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Has everything to do with keeping my cash. If I can let my kids finance all of their college and then have them work in some community service for a little while and only have to pay back, only a portion of the loan (sounds like less than half), I'm all for it. I have been putting money away for my kids education for well over a decade. If I can keep that money, I want too. Sounds like using it for their college expenses would be a waist, if I can get it paid for by the gov instead.
Has everything to do with keeping my cash. If I can let my kids finance all of their college and then have them work in some community service for a little while and only have to pay back, only a portion of the loan (sounds like less than half), I'm all for it. I have been putting money away for my kids education for well over a decade. If I can keep that money, I want too. Sounds like using it for their college expenses would be a waist, if I can get it paid for by the gov instead.
do you have any understanding at all that government debt is your debt?
if the government loses money, you lose money. the fact that the private loan making companies don't want to eat the losses and shift it onto the taxpayers and all american citizens seems to be lost on some people.
WASHINGTON—Sallie Mae says it cannot write money-losing student loans indefinitely. (quote)
that is where we come in. if the government decides to write money-losing student loans who do you think winds up paying for them?
Well, it is too bad you can't still get them through banks. Our bank offers a nice discount on the rate if you have it deposited into a college checking or savings account AND an increased interest rate on the savings account. It isn't much but it is something.
As I understand it, all student loans will "have" to go though the gov from now on. Everything I hear and read, says students will have to pay 7.9% interest, which seems high for a student loan, and if you do some kind of community service....military, p corps...what ever, you will only have to make payments for 10 years @ no more than 10% of you expendable income. This is our new student loan system. If I got it wrong, let me know.
the source i found states: "The government will borrow money at 2.8 percent and loan it to students at 6.8 percent. (interest)
i am guessing that those biometric ID cards that are going to be proposed would help the government to track any delinquent accounts so i would guess that the collection rate might improve, but still all losses would have to be absorbed by the public.
the source i found states: "The government will borrow money at 2.8 percent and loan it to students at 6.8 percent. (interest)
i am guessing that those biometric ID cards that are going to be proposed would help the government to track any delinquent accounts so i would guess that the collection rate might improve, but still all losses would have to be absorbed by the public.
I don't even know why they would need the new id cards, they have our ssn's, so they can track our income with that. They already have the ability to garnish our incomes, I expect they will use that power even more, to collect owed monies..
As I understand it, all student loans will "have" to go though the gov from now on. Everything I hear and read, says students will have to pay 7.9% interest, which seems high for a student loan, and if you do some kind of community service....military, p corps...what ever, you will only have to make payments for 10 years @ no more than 10% of you expendable income. This is our new student loan system. If I got it wrong, let me know.
Still hearing things.
All FEDERAL student loans will "have" to go through the FEDERAL government, because they were going there anyway via the banks. Banks were the middle man and being paid by the FEDERAL government to administer the loan. But it was the FEDERAL government backing those loans. There is no need for that since nearly 1/3 of the FEDERAL loans were already Direct Loans from the government and more and more were going that way each year anyway. Mostly the colleges and universities themselves made the call, my daughters college used Direct Lending for example.
You can still get PRIVATE loans through the banks, credit unions, etc. Nothing is changing there. And seriously, if you can find a lower interest rate with better terms there you would be stupid not to take it. The interest rate is roughly 7.9 where ever you go, or more.
And, yes, if you work in certain fields or devote so many years to certain organizations part of your loan may be forgiven. That's how it is NOW as well. Here is a summary of the current system:
I should point out that these don't wipe out your loan debt, they forgive part of them or just postpone repayment. So unless your child wants to join the military, AmeriCorp, teach in a low income area, or do particular medical work there is no easy way to forgive any part of your loans except by making on time payments for 20 years or so. Not alot has changed except for the 15% going to 10% and the 25 years going to 20. Everything else is still business as usual so if you liked the old system you will like the new one better.
Thanks. You know, I read the dang thing twice and kept coming away with, the only student loans that will be available are federal. Just didn't sound right. And I hear what your saying about the interest rates. I still think they are high, because mine were only 6%.....back in 83, but they are what they are.
Thanks. You know, I read the dang thing twice and kept coming away with, the only student loans that will be available are federal. Just didn't sound right. And I hear what your saying about the interest rates. I still think they are high, because mine were only 6%.....back in 83, but they are what they are.
I hear tales of the interst rate being <3% or so "back in the day". I never took them out myself but that must have been nice!
I hear tales of the interst rate being <3% or so "back in the day". I never took them out myself but that must have been nice!
When I was in high school, one of my teachers told us his home loan was a VA loan at zero percent......man! Seems like all the good days are in the past.........
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