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Did you know that a fee is tacked on every month for the privilege of having my wages garnished? .
Naturally, a fee is added. The process of collecting from those who don't pay on their own involves people, that involves employee costs, and, of course, the people who cause that cost to be incurred, should pay that cost.
In order to be made whole, the taxpayer needs the defaulter to repay both the loan and the costs of the collection process employees involved.
Did you know that a fee is tacked on every month for the privilege of having my wages garnished? I have paid almost as much in these fees as the amount I borrowed, these fees also reduce the amount applied to the loan principal, thereby reducing principal reduction to nearly zero. Don't cry for taxpayers, they are making money hand over fist from student loan defaulters, who are entitled to keep only the first $750 of monthly earnings.
a fee SHOULD be tacked on and yes I think most people know that these kind of bookkeeping fees exist.
That is a ridiculous statement "most" Americans after tax paycheck is about 74 to 80 percent of their gross. 6% of that "tax" is the only retirement income a great majority will have to live off of.
Any American paying 40% to taxes is grossing so much, if they are suffering economic hardship, it is either due to extreme life circumstances or poor financial habits.
The taxes we pay are used to back an economic budget that supports a world reality where Americans can earn and consume a greater share of all wages and resources than the other 90% if the world.
That does not sound like a reality to complain about.
I figured out that I pay about 18% of my income in taxes, leaving 82% net. Not too bad but then I don't make a whole lot of money. Up until the past couple of years I used to get back ALL I paid in, almost to the dollar. Not anymore though. Those taxes include Fed, State, SS and Medicare. No other deductions.
Naturally, a fee is added. The process of collecting from those who don't pay on their own involves people, that involves employee costs, and, of course, the people who cause that cost to be incurred, should pay that cost.
In order to be made whole, the taxpayer needs the defaulter to repay both the loan and the costs of the collection process employees involved.
??? How much does it actually cost - as opposed to how much is actually charged - for an ongoing, automatic payment? I can see a one-time setup fee, but where's the ongoing cost month after month after month? I don't have a problem with paying the actual cost, but it looks like a profit center for them.
And if given the choice, I would be happy to send them a check (or pay online) every month to get rid of that fee, because my loan would have been paid off by now if the fees had not been tacked on, as the principal would have been reduced much faster.
Also, the way it works, Treasury takes the money, then it takes weeks or months before Ed gets it and the payment is credited toward the loan. How much are borrowers bring ripped off (in lost interest reduction) by this stall-and-delay process?
??? How much does it actually cost - as opposed to how much is actually charged - for an ongoing, automatic payment? I can see a one-time setup fee, but where's the ongoing cost month after month after month? I don't have a problem with paying the actual cost, but it looks like a profit center for them.
And if given the choice, I would be happy to send them a check (or pay online) every month to get rid of that fee, because my loan would have been paid off by now if the fees had not been tacked on, as the principal would have been reduced much faster.
Also, the way it works, Treasury takes the money, then it takes weeks or months before Ed gets it and the payment is credited toward the loan. How much are borrowers bring ripped off (in lost interest reduction) by this stall-and-delay process?
Borrowers ripped off.these are borrowers who defaulted.
Borrowers ripped off.these are borrowers who defaulted.
By government standards, I don't have the capacity to make the payments - under Income Based Repayment (IBR) a borrower with annual income of $15K qualifies for an 'affordable' monthly payment of zero, while they are extracting $100/mo out of my lower income.
Perhaps they should make up their mind what is affordable and what isn't? In the meantime, I am paying more than what they claim I can afford.
By government standards, I don't have the capacity to make the payments - under Income Based Repayment (IBR) a borrower with annual income of $15K qualifies for an 'affordable' monthly payment of zero, while they are extracting $100/mo out of my lower income.
Perhaps they should make up their mind what is affordable and what isn't? In the meantime, I am paying more than what they claim I can afford.
You need to work more hours-$100 is just $1,200 per year. That is a minimal amount to expect anyone to pay.
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