Student Loan Debt: What’s the Worst That Could Happen? by Elie Mystal

"I graduated from law school over $150,000 in debt."

"I’ve been paying the minimum balances to various collection agencies since 2007 or so. Whatever. My hopes for paying it off or owning property pretty much rest on my ability to hit the lotto."

"A reader emailed us, asking how bad non-payment of law school debt can really be. As one who has walked this path for eight years, I can honestly say it’s not that bad. Sure, it’s a completely different lifestyle than my friends lead. I can’t do “normal” things like get a Discover card or answer my unlisted telephone. But once you get used to it, it’s really not that bad. Your creditors will take away everything they can, but living a paycheck-to-paycheck, judgment-proof existence isn’t as bad as people make it look when they are trying to get you to sign up for a “free” credit reporting service."

"And don’t buy their BS that it’s just a “one time offer” or anything. Look at it from the perspective of the debt collection agency. Most people are like me, people they have to chase around to get a piddling monthly minimum payment. If they can close the book on that time-and-money suck for a lump sum, they’ll jump on it."

"Actually, I’d go so far as to say that living in world where your creditors are constantly angry with you is kind of liberating. I mean, I pay my federal loans back, so it’s not like anybody is going to garnish my wages. Beyond that, what can they really do?"