- There are more than 4000 colleges and universities at autos price points it he US, leaving your family with quite a few affordable options. You and your family made a conscious decision for you to attend Georgetown knowing the cost to attend. There are and will always be less expensive options (whether you want to take or will be happy with those options are another issue)
- Student loan debt isn't dischargable through bankruptcy
Georgetown University
2012: Revenue - Expenses = $94,744,489
2013: Revenue - Expenses = $187,644,456
(From their 990 form)
Some might call that a “profit”…
There are plenty of affordable colleges. If you CHOOSE to attend an unaffordable college that requires you to take out loans, why shouldn’t you be responsible for repayment.
And you are incorrect. Wage garnishment is permitted for other loan defaults too, in certain states…following a judgement,
What can’t be done with student loans…they cannot be discharged in bankruptcy…and you know what? I agree with that. Because always…ALWAYS taking loans s a choice. It is not something ANY college student has to do or is required to do. It’s a choice.
Every single student out ther can complete a college degree debt free. Every one. No, it might not be in four years. It might be on the 12 year plan while the student works full time and takes classes one or two at a time as affordable.
Let me put it to you very clearly. If you are a Georgetown student, you had the stats to get a full ride at a number of lesser known schools. You could have gotten excellent merit aid up to full tuition at a number of others.
YOU made the choice that Georgetown, with loans, was what you had to do. That was your choice.
And now it sounds like your family encouraged your sister to make the same choice. Apply ED…maybe her school is an affordable one. Though I doubt that.
So if you didn’t want loans…why, WHY did you enroll at Georgetown. Surely you could have gone to college at a less costly university.
And if it takes loans for you to be at Georgetown, you absolutely should be planning to repay your loans.
Of course they do. See the “Ivory Tower”, a 2014 film.
Are you the parent or child? ONLY ONE person should be using your acct. Accts are not shared.
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Our income after taxes is under $100K.
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I save $25K per year per child. We have two cars, both bought used and both 12 years old. Like your we family we don’t spend excessively.
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Your parents’ income (your parent wrote the above) is $100k AFTER taxes and AFTER $20k in 401k contributions. So, their income is likely $160k or more…is that right? Plus your parents have a lot in savings FOR COLLEGE
So why the need for loans when your parents saved so much for college???
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Univ of MD lowered our EFC by $10K. Another school, even with a tuition roughly $20K less than GT, offered a package similar to what GT offered.
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Looks like you should have gone to UM-CP or that other school. The fact that you chose the more expensive school means that you have little room to complain.
Also, see https://www.youtube.com/watch?v=cnH7O93kQEc “Financial Aid: Making Higher Education Easier to Achieve for NYC Students | The New School”
Around 59:35 “We don’t really have student debt problems!”
So, what was your family income BEFORE taxes? And more important…what are your assets because those count too.
Get your own financial aid applications done ASAP for G’town. With two in college, you might see a small bump in your aid…maybe. All depends on your actual income and assets.
@mom2collegekids I think I actually misread your post. But, anyway, you seem to be missing my point too.
@inacrappymood , I appreciate elements of your argument, although I don’t agree your family’s specific scenario is “unethical.”
Your post reminded me of this opinion piece: https://www.washingtonpost.com/opinions/where-college-students-should-aim-their-misdirected-rage/2015/12/24/41f19642-aa6c-11e5-9b92-dea7cd4b1a4d_story.html
I particularly like how the writer finishes off, “I applaud — even envy! — Kids Today’s ability to organize, focus their rage and demand specific actions and solutions. But I wish they would channel at least some of that youthful angst elsewhere — such as, say, the voting booth.”
Good luck & aloha.
These were posted by the OP before his daughter enrolled at Georgetown.
So the OP is getting $30,000 in need based aid for Georgetown if they on,y have to borrow $30,000 a year.
And the OP (who is the parent in 2012) also says the have $25,000 a year saved for each child. That is at least $200,000 in college savings. Right? Two kids, $25,000 a year each?
There certainly are plenty of colleges where these kids could have attended debt free on $25,000 a year.
And yes…the contributions to,that 401k ARE added back in as income for financial aid calculation purposes.
So income is under $100,000 after taxes…but what is it before taxes? And how much was contributed to the retirement accounts as well.
And lastly, this student had the stats to get into Georgetown. She could have gotten a nice tuition scholarship to University of Alabama, or Temple. Guaranteed. And the family could have easily paid the difference with their $25,000 per year, per kid savings. No loans…at all.
This is entirely wrong. As stated in posts above, the government cannot garnish your WAGES if you are in default on a student loan unless the government goes to state court, reduces the loan to a judgment, and then collects under the judgment. State law would dictate how much of your wages are protected from attachment, under what conditions the creditor can get money, the process for doing so. The government can attach any refunds the government may owe you for excess payments (withholdings) of taxes, tax credits, etc., it has for you. How do you avoid this? Don’t over withhold on your tax payments, don’t get a refund (you can easily calculate your tax liability and withhold very close to the amount of taxes you will owe in a year. A JUDGMENT, even one where the original debt was a student loan, can be discharged in bankruptcy court under certain conditions.
Sure you can discharge your LOAN on your MORTGAGE (a mortgage is security on a loan, a loan is the agreement to pay) in a bankruptcy proceeding, but you don’t just start over - you lose the house! Secured loans are different than unsecured loans. Student loans are unsecured. There is nothing like a car or house to take back if the student doesn’t repay, so that’s why they aren’t dischargeable. You do not file bankruptcy, tell the creditor you aren’t going to pay for the house, and then get to keep the house. You either pay the loan on your house or you lose the house.
Chapter 11, by the way, is usually a business bankruptcy. A personal bankruptcy is either Chapter 7 (full discharge) or Chapter 13 (a payment plan of 3-5 years, and at the end of that plan, a discharge).
Not necessary.
Closing this thread. The OP can open a new one with a new account (not the parent’s).