Posted on 09/06/2012 8:14:32 AM PDT by SeekAndFind
My understanding is that in OBAMACARE if you don’t pay back the student loans you are required to serve the country for 2 years. (Probably military.)
I can’t remember the pages this ‘new law’ is on but we had to ‘pass the bill in order to find out what is in it.’
however, good old uncle sammy will help pay off your loans if you agree to work for him or are a congressional aide or some such...
My daughter is being charged 11% for a private student loan.
Well now, she is getting two educations. The first at the school. The second from learning to read and understand what she signed for. Works for me.
My family and I came to the conclusion the only way I could attend college was to live at home, commute to the local private college and work virtually full time as “loans” were not an option at that time. I did, got degreed, and then enlisted in the army, something foreign to most of our entitled youth these days. After the army, I used my newly acquired skills with my degree, found a great occupation and never looked back.
Plus there are these fly by night schools that you see on TV with claims that you can get a good job real fast.
Why?
Lets look at the differences..
I default on my mortgage the bank can take the house.
I default on a student loan (I have none) the bank can take... Oh crap. they can’t take anything.
The interest rate reflects the risk taken. She defaults on the loan and there is nothing the bank can take to recover the money loaned. She even gets to keep what the bank has paid for.
Perhaps she should re-fi her loan to the government backed ones. My wife has hers through “direct loans” the rate is around 4%.
You can’t discharge them in Bankruptcy, you can default on them, and if you don’t take care of it they can garnish up to 15 percent of your paycheck.
That is exactly what Iceland did. The Iceland govt essentially allowed all underwater home mortgages to be written off so the home loan matched the property value.
It kept people in the homes, It kept the loans on the books. It just forced the Banks to eat the housing crash.
This is EXACTLY what needs to happen with student loans. However how do you place a market value on what is unsecured debt?
If I was the President I would solve the Student loan situation by:
1. Allow Bankruptcy to dispatch a student loan and treat it the same as all other forms of unsecured debt.
2. Establish a market value for all degrees with sliding scales of depreciation based on age of degree or time since education. Allow former students to write of the portion of their debt that is evaluated to be “underwater”.
3. Get the government OUT of the loan business.
Yep. As financial aid became more available, loans/grants/scholarships, the schools kept raising their rates way beyond inflationary increases. The schools kept growing and spending every dime they brought in and bloating the salaries of the establishment.
So a given student should have his school paid for with grants and scholarships, but due to these steep increases in tuition, etc., he has to take out students loans anyhow.
In the meantime, the schools cry that they do not have enough money. -rigged game and ripoff.
Professors aren’t the biggest problem. Look at what top administrators make, and look at the sweetheart deals they get when they leave, and that is usually after being provided mansions and nice cars while at the universities.
Huh? You can't call people delinquent if they are exempt from paying. One would have to assume these people would have a delinquency rate similar to the 8.9%. If I call all the people who don't pay off their creidt cards in full every month 'delinquent,' I could add a whole lot to that 10.9%. But, I can't because they aren't delinquent; they are following the agreement.
ya.. They can.
so if your a unemployed OWS type you get 15% of nothing.
a house is a house, if they destroy it the bank knows the home owners insurance is up to date because they require escrow.
No matter how you cut it, student loans are more of a risk.
No. you can’t file chapter 7 on them.
however, you can get on an income based repayment plan.
When we where down on our luck we used the plan. As long as our income remained low (less than 30K I think it was for a family of 4) the payment was 0.00 a month.
So there are MANY ways to avoid paying on the loan.
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