Education loans

neil5623 · 10-02-2007, 09:18 AM

College students get a break on costs - MSN Money

It will be very interesting to me if this applies regardless when the loan was taken:

Quote: "The feds will forgive the balances on both subsidized and unsubsidized loans after 25 years. "

drivel · 10-02-2007, 10:37 AM

Quote:

Originally Posted by neil5623

College students get a break on costs - MSN Money

It will be very interesting to me if this applies regardless when the loan was taken:

Quote: "The feds will forgive the balances on both subsidized and unsubsidized loans after 25 years. "

I can assure you it wont.

hannah · 10-02-2007, 10:42 AM

Quote:

Originally Posted by drivel

I can assure you it wont.

And you know this because...?

centex · 10-02-2007, 11:59 AM

c'mon Hannah...common sense and past practice comes into play here. Most legislation, particularly where it relates to funding, tends to be prospective in nature. You really don't think they will leave the money on the table that the deadbeats to this point have walked on do you? When have the feds ever taken an action that lets people walk on funds owed without penalty?

hannah · 10-02-2007, 12:37 PM

Quote:

Originally Posted by centex

c'mon Hannah...common sense and past practice comes into play here. Most legislation, particularly where it relates to funding, tends to be prospective in nature. You really don't think they will leave the money on the table that the deadbeats to this point have walked on do you? When have the feds ever taken an action that lets people walk on funds owed without penalty?

You can't get blood from a turnip nor from a person with student loans that have no money. If the article is accurate, perhaps the size of the payments will go down to a manageable amount that CAN be repaid over time without causing harm and it will be a win-win. Centex, you know I am quite the cynic but sometimes one can only hope our government does something that is in everyone's best interest. How much money have we wasted, yes, wasted in Iraq that could have been spent to educate our own citizens? What's wrong with putting the citizens of our own country - our families, friends, and neighbors -- first for a change? That could all start with forgiveness of student loans that those "deadbeats" simply cannot pay. Not will not, but cannot. This country spends millions everyday on other countries, hell, they spend it on illegal immigrants here. Why not educate our poor huddled masses so that they may become educated with no more need to leech off our tax dollars without giving back? Money is not the only thing that needs to be given back you know.

centex · 10-02-2007, 01:49 PM

Educations should not be 'given' to anyone. There is plenty of scholarship money out there to be had and the loans are not that difficult to repay. The problems come when people want everything handed to them on a silver platter.

yeah we as a country have wasted a ton of money on yet another international debacle just as we continue to give handouts to people more than two years removed from Katrina. They made the choice not to take steps to improve their station in life and after two years, it is time for them to manage on their own. Nobody forced them to remain uneducated and uninsured.

As to loans, there is no excuse for someone not to be able to make their payments after being notified of the amount due. Deferments and forebearances were there for the asking and rarely even really had to be justified- just sign and fax and poof, you bought yourself another six months or so. I seem to recall my undergrad loans were only a few hundred a month on a lot more money than I really needed to finish the degree...even working part-time, that would have been manageable. It comes back to prioritizing needs...someone coming out of school needs to realize that fiscal responsibility comes before getting into a $600/mo car note and/or a $2500/mo house note.

Hedwig · 10-02-2007, 02:38 PM

Centex, I agree wholeheartedly.

If more people learned to live within their means, and to distinguish between NEEDS and WANTS (a basic economic principle that should be taught in high school), we wouldn't have the manufactured mortgage "crisis" that we have now. I can't believe people think the government should come in and bail out people who bought houses that were two to three times what they could afford. Some of us learn to buy what we can afford, not what we want. Why should they be bailed out and not us?

OK, off that soapbox and back to student loans. The reason they went to college was to get a professional job. As Centex said, the payments shouldn't be that out of line with the salaries. They just need to prioritize.

No one has a RIGHT to a college education.

hannah · 10-02-2007, 03:47 PM

I didn't say to put wants over needs nor that education was a right. And yes, there are a ton of scholarships out there and I should know...I have several. That said, there are people who simply cannot bear the freight so where's the line?

Hedwig · 10-02-2007, 03:53 PM

But many (I'd say most, but I have no proof of that) of those who can't bear the freight are in that situation because of the mortgage and car payments. Where do I draw the line? When they are living in a small house or apartment, driving an older, small, but adequate car, have canceled the cable and newspaper, pack their lunch instead of spending $10 to eat out every day ($200 a month right there), eat at home instead of out every night.

Also, especially if they have no children, I'd expect to see a second (or even third) job.

After that, if there is genuine need, come see me. Trust me, I've been through every bit of this. And paid back every dime that I owed ANYONE (not just student loans, but credit cards my ex ran up). No asking for handouts, no getting settlements for lesser amounts. I mean every single penny has either been repaid or has been refinanced to a position that I can manage it.

drivel · 10-02-2007, 04:16 PM

Quote:

Originally Posted by centex

Educations should not be 'given' to anyone. There is plenty of scholarship money out there to be had and the loans are not that difficult to repay. The problems come when people want everything handed to them on a silver platter.

yeah we as a country have wasted a ton of money on yet another international debacle just as we continue to give handouts to people more than two years removed from Katrina. They made the choice not to take steps to improve their station in life and after two years, it is time for them to manage on their own. Nobody forced them to remain uneducated and uninsured.

As to loans, there is no excuse for someone not to be able to make their payments after being notified of the amount due. Deferments and forebearances were there for the asking and rarely even really had to be justified- just sign and fax and poof, you bought yourself another six months or so. I seem to recall my undergrad loans were only a few hundred a month on a lot more money than I really needed to finish the degree...even working part-time, that would have been manageable. It comes back to prioritizing needs...someone coming out of school needs to realize that fiscal responsibility comes before getting into a $600/mo car note and/or a $2500/mo house note.

But centex, I have a 500 credit score and am looking to buy a house, does this mean I shouldn't have one? Why should my silver platter be empty.

Hedwig · 10-02-2007, 04:40 PM

Dear Drivel,

My score is in the high 700s and I want a million dollars. Can you help me?

drivel · 10-02-2007, 10:15 PM

Quote:

Originally Posted by Hedwig

Dear Drivel,

My score is in the high 700s and I want a million dollars. Can you help me?

nope but if your'e nice to roybean he may let you ride on his coattails to fdcpa riches.

Hedwig · 10-02-2007, 10:49 PM

Maybe I'll try that. I already took my shoes off.

hannah · 10-02-2007, 11:25 PM

Quote:

Originally Posted by Hedwig

I already took my shoes off.

Uh huh...you took them off weeks ago...now where do you think they are?

Hedwig · 10-03-2007, 12:36 AM

Quote:

Originally Posted by hannah

Uh huh...you took them off weeks ago...now where do you think they are?

Which pair?

At work they're under my desk until I have to go out, then I put them on.

At home, there are some by the computer and some by my chair. Some actually make it to the shoe organizer on the door!!

spinn · 10-03-2007, 08:31 AM

Quote:

Originally Posted by centex

You really don't think they will leave the money on the table that the deadbeats to this point have walked on do you?

I wonder how many of those "deadbeats" got desperately ill and had to choose between buying food, buying medicine that is grotesquely overpriced, paying the doctor who is saving their life or paying a student loan?

When given the choice between giving money to Citibank or dying I wonder what the attorneys on this board would do?

hannah · 10-03-2007, 11:32 AM

Quote:

Originally Posted by spinn

I wonder how many of those "deadbeats" got desperately ill and had to choose between buying food, buying medicine that is grotesquely overpriced, paying the doctor who is saving their life or paying a student loan?

When given the choice between giving money to Citibank or dying I wonder what the attorneys on this board would do?

That's why I asked where the line is...

centex · 10-03-2007, 12:47 PM

Considering that few people (relatively speaking) have medical bills as their excuse for not paying student loans, I view that as a red herring. Further, that is the sort of situation that easily speaks to deferment and/or forebearance. If someone chooses not to avail themselves of that option, then I have zero sympathy for them...

hannah · 10-03-2007, 12:51 PM

Quote:

Originally Posted by centex

Considering that few people (relatively speaking) have medical bills as their excuse for not paying student loans, I view that as a red herring. Further, that is the sort of situation that easily speaks to deferment and/or forebearance. If someone chooses not to avail themselves of that option, then I have zero sympathy for them...

So then you agree that there is a line somewhere?

centex · 10-03-2007, 01:07 PM

Quote:

Originally Posted by hannah

So then you agree that there is a line somewhere?

It is a very narrow scope and not something easily codified. Basically, they better be terminal and won't live out the 10 year average life of the loan.

If they aren't terminal, then there is no reason whatsoever for them not to be in contact with the lender. Let's face it, most student loan lenders tend to be easy enough to work with and don't get aggressive in collections until you are more than 90 days past due, and there is NO EXCUSE not to have spoken with someone in that window of time if there was a legitimate reason that warrants a deferral or forebearance...

Hedwig · 10-03-2007, 01:25 PM

I agree.

As with many situations, one exception is blown out of proportion and used as the counter argument. I agree that there are few people who would have medical problems of such a proportion that they couldn't get a deferral, get back on their feet, and make payments. And face it, most professionals would have medical coverage.

As for the choice between giving money to Citibank and dying, I'd ask first how many of these cases are there? And of those cases, how many are living in big houses, driving fancy cars, and watching premium channels on cable or satellite TV. All of these items can be gotten rid of to get the money needed.

spinn · 10-03-2007, 07:00 PM

Maybe if colleges taught people how to make money instead of having students stare at a painting and argue about what the artist who died 5000 years ago was thinking they would be able to pay the bill?

centex · 10-03-2007, 07:07 PM

Quote:

Originally Posted by spinn

Maybe if colleges taught people how to make money instead of having students stare at a painting and argue about what the artist who died 5000 years ago was thinking they would be able to pay the bill?

I believe I have to ask what the f*ck you are talking about. Does not sound like anything in a core curriculum I ever had to take. And the classes in my major had the desired impact of preparing me for a liveable wage...sorry if you chose a degree program that did not work out for you.