Questionable, yet LEGAL ways to rid myself of student loans?
February 2, 2014 9:33 AM   Subscribe

A close friend of mine has over $100k worth of private student loans. They make a decent living and are able to pay much more than the minimum monthly payment (and they do). When I first learned about this, I immediately began to think ways to discharge the debt with minimal effort. I've posted a few ideas below, and would love to hear others

1. Buy a cheap house, take out a second mortgage to pay loans, default on house.
Cons: Will destroy credit.

2. Start a business (c-corp), get a business loan, pay your student loans, close business.

3. Start a business, write off everything, use extra money toward loans.

4. Online begging (remember "Save Karyn"?), etc.

Any more advice?

PS - Not interested in Peace Corps, joining the military, debt consolidation, etc. Just trying to use the system against itself.
posted by NYC-BB to Law & Government (5 answers total)

This post was deleted for the following reason: Sorry, this is running close enough to "help me do something unethical/fraudulent" that it's not going to work well on AskMe. -- LobsterMitten

 
Given that your intent on all of these is to defraud someone (except #4), they're not really "legal."
posted by Etrigan at 9:38 AM on February 2, 2014 [6 favorites]


Win the lottery. (Hey, it's as likely to work as some of the above ideas.)
posted by she's not there at 9:38 AM on February 2, 2014


Those ideas are not quite legal from my non-lawyer standpoint. Taking out loans for the express purpose of defaulting on them is fraud, I think. Or at least it's a horrible thing to do.

At any rate, there is a Teacher Student Loan Forgiveness program, but it only covers $17,500 of the debt.
posted by xingcat at 9:40 AM on February 2, 2014


Get a job. Use some of the money you earn to pay your student loans.
posted by Rob Rockets at 9:41 AM on February 2, 2014 [5 favorites]


Online begging is not enough. They have to make their financials so poor that people will want to give them lots of money. So job quitting/getting fired, I guess.
posted by ThePinkSuperhero at 9:44 AM on February 2, 2014


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