Monday, June 7, 2010

New Laws Affect College Debt

Since 2005, bankruptcy laws are harder on students who take out college loans and then suffer through years of unemployment than they are on people with large credit card bills or casino loans.

This segment of the law used to be known primarily within education circles. Finally it is getting public attention and there are bills in the Senate and House that would make the rules regulating private loans less strict. Today young adults who can't pay back these loans (different from federal loans which require repayment, but have more options for payment plans and even occasionally forgiveness of loans) are classified as if they didn't pay criminal fines or didn't pay child suppport.

It seems to me that increasingly high school students and their parents need to talk about money, the long-term ramifications of borrowing (especially large amounts) and whether value in education should trump expensive brand name.

Meanwhile, read about the bankruptcy issue here.

No comments:

Post a Comment