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  1. #41

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    Quote Originally Posted by Gazpacho View Post
    So many people don't? It's illegal, and I assume they go after you if you don't pay. Student loans cannot be discharged during bankruptcy.

    I think many years ago there were loopholes that people in certain situations were able to use to get out of their student loans. I believe those have pretty much been closed. While I think it was irresponsible for graduates to slip out of the debt obligations, but now the reverse is awful too...private loan companies have lured in students with easy loans and then wildly ratcheted up the interest rates , causing young people to have insurmountable debt at the start of their careers. (Yes, I know and agree that people should read up and be responsible for their own finances, but I think some of these loan companies' practices have been aggresively predatory).

    As you say, student loans cannot be discharged for bankruptcy. For me, the big impetus for paying down any debt is if somehow I was unable to work (if I got sick or disabled, or long-term unemployed), I'd be miserable having this debt grow. I recently re-financed my mortgage to a 10-year term to get it paid off sooner. I don't even want to think about foreclosure or short-sale, I just want it paid off so I don't even have to go there. I do understand that in many cases education and housing are good debt, incurred for long-term gain rather than short-term whimsy, and that a Roth could be borrowed against. But for my peace of mind I like to pay off things if I'm able.

  2. #42

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    Quote Originally Posted by FunnyBut View Post
    I think many years ago there were loopholes that people in certain situations were able to use to get out of their student loans. I believe those have pretty much been closed.
    The Canadian government used to forgive student loans for extenuating circumstances such as long term unemployment or disability, or undue financial hardship. Not sure if it does any more - I would suspect not.

  3. #43
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    Quote Originally Posted by FunnyBut View Post
    I think many years ago there were loopholes that people in certain situations were able to use to get out of their student loans. I believe those have pretty much been closed.
    My sister-in-law deferred payments for over ten years claiming one difficulty after another. At one point, she told us she was pretty sure she could just defer it until she was dead.

    Apparently, that approach was not uncommon and there has been a crackdown on it. About a year ago, she was informed there would be no more deferments and she had to pay up or they would go after her in other ways. She was not a happy camper.

    We thought it was past time they went after her

  4. #44

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    Quote Originally Posted by PDilemma View Post
    My sister-in-law deferred payments for over ten years claiming one difficulty after another. At one point, she told us she was pretty sure she could just defer it until she was dead.

    Apparently, that approach was not uncommon and there has been a crackdown on it. About a year ago, she was informed there would be no more deferments and she had to pay up or they would go after her in other ways. She was not a happy camper.

    We thought it was past time they went after her
    When I put my state loan into deferment it was shockingly easy. I explained the situation and had to send in a letter from my program director on official letterhead stating I'd be in residency for 3 years and that was it. I could see how people could drag the process out.

    I know that people have gone through this before me and been fine, but I just want to eliminate it in as few years as possible.

  5. #45
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    I paid double payments on my student loans for a few months when the interest rate was in the 6+%range, but then the interest rate dropped and dropped (it was as low as 1.9% for the federal loans and about 4% for the private ones), and my financial advisor forbade me from prepaying any longer. I did not consolidate so my rate was variable, and I got lucky. So I just paid them off in about 9.5 years, and invested my excess money in 401(k) and other things.
    I think I will have a snack and take a nap before I eat and go to sleep.

  6. #46
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    Quote Originally Posted by PrincessLeppard View Post
    If you can put 20% down, your interest rate on your mortgage will be lower. I was only able to put down 10%, but my interest rate is still significantly lower than my friends who put down 0-5%.
    Apart from FHA, I'm not certain you can even get a home mortgage now without 20% down.
    Adelina Sotnikova defeated the curse of Esta She is indeed the Greatest Of All Time!

  7. #47

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    Quote Originally Posted by rfisher View Post
    Apart from FHA, I'm not certain you can even get a home mortgage now without 20% down.
    Yep... Most lenders are getting back to the old rules, 20% down, PIT no more than 28% of gross, and total debt load under 33% or 45% (depending on what the other debt is) of gross. You might get a break from your current bank if they have private portfolio loans and you've been with them for longer than 5 years, but don't count on it.
    AceOn6, the golf loving skating fan

  8. #48
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    Quote Originally Posted by Gazpacho View Post
    There are investments you can make that are pretty safe. They grow slowly, but they also don't have crazy ups and downs. My portfolio is actually overly safe for my age, relatively few stocks, but I'm neurotic so that's the way I like it.

    The trick is to be more and more conservative about your portfolio as you get older, because there's less time for you to grow the money back if the stock market tanks.

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