I was recently reading an article about students who were being sued for not paying off their loans. Getting a job straight out of college has to be hard. Just getting an income and being forced to pay off a loan when you barley have the money to. That just doesn't sound right. Many are being threatened with legal action from their banks for nonpayment of tuition and other bills. Most jobs require previous work experience, and entry level jobs are scarce which has caused high unemployment rates.
The University of Pennsylvania filed six lawsuits against former students in November, demanding payments for $13,000 to $27,000. A university spokeswoman said that students who graduate with an outstanding balances, their debts are transferred to the school's collections office. Past-due balances are subjected to a late payment penalty of 1.5% per month. Universities have other ways of making students pay their bills. A former graduate student at Penn, have a lawsuit and the university withheld her access to her transcript. Which she said "limited the kinds of jobs that I could have." Be she settled her debts last year and said she understands the universities actions. "That's the rule when you owe money," she said. "We continue to be concerned about default rates and want to ensure that all borrowers have the tools to manage their debt," U.S. Secretary of Education Arne Duncan said in a press release. "In addition to helping borrowers, we will also hold schools accountable for ensuring their students are not saddled with unmanageable student loan debt.""Students and parents need to know that, even at similar looking schools, debt levels can be wildly different," said Lauren Asher, the president of The Institute for College Access and Success. "And if they do need to borrow to get through school, federal student loans, with options like income-based repayment, are the safest way to go."
Well I guess this tells article tells you that you can't get away with your debt, and consequences will happen.
I think it's ridiculous that the colleges are suing the graduates. I know when I get out of college, I will most likely be broke. Most college students are very poor, and as you said, many find it hard to find a good paying college. Even if they do find a job right away, they probably won't have enough to make sure they can easily get food and other supplies, so I don't agree with the college's decision.
ReplyDeleteI just think that college is getting a tad bit ridiculous if you ask me. I don't understand how they expect kids with so much money loaned that go through college to pay it off in a short amount of time. That's just crazy and nearly impossible. I mean when you get out of college you have to pay for everything already on top of those endless college loans. I just think that colleges need to slow down and think about how the kids feel and where they're placed in life.
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