Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The principal of the loan doesn't bother me nearly as much as the 6.5% interest rate. I knew the tuition costs going in...but a high interest rate on-top of what was borrowed is aggravating. I guess I don't understand the logic behind the scale of this figure when the lender (Gov) deems Student Loan debt unforgivable therefore they understand it will be recouped over time. With added interest should the borrower chose an income-based or extended plan.
1-2% would be more in-line with the risk. 0% being a dream.
Dropping the interest or waiving some compounding for those in good standing sounds reasonable to me.
I assume private lenders aren't expected to forgive anything.
I cannot honestly believe how many of you sit there on your high horses snickering at these kids ridiculous interest rates, reiterating over and over to each other 'that'll teach 'em'. Wth is wrong with all of you? Does it make you feel so much better to sit up high in your Ivory Towers judging them? The cost of college is ridiculous, but other than the military, there aren't many options to try and become successful in life. When people complain about the minimum wage, you all are the same people telling them to go better themselves, and when they try to, you turn around and tell them how stupid they are for taking out loans for college. You can't have it both ways, Repubs. College is expensive and not everyone's parents can afford to pay cash, so the kids take on loans. Why don't you quit kicking these kids while they're down and give them a hand up on these interest rates. We hand corporate welfare out like candy, but for these kids, forget it.
I am a millennial, I just finished grad school in 2012, paid off loans in 2013, so I don't feel I am on my high horse by saying that paying the minimum while living in upscale apartments/condos, buying new cars, etc. and complaining about crippling debt is the fault of the high cost of school. Most grads can get out of UG from a state school with less than 40k in SLs. If you make 40-50k/yr out of school you should be able to easily pay those off in 3-4 years.
Check out this bloomberg article (below) and these kids want forgiveness for racking up 50, 60, 70k in student load debt and got a liberal arts degree in "womens advancement" yet want taxpayers to bail them out. What about people like me who received a responsible amount of federal student loans and paid them back? Annoying to say the least, worst part of this generation is they are not responsible for their own actions (and yes I am a millenial).
Well, I certainly think something should be done about this mess. When I was a young adult, a) a college degree was not essential, unless a person chose certain professions, and b) the cost of a college education was much lower. What student loan debt has come to mean for younger people (I'd say 40 yrs. old and younger) is a) fewer choices and options, and b) a lower quality of life.
As one example- and I'm sure it's widespread- even the basic decision of wanting to raise a family is greatly impacted by student loan debt.
So what it comes down to: unless a person is lucky, it's virtually impossible to get a decent job without a degree- but if you do get a degree, you can expect your life to suck for many years or longer.
To add: while I'm sure many people these days will disagree with my viewpoint, I believe the sensible solution is to eliminate daycare, Pre-K, etc., that comes from our tax dollars, and instead use the $ to fund college educations.
I did read the article and they are looking for schools that "may have" defrauded them although they cant provide any real evidence. Getting a loan because you want to go clubbing isnt really "fraud".
Just because the fed pulled support for that school doesnt mean the loan holder isnt responsible for what they signed for.
Where did the money go? did they spend it? If so, it needs to be paid back.
But, hey, forgiveness could be a wonderful thing!
I sure would like to have forgiveness of my credit card debt.
How about the house mortgage? It would be really neat to be out from under that!
Car loans? you bet, forgive me that debt. BUT, I get to keep the vehicles and the house!
"unless a person is lucky, it's virtually impossible to get a decent job without a degree-..."
I guess that depends on what you mean by a "decent job".
There are LOTS of jobs that don't require a degree, just a good vocational school. They all pay a "living wage".
aircraft mechanic
diesel mechanic
welder
plumber
electrician
Chef
painter
auto body tech
All other skilled trades.
Of course, if you are afraid of a little dirt, none of those are "decent jobs", are they?
Until you really NEED one of those tradesmen and can't find one.
Relative to forgivable loans from private lenders.
Quote:
Originally Posted by eyeb
take the place of the lenders... you are lending money to people with no skills, no higher education, no/little job history, nothing to their names... the risk is fairly high right? You don't even know if they are going to use the money for a degree that they plan to get a job in or IF they will...
If a graduate slings burgers their wages still count towards income based repayment.
Quote:
Originally Posted by eyeb
the $30k loan might never make it back to you for decades,
They would love this. Interest elongated. Factor in a 3% inflation rate and they're still doing very well.
Quote:
Originally Posted by eyeb
but yeah, principle isn't really an issue, it's mostly the fact that people don't consider/understand compounding interest...
"unless a person is lucky, it's virtually impossible to get a decent job without a degree-..."
I guess that depends on what you mean by a "decent job".
There are LOTS of jobs that don't require a degree, just a good vocational school. They all pay a "living wage".
aircraft mechanic
diesel mechanic
welder
plumber
electrician
Chef
painter
auto body tech
All other skilled trades.
Of course, if you are afraid of a little dirt, none of those are "decent jobs", are they?
Until you really NEED one of those tradesmen and can't find one.
Well, if the poor kid can go for free based on poor decisions by their parents, why should the middle class foot the bill for their kids and have to take out loans for their own kids?
Not really any different than the HARP program for housing. If you put 20% down and got a conventional loan, and were caught up and making your mortgage payment, you got no benefit at all. The only people who benefited were those who either didn't put 20% down, or who had gotten behind on their payments. I tried twice to refi, but wasn't eligible either time, and I wasn't willing to mess up my credit to get behind on my payment, to qualify for a refi to lower interest.
Those who are responsible get the shaft while those who aren't get the benefits.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
