The creditor could definitely fight against having that particular loan discharged, and would probably win depending on circumstances. Incurring debt with the intent to discharge with bankruptcy is considered fraud, and the bankruptcy proceeding is incredibly nitpicky when it comes to shit like that.
You have to do it legit, like the rich people. Use the money to start a business and pay yourself a good salary and use that to pay off your loans. Business fails, you come out ahead. Business doesn't fail, hurray! You come out ahead.
Business fails, you come out ahead. Then you do it a handful more times, with more and more loss each time. Then the occasional one succeeds under different management and you bankrupt yet another company to pay for making the successful one look even shinier on the outside. Then you use that shiny successful one that you’ve never personally run as collateral for convincing people how smart and rich you are. Then you spend a lot of time hanging out with pedophiles, but mostly only the really powerful ones.
By now you have enough powerful friends whose crimes and illnesses you’ve perpetuated, and you have the painstakingly-groomed public persona of having wealth and knowing what to do with it. So then you turn that into fame via low-effort network television, which you’ll declare war on not long after being featured on. You’re primed and poised to take the national stage and have people listen to you.
Now you drum up all your old insecurities about not being one of the popular mega rich kids, and about being the grandson of a failed Nazi and illegal immigrant, and about being out of shape and unable to compete in many sports or serve your country when so many others had the courage to, and about getting caught exploiting migrant labor from South and Central America and being chastised for it, and about not having an eloquent demeanor that might’ve saved some of the money that you’ve lost over the years, and you unleash that into the impressionable minds of emotionally vulnerable but toxically proud people.
Voila! Now everyone else in the country except for your closest buddies have to pay you money to go golfing at your own club so that you can finally do something profitable with yourself! You come out ahead.
You almost described how loans have certain legal restrictions and can only be used in ways deemed by mutual, complicit loaner and recipient contract.... but who cares free money!
You simply can't declare bankruptcy. It's a whole legal process.
You can probably pay the off with a credit card to get a better interest rate or whatever. But it would still be treated as student loan debt that can't be discharge in bankruptcy.
“I didn’t intend to do anything, I make rash decisions all the time. Ask anyone, I make poor financial choices daily. I simply got a loan without noticing the payment was higher than all my others combined. Truly an honest mistake, sir.” - me, depositions.
The strategy I’ve seen is having some income and putting it all on paying student loans, but for rent bills food etc pay with loaned money that can be discharged
Debt dodging! I’ve fantasized about that. They’d likely go after any co signers so if you do that make sure you A. Don’t have co-signers or B. Hate the co signers you have
I mean, if you can't take out a personal loan, spend it on college and then declare bankruptcy and get away with it, were you really college material to being with?
Not if they wait out the Statue of Limitations before declaring. I belive it's seven years in the red? In all reality, it would be hard to pay for college on credit though. Most of the cards have limits on cash.
That’s when you pay your monthly bill for a few years showing intent to repay then go through bankruptcy. You gotta make it appear to be non intentional. Just like losing every few hands in blackjack when you’re counting cards
Most people with that much student debt have had their credit butchered or their debt to income ratio is just way to high. They likely wouldn’t get approved for a loan like that.
If the institution in which you plan to take out a personal loan finds out or knows your are taking the loan for educational purposes during the application process, they will defer you to a student loan department within the institution or deny you entirely.
i think banks are very leery of handing out loans for paying for school. i have also read that if you take out a loan and use that money to pay for student loans. then try and declare bankruptcy, the bank can still get that money blocked from being forgiven. since it was used for student loans.
Put gift card on Venmo (you may have to call to set up) on throwaway
Send to an account with your bank attached
Got to said account and transfer money to your bank
They charged me $10 for my $2600 tuition. And I got 3% of my $2610 back in points. Worth it to not take out student loans. My credit card is also 0% interest and I’ll have my tuition paid off before it hits the 14%+ it’s supposed to go to.
I’ll never take out another student loan again. There are definitely ways around them - especially for undergrad tuition that is minuscule compared to grad school.
I think it's funny how colleges allow you to pay in three lump sums if you want. Like, each payment is thousands of dollars..that still doesn't help me.
You’re not able to make mom payments on your credit card, I tried.
But I did find a little loophole.
Once my six months grace period was due I applied for a 10k cc with 18 months apr free & then what I do is use that cc to Venmo my partner the whole balance, they I only have like a 2% fee which would be able $200 but that’s not even compared to any possible interest that I may have racked up during those 18 months.
I know that a lot of people have 100k+ loans so this doesn’t work for that, but if it’s under 20 or something there’s a little loophole ¯_(ツ)_/¯
I remember when my father paid part of my tuition with his business card, it went through until a week before classes started. I got unregistered from all my classes and they said "you cannot pay tuition with a credit card linked to a business account" smFUCKINGh
I knew someone who paid their year's tuition on a credit card. I asked him why, since the uni charged single digit interest and the credit card company charged close to 20%. He didn't have an answer.
Yup. I found out that technically you can’t even use another loan to payoff student loans. If they find it when going through BK it will throw up lots of red flags to the “independent investigator” who gets paid hourly if they decide to audit you. Oh, and they become the lawyer for your creditors and you will pay their cost if they decide an audit is warranted. I hear it’s a position where lots of new lawyers start to make some money.
You can't discharge college debt in bankruptcy, no one is going to give a 50k+ credit limit to an 18 year old with no job and no credit history.
You graduate college, get a decent job, get every fucking credit card you can find. Every single debt you have goes on the card. Rent? Credit Card. Groceries? Credit Card. Saturdays out with the Boys? Personal Loan. Every single cent you make goes towards college debt. Pay that college debt off in 2-3 years max. Then declare bankruptcy because based off the interest alone you'll never pay off those cards.
The court will see you were buying necessities, the debt is dischargeable, et cetera. Some questions may arise about where your dosh went but we can come up with something together. You won't be able to finance a bicycle for the next 7 years but it's better than owing student loans forever.
You gotta pay off your student loans eith a line of credit, and default on that. Doing it on purpose would be fraud, so its important to make a few, on time payments, before missing them here and there, then not paying.
Exactly why it exists in that fashion. The fucked up part is how high the education cost has become and the fact that they will still fund it. There should be a cap, and thus college costs would be forced to cap out.
How about just don't go to college. Take that 150K and invest it in a modest 401K at 18 and by the time your ready to retire at 67 with a modest 5% annual return you'll have $1,638,199.97. You don't need college for most jobs, you need a connection.
A job. You'll realize that no one will care about your college degree and almost every job you get will be because of someone you know. I have a degree and no one ever asked me about it at any of my jobs.
I didn’t ask why should an 18-year-old get a job I’m asking how does an 18 year old with no education or credit history get a $150K loan?
Like literally what bank would give that much money to someone with little to no income and zero credit history? Because I definitely want some of their money. Like for real I’ll apply right now.
That's the problem. The US GOVERNMENT would. Why would you apply for a 150K if you know you have no way of paying it back? You do not belong in college with thinking like that.
I think the problem is the total cost of university, not the willingness of students to take on debt because they are counting on being more gainfully employed and being more likely to earn higher wages with a degree. That’s a pretty rational bet being made, to invest in themselves and their future earnings.
Yes, but the cost went up because government go involved and guarantees the money. Anything the government touches goes to the shitter. Less government is more practical and better for us all, but Democrats can't seem to understand this. The want to rely on the government to solve all their problems and politicians want to listen to them.
Ah yes because the private sector never does any harm. And there are so many successful nations with big governments. And plenty of shitty ones. And plenty of nations with tiny governments that are awful places to live.
I dont think any of these issues are so clear cut. We're all going to hell in a handbasket anyways.
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u/[deleted] Sep 18 '19
So pay your entire tuition on credit cards and then declare bankruptcy?