posted 7 years ago
i do think that is unfair that student loans, as well as risky credit offers, are basically pushed on young people, who do not yet have a firm grasp of consequences, supporting themselves etc.
many people have gotten themselves way buried before they even really start, going deep into debt to pursue education, and yes often at things that are difficult to make money with once graduated.
before they know they are saddled with the debt... and it grows quickly with extra interest, especially if people fall behind.
and yes i think this is a much bigger issue in america with much more expenses for education.
also the usda, other mortgage assistance and other programs look at student loan debt differently, and not even being default on a student loan can be a deterrent to getting a farm loan or other low rate federally backed loan. for the FHA and FSA and other similar type loans that offer assistance for low and moderate income people will calculate the debt into their qualifying, not the amount of the actual payments, in your expenses.
even if someone is on a income based repayment plan (which can make your student loan payment 0$ for a long period of time providing you make less than 40k a year or so....) they calculate the whole debt into your expenses, and it often can disqualify people with large debt from ever being able to obtain financing for a home or farm purchase. even if they are paying on time, and even if they are current on all payments due to deferment or the income based repayment plan.
and being delinquent on any student loans will disqualify you from any participation.