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Defaulting On Student Loans

Rose Said:

Can the IRS Take my husbands return for my defaulted student loans?

We Answered:

This is one where you need the advice of a professional tax preparer and a good one.

Christina Said:

Is college going to become more affordable now that so many people are defaulting on student loans?

We Answered:

You wish. If people don't pay their student loans, then the student loan bank has less money to lend, and student loans become high-risk and less attractive to lenders. If they're high risk, interest rates and charges go up, not down.

Student loans have nothing to do with the cost of tuition. Students don't borrow directly from universities. They borrow from banks.

The demand for education is huge right now. Depressions and lay-offs lead many people to go back to school, get more education, so they can once again be employed.

When demand is high, where do prices go? High.

I can see one possibility for dropping tuition costs. Federal money. Barak's Bailout.

TX Mom
My hubby teaches university

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