Eek! This is the worst! Universities, good ones at that, are suing students who don’t repay their student loans.
From the Bloomberg article:
Yale, Penn and George Washington University have all sued former students over nonpayment, court records show. While no one tracks the number of lawsuits, students defaulted on $964 million in Perkins loans in the year ended June 2011, 20 percent more than five years earlier, government data show. Unlike most student loans — distributed and collected by the federal government — Perkins loans are administered by colleges, which use repayment money to lend to other poor students.
To be sure, the colleges need their money. It’s no fun being a bill collector, but this article still saddens me. It seems a little cold. The graduates obviously needs some help in the employment area. You can even have your social security docked for not paying your student loans on time.
If you have to borrow more than the cost of a mid-range sedan for college, you may need to consider another institution or work harder for scholarships. There are so many choices for colleges out here. Don’t mortgage your future away. When you get a job, make sure to negotiate HARD. You’re worth it. And if you come across a financial windfall, do like like Frugalisto Alex Kenjeev did and tell that debt to take a hike!