Student Loans

• O-Trap

  

  like_that;1284590 wrote:I was fortunate enough not to have any loans. In fact I finished both degrees with a good amount of money left.

  
  That's just damn impressive. Reps.
  

  gut;1284593 wrote:At least not for anyone with a job or making more than a certain amount. Kind of like a "you tried and failed...we're sorry so let us pick-up the tab".
  
  You can't forgive student loan debt any more than you can mortgages. Now I agree something will happen, but what that probably means is student loans will now be able to be discharged in bankruptcy. That means higher rates for everyone.
  
  There's a bubble in student loans and all of gubmit making. I can't think of a single reason why the gubmit should be involved in that business. Student loans are a $1T+ failure. They haven't made college more attainable or affordable, they've just squeezed out some private money and billed the taxpayer for the cost of that.

  You're dead on. Forgiving a loan is forgiving a loan. You can't justify one without another, and you cannot forgive any loan without legislating huge losses to a company that loaned out money in a good-faith agreement that it would be paid back with interest.
  
  If I loan 20 people in my community $1,000 each and agree on a payment plan that has comparable interest rates, I certainly have a lot of my resources invested into that returning in the form of said payment plan. Now, should a police officer come to me and say that HE'S going to forgive the loans? So, I'm out of $20K and have no say?
  
  
  Forgiving loans of any kind isn't something that anybody but the "loaner" should be able to do, as long as the loan has been carried out in a legal manner.
• O-Trap

  

  Tiernan;1284603 wrote:I'll be on the F'n news as a crazed gunman mowing down State Reps if the Govt forgives Student Loans. All us old Fkrs had to pay years and years and now all you young dooshers need to do the same.

  I actually pictured someone doing this and audibly laughed my ass off.
• OQB

  

  I have about $40,000 I started paying back last April......I'm using the debt snowball technique:
  
  I listed out all my loans smallest to largest:
  Pay minimum payments on all loans and apply extra cash to the smallest amount to pay off first.
  once you start eliminating loans apply that money to the next lowest loan and get that paid off etc...
  
  I'm not hurting or anything, have a good job, but it still sucks signing those checks every month.
  
  
  Loan forgiveness would really boost the economy...I just don't see it happening the way everyone wants it to, they will add the fine print and loopholes.
• ernest_t_bass

  

  I have a ton, and am just making minimum payments. I'd pay more, but I'm paying cash for my Masters right now, so that puts a burden on things. Wife's is almost done, one small Masters loan that I took out my first year of grad school is about halfway, and my undergrad still has a way to go. I've been deferring on my undergrad, mostly because fuck you.
• Crimson streak

  

  Had about 30k and I got it down to 18 now. The worse part is I didn't even finish. Luckily I have a job making 60,000 a year with out a degree. I work my ass off but I'm hoping to be able to finish my degree soon.
• like_that

  

  O-Trap;1284620 wrote:That's just damn impressive. Reps.

  Thanks for the reps, but if anyone deserves the reps it is my parents. Especially my father and his planning from the day i was born. If I ever have any children, I plan to do the same or at least try.
• mucalum49

  

  O-Trap;1284545 wrote:I have about $50K to go.
  
  Damn private school tuition.

  +1 It kills me to know that what I pay between rent and student loans I could have a mortgage on a pretty nice place (~$1500/mo).
  
  As for student loan forgiveness for everyone, I don't think that'd be right but I wish they brought back the payment extension program if you're over a certain amount. When I started paying mine off (11/2008) it was based on a 25-30 year pay back plan, can't remember exactly. The idea was to pay less when you start out and obviously you can increase your payment as your income goes up. My loans at that time were like $250/mo. When I went back to school full time they deferred my loans. When I got out in August 2010 that program had been disbanded causing my payments to triple. So I paid less the first 18 months and have to make up the remainder in the 8.5 years after.
  
  I guess it's good I'll be done paying them off sooner but I'd be lying if I said I didn't miss that lower payment some months.
• Crimson streak

  

  mucalum49;1284633 wrote:+1 It kills me to know that what I pay between rent and student loans I could have a mortgage on a pretty nice place (~$1500/mo).
  
  As for student loan forgiveness for everyone, I don't think that'd be right but I wish they brought back the payment extension program if you're over a certain amount. When I started paying mine off (11/2008) it was based on a 25-30 year pay back plan, can't remember exactly. The idea was to pay less when you start out and obviously you can increase your payment as your income goes up. My loans at that time were like $250/mo. When I went back to school full time they deferred my loans. When I got out in August 2010 that program had been disbanded causing my payments to triple. So I paid less the first 18 months and have to make up the remainder in the 8.5 years after.
  
  I guess it's good I'll be done paying them off sooner but I'd be lying if I said I didn't miss that lower payment some months.

  
  And mount union isn't cheap. Trust me I know lol. Luckily since I played football I got that mysterious "mount union grant" that paid about half of my tuition
• fan_from_texas

  derek bomar;1284605 wrote:since when has the gov't worried about being fair?
  
  Also, while it isn't "fair" to those who've paid off their loans - what's the difference between forgiving that and the Fed buying up ****ty mortgage loans off of banks books? It'd just be a more efficient way to inject stimulus into the economy, and it would impact people personally and more broadly rather than large banks.

  Do we think it would help the economy? I suspect that massively rewriting contracts to wipe out debts would give some short-term improvement with more cash flow but cause long-term problems. I'd prefer that student loans were just dischargable in bankruptcy. Then, if someone legitimately can't pay, they can have their debts wiped out.
  
  Or, if we insist on getting rid of student loan balances, we should make anyone who has a smart phone ineligible for the program.
• fan_from_texas

  mucalum49;1284633 wrote:As for student loan forgiveness for everyone, I don't think that'd be right but I wish they brought back the payment extension program if you're over a certain amount. When I started paying mine off (11/2008) it was based on a 25-30 year pay back plan, can't remember exactly. The idea was to pay less when you start out and obviously you can increase your payment as your income goes up. My loans at that time were like $250/mo. When I went back to school full time they deferred my loans. When I got out in August 2010 that program had been disbanded causing my payments to triple. So I paid less the first 18 months and have to make up the remainder in the 8.5 years after.

  Whoa, income-based repayment or 30-year consolidation doesn't exist anymore? That's pretty brutal.
• O-Trap

  

  like_that;1284632 wrote:Thanks for the reps, but if anyone deserves the reps it is my parents. Especially my father and his planning from the day i was born. If I ever have any children, I plan to do the same or at least try.

  Well then give the reps I sent to your dad.
  
  I'd like to do that for my kids as well. Thankfully, my wife's parents did it for her, but it was contingent on her grades. Any class below a B- meant she had to pay them back for that class. Thankfully, only two classes ended up under B-, so she wrote checks from summer jobs and graduated debt-free.
• mucalum49

  

  Crimson streak;1284636 wrote:And mount union isn't cheap. Trust me I know lol. Luckily since I played football I got that mysterious "mount union grant" that paid about half of my tuition

  I too had that mysterious grant that my test scores didn't qualify me for. But it doesn't go as far with the baseball team as it did with you guys haha.
• O-Trap

  

  fan_from_texas;1284642 wrote:Or, if we insist on getting rid of student loan balances, we should make anyone who has a smart phone ineligible for the program.

  LOL!
• mucalum49

  

  fan_from_texas;1284643 wrote:Whoa, income-based repayment or 30-year consolidation doesn't exist anymore? That's pretty brutal.

  I think it's the type of loan that I got through my parents bank that had it's consolidation eliminated. It's not every type of loan.
• fan_from_texas

  like_that;1284632 wrote:Thanks for the reps, but if anyone deserves the reps it is my parents. Especially my father and his planning from the day i was born. If I ever have any children, I plan to do the same or at least try.

  We're doing that with our kids. It's roughly $500/mo. per child after-tax for 18 years to be pretty comfortable with covering their college expenses. Expensive.
• Crimson streak

  

  mucalum49;1284646 wrote:I too had that mysterious grant that my test scores didn't qualify me for. But it doesn't go as far with the baseball team as it did with you guys haha.

  
  Haha when I was looking at all my grants that I got I'm like I didn't apply for this and I know my test scores didn't qualify lol. I'm so grateful for it now though
• BR1986FB

  Crimson streak;1284629 wrote:Had about 30k and I got it down to 18 now. The worse part is I didn't even finish. Luckily I have a job making 60,000 a year with out a degree. I work my ass off but I'm hoping to be able to finish my degree soon.

  Girlfriend's son is the same. Guidance counselor told him he had plenty of credits to graduate but he was actually 12 credit hours short. After he ordered his cap & gown they sprung the news on him. Has about the same amount of debt with no degree.
  
  He's been out of school for about 3 years now. He wanted to finish up online but the school (Muskingum) wouldn't let him which kinda pisses me off considering the money that was paid/is being paid. Still looking at options to transfer the credits (Youngstown St, Akron/Kent?) to finish up his teaching degree but he's had no luck, so far.
  
  If he doesn't get back soon I fear he never will. If anyone has any suggestions on this, let me know.
• gut

  Wiping out student debt is just such an asinine idea I have no idea how it even gets started. It completely tramples capitalism and the rights of investors.
  
  I believe only federally guaranteed loans (totaling $16-25k?) cannot be discharged. Loans in excess of that amount are not guaranteed and CAN be discharged in bankruptcy (this is why rates on those amounts are higher).
• Laley23

  

  Two different loans. 2k paid off on Sallie Mae (still have 10k) and down to 7k on Direct Loans.
• Crimson streak

  

  BR1986FB;1284660 wrote:Girlfriend's son is the same. Guidance counselor told him he had plenty of credits to graduate but he was actually 12 credit hours short. After he ordered his cap & gown they sprung the news on him. Has about the same amount of debt with no degree.
  
  He's been out of school for about 3 years now. He wanted to finish up online but the school (Muskingum) wouldn't let him which kinda pisses me off considering the money that was paid/is being paid. Still looking at options to transfer the credits (Youngstown St, Akron/Kent?) to finish up his teaching degree but he's had no luck, so far.
  
  If he doesn't get back soon I fear he never will. If anyone has any suggestions on this, let me know.

  
  I definitely sucks. If I was him go back to muskingum for that semester and finish up. It will help him in the long run getting that degree and it would be worth that 3-4 months
• sleeper

  

  gut;1284606 wrote:Doesn't matter whether it's $2k or $20k. Point is you pay-off your most expensive debt first, but at 2.25% there's absolutely no reason to pay it off. Like I said, 6.8% is a different story. That's a rate where I'm much more indifferent, being a decent enough return (when it's guaranteed) on my money, and there's a lot of debt that is cheaper than that.

  Right but a person couldn't just go out and grab 20k less of a mortgage because they aren't diverting that capital to student loans. Of course you should pay off your most expensive debt first.
• jmog

  Had less than $10k coming out of undergrad, with grad school taking 3 years (1 full time, 2 part time) and wife/2 kids at home I quickly added $60k (took maximums to live).
  
  Will have them paid off in a couple years. I would like my house paid off first since it is a slightly higher interest rate. However, if the refi that I am doing goes through then the loans will come first as my house will drop to 4% interest.
  
  Either way, now that my wife is working again (kids all in school) the loans will be paid off in a couple years and I can't wait, paying nearly $1000/month on them right now.
  
  I have no car payments and no credit card payments, just normal utilities/bills, then a $1000/month student loan and $1000/month (will drop to $800/month if the refi goes through) house payment.
  
  I would love to get the $1000/month cash flow.
  
  I already make maximum contributions to 401k and IRA (maximum tax deferred), so if I had the $1000 extra a month it would probably go to a nice family vacation once a year.
• BR1986FB

  Crimson streak;1284668 wrote:I definitely sucks. If I was him go back to muskingum for that semester and finish up. It will help him in the long run getting that degree and it would be worth that 3-4 months

  Unfortunately, he now has "real world debt" (car loans, apartment rent, etc) which is why he'd hoped to do it online. Kid spent 5 years in college and he's empty handed.
  
  On the one hand, I'd really like to see him get it and become a teacher but on the other hand, it kinda serves him right for dicking around drinking with his frat "boys" and chasing ass. He knows he fucked up. Life lessons, I guess....
• sleeper

  

  fan_from_texas;1284652 wrote:We're doing that with our kids. It's roughly $500/mo. per child after-tax for 18 years to be pretty comfortable with covering their college expenses. Expensive.

  Christ. What a joke.
• Pick6

  

  Ill be ~45k in debt after I graduate. I fall into the shittiest category possible. Middle class, no help from the family. I dont even get enough in federal loans to cover tuition. Had to pay 2300 out of pocket this semester, and will have to do the same next semester. Probably will have to take out another private loan. 21 years old, fully independent from parents, and I get 0 grants, and not enough federal loans to cover just tuition. System is fucked up. Ill be alright, though. I feel bad for all the art majors.