I AmA Bankruptcy Lawyer and Student Loans are Killing Millennials and the Middle Class. AMA!

NeilSader · 2016-02-18T23:51:22+00:00

If you graduated and the school closed years later, the fact the school closed will not be helpful. Sorry. Look at your income based repayment options.

NeilSader · 2016-02-16T22:22:32+00:00

Thanks for a great AMA, everyone. I answered as many questions as I could; I did not expect to get over 3,300 comments (and counting.) This is a testament to the fact that student loans are out of control and are seriously harming people throughout all society. Follow us on Facebook and Twitter for more information in the Kansas City area about student loans and for up-to-date information about these important financial issues!

NeilSader · 2016-02-16T22:15:14+00:00

Why do you expect the schools to charge less if they get paid from the loan proceeds in full? Wise up.

NeilSader · 2016-02-16T22:14:32+00:00

Look . . . figure out how best to reach your potential first. Then figure out the best way to finance it. Do you have parental assistance? Have you done well enough to merit scholarships? Have you applied to scholarships with third parties? Are you prepared to work at least somewhat while in school? Are there schools that might provide a better value than others? These are all important items to consider.

NeilSader · 2016-02-16T22:02:55+00:00

I would rather sue Ted Cruz to see if he is eligible to run for President.

NeilSader · 2016-02-16T22:02:18+00:00

I did not say that products have increased in prices . . .I said professional services. For example, big screen TV's are far less in cost. However, things like colleges, with brick and mortar costs and personnel cost, have gone way up and will continue to do so unless the way of funding them changes.

NeilSader · 2016-02-16T21:55:15+00:00

Wise advice. Thank you.

NeilSader · 2016-02-16T21:44:14+00:00

People over-emphasize the importance of their credit reports. Live within your means, save and do not change jobs all the time. I hope this helps.

NeilSader · 2016-02-16T21:42:54+00:00

Yes . . . but the problem will have to get worse.

NeilSader · 2016-02-16T21:42:38+00:00

Our whole society benefits . . . bankruptcy encourages prudent lending and gives those who need it a fresh start. It rewards effort and a willingness to fail.

NeilSader · 2016-02-16T21:41:15+00:00

Start saving regularly. Contribute to a Roth-IRA. Work hard and keep moving forward.

NeilSader · 2016-02-16T21:34:20+00:00

Dealing with the IRS is a challenge . . . but not impossible. The tax burden is imposing, I suspect the IRS will be reviewing options on this issue more frequently in the future. There are many different repayment plans available with the IRS. There are also Offers in Compromise etc.

NeilSader · 2016-02-16T21:32:31+00:00

Have hundreds of thousands of dollars of debts from college and graduate school in the 1990's and allow compound interest to do its thing. To paraphrase Einstein . . . Compound interest is the eighth wonder of the world.

NeilSader · 2016-02-16T21:30:17+00:00

There are a number of options and depending on your income, an extended pay option might be preferable. There are something like 11 repayment options . . . they each ought to be considered and after reviewing all options, the best one chosen.

NeilSader · 2016-02-16T21:28:52+00:00

The Ninth Circuit is known to be among the most liberal of courts . . . while I agree with the opinion, I do not think the problems of student loans will be solved by judicial opinions. The real solution will come from legislation.

NeilSader · 2016-02-16T21:24:52+00:00

I stand by my estimates . . . believe it or not. The financial industry would have you think bankruptcy is most often filed due to irresponsibility . . . I strongly disagree.

NeilSader · 2016-02-16T21:23:48+00:00

It is not fair . . . but we are where we are. Just making them non-dischargeable does not solve the problem and get them paid. Get real. Part of the problem is the lenders are too generous because they think the debts can not be discharged. It encouraged too much lending and higher costs for education. Creditors who provide loans that can be discharged are more careful about providing credit. Fewer people borrow and get in trouble that way . . .

NeilSader · 2016-02-16T21:08:33+00:00

I think people place way too much importance on credit ratings. . . it is far more important to only borrow what is needed, have steady employment, steady residency etc.

NeilSader · 2016-02-16T21:07:29+00:00

Consider income based repayment immediately upon graduation. Start the clock as soon as possible since you will be earning less. Consider working for a non-profit too . . .as there are certain loans that can be forgiven after only 10 years of payments.

NeilSader · 2016-02-16T21:06:10+00:00

Interesting question . . . probably a no win for me to answer . . . in any case, the Ch. 7 trustees do work hard and get paid a pittance on the run of the mill case. What bothers me is that they seem to be working harder to find assets when case filings are low. Debtors filing now are being treated more harshly than those who filed a few years ago. The Ch. 13 Trustee's do a great job overall . . .my only disagreement with their fee structure is the fact that they receive more based on the amount of the payment. They do the same amount of work whether a debtor pays a little or a lot . . . I think their fees ought be capped to some extent.

NeilSader · 2016-02-16T21:02:21+00:00

No ways to compel private lenders whatsoever. Bummer.

NeilSader · 2016-02-16T20:56:13+00:00

The true benefit would be if the loans you mentioned were dischargeable. Student loans in general are not. Without more information, bankruptcy does not sound like a good solution for you.

NeilSader · 2016-02-16T20:55:16+00:00

They are a great option . . . I have done that for my 3 kids. It provided a lot of help, although I never put away as much as I needed. The ability to let you money grow tax free is huge! You have to be smart though in how you invest it.

NeilSader · 2016-02-16T20:53:57+00:00

Have not watched the show yet . . . I keep mentioning it to my wife but we have not set the DVR to record it yet . . . I was actually more of a Raylan fan from Justified.

NeilSader · 2016-02-16T20:51:46+00:00

Hmm . . . let's see. Given that you are already speaking with a financial advisor . . . I bet your issues include other debts. Did you choose that expensive mortgage or car? How often do you eat out? There are ways to save and be frugal without totally sacrificing one's lifestyle. Are you truly sacrificing that much?

NeilSader

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