Forgive Student Loan Debt

[auditor0007]

Read the image and tell me why you think things are just fine as they are.

Based on those numbers, the loan was taken out for approximately 54 years. Who takes out a loan for 54 years? People pay mortgages off in 15 to 30 years. Also based on those numbers, the interest rate is barely above 5%.

 

[Conservative]

Nope. Paid back faithfully. That's what everybody is going through. You didn't know that, huh.

That sign is bullshit.. you're telling me that with interest, a $26,400 loan turned into a $77,977 debt? No fucking way.

With that said, you read the terms, you took the money, you pay it back.

Welcome to the world of "negative amortization". She has paid $32,700 over 23 years; that's about $118 per month. The monthly interest on $26,400 at a relatively benign 6.6% would create a monthly interest at the outset of $145, and after 23 years of paying this way you would owe much more money (in fact, about $45K). If this was the minimum payment that was arranged in the contract and that's all she paid, then she owes the difference. I would say, however, that she probably has a good case to sue the university for not teaching her how to add and subtract.

Conservative, meet Billy. He'll be your guide for these festivities.

that's nice. How does that negate the CNN Student Loan calculator data I provided???

 

[Artevelde]

Read the image and tell me why you think things are just fine as they are.

because they borrowed it...its a LOAN. its their responsibility to honer their contract and word and not put it off on me or anyone else......see how that works?

You mean you actually have to pay back money that you borrowed? My God!

 

[M14 Shooter]

Read the image and tell me why you think things are just fine as they are.

The sign is horseshit.

 

[Trajan]

For perspective, my principle is about $240K at 7%. My current balance is about $270k.

These numbers are typical of med school. On the other hand, my expected annual earning will be in the mid $100 - low 200k, also typical of most fields in medicine.

So the note is big (and the interest rate sucks), but it's money we'll spent as far as earnings are concerned.

The problem a lot of college students have is tat they are being sold a bill of shit about "do what your heart tells you to do" and devoting their time to unemployable occupations.

well said and good luck, seriously.


Just as a thought, I would add that maybe If you're down for it again, take a 4 year hitch, uncle sam may defray some of the principal or moderate the interest....

 

[M14 Shooter]

Either educate yourself, or butt out. Your kneejerk reacting doesn't facilitate discussion.

Neither does your posting of what is clearly a lie.

-I- borrowed $32,000 for college. Paid in 7 years.
What did the person with the sign do wrong?

 

[M14 Shooter]

If it was a $23,000 car instead of a student loan, how long would it take to pay off the car?

3-5 years. Maybe 6.

 

[M14 Shooter]

A couple of answers from kids (adults now) on the "How could you be so stupid" question.

Answer: I love that question: why didn't you read the contract. Well, I was 17 on my first loan and about 19 on my second one. Didn't even have a checking account and never had a credit card at that time. Read the contract? yeah, I read it and "Trusted" that the government wouldn't give me the shaft. I mean how could they do that to me, I was just a kid and had big dreams. How did I know they would retroactively change the law after I took out my loan and that this loan would follow me to my grave. Oh yeah and I forgot to mention that no where in my contract does it say if I default that my interest would be capitalized. They sort of left that out for future use.

Answer: Nobody can follow when the government changes the rules in the middle of the game. They do it all the time. This is why we need reform, and we need to pass H.R. 4170, to restore some sanity and responsibility to the system. Consumer advocates back in the 80s reformed insurance company policies and forced them to write insurance coverage in understandable language. This is what we need now with student loans. Obviously this is proving to be true, as Consumer Finance Protection Bureau is beginning to listen to the people, and proposing these types of changes. And, as far as these perfect people, who read everything, I don't believe 99% of them. They would have to prove it to me first. If they are that perfect, good for them. But it's surely nobody I have ever met. How about you??

translation:
Their fault, and no one elses.

 

[Erand7899]

A couple of answers from kids (adults now) on the "How could you be so stupid" question.

Answer: I love that question: why didn't you read the contract. Well, I was 17 on my first loan and about 19 on my second one. Didn't even have a checking account and never had a credit card at that time. Read the contract? yeah, I read it and "Trusted" that the government wouldn't give me the shaft. I mean how could they do that to me, I was just a kid and had big dreams. How did I know they would retroactively change the law after I took out my loan and that this loan would follow me to my grave. Oh yeah and I forgot to mention that no where in my contract does it say if I default that my interest would be capitalized. They sort of left that out for future use.

Answer: Nobody can follow when the government changes the rules in the middle of the game. They do it all the time. This is why we need reform, and we need to pass H.R. 4170, to restore some sanity and responsibility to the system. Consumer advocates back in the 80s reformed insurance company policies and forced them to write insurance coverage in understandable language. This is what we need now with student loans. Obviously this is proving to be true, as Consumer Finance Protection Bureau is beginning to listen to the people, and proposing these types of changes. And, as far as these perfect people, who read everything, I don't believe 99% of them. They would have to prove it to me first. If they are that perfect, good for them. But it's surely nobody I have ever met. How about you??

Rule changes do not usually affect existing contracts. If one is not paying enough each month to cover the interest charges and pay on the balance, the loan will grow as the unpaid interest is capitalized.

Any college student who is incapable of figuring out the payoff on a loan, belongs in high school and not college.

A whole lot of student loan money is spent on cars, booze, girl friends, boy friends, trips to Europe, and spring breaks on sunny beaches. You enjoyed spending the money, now enjoy paying it back.

 

[BillyV]

Welcome to the world of "negative amortization". She has paid $32,700 over 23 years; that's about $118 per month. The monthly interest on $26,400 at a relatively benign 6.6% would create a monthly interest at the outset of $145, and after 23 years of paying this way you would owe much more money (in fact, about $45K). If this was the minimum payment that was arranged in the contract and that's all she paid, then she owes the difference. I would say, however, that she probably has a good case to sue the university for not teaching her how to add and subtract.

Conservative, meet Billy. He'll be your guide for these festivities.

that's nice. How does that negate the CNN Student Loan calculator data I provided???

It doesn't. You just assumed, like any normal person would, that you would set up a loan where the payment would at least cover the interest on the loan. This person obviously didn't do that. If she had paid $218 a month "faithfully", she would have paid my hypothetical 6.6% loan off 7 years ago.

 

[Conservative]

Rule changes do not usually affect existing contracts. If one is not paying enough each month to cover the interest charges and pay on the balance, the loan will grow as the unpaid interest is capitalized.

Any college student who is incapable of figuring out the payoff on a loan, belongs in high school and not college.

A whole lot of student loan money is spent on cars, booze, girl friends, boy friends, trips to Europe, and spring breaks on sunny beaches. You enjoyed spending the money, now enjoy paying it back.

exactly. If your interest alone is X, but you only pay X-Y each month, the difference is added to your principle balance, which will go up instead of down.

 

[Conservative]

Conservative, meet Billy. He'll be your guide for these festivities.

that's nice. How does that negate the CNN Student Loan calculator data I provided???

It doesn't. You just assumed, like any normal person would, that you would set up a loan where the payment would at least cover the interest on the loan. This person obviously didn't do that. If she had paid $218 a month "faithfully", she would have paid my hypothetical 6.6% loan off 7 years ago.

fair enough. So, she fucked up. Why should my taxes cover her screw up?

 

[M14 Shooter]

A couple of answers from kids (adults now) on the "How could you be so stupid" question.

Answer: I love that question: why didn't you read the contract. Well, I was 17 on my first loan and about 19 on my second one. Didn't even have a checking account and never had a credit card at that time. Read the contract? yeah, I read it and "Trusted" that the government wouldn't give me the shaft. I mean how could they do that to me, I was just a kid and had big dreams. How did I know they would retroactively change the law after I took out my loan and that this loan would follow me to my grave. Oh yeah and I forgot to mention that no where in my contract does it say if I default that my interest would be capitalized. They sort of left that out for future use.

Answer: Nobody can follow when the government changes the rules in the middle of the game. They do it all the time. This is why we need reform, and we need to pass H.R. 4170, to restore some sanity and responsibility to the system. Consumer advocates back in the 80s reformed insurance company policies and forced them to write insurance coverage in understandable language. This is what we need now with student loans. Obviously this is proving to be true, as Consumer Finance Protection Bureau is beginning to listen to the people, and proposing these types of changes. And, as far as these perfect people, who read everything, I don't believe 99% of them. They would have to prove it to me first. If they are that perfect, good for them. But it's surely nobody I have ever met. How about you??

Rule changes do not usually affect existing contracts. If one is not paying enough each month to cover the interest charges and pay on the balance, the loan will grow as the unpaid interest is capitalized.

Any college student who is incapable of figuring out the payoff on a loan, belongs in high school and not college.

A whole lot of student loan money is spent on cars, booze, girl friends, boy friends, trips to Europe, and spring breaks on sunny beaches. You enjoyed spending the money, now enjoy paying it back.

This is a just another example of how liberals refuse to hold (most) people responsible for their actions - they place blame on someone else and then expect everyone to pay for it.

 

[Katzndogz]

If it was a $23,000 car instead of a student loan, how long would it take to pay off the car?

3-5 years. Maybe 6.

On it's face, this whole student debt story is BS isn't it?

 

[BillyV]

that's nice. How does that negate the CNN Student Loan calculator data I provided???

It doesn't. You just assumed, like any normal person would, that you would set up a loan where the payment would at least cover the interest on the loan. This person obviously didn't do that. If she had paid $218 a month "faithfully", she would have paid my hypothetical 6.6% loan off 7 years ago.

fair enough. So, she fucked up. Why should my taxes cover her screw up?

Simple answer - they shouldn't. You can't bankrupt away student loan debt; that's because medical and law students in the 70's were racking up huge student loan debts, declaring bankruptcy shortly after graduation, and living with a bad credit rating for seven years while earning lots of money. There were plenty of examples in the 80's.

 

[geauxtohell]

Either educate yourself, or butt out. Your kneejerk reacting doesn't facilitate discussion.

They have a point.

I'm not even sure the person who would pay $119 a month for 23 years and never up her payments and never refinance at a lower rate, and get herself into a situation where she'd be paying triple (what?), deserves any credence when talking finances.

Yeah. Facilitating someone's poor economic decisions is where I part ranks with occupy.

Put on your big boy pants and pay your fucking bills.

Creating a system where there is no real economic risk and reward simply poison's the well.

Once these stupid motherfuckers get over their elation for shaming out of their obligations and join the work force, they will realize they have no proverbial country,

Short sighted jackasses.

 

[BDBoop]

Oh, yes. Short-sighted jackasses, who should have known the law would be changed mid-stream.

How about this one? The dad should keep working, right? That's my guess. His son's death should absolutely not affect the debt.

Bank relents on loan for dead S.J. student | Courier-Post | courierpostonline.com

Bryski, a 25-year-old Rutgers University graduate, died in 2006 after suffering catastrophic injuries in a fall two years earlier. His father, Joe, who had co-signed private loans of about $50,000 for his son’s college education, then had to come out of retirement to make monthly payments on the debt.

The family, which tried for six years to have the debt discharged by Key Bank, said the Cleveland-based firm now has agreed to do that. The change came after Ryan Bryski, Christopher’s brother, began an online petition drive that drew 80,000 signatures in less than a week.

“When Christopher died, my family didn’t just lose a loved one — we inherited debt for an education that will never be used,” Ryan Bryski said in the online petitition.

 

[geauxtohell]

For perspective, my principle is about $240K at 7%. My current balance is about $270k.

These numbers are typical of med school. On the other hand, my expected annual earning will be in the mid $100 - low 200k, also typical of most fields in medicine.

So the note is big (and the interest rate sucks), but it's money we'll spent as far as earnings are concerned.

The problem a lot of college students have is tat they are being sold a bill of shit about "do what your heart tells you to do" and devoting their time to unemployable occupations.

well said and good luck, seriously.


Just as a thought, I would add that maybe If you're down for it again, take a 4 year hitch, uncle sam may defray some of the principal or moderate the interest....

Thanks. I was a finance major. I knew this path was a good economic risk. Regardless of what Wahington does, people need healthcare and any field where your start up overhead is around one years worth of salary, is a no brainier.

Purely economically speaking, the military isn't as good of a deal for physicians when you really crunch the numbers. Plus, as a budding emergency medicine physician, I want to be in a department with civilian patients b/c that is where you will see the best pathology.

 

[peach174]

This is Obama's political ploy to get the college students to vote for him. That is all this is.
Same old Democratic ploy, vote for me and your student loans will be forgiven. Also add I'm the cool President vote for me.

 

[M14 Shooter]

If it was a $23,000 car instead of a student loan, how long would it take to pay off the car?

3-5 years. Maybe 6.

On it's face, this whole student debt story is BS isn't it?

Almost certainly.
If true, the issue stems from poor decision making on the part of the person who took the loan.