- Apr 4, 2004
- 5,983
- 533
My bad more like around or just above 20k
Finish with over 250k in debt most at 6.8% some at 8.5% and have that in forbearance for 5 years and it starts to accumulate quickly
Last edited:
DEFAULT...Student Loans
- Thread in 'General' Thread starter Started by obeahmyal7,
- Start date
My bad more like around or just above 20k
Finish with over 250k in debt most at 6.8% some at 8.5% and have that in forbearance for 5 years and it starts to accumulate quickly
- Aug 7, 2012
- 2,730
- 2,257
It's not about making an excuse, it's the fact that this makes school unnecessarily expensive for everyone including those who don't want to take loans. Think about your children and other HS graduates now having to deal with 30-40k+ tuition as a norm for private universities. Tuition is incredibly overpriced for most private schools.
- Dec 29, 2008
- 68,176
- 24,541
that's like borrowing $400k to get that amount of interest in a year
- Dec 29, 2008
- 68,176
- 24,541
if you don't want to take out loans then go work for UPS, the postal service, construction, etc.
I literally hate when I get people come to me and expect everything will be free, that isn't how life works
most private schools subsidize the costs for their students unless someone really wants to go there and takes out massive loans to do so, just because tuition shows $40k a year doesn't mean that is what you are paying back in the end
- Aug 7, 2012
- 2,730
- 2,257
Also, why doesn't the gov't back private loans for homes that aren't credit based either? Housing is just as important as education. We'd see how crazy that would turn out 
- May 26, 2003
- 15,294
- 4,656
IDK how it works in you guys states, but I went to College in GA and only had loans my freshmen yr and 1st semester of Sophomore yr, after that college was free because I got tons of grants and scholarships. If you can't afford to go to a private school, it makes zero sense to still go to one lol. IMO it is idiotic to take out more than half of the avg starting salary for your area in student loans, minus something like Medicine which loans are inevitable.
- Aug 7, 2012
- 2,730
- 2,257
Nobody is saying school should be free, but you are naive if you think schools aren't raising their tuition knowing people can easily borrow the money. I don't know why you would take the banks and schools side on this knowing what's going on, especially considering you work in that field. If these kinds of loans weren't backed by the gov't tuition would drop to prices that are far more reasonable(not free).
- Dec 29, 2008
- 68,176
- 24,541
loan amounts you can borrow haven't gone up in years, they are set unless you take out alternative loans but grants have gone up yearly so that argument is kind of defeated right there
school is affordable in the United States but this generation has the mentality that they shouldn't have to pay $300 a month in a loan because that means they can't have the hot whip, fly clothes and lifestyle they want right out of school.
Pay your loans back and work towards that, that's how it used to be but now people expect instant gratification and they expect it on their terms
- Aug 22, 2012
- 10,542
- 10,129
I thought student loans were the 1 type of loan that followed you through bankruptcy.....
No student loans with an economics degree checking in
No student loans with an economics degree checking in
Last edited:
- Dec 29, 2008
- 68,176
- 24,541
They are, they can't be discharged in bankruptcy
- Aug 7, 2012
- 2,730
- 2,257
But these alternative loans are actually from...... The US Government. Ever heard of Sallie Mae? So these loan amounts are much higher than the type of loans you state that haven't gone up in years.
So the perceived "cap" on gov't loans is a fallacy, if we are going to have this discussion people need to understand why tuition is so overpriced in the first place.
- Dec 4, 2012
- 3,683
- 1,529
Great thread. This is exactly what I did and it changed everything. Sadly student tuition is only going up especially in certain states for in-state students
fontaine
Banned
- Jul 5, 2013
- 8,053
- 6,535
Correct.
There isn't much of a market for school loans because they don't appreciate like real estate... So its not an investment worth buying of you can go get corporate bonds with more return and the same amount of risk.
The subprime crisis basically boiled down to investors feeling that they could get great returns on these loans because 1. housing prices weren't going to go down because everybody wants a home and 2. if they walk away, atleast we have the asset of a home or real estate to back the loan.
unfortunately, people DID walk away and the assets were there, but dropped tremendously.
W/ student loans, there isn't much of a tangible asset that backs it up. So it's REALLY easy for someone to say **** it and not pay, and there's nothing the bank can do about it from recovering their monies.
Plus, you arent protected from student loans when you file for bankruptcy. you still gota pay that back
The thing is the student loans, albeit bad, are still nowhere near the size of the MBS market of 2007 or the tech market in 99
Its impact will be slow, but as soon as rates begin to rise back up, it will be tougher for people to get home because of the amount of debt being accrued...
Last edited:
D
Deleted member 38307
Guest
- Oct 8, 2008
- 7,378
- 591
pay as you earn is probably the best way to go. just gotta accept a chunk of your check will be missing until you die.
911 Carrera
formerly labrat
- Mar 16, 2014
- 32
- 40
Anyone here know if high school counselors are still telling high school students to go to college regardless of how much it costs?
Back when I was in high school, that was what they were telling us.
They should be telling high school students to consider 2 years of community college and then transferring to a university to cut down on how much you end up borrowing.
Also to help those already deeply in debt, the Fed could stop charging interest on student loans for a certain number of years to help people pay down their principal.
Back when I was in high school, that was what they were telling us.
They should be telling high school students to consider 2 years of community college and then transferring to a university to cut down on how much you end up borrowing.
Also to help those already deeply in debt, the Fed could stop charging interest on student loans for a certain number of years to help people pay down their principal.
- Jul 18, 2012
- 8,837
- 4,740
not gonna lie, nervous as hell to go back to school for a Masters because of debt...for the last 4 years and change, I've payed off an exorbitant amount of my undergrad debts (still owe $8k)...
my current company doesn't contribute very much but if I did use their tuition reimbursement, I'd owe them a year (I think)...already been there long enough as is with not much to show for it, so the idea of going back to school is nerve racking...
my current company doesn't contribute very much but if I did use their tuition reimbursement, I'd owe them a year (I think)...already been there long enough as is with not much to show for it, so the idea of going back to school is nerve racking...
Last edited:
- May 26, 2003
- 15,294
- 4,656
That extra yr for them to pay for a masters could get you a bigger ROI if you land a higher paying job afterwards.
- Jul 29, 2012
- 4,992
- 5,815
Decent tax credits for going to school still running.The American Opportunity Credit can save you up to $2,500 in tax for the education expenses of each eligible student. Not amazing, but every little thing helps
- Nov 6, 2012
- 4,757
- 1,409
Most master programs give you 6-7 years to complete your masters. Stretch it out definitely don't take out any more loans, just not worth it. So many employers with tuition assistance I wouldn't pay out of pocket for education.
- Aug 24, 2012
- 783
- 1,405
I'm starting to understand where you're coming from. After all, if a movement builds to repudiate debt, you'd be out of a job.
For those of you entertaining the strategy of debt default, check this out:
http://strikedebt.org/
superblytrife
Supporter
- Mar 20, 2002
- 21,820
- 24,950
Same. It's really the only thing holding me back.
I just can't see pumping more money into education when I've already paid so much in already. Sometimes I hop off the fence and say I'm gonna do it, but then I look at my current loan payment history and say hell to the nah.
I'd almost rather live debt free with a decent salary than take on more debt with the hopes of landing a better job/salary with more education. As I've grown older I've learned that peace of mind and not stressing about money is pretty much priceless.
- Aug 24, 2012
- 783
- 1,405
What do you plan to pursue your Master's in? Have you thought about applying for a fully-funded PhD program, and then bailing after you pick up the MA for free?
- Jun 17, 2006
- 44,490
- 2,845
Whatever you do, do not default on your student loans! It will kill your credit! Talk to the supervisors and managers of the student loan office they should work something out with you.
- Apr 15, 2007
- 21,734
- 10,463
Props on the thread my dude. I have thought about it and looked at alternatives but nothing has really panned out. I got got and it is the biggest regret of my entire life. Went to a private out of state university. Got loans out myself with no cosigner at a high variable interest rate. Got forbearance for the 4 years i was in school. Borrowed 80k (20k per year) graduated 100k in debt. Paid down 20k in principle so far over the past 5 years.
My interest rates now are slightly lower but i thank the stars that i have a decent paying job. I have no clue how people are able to pay back if they are in my situation with a normal job. When i graduated i lived at home for 3 years making 35k a year. Pay checks bi-monthly were 1150 and my student loan payments were $1350 a month. I had a beater car that was paid off and i was paying car insurance, cell phone, and gas for my car since my job was 30 mins away. I would literally live off $500 a month. I was so so so so depressed since i couldn't do anything that cost money.
I take responsibility for my faults. But the system is broken. Its made to prey on the uniformed. Never had a finance class in high school neither of my parents went to college and my mom is horrible with money and refused to fill out FAFSA for me and would go ghost if i came home to find her. I just think kids need a class in school to give them an idea of what they are getting themselves into.
My interest rates now are slightly lower but i thank the stars that i have a decent paying job. I have no clue how people are able to pay back if they are in my situation with a normal job. When i graduated i lived at home for 3 years making 35k a year. Pay checks bi-monthly were 1150 and my student loan payments were $1350 a month. I had a beater car that was paid off and i was paying car insurance, cell phone, and gas for my car since my job was 30 mins away. I would literally live off $500 a month. I was so so so so depressed since i couldn't do anything that cost money.
I take responsibility for my faults. But the system is broken. Its made to prey on the uniformed. Never had a finance class in high school neither of my parents went to college and my mom is horrible with money and refused to fill out FAFSA for me and would go ghost if i came home to find her. I just think kids need a class in school to give them an idea of what they are getting themselves into.
