Canelaw99 wrote:Yes and no. Yes, there were consequences when I took out the loans, but no, I don't think they should have the right to do it by any means necessary. With regular contracts, there are statutes of limitations, meaning that if the original lender doesn't bring a suit within that amount of time, they are barred from bringing it later. Why should the student loan lenders be exempt from these laws?
Furthermore, what are students today supposed to do? The cost of education has increased dramatically in recent years - here are quotes and then the link from a CNN report regarding this:
"As they have for the last ten years, college costs rose faster than inflation this year, according to the report "Trends in College Pricing 2005," released Tuesday by the College Board, a non-profit association of 4,500 schools, colleges and universities. "
"The rate of growth in tuition costs at four-year private colleges was about the same as last year -- 5.9 percent -- to $21,235. But growth slowed in tuition costs at four-year public universities. They rose 7.1 percent to $5,491. Last year, public school tuition jumped 10.5 percent.
Tuition costs, of course, are not the whole nut. Including room and board, the cost of attending a private college is $29,026 per year on average, and $12,127 at four-year public universities. "
http://money.cnn.com/2005/10/17/pf/college/college_costs/
In order to get decent jobs nowadays, people need a college education, yet in order to obtain a college education, they need either a) wealthy parents, b) full scholarships (which are not common), c) a job during school, or d) student loans. Most people have to go with option d, the loans. Many people, me included, take out the loans without really, honestly thinking about the consequences down the road because we're 18/19/20 years old thinking the world is great and we'll have great jobs waiting for us at the end of school. Unfortunately, this is usually not the case. Many student loan payments are more than most middle-class people can afford, thereby causing them to default, through no fault of their own.
I, for one, would like to see an overhaul of the student loan industry. There are so many protections for them that are honestly screwing over the average consumer. As I mentioned before, other lenders (credit card companies, car companies, etc.) have laws that they must follow, yet the student loan industry has carte blanche rule over their borrowers. They can wait 30+ years if they so desire to collect a $1000 loan. Does this make sense? Of course not when you really think about it. The government should step in and say enough is enough - yes, the borrowers need to pay back the loans, but the lenders should bring their claims in a timely manner and take into consideration a persons' circumstances. How would you feel if that gentleman discussed in the original link was your grandfather or uncle? That person is not alone in these situations either. It's maddening to think that our government will allow someone to be forced to chose between food or medicine because their social security is being garnished.
JMO....
I Hear ya ....just presenting the opposing viewpoint!!
