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Under today's Income Based Repayment, borrowers with income greater than mine are making monthly payments of zero. For the past 12 years I've been shelling out 10% of my income on the loans, leaving me hovering around poverty level. And my history with the loans kills me? Why are people with greater income not paying at all?
Because you're now paying off the penalties apparently. If you had an outstanding loan balance I would imagine you could do the IBR.
I have fully repaid the principal and the interest on the loans. Unfortunately they have been tacking on steep fees monthly, which cumulatively exceed the principal borrowed, hence I still have an outstanding balance. But the original principal and its accrued interest have been fully paid.
i.e. my student loans are now generating pure profit like you wouldn't believe.
Sounds like letting your loans go into default was a bad decision.
Under today's Income Based Repayment, borrowers with income greater than mine are making monthly payments of zero. For the past 12 years I've been shelling out 10% of my income on the loans, leaving me hovering around poverty level. And my history with the loans kills me? Why are people with greater income not paying at all?
The "accrued interest" is consonant with the time value of money, i.e. delinquent payments increase the amount of interest accrued.
Which actually reminds me of another annoyance:
When Treasury takes your money and applies it to a student loan - e.g. when taking a tax refund or garnishing wages - the money is run through a Rube Goldberg device (your money starts at point A (your tax refund) and eventually ends up at point G (your student loan account) which delays for several weeks proper crediting of the account.
I've probably lost a nontrivial sum to that type of interest inflation.
Oh, if only there were some way to avoid defaulting on one's loans. Perhaps someone will invent a way.
LOL, don't blame me for being part of the problem - as I said earlier, the principal and its interest have been recovered fully, and the taxpayers are making pure profit now on my loan.
As for those IBR borrowers paying zero, if they continue to do that long enough, their balances will be forgiven and the taxpayers will eat another unpaid loan.
Don't you wish there were more borrowers like me, or do you enjoy absorbing the cost of unpaid student loan debt?
Oh, if only there were some way to avoid defaulting on one's loans. Perhaps someone will invent a way.
Actually, pioneers like moi led to the creation of IBR. So yes, IBR is the way burger flippers avoid defaulting on student loans. Are you okay with the reality that IBR allows borrowers to avoid default while not actually repaying the loan? But IBR was invented too late to save me.
06-11-2015, 05:33 PM
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n/a posts
Quote:
Originally Posted by freemkt
Actually, pioneers like moi led to the creation of IBR. So yes, IBR is the way burger flippers avoid defaulting on student loans. Are you okay with the reality that IBR allows borrowers to avoid default while not actually repaying the loan? But IBR was invented too late to save me.
I for one am not okay with it.
You borrowed. You didn't pay it off under the agreed terms. And you rightly suffer for it.
Ideally, people who borrow now would be on the hook for the full balance of whatever they borrowed.
We're basically creating a system now where being more irresponsible is rewarded.
LOL, don't blame me for being part of the problem - as I said earlier, the principal and its interest have been recovered fully, and the taxpayers are making pure profit now on my loan.
As for those IBR borrowers paying zero, if they continue to do that long enough, their balances will be forgiven and the taxpayers will eat another unpaid loan.
Don't you wish there were more borrowers like me, or do you enjoy absorbing the cost of unpaid student loan debt?
Those IBR deals aren't really freebies. For example, the daughter of a friend of mine has a master's in some social science and works as a rape crisis counselor. When a woman is admitted to a hospital after being raped, this young woman is who they call. She is doing a tremendously important job and she is compensated at the rate of $14 an hour. She is on IBR.
My feeling is that if she were compensated fairly, she would not need IBR. Therefore, as a taxpayer, I do not at all begrudge her either income based repayment or eventual loan forgiveness.
Those IBR deals aren't really freebies. For example, the daughter of a friend of mine has a master's in some social science and works as a rape crisis counselor. When a woman is admitted to a hospital after being raped, this young woman is who they call. She is doing a tremendously important job and she is compensated at the rate of $14 an hour. She is on IBR.
My feeling is that if she were compensated fairly, she would not need IBR. Therefore, as a taxpayer, I do not at all begrudge her either income based repayment or eventual loan forgiveness.
I'm talking about $7.50/hr ($15K) burger flippers who pay ZERO under IBR.
I'm talking about $7.50/hr ($15K) burger flippers who pay ZERO under IBR.
I don't begrudge them, either.
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