<p>I think banks that offer these loans are being willfully duplicitous and irresponsible. After all, they know the government - that is, we - will pay up if the students/parents don’t. They don’t have any skin in the game. </p>
<p>But that’s what banks and bankers do. There is no personal responsibility. And banks and social responsibility is an oxymoron.</p>
<p>mini,
The government did not have to guarantee the student loans made by banks. That was a policy decision to make loans more accessible. Put the blame, if you must, where it rightly belongs; with the government (i.e. you).</p>
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<p>We want to absolve people from personal responsibility. We got the government that we deserve. :(.</p>
<p>Hey, speak for yourself! ;)</p>
<p>“As long as employers give preference to candidates having a degree from an expensive private school this problem will continue.”</p>
<p>I don’t believe that they do give much preference, except for the most elite schools that are also the most generous with need-based aid. Students and families may believe that employers will choose the Goucher (or GWU) grad over the UMD or Salisbury grad, but I haven’t seen any evidence that that is actually true.</p>
<p>Bay, the government was lobbied by the financial institutions that made the loans…</p>
<p>If the banks took responsibility for their business decisions, the banks would not exist. ;)</p>
<p>dstark, you are a cynic. ;)</p>
<p>Actually what I wrote is true. :(</p>
<p>If the government did not guarantee the student loans, then the banks would not make them, without some collateral or evidence of income. Can you get a (non-student) consumer loan without either of those things? I don’t think so. Even the revolving credit accounts issued to high income earners are limited to specified maximums unless one has a seriously good credit history.</p>
<p>How much are the banks still involved in student lending?</p>
<p><a href=“Overhaul of Student Loans Passes Congress - The New York Times”>Overhaul of Student Loans Passes Congress - The New York Times;
<p>I think old stafford loans were turned over to the government. My son had one through Discover bank and without us doing anything it was rolled into something else. All his Stafford loans are still ‘serviced’ by <a href=“https://www.mygreatlakes.org/[/url]”>https://www.mygreatlakes.org/</a></p>
<p>People do and will continue to make bad financial decisions every day.</p>
<p>How about all the people who lease a car they could never afford to buy and have perpetual car payments? Sure, I can see leasing if you can AFFORD to have a car payment forever, but MANY people can’t, but they want the short term gain without thinking about the repercussions.</p>
<p>If we have pity and bail out every company or person who behaves financially irresponsible, nobody learns a lesson. Whether that is a bank, a shareholder, a homeowner, a student…</p>
<p>Did you know that a parent who receives child support (at least here in PA), does not ever have to account for the money. I know someone who gets ~600 a month. She hasn’t work since the day her almost 15 year old daughter was born. She lives in a house owned by her father (the mother’s father, he pays the taxes and insurance too). Her entire cash ‘income’ is the child support. Her daughter has CHIP (health insurance - kid got her braces for FREE) and food stamps.</p>
<p>She has 7 cats and 2 dogs. I think it’s criminal to know she spends so much money on pet food, kitty litter, etc. I can understand having 1 or 2 pets, but 9 ???</p>
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<p>Yes, I was always puzzled why child support is non-taxable (and why paying parent cannot deduct it on their taxes).</p>
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<p>I don’t think it is our business. However, if the child’s father does not think his child support payments are spent wisely, he should address the issue in family court. The child is 15 now, so this woman’s gravy train is coming to an end. I hope she has a plan what to do when this happens.</p>
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<p>In some states (maybe all?) the food stamps and welfare cash payments are reduced by the amount of child support custodian parents receive. Hopefully, it is the case in PA.</p>
<p>Going OT here for a bit, Blossom, though I know a lot of parents who do wish they had not gone the “mommy track” when their kids were small,I know just as many who wish they had, being in an area where the split is about half. Of course, both sides would like the benefits enjoyed, PLUS the benefits forgone. Such is human nature. When things go wrong, in those decisions, that is when the lament occurs. Many of us moms, some on this board, and myself included did go back to work when the kids went off to college, and though, yes, we are making less than if we had not stayed home when the children were growing up, we had the privilege of being home and more involved with them due to that decision. I don’t know a single one who expects any taxpayer or government assistance for this choice, not a one. I bring this up because this is the first I’ve heard of this one. What sort of government assistance is being asked from the tax payer? Family income might be lower than if both parents worked which means possibly more financial aid, but the family has “paid” for that by being in a lower income bracket, a situation that can occur for any number of reasons?</p>
<p>Not one ounce of pitty from me. Many kids go to Goucher because they are too good for a state university. I know many of them since we live in the area. Well be too good and pay the extra costs. The student didn’t borrow this on his own. Let the parents pay as they should for their choice.</p>
<p>Child support is money a parent is giving their child. Just because the child lives with the other parent shouldn’t make it taxable. Is money you give your child in college taxable to them and deductible to you? </p>
<p>As far as the lady sueinphilly knows, why is this different from a 2-parent home in which the mother stays home and they get food stamps and the children are on state health insurance? If the state will give food stamps to a 2-parent family with a mom at home and not require the mom to work, it makes no sense to say that a 1-parent family can’t have a mom at home. After all, in both cases, one parent is working to support them and the state has determined that that’s enough to qualify for certain kinds of aid. (Note that I’m not saying that I agree with this; I’m just saying it’s equitable.) As far as the mother’s expenses, the non-custodial parent can go to family court. Around here, a parent who does not work can have income imputed for child support purposes.</p>
<p><< I hope she has a plan what to do when this happens>></p>
<p>He is NOT allowed to ask how the money is spent, the court makes no restrictions on it.
He is claiming the daughter as dependent even though he doesn’t live with him (because otherwise no one would claim her. Kid is only in 8th grade, turning 15 in April, she repeated 3rd grade. </p>
<p>Mom has no financial plans for the future, she has 4+ years to figure something out (she had never been more than a retail clerk from age 18-35 before having baby)</p>
<p>Kid’s dad is turning 65 in July (they were never married). Not one of Dad’s 3 other adult children went to college. Adult daughter has 5 kids by 3 men, adult son has 4 kids by 3 women (and latest wife came with a kid also), other adult son only has 1 kid but he gets SSDI (for being deaf) so the state pays his child support. Yup, this is what it’s like for the ‘other side’ of the track. </p>
<p>I think the community on this board is so in tune with reality that we can’t believe what is going on ‘out there’</p>
<p>Add me to the list of those saying that students (or co-signers) are responsible for the debt. Don’t take the loan if you cannot pay it back - using realistic assumptions about future earnings. There are countless threads about paying for college (CC, merit aid, working before and during school, etc.) Don’t blame the lenders; just don’t sign something until you understand it. I would love to do countless number of things I cannot afford to do; but I don’t!</p>
<p>yes, give food stamps to the working poor and those UNABLE to work. This woman CHOSE to have a baby out of wedlock (as did I) and CHOSE not to ever work again.</p>
<p>She has her free cell phone and discounted utilities and internet ($10 from comcast)
The electric company GAVE her a new refrigerator.</p>
<p>I’m all for helping the poor, but at what point do you say, GET A JOB, any job</p>
<p>Her daughter has never lived in a house where a parent works. I feel sorry for her, but she is almost brain dead and LIKES it that way. I guarantee she will be a teenage mother for ‘something to do’</p>
<p>sueinphilly, under certain circumstances, a non-custodial parent can legally declare a child as a dependent on his/her taxes even though the child doesn’t live with him/ her. I didn’t realize that the state would pay your child support if you are on SSDI? Do you mean the child support is deducted from the SSDI and given directly to the mother or do you mean the child gets additional money for being the dependent of someone on social security (another pet peeve of mine-- how many invitro and 2nd marriage babies will be receiving Social Security because daddy is old even though he’s wealthy) and that counts as his child support?</p>