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| How bad is the LCMS seminary loan scandal? |
bruce-church (https://bruce-church.myopenid.com/) has left a new comment on your post "LCMS Seminary Cost Scandal: Fabulous Costs To Supp...":
Another perplexing issue to consider when taking out loans for Concordia U and Concordia seminaries.
Often a seminary wife and her husband will consolidate student loan debt in order to reduce their monthly payment. (I'm not sure whether commercial debt can also be rolled into a consolidated student loan, but I think so. It surely can be under a consolidated mortgage loan, though.)
However, if one partner dies, that spouse's student loan debt is assumed by the surviving spouse if there was debt consolidation. That student loan debt may eat up any life insurance payments to survivors, and bankruptcy is not an option for disposing of student loan debt. If the loans remain separate, under federal law the remaining debt on the student loan would be retired if the student dies. But not so with consolidated student loans. The surviving spouse may have wages garnished to pay off the debt unless he or she qualifies for low-income relief, especially if there are dependents to support.
One also has to consider that highly indebted couples divorce more often, especially if the couple has to declare bankruptcy and is kicked out of the ministry for that. Here's an example of what I'm talking about:
ASA - Please Remove Me From This Consolidated Loan:
http://signon.org/sign/asa-please-remove-me?mailing_id=9295&source=s.em.cr&r_by=2036115
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bruce-church (https://bruce-church.myopenid.com/) has left a new comment on your post "LCMS Seminary Cost Scandal: Fabulous Costs To Supp...":
The title of this post's cartoon is The LCMS's Hundred Thousand Dollar Men, who, btw, might well have up to $80 grand in student loans going into the ministry. Maybe a new cartoon ought to be the LCMS's $80,000 Wives of Seminarians, for all those who end up assuming some or all of their husbands' debts after he dies or there's a divorce. Also see:
Be Skeptical About Seminary Student Loans:
http://ichabodthegloryhasdeparted.blogspot.com/2013/02/be-skeptical-about-seminary-student.html
