• Business School
    • Admissions Help
    • MBA Essay Tips
    • Executive MBA Essay Tips
    • MBA Admissions Calendar
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
    • EMBA: The Ultimate Guide for Applicants
  • Medical School
    • Admissions Help
    • Med School Admissions 101
    • Secondary Essay Tips (by School)
    • Student Interviews
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
  • Law School
    • Admissions Help
    • Law School Admissions 101
    • Selectivity Index
    • Free Guides
    • Podcast
    • Video Tips
  • Graduate School
    • Admissions Help
    • Grad School Admissions 101
    • Free Guides
    • Video Tips
    • Podcast
  • College
    • Admissions Help
    • Free Guides
    • Supplemental Essay Tips
    • Video Tips
    • Podcast
Accepted

1 (310) 815-9553

Blog HomePodcastContact Us

Accepted Admissions Blog

Everything you need to know to get Accepted

July 8, 2011

Reading Time: < 1 minute

Defaulting on Student Loans Does Not Add Up

  

Many readers probably know from experience that student loans = an overwhelming amount of stress.  But, as it turns out, defaulting on student loans = an even more overwhelming amounts of stress.

Forbes recently wrote an article (“Deduct This: The History of Student Loan Interest”) on the history of student loans, which talks about how they have developed from being an altruistic way to help students pay for their education into a profitable business for moneymaking lenders.

Meanwhile, Elie Mystal at Above the Law wrote a piece about what it’s like to live as a student loan defaulter, and he implies that it’s a mixed bag. Not the worst thing in the world, but with definite, albeit manageable drawbacks.  However, Megan McArdle from The Atlantic found Mystal’s advice did not add up and could be so lethal that she needed to respond (“Don’t Count on Settling Those Student Loans”).

McArdle argues that defaulting on your loans never makes sense.  In fact, your credit rating will be so damaged that landlords will treat you “worse than ex-convicts” if you send your debt into default.

The worst of it is that if you default you will owe just as much if not more than you did before you defaulted! According to McArdle, “There are only two ways to erase the debt: prove you’re permanently disabled and will never again earn more than a pittance; or die.” Neither of these options sound too promising.

Bottom line: student loans are stressful and burdensome, but there is no way to run away from them.  The good news is that although defaulting on one’s loan does not add up, investing in one’s education can make mathematical sense—if you invest wisely.

Accepted.comAccepted.com ~ Helping You Write Your Best

Article by Linda Abraham / College Admissions, Grad School Admissions, Law School Admissions, MBA Admissions, Medical School Admissions

Get Accepted!

Choose your desired degree and then the service that best meets your needs.

Which program are you applying to?

What do you need help with?

Join the informed applicants who read Accepted's blog!

8 Popular Posts

1. 7 Simple Steps to Writing an Excellent Diversity Essay

2. How to Write About Your Research Interests

3. 4 Ways to Show How You’ll Contribute in the Future

4. When Will Medical Schools Give You an Answer?

5. How to Write a Goal Statement for Graduate School

6. Sample Essays from Admitted HBS Students

7. Writing Your Physician Assistant (PA) Personal Statement [Plus Sample Essay]

8. Acing the PsyD Interview: The 3-P Plan

Recent Posts

  • Follow These 7 Steps to Ensure MBA Acceptance in 2022
  • Should I Take a Gap Year Before Medical School?
  • Making the LSAT Learnable with Blueprint Prep [Episode 406]
  • Kellogg EMBA Class Profile
  • Will “The Fauci Effect” Hurt Your Med School Acceptance Odds?
This Site is Featured on GMATClub

Home Page Services and Prices MBA Med School Law School Grad School College

About Us Press Room Contact Us Podcast Accepted Blog
Privacy Policy Website Terms of Use Disclaimer Client Terms of Service

Accepted 1171 S. Robertson Blvd. #140 Los Angeles CA 90035 +1 (310) 815-9553
© 2021 Accepted

BBB A+ RatingStamp of AIGAC Excellence

Copyright © 2021 · Education Pro Theme on Genesis Framework · WordPress · Log in