To the People

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or TO THE PEOPLE.

Tuesday, February 16, 2010

Person Who Defaulted On Debt Kept Up At Night By Not Being Able To Take On More Debt. Welcome To America!

The lede of this WSJ article on one oh-so tragic case of student debt gone wrong should probably be:
Yet many former students are trying. There is an estimated $730 billion in outstanding federal and private student-loan debt, says Mark Kantrowitz of FinAid.org, a Web site that tracks financial-aid issues—and only 40% of that debt is actively being repaid. The rest is in default, or in deferment, which means that payments and interest are halted, or in "forbearance," which means payments are halted while interest accrues.
What struck me however was this:
The debt load keeps her up at night. Her damaged credit has prevented her from buying a home or a new car. She says she and her boyfriend of three years have put off marriage and having children because of the debt.
HOLY FUCKING SHIT. If you read the article you will find out that this chick has $555,000 of debt -- in student loans alone. She's also missed payments and attempted to default on certain loans. I would hope her credit prevented her from increasing her debt to something in neighborhood of $1million. YOU CAN'T AFFORD A HOUSE. That's why you can't buy a house. It's pretty fucking simple.

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