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0 pointsimgabe4y ago0 comments

What does it mean that it defers for five years and then discharges?

To me, defers means you are not required to make payments during that time.

Discharges means that the obligation is removed and you never have to make any payments.

So...if you go five years without getting a job that makes 50k, the ISA defers ... and is then discharged? You never pay it back?

How is that different from what I said?

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dragonwriter4y ago

> How is that different from what I said?

Its different from what you said (or alternatively, what tou said is a nonsequitur to the discussion of the article, hard to tell which) because it applies only to their ISA, which for legal reasons isn’t used in California and is not what they are in trouble for lying about.

They are in trouble for misrepresenting the Retail Installment Contract, which is used exclusively in California, and which is deferred when income is under $50K, but is never discharged/forgiven except by full payment.

imgabeOP4y ago

So basically, California specifically forced them to create a special contract, different from the one they use everywhere else, that couldn't be discharged and then censured them for not clearly enough stating that the special California contract couldn't be discharged?

Sounds very California.

dragonwriter4y ago

> So basically, California specifically forced them to create a special contract, different from the one they use everywhere else, that couldn't be discharged and then censured them for not clearly enough stating that the special California contract couldn't be discharged?

No, not at all.

They choose not to automatically discharge the California contracts after 60 months of deferment for low income (I believe as a backhanded protest against the fact that they got in trouble with ISAs in California, IIRC because there was no up-front pricing; the up-front statement that $30,000 is the price is specific to California.) They got in trouble for lying and saying the California contracts were “qualified education loans” under federal law, with the associated restrictive terms for discharge in bankruptcy.

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0 pointsimgabe4y ago0 comments

What does it mean that it defers for five years and then discharges?

To me, defers means you are not required to make payments during that time.

Discharges means that the obligation is removed and you never have to make any payments.

So...if you go five years without getting a job that makes 50k, the ISA defers ... and is then discharged? You never pay it back?

How is that different from what I said?

0 comments

dragonwriter4y ago

> How is that different from what I said?

imgabeOP4y ago

Sounds very California.

dragonwriter4y ago

No, not at all.

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