I recently attended a disso hg in a case I worked on where the wife (age 60) narrowly escaped the 64K+ debt her spouse had recently rung up at a well-known for-profit “university.” Luckily, when she found out about the extent of this borrowing just last year (after receiving numerous letters from his SL lenders hounding him for payment), she was able to eventually close ALL the credit accounts she had with him and so has no joint debt. He ended up taking a job with a company he worked with over 20 years ago, in a position that requires only a HS Diploma. Their house was foreclosed on in May 2011 (a house SHE inherited free and clear in 1993)! Unfortunately, she commingled the “cash-out” refinance funds with her spouse during the pendency of the marriage and so now has nothing, is “renting a room” and has no health insurance. I’m reasonably sure that this is not what her parent(s) intended when they left her their family home.
Although student debt is ONLY on the credit report of the student and NOT the spouse, its implications for the couple’s financial future are great and far-reaching. If the spouse’s income is going to be used to service the debt, how much of his/her income will be available for monthly bills and daily needs? And what if the “newly-educated,” indebted spouse isn’t employed at all or vastly underemployed??
I also know an early 50’s female who rec’d a doctorate-level degree in May from a “private” university. Payments on her (approx $120K) student loan start next month.
I’ve seen a lot of young people fall for these “sales pitches,” but, for the life of me, why would a baby boomer attempt this with age discrimination rampant all over the country? IMO, it’s absolutely financial and retirement suicide, esp in this economy.
