Why I Defaulted on My Student Loans

The student loan guy also signed a contract that spelled out terms in which he could opt not to pay back his loan.

 

The guy made a calculation that his life would be worse if he paid than if he didn't. It appears he was correct.

Was he supposed to suffer for years just because? Personally this wouldn't be my route, because good credit means too much to me, but if I ever got behind by an amount into the high five figures and could see more light in the tunnel by keeping the cash instead of feeding this construct of "good credit," I'd go that route in a heartbeat.

 

Is there an example anywhere of a contract breach under which there are no consequences? The clown advising others to default on student loans faces and acknowledges consequences associated with his actions..

 

What was the contract that we had entered together in that situation again?

 

Brian Kelly signed a contract. He could work for set amount of years for that employer. Or he could opt out of that contract and pay the consequences established by the contract.

Student loan guy signed a contract. He could pay back set amount of money to his lender. Or he could opt out of paying back set amount of money to his lender and pay the consequences established by the contract.

What's the difference?

 

It isn't "when someone else steals from you." It's "when you lend your relative money and he doesn't pay it back."

 

I'm sure he'd understand, then, if someone he's contracted to write something for decided not to pay him because the company was simply better served by keeping its money.

 

Sadly, that happens on a not infrequent basis with newspapers.

 

Which would be pretty funny if that's how it plays out if he hasn't been paid yet.