Why I Defaulted on My Student Loans

Who are those "same folks" you are talking about? I mean, maybe you can find someone like that, but if anyone really thinks that way or creates their own exceptions, based on who it is who didn't deal in good faith, they are not consistent or principled people.

Show me a corporation -- or ANY entity -- that borrows money and then intentionally chooses to default rather than make good on the terms they agreed to. I can't imagine anyone who agrees with me, creating exceptions based on who the deadbeat is -- business, individual or otherwise. If they do, there beliefs aren't based on any principle I relate to.

If anyone really thinks that way, it also doesn't justify or answer the question about why YOU (or anyone) are OK with someone stealing money by taking a loan and intentionally defaulting on it -- in THIS case. If someone borrowed money from you and promised to pay it back with interest, would you be OK with them deciding to make you eat it because they just didn't want to pay you back? Assuming you wouldn't be OK with that, what is different about it?

 

You are saying that you would commit fraud if there were no consequences.

You are not alone. It's why we do have laws (i.e. -- the consequences), and lenders do their best to protect themselves (by relying on credit reporting, for example).

The ethical question about whether that is cool or not is a completely different issue.

 

Fraud is a deliberate deception to secure unfair or unlawful gain.

A loan contract lays out terms. When you sign your name to it, you agree to make a good faith effort to live up to the terms you agreed to. If you sign that without the intention to live up to your word, you are committing fraud.

 

i.e. -- fraud.