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Old 07-01-2013, 07:35 PM
 
24,488 posts, read 41,068,436 times
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Quote:
Originally Posted by Oak1776 View Post
Ouch! How will this help with the increased tuition increasing too? In no way shape or form do i understand economic, but I see the college bubble burst coming from the way people are talking. Is this a positive move or negative move increasing the loan rates?
A holiday is a holiday. It doesn't last for ever. Students should be happy that they got loans at a discount. It's not like they decided to arbitrarily increase the loan rate. They just let the discount expire. That happens. Just like coupons.

It amazes me that people complain when their free discount goes away.
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Old 07-01-2013, 07:36 PM
 
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Originally Posted by Octa View Post
Yeah I'm sure that'll show those gosh darn irresponsible students with the US having the highest average tuition cost in the world and everything!
Well, only the ones that take on high amounts of debt are irresponsible. Those who go to school with modest debt are not irresponsible. Especially if they study within a decent program.
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Old 07-01-2013, 07:40 PM
 
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I am so glad I scrimped and saved and did without for 3 years getting those danged things paid off and the student loans were the last outside debt we had and we have remained out of debt for about 2 years now and it is great.

Any further education will be cash only no matter how long it takes to get it done.
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Old 07-01-2013, 08:48 PM
 
Location: Sioux Falls, SD area
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Debt piles up quickly if you're needing to go to graduate school. I paid 1/2 of everything for my 3 kids to go to college. The reality is I paid 1/2 of tuition, housing in the dorms, fees, and books. I ended up paying much more than that when you add in health insurance, auto insurance and auto maintenance. All my kids finished undergrad with less than $ 20,000 in dept. By today's standards, chicken feed.

What I did NOT do is pay for any graduate school tuition/books. My oldest daughter had to borrow ALL of the tuition for grad school to get her doctorate. I bought a trailer house and paid the utilities and lot rent. In the 3 full years she went to school for this (year around school w/no summer break and no possibility of a part time job) she accumulated an additional $ 75,000 in debt. Because this was the days prior to the big interest rate discount, she's been paying this off at over 6% interest, which is the rate that it's going back to. Since she took the loans out prior to the big discounted rates, she's been stuck all these years having to pay at the higher rate with no possibility of refinancing at the lower rate. Now, how was THIS fair.

She's knocked her total debt (undergrad & grad school) down to $ 67,000 by living frugally. Even though she makes $ 70,000+, it will take her at least 8+ years to finally get rid of this albatross while also paying mortgage on a small house.

I cannot imagine the struggle graduates have when they've got this kind of debt and can't get a job.
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Old 07-01-2013, 10:21 PM
 
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The rates were cut after the great recession; they're just going back to where they were before the economy collapsed. They'd be paying what most of us were paying about 6-10 years ago, though I can understand the frustration over the sudden jump if you're a current student.

Frankly, the student loan debt trend needs to reverse itself until one thing happens: lenders, and the U.S. government, needs to be on the hook for at least half the debt if the student defaults. Now before you shout me down, understand what I'm thinking here. The problem with the current situation is that the student's on the hook for it all. The lender can just dole out money knowing that they'll still get to collect. If lenders knew they'd be more liable, they wouldn't dole out so much.
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Old 07-01-2013, 10:28 PM
 
Location: augusta, ks
49 posts, read 79,923 times
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Originally Posted by chickenfriedbananas View Post
The rates were cut after the great recession; they're just going back to where they were before the economy collapsed. They'd be paying what most of us were paying about 6-10 years ago, though I can understand the frustration over the sudden jump if you're a current student.

Frankly, the student loan debt trend needs to reverse itself until one thing happens: lenders, and the U.S. government, needs to be on the hook for at least half the debt if the student defaults. Now before you shout me down, understand what I'm thinking here. The problem with the current situation is that the student's on the hook for it all. The lender can just dole out money knowing that they'll still get to collect. If lenders knew they'd be more liable, they wouldn't dole out so much.
Would that be the same to the mortgage lenders did before the housing bubble burst? Or am i thinking way off?
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Old 07-01-2013, 10:49 PM
 
24,488 posts, read 41,068,436 times
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Quote:
Originally Posted by chickenfriedbananas View Post
The rates were cut after the great recession; they're just going back to where they were before the economy collapsed. They'd be paying what most of us were paying about 6-10 years ago, though I can understand the frustration over the sudden jump if you're a current student.

Frankly, the student loan debt trend needs to reverse itself until one thing happens: lenders, and the U.S. government, needs to be on the hook for at least half the debt if the student defaults. Now before you shout me down, understand what I'm thinking here. The problem with the current situation is that the student's on the hook for it all. The lender can just dole out money knowing that they'll still get to collect. If lenders knew they'd be more liable, they wouldn't dole out so much.
I agree with this. Lenders should provide loans based on risk and merit and then be held liable for the loans they give out. They should also give preference to students likely to complete college (terminal degree: PhD, MBA, MD, etc.) over those who will leave midway. The banks would have to determine the risk level... but something like 3.6 gpa or higher for low interest loans and have the interest sharply increase for poor academic students.

Hopefully, this will also encourage students to do well in school.
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Old 07-01-2013, 11:02 PM
 
Location: augusta, ks
49 posts, read 79,923 times
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Quote:
Originally Posted by NJBest View Post
I agree with this. Lenders should provide loans based on risk and merit and then be held liable for the loans they give out. They should also give preference to students likely to complete college (terminal degree: PhD, MBA, MD, etc.) over those who will leave midway. The banks would have to determine the risk level... but something like 3.6 gpa or higher for low interest loans and have the interest sharply increase for poor academic students.

Hopefully, this will also encourage students to do well in school.
What about the students with learning disability who are not 4.0 or 3.0?
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Old 07-01-2013, 11:13 PM
 
24,488 posts, read 41,068,436 times
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Originally Posted by Oak1776 View Post
What about the students with learning disability who are not 4.0 or 3.0?
I don't have a concrete solution. But if at some point an individual with learning disabilities is able to show they have learned what a typical well performing student has, they should be able to get the same rates.

I don't see it being a big problem. People with learning disabilities can learn just as much information as someone without. It just takes longer or requires more effort. With daily afterschool private tutoring, an individual with learning disabilities can perform just as well as other students. But, often, parents never want to invest in their children's education like that (they'd rather pay enormous tuition rates later on).

It might be that folks with learning disabilities will go to college at 22 rather than 18. It's better than sending them to college unprepared.
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Old 07-01-2013, 11:19 PM
 
48,505 posts, read 96,689,931 times
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No one is going to make student loans without government guarantees even at higher new rates. Just looking at the default rates now show why congress is not moving on it now. Easy loans had I agree made a market for college cost increases.
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