Will declaring myself bankrupt cancel my student debt?

(bolding mine)

[hijack]Just curious as to the etymology of this particular phrase–is it derogatorily referring to some reputation of Welsh people have for reneging on promises/debts?!? If so, why is it acceptable to use that phrase, but not “Jew someone down”? Wouldn’t a Welshman take as much offense at the former phrase as a Jewish person would at the latter?[/hijack]

I suspect that Scarlett67 meant to say Welch

This is fascinating. I have a US and a UK citizenship (independent of one another). If I declare bankruptcy in the UK (with my $15,000) of debt, but I also have a PERFECT credit rating in the US, what will then happen? BTW none of my financial institutions have any idea of my differing physical addresses. Also, I don’t buy the idea of a ‘moral responsibility’. The way I view it is that I am going to be taxed WAY too much for the rest of my life (as I have been already) and ANY loophole that I can currently exploit will only act as a short-term (but significant) rebate. Since Dennis Healey raised the capital gains tax in the 70s to 99%, I do not feel the moral obligation to ‘repay taxes’ to the UK…ever.

I don’t know about the UK but a study done in Australia showed that a undergraduate degree yeilded roughly 16% Return on Investment per annum on purely economic terms. Law, med and Engineering had slighly more while arts had slighlty less. Grad school was only around 8 - 9% IIRC.

A while ago there was a furore in the UK press when a gov’t minister defended topup fees and loans on the grounds that ‘on average’ a graduate could expect to make an extra 400,000 GBP over the course of his/her working life. Don’t quite know how they came up with that figure, but that’s the order of magnitude they’re talking about.

Sorry – I had forgotten about the derogatory bent of the term. I had never heard of this particular stereotype when I learned the meaning of the phrase, and so it sometimes slips my mind. I retract the phrase. Let’s substitute “. . . and did not try to skip out on it.”

(Usage note: welch is simply a variant of welsh.)

You’ve got a problem with skipping?!?!?!

Not many people in America actually have to pay the whole shebang. Nearly everyone can get financial aid in some sort or another. Most of it is private. And even if you can’t, a college education is still open to the bright and motivated. $15,000(or its sterling equivelant) is a drop in the bucket to what it can bring you. :slight_smile:

Can you “refinance” student debt with another institution and then get it “discharged” that way?

No, I’M sorry, I didn’t intend to single you out, Scarlett…I also have never heard of this stereotype, and was really just wondering why/how “to welsh” had come into use…(couldn’t find the word origin online, other than that it comes from Welsh).

I just find it interesting that welsh and gyp/gypped are so commonly used without much thought as to their meaning, while everyone is super-PC about everything else, whether it’s actually derogatory or not (niggardly, for pete’s sake!!!).[/hijack#2]

And e-logic, I’m glad you decided against bankruptcy. It seemed like a Clintonesque way to get out of an obligation to me (I miss Bubba, but he was an oily bastard).

You can pay off your student loans any time if you’ve got the money. But you’d have to find an institution willing to give you an unsecured loan large enough to cover the loans, and they’ll charge you a much higher interest rate.

Of course, I’ve known people who refinance their house and use those funds to pay their student loans; they can get a lower rate and take the interest deduction on their taxes (in the U.S. at least). That wouldn’t be dischargeable in bankruptcy, but it does get rid of the student loans.

FWIW - also dislike the “welsh” thing, as the only derivation I have read for it does indeed come from a derogatory attittude expressed by the English about the Welsh*. BUT, sorry foks, I have enough trouble staying online these days - I can’t promise to come back with a site. I think Brewer’s "Dictionary of Phrase and Fable " would help but I doubt my ability to get to it. :frowning:
*btw - even the word “welsh” is a bit annoying, I should have thought, it meaning “foreign”. HUH!

Actually, no. Student loans in the US can be discharged during Bankruptcy proceedings if there is a finding that paying the loan will impose an “Undue Hardship” on the debtor and the debtor’s dependents.

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Now, as far as a debtor meeting the “Undue Hardship” test, that is extremely difficult to do, to say the least.

Parliament closed this loophole in the new Bankruptcy and Insolvency Act: