What is FREAKING you out today??

[footfootfoot]

That strategy sounds not unlike the war on drugs and terrorism, create a demand for a product (degree) put that product out of people's reach (cost) but make having it an imperative (job requirement) offer money to fund purchase (loan) neglect to tell borrower that even with the degree their earning power will not be likely increased to the point where the degree purchase is justified but offer counseling discouraging them from borrowing too much.

The other problem for the school is if the student doesn't borrow they don't fill the seat...

One of the problems with defaulting on a student loan in NYS is that you are ineligible to apply for a state job (which is stupid, you'd think they'd want you employeed where they could garnish your wages as a term of employment, but whatever) and you are also not eligible for some types of state aid, again, kind of stupid, if you can't afford to pay for your loans, then maybe you might be in need of public assistance too, and if you are just defaulting despite ability to pay, then you probably won't be applying or eligible for public assistance.

I remember reading, about the time when they changed the rules about discharging student loan debt with bankruptcy, that the majority of money owed by defaulters was from doctors and lawyers who felt that they didn't really need to repay their loans.

Maybe you have more info on that alleged factoid, Shawnee.

[Lamplighter]

Ft3, that strategy is exactly what (some of ?) the "for profit" colleges have used,
and the Feds are starting to do something about it...
Maybe the Feds are going to make such colleges ineligible for the individual grants and/or guaranteed loans.

Such colleges are fighting back with ads on TV are running now.
Once you see one, the spiel makes more sense.

[Shawnee123]

Originally Posted by Lamplighter

Ft3, that strategy is exactly what (some of ?) the "for profit" colleges have used,
and the Feds are starting to do something about it...
Maybe the Feds are going to make such colleges ineligible for the individual grants and/or guaranteed loans.

Such colleges are fighting back with ads on TV are running now.
Once you see one, the spiel makes more sense.

Ha! Yep, we posted nearly the same thing. You are correct, lamp. I cannot, ethically, speak for or against proprietary schools...but this issue is a big deal on the scene.

[Shawnee123]

Originally Posted by footfootfoot

That strategy sounds not unlike the war on drugs and terrorism, create a demand for a product (degree) put that product out of people's reach (cost) but make having it an imperative (job requirement) offer money to fund purchase (loan) neglect to tell borrower that even with the degree their earning power will not be likely increased to the point where the degree purchase is justified but offer counseling discouraging them from borrowing too much.

There is no doubt education is big business, no matter how noble a bow we tie around it.

What you just said is part of the reason for our new restrictions and the new position: identify WHO is defaulting, and why. It's a fact that students who succeed (reach their educational goal) are more likely to stay out of default. Student retention is a college-wide initiative.

Also, the "not telling" part is exactly why proprietary schools are under such attack. A lot of money for credits that will never transfer, unbeknownst to the student often until it is too late.

Let's face it, I work for a CC: I see way too many people who really have no interest in being there. I also see people who have successfully turned their life around. Providing the access to all results in the attrition...but the benefits for those who make it are immeasurable.

Maybe you have more info on that alleged factoid, Shawnee.

I do not. I do know that doctors can amass a huge debt, and that the consequences of default would probably not really touch them.