment & discipline before they actually go into full time employment.
Thanks - Hilary: www.positiveletters.blogspot.com
HilaryMeltonButcher@gmail.com
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