Paying off Student Loans in Retirement

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Paying off Student Loans in Retirement

Postby johann » Tue Jul 02, 2013 7:52 pm

I'm 70, long-retired and this is the scariest retirement chart I've ever seen. It's the number of Americans who have had at least one Social Security payment docked to pay student loans.

Apparently, this happened to only SIX individuals in 2000. Last year? 115,000!

graph of outstanding student loans - Google Search

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Re: Paying off Student Loans in Retirement

Postby Rich Douglas » Tue Jul 02, 2013 10:03 pm

To get out of paying your student loans, you have to die.
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Re: Paying off Student Loans in Retirement

Postby johann » Tue Jul 02, 2013 10:50 pm

Rich Douglas wrote:To get out of paying your student loans, you have to die.

Yes, Rich - it appears you do. Unless you pay them off beforehand -- and that (I think) is the way it's supposed to work. The tragedy is: it doesn't always work. First six, now 115,000. What next - millions?

BTW - Canada's experience re: discharge of student loans in bankruptcy - to the best of my knowledge:

At first, they were (usually) completely dischargeable in bankruptcy. Students caught on to that. At one point in the 1980s, one in eight Canadian bankrupt individuals was a fairly recent former student, usually with student loan liabilities. That was tightened up, so that the loans were not dischargeable in bankruptcy unless they were 10 years old or more. More recently, that complete discharge has gone away. Now a bankruptcy judge makes individual decisions on what portion (if any) is dischargeable and (I believe) what payment schedule will apply to the remainder.

The whole situation reminds me of something I used to see during my working years as a bill collector:

"Please pay your bills before you die. We don't want to chase all over hell after you!" :(

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Re: Paying off Student Loans in Retirement

Postby johann » Tue Jul 02, 2013 11:06 pm

Canada has problems with student debt, but certainly not to the extent the US has. Here's a chart, showing (Federal) Canada Student Loans outstanding as slightly under 15 billion. There's maybe another 5 billion in provincial/private loans that are under-reported.

So, 20 billion vs 1.1 trillion in the U.S. That's hardly comparable.... yet. Not even with a 10-to-1 population ratio. Well, at least they won't have to dock my two Government pensions for student loans. Or my sons' private pensions, when they get there. My grandkids -- I'm hoping not. We're all doing the best we can for them.

http://www.debt101.ca/news/how-big-is-c ... debt-today

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Re: Paying off Student Loans in Retirement

Postby SteveFoerster » Wed Jul 03, 2013 2:22 am

Rich Douglas wrote:To get out of paying your student loans, you have to die.

Unless your parents had to co-sign for them, in which case they transcend even your death. :x
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Re: Paying off Student Loans in Retirement

Postby johann » Thu Jul 04, 2013 6:48 pm

Yes, Steve - but Rich's point is still valid.

You can get out of these obligations when you die. Co-signers get out of them when they die.

Semantics - I know. Silly argument indeed, when you consider the seriousness of the situation. It's huge, tragic and will have no end of bad effects on the whole economy. I shake my head and think how lucky I was, "pay-as-I-went," while middle-aged and working. My sons both finished college with student debt of around $300 to $500. My grandkids? Not there yet, but -as I said - everybody's doing the best they can for them.

But this is Canada, eh? Strange to find something (education) that's cheaper here -- and still good. But I'll take it. :smile:

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