Online poker, and unpaid student loans…

[jackaaron]

In the not too distant future, there is going to be an enormous spike in the number of student loans not being paid off as a result of so many college kids that used student loans to fund their accounts (and of course lost that money).

Is this true, or false?

If true, what ramifications does this have on the poker industry (I put this in legislation mostly because of the possible political ramifications)?

I realize that, every year, many students default on their loans. But, take those people, and add to them poker players that could easily borrow as much as 20k or more extra (over four years) over top of money they use for tuition and books, they then lose that money, and not have a way of paying it back.

My main point for asking is I have an acquaintance that pretty much did just what I speak of. And, he told me he got the idea from a host of other dudes that lost everything. I knew people were using inheritance, but I hadn’t thought about all the student loans that someone in college could use.

[bekman]

This stuff happens all the time. People are not smart enough to limit their losses. When some default on their student loans and stop playing, others will come along. This may or may not lead to problems with government loan repayments, but if I know one thing, it is that the gvmt knows how to get money back, so I doubt there will be any problems with legislation because of this. But, everything is speculation and the antipoker advocates will use anything they can.

[DavidNB]

The problem isn't student loans its really X number of poker players are losers and they get there money from a number of different sources as stated. Its no different then someone using their line of credit to fund poker playing.

If anything, it gives the pro legislation side more fuel to stop on line poker or try to limit it.

[questions]

Technically, I think the terms of student loans are such that you promise to use the proceeds for expenses related only to room, board and school expenses, and nothing else. I know people are going to say, "ha, ha, tell me another one," but a promise to use loan proceeds only for purposes for which they are designated is like promising to repay the loan - the value of your word to do something. Student loans have been abused for as long as there have been student loans. Nothing new in that.

[Stephen H]

I'm a little confused as to what you think students normally do with the loans that they still have the money to pay it back at the end.
Student loans are spent. Spend it on tuiton, spend it on books, spend it on poker, spend it on eating out every night of the year - at the end of the day, you have no money.
So how are student loans paid back? By the student getting a job and paying them back slowly over the years. Are these college kids who are losing at online poker somehow less likely to get a job after college than college students who don't lose money at online poker? I don't see any reason to believe that.

So the real issue here is, how well are student loans regulated? I'm pretty sure playing poker is the least of the problems for mis-spent loan money.

[Mendacious]

Student loans are a scary thing. The schools and loan companies make it ridiculously easy for students to borrow large sums of money-- often much more than they need or can repay. And, most students simply have no real concept of how difficult it can be to repay the $100k+ they are able to borrow. I am not sure how the gambling community should address this, but it is all too obvious that a HUGE percentage of the online gambling occurring is done by "kids" in college, and obviously a good number of them receive federal loans.

Personally I would consider making it a term of the Federally guaranteed loan agreements that the borrower not engage in online gambling subject to some pretty harsh if not criminal penalties for violating this agreement. And I would extend that until the person begins repayment of the loans.

It is incredibly immoral and harmful to society for anyone to convert a program which is not only intended for one's own, but future generations education to bankroll their gambling.

[Colonel Kataffy]

This should be a non-issue. Whether you play poker or you spend your extra loan money on pizza and beer, you still have to pay it back once schools over.

[StellarWind]

[ QUOTE ]
Personally I would consider making it a term of the Federally guaranteed loan agreements that the borrower not engage in online gambling subject to some pretty harsh if not criminal penalties for violating this agreement. And I would extend that until the person begins repayment of the loans.

[/ QUOTE ]
I agree. Also anyone receiving a student loan should be barred from spending money on all other forms of gambling, drinking, smoking, fast food, pretty girls, vacations, ...

When you borrow money from the Government they should own you.

[TheEngineer]

[ QUOTE ]
[ QUOTE ]
Personally I would consider making it a term of the Federally guaranteed loan agreements that the borrower not engage in online gambling subject to some pretty harsh if not criminal penalties for violating this agreement. And I would extend that until the person begins repayment of the loans.

[/ QUOTE ]
I agree. Also anyone receiving a student loan should be barred from spending money on all other forms of gambling, drinking, smoking, fast food, pretty girls, vacations, ...

When you borrow money from the Government they should own you.

[/ QUOTE ]

They should also post federal marshalls outside of student loan recipients' dorms to ensure said students don't stay out too late, and to ensure they're in class on time. They can also ensure recipients don't attempt to go to Vegas. After all, adults cannot be trusted to make their own decisions. Government should do that. Just ask Stalin, Mao, or Kyl.

[DrewOnTilt]

[ QUOTE ]
Student loans are a scary thing. The schools and loan companies make it ridiculously easy for students to borrow large sums of money-- often much more than they need or can repay. And, most students simply have no real concept of how difficult it can be to repay the $100k+ they are able to borrow. I am not sure how the gambling community should address this, but it is all too obvious that a HUGE percentage of the online gambling occurring is done by "kids" in college, and obviously a good number of them receive federal loans.

Personally I would consider making it a term of the Federally guaranteed loan agreements that the borrower not engage in online gambling subject to some pretty harsh if not criminal penalties for violating this agreement. And I would extend that until the person begins repayment of the loans.

It is incredibly immoral and harmful to society for anyone to convert a program which is not only intended for one's own, but future generations education to bankroll their gambling.

[/ QUOTE ]

The whole point of a student loan is to help the student pay for tuition and expenses. Some of those expenses - food, clothing, etc - are not always covered by the tuition. The student loans are applied to the tuition bill, and the overage is refunded to the student, who presumably uses the vast majority of the funds to pay for living expenses. How else should it be done? Loans don't come with a financial baby-sitter.