College Financial Advice

Had this thought in the car the other day…  Given the copious lending strategies of our society, this might be a way to send your teen to school…

Step 1:

Go to the best school possible, try and finance 100% of their education with no cosigners.  This includes credit cards, housing etc.  Rack up as much debt as needed, but don’t acquire anything that would be considered an asset (e.g. a car).

Step 2:

Upon graduation and their first job, you should be (23..24) instead of starting payments on the $200,000 you owe, file them file Chapter 7 bankruptcy.  You’ve now effective wiped the slate clean on $200,000 of debt.  You just graduated from school, you don’t have any assets worth anything…

Step 3:

After 7 years, the bankrupcy is totally gone from your credit report… You’re now 30, buying the house isn’t a big deal.   You’re probably married have a good income and you’ve got $200,000 (or more) in the bank since you didn’t have to repay those loans.