Colleges Withhold Transcripts When Students Default

[IndiraMehta]

Colleges Withhold Transcripts From Grads in Loan Default | The Nation

SAD!

[Guest usctrojanalum]

It's a ****ty situation but what can you do. You can't just go canceling student loan debt completely. I've already paid off 70k of my students loans and only have about 14k left. Not fair to me if they start canceling people student loans who are in default. Some months I have been left with $50 to my name because I was breaking my back paying my loans off at $500 per month.

[Denita]

I have to agree with usctrojanalum. I worked two jobs all the way through college and made a point to borrow very little. I paid my loans off in less than 5 years after having graduated by busting my butt to do so.

It bothers me a lot to see students borrowing huge amounts to not only pay for their education but enough to live a fairly decent standard of living and then they choose not to repay the loan!

I think the entire system is broken. Student loans were never meant to replace working salaries and yet, that is exactly what is happening. Heck, some of these students are buying new cars with the funds that ought to be earmarked for education. To allow the students to borrow hundreds of thousands of dollars is a real perversion of the system. Of course the schools have got their mitts into this endless stream of income of borrowed funds where the cost of education has increased and yet the quality has decreased. Ok, now I'm just ranting.

It's a lose, lose situation now. Should the student lose his transcript when he fails to pay his student loans? What other recourse is there?

At what point does the student become a responsible adult?

PS..I'm sure the author of the article had to look far and wide to find a student that didn't use his funds for cars/housing. It's not typical. If the student were more responsible in the beginning, the loan balances would be more manageable and the payments would be lower.

Edited April 2, 2012 by Denita

[crash5050]

My question is this? What dog does the college have in the hunt? They have already been paid, the loans are not on the college's books, they are on the government and the bank that made the loan's books. Why would the college have the right to hold the transcripts, they have been paid?

[1stStep]

It's a vicious circle... you lose job and can't pay the loan...you find job but they need transcript, but you can't get transcript since they are not releasing...

[Guest usctrojanalum]

My question is this? What dog does the college have in the hunt? They have already been paid, the loans are not on the college's books, they are on the government and the bank that made the loan's books. Why would the college have the right to hold the transcripts, they have been paid?

"you don't bite the hand that feeds you"

[IndiraMehta]

It's a vicious circle... you lose job and can't pay the loan...you find job but they need transcript, but you can't get transcript since they are not releasing...

Education is getting really way too expensive. Despite that I have a scholarship, it's still expensive AND there are no good job prospects once I leave.

The expense of education has forced -- me at least -- to ONLY consider working for someone else. As cool as having a business might be, categorically, I will be unable to get a business loan to start it because of my student debt (not a crazy amount, but it's still amount higher than I can pay sometimes!). Working for someone else is going to limit what I can make off of the skills I got in college.

It's just a nasty quagmire, the current student loan system. No degree, no job. No money to pay the student lender = no transcript to show you know your stuff.

I think the future is in certification programs, not 4-year college commitments. It breaks my heart that this is where we are as a nation. Just full of greedy social darwinists who make money as the common people fight each other to the death.

[jay.harris33]

Scary what these places are getting away with.