If the Dr commits to military service for a time the loans are usually considered paid if I recall.
Doctors who default on their student loans
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Correction, the sole reason the economy works the way it works right now is due to OPM.
However, that also comes with the boom and bust cycles.
Notice which area are hit hardest when the bubble bursts. It's those that were not as impacted by the infusion of OPM.
While the housing market as a whole is bad, only a relative few places experienced the drops like Las Vegas, Florida, etc.
It's great if you ride the wave and get out before it crashes. But not so great if that wave crashed in on you.
I suppose one could watch the OPM and look for signs they are getting out and leave with them, trying to enjoy the bulk of the ride up while missing most of the crash.
It's like that old saying, when the paperboy and shoe shine guy are giving you stock tips, it's time to get out.
Originally Posted By: Vikas
I am sorry to say the sole reason modern economy works is because of OPM. How do you think wall street makes their money?
Show me somebody who is raking in bucks without using OPM.
- Vikas
However, that also comes with the boom and bust cycles.
Notice which area are hit hardest when the bubble bursts. It's those that were not as impacted by the infusion of OPM.
While the housing market as a whole is bad, only a relative few places experienced the drops like Las Vegas, Florida, etc.
It's great if you ride the wave and get out before it crashes. But not so great if that wave crashed in on you.
I suppose one could watch the OPM and look for signs they are getting out and leave with them, trying to enjoy the bulk of the ride up while missing most of the crash.
It's like that old saying, when the paperboy and shoe shine guy are giving you stock tips, it's time to get out.
Originally Posted By: Vikas
I am sorry to say the sole reason modern economy works is because of OPM. How do you think wall street makes their money?
Show me somebody who is raking in bucks without using OPM.
- Vikas
Originally Posted By: KrisZ
Didn't we have a thread about student loan bubble? If this is not a sign of student loan bubble just about to burst, I don't know what is.
Its a bubble alright, but it doesn't seem to be anywhere near bursting, too much easy goverment money is flowing and college enrollment is at record levels I believe.
Too many students and parents still believe a college degree, any degree, is the path to success and are all too willing to plunge themselves into crushing, inescapable student loan debt.
Didn't we have a thread about student loan bubble? If this is not a sign of student loan bubble just about to burst, I don't know what is.
Its a bubble alright, but it doesn't seem to be anywhere near bursting, too much easy goverment money is flowing and college enrollment is at record levels I believe.
Too many students and parents still believe a college degree, any degree, is the path to success and are all too willing to plunge themselves into crushing, inescapable student loan debt.
Originally Posted By: Rock_Hudstone
Too many students and parents still believe a college degree, any degree, is the path to success and are all too willing to plunge themselves into crushing, inescapable student loan debt.
Not enough downside for people not repaying the loans IMO. The money comes too easy.
Too many students and parents still believe a college degree, any degree, is the path to success and are all too willing to plunge themselves into crushing, inescapable student loan debt.
Not enough downside for people not repaying the loans IMO. The money comes too easy.
Originally Posted By: LT4 Vette
And with no college what will they do ?
Many vocational trades are not doing so well.
+1
And with no college what will they do ?
Many vocational trades are not doing so well.
+1
I thought that with gov student loans you couldn't take bankruptcy any more. I agree though that these doctors and for that matter anyone should be expected to pay back their loans. Any more though it seems like a loan is a optional payback. Put it out to a collection agency and let them do them do the dirty work, garnish wages or put a lien on their places.
Originally Posted By: LT4 Vette
And with no college what will they do ?
Many vocational trades are not doing so well.
I'm not knocking a college education per se. However, these days you have to be extra careful about the school you attend, grade point average, and most importantly, the major course of studies. The latter preferably in a well paying field with high rates of employment now and in the future.
Attending a mediocre school, in a useless major, average grades and a big pile of debt after four years is a receipe for disaster far worse than no college at all.
I went two years at a local county college, then transfered to a private four year university as junior, lived off campus, worked part time all through school, and graduated virtually debt free.
And with no college what will they do ?
Many vocational trades are not doing so well.
I'm not knocking a college education per se. However, these days you have to be extra careful about the school you attend, grade point average, and most importantly, the major course of studies. The latter preferably in a well paying field with high rates of employment now and in the future.
Attending a mediocre school, in a useless major, average grades and a big pile of debt after four years is a receipe for disaster far worse than no college at all.
I went two years at a local county college, then transfered to a private four year university as junior, lived off campus, worked part time all through school, and graduated virtually debt free.
Originally Posted By: 65cuda
I thought that with gov student loans you couldn't take bankruptcy any more.
Thats right, Congress passed a law a few years ago. Now government student loans are more or less non-dischargeable. That means it follows you until you pay it off or die.
This naturally invites moral hazard as the possibility of bankruptcy traditionally encouraged cautious lending practices.
Same thing happened in the housing market, but fortunately you can still toss the house keys in the mailbox and walk away.
I thought that with gov student loans you couldn't take bankruptcy any more.
Thats right, Congress passed a law a few years ago. Now government student loans are more or less non-dischargeable. That means it follows you until you pay it off or die.
This naturally invites moral hazard as the possibility of bankruptcy traditionally encouraged cautious lending practices.
Same thing happened in the housing market, but fortunately you can still toss the house keys in the mailbox and walk away.
Actually I disagree. Many people don't think twice about bankruptcy. They just look at it as a bump in the road that once it is over they are free to continue. When you can't take it and you have bill collectors chasing you then it takes a different outlook. Employers don't like having garnishments and look at you as a liability. Having a lien on anything you own is a hazzard also. To be honest the housing market deal I blame a lot more on the mortgage companies, agents and appraisers. Mortgage companies and agents were pushing you to buy high since RE is always a "safe" investment. Also with the shows on Tv about flipping a home look so easy many bought into the idea that if things went wrong you'd be able to sell and be OK. Appraisers would just find out how much it needed to go for and find a way of getting the number.
Originally Posted By: 65cuda
Actually I disagree. Many people don't think twice about bankruptcy. They just look at it as a bump in the road that once it is over they are free to continue. When you can't take it and you have bill collectors chasing you then it takes a different outlook.
I was refering to lenders fear of the borrower declaring bankruptcy, hence the incentive for only lending to credit worthy applicants.
The ability to declare bankruptcy goes way back in this country and is American as apple pie, the founding fathers were all in favor of it.
Bankruptcy laws keep everyone honest. Ideally, banks that want to stay in business maintain sound lending standards, people who cannot demonstrate ability and willingness to repay a loan are therefore denied. Thus, lenders avoid potential losses and borrowers don't get stuck with a loan they couldn't afford in the first place.
However, the trouble, as always, starts when the government gets involved.
Actually I disagree. Many people don't think twice about bankruptcy. They just look at it as a bump in the road that once it is over they are free to continue. When you can't take it and you have bill collectors chasing you then it takes a different outlook.
I was refering to lenders fear of the borrower declaring bankruptcy, hence the incentive for only lending to credit worthy applicants.
The ability to declare bankruptcy goes way back in this country and is American as apple pie, the founding fathers were all in favor of it.
Bankruptcy laws keep everyone honest. Ideally, banks that want to stay in business maintain sound lending standards, people who cannot demonstrate ability and willingness to repay a loan are therefore denied. Thus, lenders avoid potential losses and borrowers don't get stuck with a loan they couldn't afford in the first place.
However, the trouble, as always, starts when the government gets involved.
Originally Posted By: The Critic
Originally Posted By: LT4 Vette
And with no college what will they do ?
Many vocational trades are not doing so well.
+1
Part of the problem is that I see many degreed people look snobishly down their noses at people who work with their bodies in "manual" trades.
A whole bunch of them can do a heck of a lot more than I can ever do with a degree.
When degreed people are starting to talk about putting trades on salary, and salary compared to people with 15 years degreed experience, people who matter are starting to pay attention to where the rubber hits the road.
Originally Posted By: LT4 Vette
And with no college what will they do ?
Many vocational trades are not doing so well.
+1
Part of the problem is that I see many degreed people look snobishly down their noses at people who work with their bodies in "manual" trades.
A whole bunch of them can do a heck of a lot more than I can ever do with a degree.
When degreed people are starting to talk about putting trades on salary, and salary compared to people with 15 years degreed experience, people who matter are starting to pay attention to where the rubber hits the road.
Originally Posted By: 3311
Is there a website exposing lawyers, engineers, government officials, federal employees, or any other well paid field?
Do you have an issue with well-paid fields?
Is there a website exposing lawyers, engineers, government officials, federal employees, or any other well paid field?
Do you have an issue with well-paid fields?
Originally Posted By: 65cuda
I thought that with gov student loans you couldn't take bankruptcy any more. I agree though that these doctors and for that matter anyone should be expected to pay back their loans. Any more though it seems like a loan is a optional payback. Put it out to a collection agency and let them do them do the dirty work, garnish wages or put a lien on their places.
This is true. Bankruptcy does not absolve your student loans. They stay with you.
I thought that with gov student loans you couldn't take bankruptcy any more. I agree though that these doctors and for that matter anyone should be expected to pay back their loans. Any more though it seems like a loan is a optional payback. Put it out to a collection agency and let them do them do the dirty work, garnish wages or put a lien on their places.
This is true. Bankruptcy does not absolve your student loans. They stay with you.
Originally Posted By: Smoky14
If the Dr commits to military service for a time the loans are usually considered paid if I recall.
Yes, if you take out 4 years of loans as a medical student, you're loans are taken care of by the government if you put in 5 years of military service after your residency. of course, you might get sent to Guam, Japan, Germany, Afghanistan, or San Diego. The hope is that after those 5 years, you continue on as a military or VA doc.
If the Dr commits to military service for a time the loans are usually considered paid if I recall.
Yes, if you take out 4 years of loans as a medical student, you're loans are taken care of by the government if you put in 5 years of military service after your residency. of course, you might get sent to Guam, Japan, Germany, Afghanistan, or San Diego. The hope is that after those 5 years, you continue on as a military or VA doc.
Originally Posted By: The Critic
Originally Posted By: 3311
Is there a website exposing lawyers, engineers, government officials, federal employees, or any other well paid field?
Do you have an issue with well-paid fields?
Not in the least! I'm just curious why doctors were singled out.
Originally Posted By: 3311
Is there a website exposing lawyers, engineers, government officials, federal employees, or any other well paid field?
Do you have an issue with well-paid fields?
Not in the least! I'm just curious why doctors were singled out.
I completely agree with this below. Once my wife entered medical school, tuition was "no problem!". plenty of people come forward wanting to loan you money. You had to be careful. Some fine print had loan interest rates at 3% in school that ballooned to 13% after school.
As for loan defaults screwing the system - I'm not so sure about that. The investors/government who subsidized the loans have easily made profit from the interest they charged all the others who are paying back appropriately.
Originally Posted By: javacontour
We did.
I think anytime you have third party money coming in, be it federal loans, or other "investors" you can get a bubble like this.
Look at the housing bubble. Actions by both the government and bankers flooded the housing market with 3rd party money. House prices rose. Once the underlying market could not sustain the prices, in other words, once sanity returned, the market cratered.
You see the same thing in colleges and universities. It's not the colleges and universities loaning THEIR money. It's other peoples money with federal loan guarantees. If a borrower doesn't pay off his/her student loans, it's not the educational institution that takes the loss, it's the bank, or taxpayer, or some 3rd party.
How about we make the colleges loan their own money. While you can't make them, you can stop making OPM available so if they want a student to take loans, it's their money that's at risk.
As for loan defaults screwing the system - I'm not so sure about that. The investors/government who subsidized the loans have easily made profit from the interest they charged all the others who are paying back appropriately.
Originally Posted By: javacontour
We did.
I think anytime you have third party money coming in, be it federal loans, or other "investors" you can get a bubble like this.
Look at the housing bubble. Actions by both the government and bankers flooded the housing market with 3rd party money. House prices rose. Once the underlying market could not sustain the prices, in other words, once sanity returned, the market cratered.
You see the same thing in colleges and universities. It's not the colleges and universities loaning THEIR money. It's other peoples money with federal loan guarantees. If a borrower doesn't pay off his/her student loans, it's not the educational institution that takes the loss, it's the bank, or taxpayer, or some 3rd party.
How about we make the colleges loan their own money. While you can't make them, you can stop making OPM available so if they want a student to take loans, it's their money that's at risk.
Originally Posted By: 3311
Not in the least! I'm just curious why doctors were singled out.
Docs can be singled out a lot because they get ZERO training about politics or finances in medical school. The system brainwashes them that if youre a doc, youll be well compensated and not have problems with money. They're totally blindsided by business tactics that insurance companies and lawyers throw at them with contracts once they get into the working world. of the 10 docs I work with, turns out only one of them read their employment contract, and none of them consulted a lawyer about it beforehand. Total experts in healthcare. Total babies in the business and in the political world.
Not in the least! I'm just curious why doctors were singled out.
Docs can be singled out a lot because they get ZERO training about politics or finances in medical school. The system brainwashes them that if youre a doc, youll be well compensated and not have problems with money. They're totally blindsided by business tactics that insurance companies and lawyers throw at them with contracts once they get into the working world. of the 10 docs I work with, turns out only one of them read their employment contract, and none of them consulted a lawyer about it beforehand. Total experts in healthcare. Total babies in the business and in the political world.
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