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Personal Finances / Living Below Your Means


Subject:  Re: Don't do this.... Date:  2/26/2014  1:39 PM
Author:  Hawkwin Number:  880506 of 902431

Two years ago, she decided to start over completely, going back to school for a Masters degree in social work at Yeshiva University in New York. Today, Eichengreen now 60, is living off of student loans and says it’s unlikely that she’ll be able to pay off her $200,000 student debt, which includes what she borrowed for her first Masters studies in broadcast management.

I read most of the responses to this post but did not see one from anyone complaining that the system that awards such loans turns a blind eye to a person's ability to repay such.

With all the "suitability" rules we now see for home loans, it makes sense that some suitability rules should be extended to education loans. No lender with their own skin in the game (without federal guarantees) is going to loan such a person up to $200,000, at her age, and with the selected profession.

Absent some significant retirement savings on her part, there is almost no reasonable way she could have expected to pay of that loan by the time she retired.
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