A young woman's $150,000 private student loan co-signed by her father ballooned to $250,000 and could hit $1 million. Her father disappeared, leaving her trapped. The speakers argue private lenders target recent graduates and that student loans should be dischargeable in bankruptcy like other debt.
What's the worst episode that you've done where you look back and this person's in the worst financial position?
There was someone with $250,000 in private student loan debts. They started at like $150,000. In only a few years, they went to $250,000. They're going to be a million dollars before she knows it. Who gives these loans? As an impressionable teenager getting out of high school, her dad was like, "Sign the loan. I'll pay for it." Her dad's ghosted her and it's become a complete tear in the relationship.
Did he ghost because of the loan?
She wanted to go to an in-state school in California that was public and save a lot of money. He was like, "Go to Baylor." That's where I want you to go. I will pay. You can see in her finances that she's given up. What would you recommend for somebody like her?
You can't discharge student loans in bankruptcy. That's why they're so terrible, because they allow an 18-year-old kid to take on hundreds of thousands of dollars of debt regardless of what they want to study, and there's no recourse. You can't discharge that in bankruptcy because you're getting an education. The education stays with you, so you just get screwed. Damn, this video is wild.
$150,000 in student loan debt and her dad ghosted her. I don't know what's worse. As someone who dropped out with over $100,000 in student loans, I get how fast this debt piles up. But her dad leaving, that's a totally different level. Here's what nobody talks about though. Banks will hand you $150,000 for a degree in 10 minutes, but try getting a $50,000 business loan. They're gonna ask you for 3 years of tax returns, a business plan, and collateral. They want you in education debt, not business ownership. That's the system working exactly as designed. I realized this after dropping out, spent years job hopping trying to dig out. Then I found land flipping. There's no bank loans needed. I use private investors' capital to fund my deals. It's very simple. I do the work, they put up the capital, and we split the profit. And that structure got me out of the debt trap without having to ask banks for permission. If you're stuck in a similar situation, there are ways out that don't require their approval. Check out my community for how this actually works.
