# Would you blow off your student loan, if you thought you could? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [June 26, 2010, 5:08am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565 "2010-06-26T05:08:31Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Meyer6](https://avatars.discourse-cdn.com/v4/letter/m/cc9497/32.png) [@Meyer6](https://boards.straightdope.com/u/Meyer6)\ **Post date:** [June 26, 2010, 5:08am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/1 "2010-06-26T05:08:31Z")
I’m currently in grad school. I have a colleague who did his undergrad at an international university and funded it all, as many students do, with student loans. He told me today that since he has now left that country, he doesn’t think he should have to pay back his student loans, and he thinks that if he stays away for a certain number of years (I forget how many he said), there will be nothing they can do to him, even if he does go back. Frankly I was pretty shocked by this attitude - I can’t imagine doing this, both because I feel that it’s morally wrong, and because I’m a big wuss and would be terrified of the consequences. I know that school is expensive and sometimes I feel like tuition and whatnot costs far too much, and I know how crushing student loan debt can be. I managed to made it through my undergrad without any loans, thanks to scholarships, retail-type work, and the great generosity of my parents, and I know how lucky I was to do so. But, I have friends who are carrying huge debts and I can see how difficult and stressful it can be for them. I really don’t know if they would choose to not pay them back if they felt like they had the option. Anyways, because I am not in debt (and that is very unusual in my program), I didn’t really feel like I could say anything about his comment. But now I wonder whether other people would do this, if they could? ---
**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\ **Post date:** [June 26, 2010, 5:25am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/2 "2010-06-26T05:25:37Z")
You could point this out to your friend: > [@](#): > > For student loans authorized under Section 435(i)Title IV of the Higher Education Act, default occurs on a Federal Family Educational Loan (FFEL) program loan after a default has persisted for 270 days in the case of a loan repayable in monthly installments or 330 days in the case of a loan repayable in less frequent installments. The change is effective for loans for which the first date of delinquency occurred on or after October 7, 1998. During the delinquency period, your loan holder must exercise “due diligence” in attempting to collect the loan; that is, your loan holder must make repeated efforts to locate and contact you about repayment. If your loan holder’s efforts are unsuccessful, steps will be taken to place the loan in default and to turn the loan over to the [guaranty agency](http://wdcrobcolp01.ed.gov/Programs/EROD/org_list.cfm?category_ID=SGA) in your state. Your loan holder may “accelerate” a defaulted loan, which means that the entire balance of the loan (principal and interest) becomes due in a single payment. > Once your loan is assigned to a guaranty agency or the U.S. Department of Education (Department) for collection, the following steps may be taken to recover the outstanding balance due: > > [ul] > [li] [The Department of the Treasury may offset your federal and/or state tax refunds and any other payments, as authorized by law](http://ed.gov/offices/OSFAP/DCS/treasury.offset.payments.html), to repay your defaulted loan.[/li][li] You may have to pay additional [collection costs](http://ed.gov/offices/OSFAP/DCS/collection.costs.html) after your loan is assigned to a private [collection agency](http://ed.gov/offices/OSFAP/DCS/collection.agencies.html)for collection.[/li][li]Also, you may be subject to [Administrative Wage Garnishment](http://ed.gov/offices/OSFAP/DCS/awg.html), whereby the Department will require your employer to forward 15% of your disposable pay toward repayment of your loan.[/li][li]Federal employees face the possibility of having 15% of their disposable pay offset by the Department toward repayment of their loan through [Federal Salary Offset](http://ed.gov/offices/OSFAP/DCS/federal.employees.html).[/li][li]The Department may take [legal action](http://ed.gov/offices/OSFAP/DCS/legal.action.html) to force you to repay the loan.[/li][li]Finally, credit bureaus may be notified, and your credit rating will suffer.[/li][/ul] > Once a loan is declared in default, you are no longer entitled to any deferments or forbearances. In addition, you may not receive any additional Title IV federal student aid if you are in default on any Title IV student loan until you have made payments of an approved amount for at least six consecutive months. [http://ed.gov/offices/OSFAP/DCS/default.html](http://ed.gov/offices/OSFAP/DCS/default.html) Does your friend still have family in America? If something happened to any of them and he was contacted to come home (_now!_) how would he handle it if stopped by Customs at port of entry? Just sayin’. You have the option to default on your loans. You can exercise that option. Just be aware of the consequences. ---
**Author:** ![Meyer6](https://avatars.discourse-cdn.com/v4/letter/m/cc9497/32.png) [@Meyer6](https://boards.straightdope.com/u/Meyer6)\ **Post date:** [June 26, 2010, 5:54am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/3 "2010-06-26T05:54:08Z")
The student loans are not American, this guy is European. I did ask him if he knew the consequences, and that was when he said that if he stayed away for several years he’d be fine. I pointed out that he visits home regularly, and he said he wasn’t worried because he has nothing for them to take. FWIW, I happen to think this guy is an idiot in general - he’s one of those people who work in your building so you are polite-ish to them, but he’s certainly not a friend. That’s one of the reasons I wanted to ask on here - my impression of his actions is coloured by my previous feelings about him, so I wanted to see what other people thought. ---
**Author:** ![Superhal](https://avatars.discourse-cdn.com/v4/letter/s/b4bc9f/32.png) [@Superhal](https://boards.straightdope.com/u/Superhal)\ **Post date:** [June 26, 2010, 6:06am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/4 "2010-06-26T06:06:17Z")
Luckily, I didn’t have to take a loan to pay for my education. However, given the low quality of the education I received, I would certainly try to blow it off if at all possible. ---
**Author:** ![nicole1912](https://avatars.discourse-cdn.com/v4/letter/n/9de0a6/32.png) [@nicole1912](https://boards.straightdope.com/u/nicole1912)\ **Post date:** [June 26, 2010, 6:30am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/5 "2010-06-26T06:30:01Z")
Where in Europe is he from? Because if it’s the UK and he got his undergrad education a while ago, he might be right, though I think he isn’t. The UK Student Loans Company now require you to declare your overseas income to them, and you don’t pay anything if you earn less than the threshold they set as the minimum (around £15k a year) - if you don’t declare it, or lie about it, I can’t imagine there’s much they can do. If you never earn more than 15k, I think they wipe off your debt when you hit retirement age, or if you die, but not if you live abroad for more than a certain number of years, though it’s a common enough misconception that I wonder if it didn’t used to be the case in the early days of student loans. Would I do it? No. The terms of repayment for UK student loans aren’t particularly onerous and I benefited from the education I received. I knew going into it that I’d have to repay it, it seems dishonest to suddenly decide I’ve changed my mind. ---
**Author:** ![pendgwen](https://avatars.discourse-cdn.com/v4/letter/p/3da27b/32.png) [@pendgwen](https://boards.straightdope.com/u/pendgwen)\ **Post date:** [June 26, 2010, 12:34pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/6 "2010-06-26T12:34:41Z")
Um, no. I borrowed that money and promised to repay it. Deciding later that I don’t feel like giving the money back I think would reflect a lack of personal integrity. Besides being stupid. Deliberately screwing up your credit history is never a good idea. ---
**Author:** ![gwendee](https://avatars.discourse-cdn.com/v4/letter/g/35a633/32.png) [@gwendee](https://boards.straightdope.com/u/gwendee)\ **Post date:** [June 26, 2010, 1:15pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/7 "2010-06-26T13:15:25Z")
No. To me it’s no different than asking if I’d rob a grocery store. Am I disappointed that I graduated with staggering debt and haven’t been able to get a job that pays well enough that I can repay the loans without feeling it? Yes. My father defaulted on his student loans. I don’t want to turn into him. I don’t know how he lives with himself. ---
**Author:** ![Unauthorized\_Cinnamon](https://avatars.discourse-cdn.com/v4/letter/u/bc8723/32.png) [@Unauthorized\_Cinnamon](https://boards.straightdope.com/u/Unauthorized_Cinnamon)\ **Post date:** [June 26, 2010, 2:10pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/8 "2010-06-26T14:10:32Z")
There have been times when I would have discharged them in bankruptcy in a hot second, if that were possible. I could see being in that position again, if my husband lost his job or something. As it is, I accept that I owe more on my education than we do on our house, and I anticipate paying it back eventually, but it’s impossible to do more than send the bare minimum right now. It may come down to me sending them what I can, and if they want more they could go after me, but at the moment I have no income and no assets, and I don’t use my credit for anything. So I’m hoping they will be a little accommodating. I really do want to pay more once I get a job. ---
**Author:** ![NinetyWt](https://avatars.discourse-cdn.com/v4/letter/n/cc9497/32.png) [@NinetyWt](https://boards.straightdope.com/u/NinetyWt)\ **Post date:** [June 26, 2010, 8:38pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/9 "2010-06-26T20:38:37Z")
> [@pendgwen](#): > > Um, no. I borrowed that money and promised to repay it. Deciding later that I don’t feel like giving the money back I think would reflect a lack of personal integrity. I totally agree. A person who borrows money and doesn’t pay it back? Morally bankrupt IMO. It’s very simple really. ---
**Author:** ![elfkin477](https://avatars.discourse-cdn.com/v4/letter/e/a9a28c/32.png) [@elfkin477](https://boards.straightdope.com/u/elfkin477)\ **Post date:** [June 27, 2010, 12:33am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/10 "2010-06-27T00:33:32Z")
> [@Unauthorized\_Cinnamon](#): > > There have been times when I would have discharged them in bankruptcy in a hot second, if that were possible. I could see being in that position again, if my husband lost his job or something. I hope you’re never in dire straights because [declaring bankruptcy](http://www.usatoday.com/money/perfi/2009-05-12-studentloans13_N.htm) doesn’t do anything to erase student loans. ---
**Author:** ![NinjaChick](https://avatars.discourse-cdn.com/v4/letter/n/71c47a/32.png) [@NinjaChick](https://boards.straightdope.com/u/NinjaChick)\ **Post date:** [June 27, 2010, 1:12am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/11 "2010-06-27T01:12:06Z")
> [@pendgwen](#): > > Um, no. I borrowed that money and promised to repay it. Deciding later that I don’t feel like giving the money back I think would reflect a lack of personal integrity. Besides being stupid. Deliberately screwing up your credit history is never a good idea. Exactly. In my experience so far, student loan companies are willing to work with you as long as you stay in touch and reassure them you’ll try to pay them back in a timely manner. Plus, people being retarded about loans were a significant factor that lead to our lovely current economic situation, and I have no desire to join that group. I’m referring of course to the economic situation where, right as I was starting my final year of college, the economy took a giant shit on everyone, then put a shotgun in its mouth and pulled the trigger. Because people who were better off than I was, or on the consumer side people who had delusions that they were better off than they were, were irresponsible with money. So I got to graduate into a terrible, terrible economy with record levels of unemployment, which made those student loans seem like a lot more than when I signed for them in 2004. And 2005. And 2007. And even in August 2008. Not that I’m bitter or anything. ---
**Author:** ![Khadaji](https://avatars.discourse-cdn.com/v4/letter/k/9e8a1a/32.png) [@Khadaji](https://boards.straightdope.com/u/Khadaji)\ **Post date:** [June 27, 2010, 2:12pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/12 "2010-06-27T14:12:33Z")
No, I could not. I agreed to pay and so I would do so. I have a friend who talks about walking away from a house and not paying (I’m pretty sure it is only talk.) I did not over-extend myself during the heyday of the housing bubble, but even if I had, I would do my best to keep my word and pay the mortgage. My folks so ingrained this in me it is just part of me. ---
**Author:** ![Acid\_Lamp](https://avatars.discourse-cdn.com/v4/letter/a/d6d6ee/32.png) [@Acid\_Lamp](https://boards.straightdope.com/u/Acid_Lamp)\ **Post date:** [June 27, 2010, 2:54pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/13 "2010-06-27T14:54:52Z")
> [@Khadaji](#): > > No, I could not. I agreed to pay and so I would do so. I have a friend who talks about walking away from a house and not paying (I’m pretty sure it is only talk.) I did not over-extend myself during the heyday of the housing bubble, but even if I had, I would do my best to keep my word and pay the mortgage. My folks so ingrained this in me it is just part of me. No offense intended at all, but that’s just foolish. A home mortgage is a business deal, nothing more. The bank doesn’t care about integrity, word of honor, or anything else and will not hesitate to dump your property if it becomes beneficial to them to do so. Choosing to take the moral high road in a truly terrible situation will lead to financial ruin and poverty; the bank won’t care or lose one wink of sleep. Look out for yourself first in that aspect of your life, save the integrity for where it counts. ---
**Author:** ![Mr.Excellent](https://avatars.discourse-cdn.com/v4/letter/m/f19dbf/32.png) [@Mr.Excellent](https://boards.straightdope.com/u/Mr.Excellent)\ **Post date:** [June 27, 2010, 7:20pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/14 "2010-06-27T19:20:35Z")
> [@NinjaChick](#): > > Exactly. In my experience so far, student loan companies are willing to work with you as long as you stay in touch and reassure them you’ll try to pay them back in a timely manner. This. When I’ve needed a few months to get my financial house in order, I’ve never had the slightest difficulty getting deferments. The student loan industry, such as it is (or was, since it’s been largely taken over by the feds directly) seems to be made up of good sorts. I’d also point out that there is, arguably, a higher moral onus with regard to education debt than a mortgage. You can have a modern, developed society with low levels of home ownership. You can’t have such a society with low levels of education. The student loan system _has_ to work. ---
**Author:** ![Unauthorized\_Cinnamon](https://avatars.discourse-cdn.com/v4/letter/u/bc8723/32.png) [@Unauthorized\_Cinnamon](https://boards.straightdope.com/u/Unauthorized_Cinnamon)\ **Post date:** [June 27, 2010, 11:06pm UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/15 "2010-06-27T23:06:04Z")
> [@elfkin477](#): > > I hope you’re never in dire straights because [declaring bankruptcy](http://www.usatoday.com/money/perfi/2009-05-12-studentloans13_N.htm) doesn’t do anything to erase student loans. I know. That’s why I said, “if that were possible.” ---
**Author:** ![panaccione](https://avatars.discourse-cdn.com/v4/letter/p/94ad74/32.png) [@panaccione](https://boards.straightdope.com/u/panaccione)\ **Post date:** [June 28, 2010, 12:44am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/16 "2010-06-28T00:44:36Z")
Not gonna lie I probably would. Sure it’s wrong and immoral but damn would I have a lot more money. ---
**Author:** ![notsoheavyd3](https://avatars.discourse-cdn.com/v4/letter/n/85e7bf/32.png) [@notsoheavyd3](https://boards.straightdope.com/u/notsoheavyd3)\ **Post date:** [June 28, 2010, 1:12am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/17 "2010-06-28T01:12:36Z")
> [@Superhal](#): > > Luckily, I didn’t have to take a loan to pay for my education. However, given the low quality of the education I received, I would certainly try to blow it off if at all possible. I’m another in a similar boat. I went to a large private university which was research oriented.(Supposedly well respect but that was a load of horse s\*\*t) They weren’t into that whole undergrad education thing and it pretty much showed. (Honestly my impression is that they only did undergrad education because they felt that they had to and if they could have gotten away with it they would have dumped the whole thing.) Anyway if I could have gotten away with not paying my student loans I would have because the “education” was just an utter joke. (I hesitate to call it “education” because that would mean they tried to teach me stuff which was nonsense.) I guess that would be unfair to the people who loaned me the money but I really wish there was some way for them to just go back to LPU and get the money back for services not rendered. To make matters worse since it was expensive I actually did take out quite a few loans. Oh and the cherry on top? I could have gone to the local state university for free.(I went to LPU because I thought the name factor would be worth something. I was completely wrong and paid alot for it.) Actually in the end I had to defer alot but I eventually paid it off in full ahead of schedule but consider myself a sucker for getting stuck with that one. ---
**Author:** ![Markxxx](https://avatars.discourse-cdn.com/v4/letter/m/5daacb/32.png) [@Markxxx](https://boards.straightdope.com/u/Markxxx)\ **Post date:** [June 28, 2010, 1:16am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/18 "2010-06-28T01:16:17Z")
I used to think paying off your debt was really a badge of honor. But honestly my view has changed so much in the last 10 years. I feel like every other company seems to be using bankruptcy as a tool. If GM, United Airlines, The Chicago Tribune, Chrysler, etc etc all can go back and reneg on their debts, why can’t the individual too? Why is it so awful that Joe Six-Pack is a disgrace for declaring bankruptcy while GM is an honorable company for restructuring it’s debt. One way to look at it is, GM is too big, if it fails it would put too many out of work and that’s bad for society. Fair enough, that’s a point, but a person going to school is also more likely to put more money INTO the economy than if he doesn’t go to school and gets a job that pays a third as much. And that is GOOD for society. I think a question like this also leads to the question should college education be subsidized in some way? Of course that’s a different thread that would lead to another 100 question, I alone could raise ---
**Author:** ![NinetyWt](https://avatars.discourse-cdn.com/v4/letter/n/cc9497/32.png) [@NinetyWt](https://boards.straightdope.com/u/NinetyWt)\ **Post date:** [June 28, 2010, 1:30am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/19 "2010-06-28T01:30:21Z")
> [@notsoheavyd3](#): > > I could have gotten away with not paying my student loans I would have because the “education” was just an utter joke. That you chose a crappy school is not the problem of the people who lent you the money. What I’m reading here is equivalent to saying it’s okay to default on a loan if you buy something crappy with it. That’s baloney. ---
**Author:** ![BigT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bigt/32/12044_2.png) [@BigT](https://boards.straightdope.com/u/BigT)\ **Post date:** [June 28, 2010, 1:35am UTC](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565/20 "2010-06-28T01:35:52Z")
> [@NinetyWt](#): > > That you chose a crappy school is not the problem of the people who lent you the money. > > What I’m reading here is equivalent to saying it’s okay to default on a loan if you buy something crappy with it. That’s baloney. Way to take the sentence out of context to make him look bad. His very next sentence covers the fact that he thinks they should be able to get their money back because the services promised him were not rendered. If the crappy thing was advertised as being good, then of course you should have some recourse for them misrepresenting what they were offering. Normally it takes the form of a lawsuit. [Next page](https://boards.straightdope.com/t/would-you-blow-off-your-student-loan-if-you-thought-you-could/544565.md?page=2)