Skip to comments.Student Loan Nightmare: Help Wanted
Posted on 04/01/2009 9:40:35 AM PDT by Arguendo
Im about to talk about two little words that make most people cringe. The mere mention of these words usually incites the same reaction in everyone: a) fear b) denial c) a throbbing headache and d) the desire to run away screaming and crying and begging to go to a happy place. Yes, I am talking about STUDENT LOANS. If you dont have one, you know someone who does and you sympathize with them. In the midst of the credit crisis, home foreclosures and bailout turmoil, the amount of debt that graduates are facing is overwhelming.
I am 23-years-old, two years out of college and I am sitting on $115,000 of student debt. And based on my lenders loan terms, I only have roughly 12 years to pay it off. How much does that make my monthly payment, you ask? A whopping $1,200 a month. And lets just say my lifelong dream career in television doesnt lend itself to that. The only option my bank is giving me is to go on graduated repayment plan. That means that for four years I will only be paying off the interest every month. How much is that? Well, $115,000 with interest rates between 4-8% thats about $600 a month and that doesnt even touch the principal amount. People dont pay off houses in 12 years and I am expected to pay off this student loan in an entry level position?
Some might say, Sam, you shouldnt have gone to a private school in New York City if you wouldnt be able to pay it off. Well, I made a lot of mistakes when signing up for my loans, but I was uneducated on the process and on the repayment and now Im stuck.
(Excerpt) Read more at ac360.blogs.cnn.com ...
What a disgusting, entitled attitude.
I'm going to graduate from law school with over $100,000 in student loans, and I made that decision knowing I would have to pay them back (and should have no problem doing so given the job I'll be able to get with my degree). I might benefit from a student loan bailout personally, but I strongly oppose one nonetheless and will be furious if taxpayer dollars go to bail out idiots like this.
This is also a fraud perpetrated by Big University.
Student loans are patently dishonest. Why? Because they can not be extinguished in bankruptcy.
OH I thought this article was going to be about how the government, once again, screwed with something that worked well in the private sector, student loans, and how banks have dropped back and we’re having to beg to find new lenders. One of my daughter’s sorority sisters was all set for her graduate work in a medical field last year and learned her lender was dropping out - she had only a matter of months to find a new lender and start the entire process all over again.
One good hot coffee spill and you’re in the clear. ;)
Do you think they should be included if you claim bankruptcy?
Being stupid can be expensive.
Get a job at a burger joint spend a percentage of your income on lotto tickets, if you don’t hit the jackpot, start drinking.
I chose a state school. I earned my degree in education knowing the pay rates in Ohio. My bro-in-law chose a private school and earned the exact same degree as I earned. I graduated debt free. I owed no money for my degree or my Cavalier. He graduated owing more than 100K, driving a car given to him by his parents. He actually made less money his first year of teaching than he borrowed for his first year at Hiram.
true statement...if you do not pay it back the dept of ed will look at options which include garnishing wages....liens on home...they will not sue you if they deem that you do not have the means to pay back the debt due to low income unemployed etc but they will not write the debt off it will always be there....i have researched this for a friend that had a 2500.00 loan that was paid off by her....this was 15 years ago...well they claim it is still outstanding and she can not prove where she paid it off due to a bad divorce and no papers....they now are trying to collect over 6000.00 from her....
“Well, I made a lot of mistakes when signing up for my loans, but I was uneducated on the process ...”
Well, you got an education then.
Looks like more than 50% of the CNN posters are on her side, and thinks she should get some free government cash.
sucker. A job in TV??? you need a degeree for that costing how much????
Better start living like a college student, TopRaman noodles, and the food bank for you, now get to work and pay your debt.
all while putting up with high interest rates and an amount of debt that brings me to tears?
Simple cost-benefit analysis would have kept a lot of these people from going into debt for their college degree.
Degrees in real things like engineering and medicine have a pretty good payback-ratio, but for degrees like psychology and communications, there is an inverse payback-ratio.
They shouldn’t be dichargeable, at least not under most conditions. You used the loan to get an education, and you still have that education (and presumably a correspondingly increased earning potential) after bankruptcy.
Further, if they were dischargeable people would just have all the more incentive to get expensive educations and then declare bankruptcy when their liberal arts degrees proved worthless in the marketplace. Overall it would make student loans far more expensive and difficult to obtain for people who are actually good candidates for them.
I am sitting on $115,000 of student debt. And based on my lenders loan terms, I only have roughly 12 years to pay it off.Consolidate with a company like Academic Loan Group (no, I don't work for them), and you'll lock in the low interest rate over a 30-year term (no penalty for accelerated payoff). At 5% interest, that should get your monthly payments down to about $620/mo.
And note that a majority of the sympathetic ones are women...
There’s a reason the student loans cannot be extinguished in bankruptcy. You see, a whole lot of students decided that the first move after graduation was to make a beeline to the bankruptcy court to get debt forgiveness. After all, their debt-to-current income ratio qualified. So you have lawyers, doctors, and others who had a pretty secure future income stream expectation nevertheless qualifying technically in bankruptcy to shaft the taxpayers for their professional education and start their professional lives debt-free. Unfortunately a lot of laws which we deem unfair came about because of abuses by others.
‘poor little mind’ he has ...
the younger people among us want to start off where their parents are after 25-30 years
false values ... not workable
to create a student life environment which inculcates responsibility in carry out obligations.
Disagree with that assessment — see my last post.
All debts should be forgiven in bankruptcy. IRS, Bank, personal, EVERYTHING.
But really, when a college graduate is in their 20s and they want to get rid of their student loans, they should grow a pair and join the fracking military.
That is a huge option and since it exists, all this talk about these poor students is pure horse poop and my butt just bleeds for them. NOT!
An Obama voter no doubt. How’s the hopey-changey thing treating you now? Just wait a couple of years, unemployment will be way over 10% you’ll be standing in line at the soup kitchen and student loans won’t look like such a problem. All those college kids who voted for Zero graduating with slim pickens for employment; thank God I graduated 4 years after Ronald Reagan was elected.
Stridently disagree! — The main thing young adults are learning is college is irresponsibility. Why? Because the schools and lenders are irresponsible. See my post prior in thread.
I don’t believe there is ANY degree worth going $100k into debt for.
They — the collectors — used to include me.
They — the collectors — used to include me.
That’s not really practical. How exactly can lenders judge whether an 18-year-old applying to college has integrity (that will last 20 years and dissuade him from filing for bankruptcy without a really good reason at any point in the future)?
And besides, student loans can be discharged in extreme circumstances, such as if you become disabled and are no longer able to use the degree you borrowed to finance.
Good idea, but not an option for everybody.
Most def! The government loan programs and the exemption from bankruptcy indemnifies schools and lenders from irresponsibility. Consequently the schools produce bad product.
I disagree - a diploma can’t be taken back - if you borrow the money to pay for the education, you owe that money until it is paid. Unlike a car or a house, which can be repossessed if you fail to pay, a diploma enables you to find employment.
You don’t believe a medical degree is worth 100 grand? Hmmm...who knew my little 100,000 dollar house was worth far more than any doctor. Maybe they will trade with me? Well, here’s to hoping that my house suddenly starts earning me 180 grand plus a year.
A good JD will get you a job paying $160k plus bonus, so while $100k sounds like a lot of debt it’s not really a huge burden, especially if you budget well after graduation.
Sure it’s practical, I trust human ingenuity to make it practical.
Your explanation was longer than mine and better - I agree completely.
Colleges are producing crap. That’s irresponsible. The colleges TEACH nothing so well as how to be irresponsible. How to fix? Take away the easy upfront money, the crack cocaine of academic depravity — government protected student loans!
You disagree that the student loans became nondischargeable due to past abuses? Care to cite some controlling authority? Now if you are disagreeing because you think I was attributing it solely to professional degrees, you might have a point, although it was the high-debt, high-income-stream situation that made the abuse so blatant.
BTW, don’t be too confident about your own income potential. I wish you luck but attorneys are struggling also. Another BTW, you have my utmost respect for resolving to pay your loans.
Human ingenuity can’t overcome human nature, and so we need a system that avoids perverse incentives whenever possible. Allowing student loan debt to be discharged without a very good reason would create a huge perverse incentive.
Are you serious? So you think everyone should be able to go to college, get a big fat degree, then never pay for it? What an idea! Wow, can you include houses in your dream world so we can all buy a house then keep it and tell the bank we want to dismiss all our debt?
But that’s what the colleges are in fact teaching — viz Obama.
To avoid this, our daughter lived at home for 3 years and went to community college. She will transfer to a large university in the fall and will have to go 3 semesters to get her degree. All of her credits transferred. She took a relatively light load while she was working. We kept saving, we have $$ in the bank for 2 of the 3 semesters and only have to save for her last semester. She will graduate with a BS in biology with no loans. That was our goal.
Student loans are as out of control as were the housing loans. They will be another ‘bubble’ to burst ... only you can’t repossess a degree ... or can you?
You’re wrong, the human spirit can conquer its base urges. That’s Judeo-Christianity 101. You want to replace personal responsibility with process, like any statist.
bvw, the students are the consumers. Until they start demanding quality education, they won’t get it. How many students do you know are demanding more challenging courses, less costly textbooks, more relevant courses? A lot I know are hoping to skate by on the easiest possible courses and rely on a degree from a decent college as enough to get them a job, regardless of their individual qualifications.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.