Student Loans

[Mackenzie Click-Mickelson]

All of that can be eliminated with bankruptcy, student debt can’t.

True although interestingly I found out via my sister's situation scholarship money can be discharged through bankruptcy. I've been trying to figure out why that is so different than a loan as both were under certain stipulations.

 

[focusondisney]

Unfamiliarity and moving around might cause a lot of missed payments, nevermind the massive attempt to connect to pay or sort out overlooked issues that need adjusting that might overload systems.

Ugh, reach out to your lender, update your address & contact information. Just like a responsible adult does for all bills.

 

[Cheburashka]

I'm in graduate school right now, paying my way through without taking out loans. Should I take out a loan now, in the hopes it will be forgiven?

 

[Brett Wyman]

Why should student loans(or the interest)get cancelled? You literally took out a loan and signed the terms. Can my house loan get cancelled? What about my car loan? What about the interest on my credit card? Geez.

Some, not all, but some schools have very predatory lending practices that take advantage of low income students and those ignorant to how interest works.

 

[kanerf]

I have several that I am paying on and one that was delayed. I will pay it off of course, but I am hoping for a very low interest rate when they restart.

 

[Disneychick13]

Coming from my era there was a lot of deceptive practices going on in the past. When one of my private loans it was under Wells Fargo (this was the 3rd company to own that loan) I got a letter saying "opps we calculated your payment incorrectly, you actually have 5 years more that you can pay than what we calculated your loan off of so...our bad"

And if you've been paying attention in the news you'd see that a lot of colleges (big time for the for profit ones) have had the loans discharged/refunded due to bad practices. My Fed loan was serviced by Navient...heard of that in the news? You should have given how much was uncovered about their bad practices towards the borrowers especially ones trying for income-based repayment plans.

As far as worked their tail off. That is true but it also is relative to the time period (as college costs are not the same as they were) and relative to one's situation. If a parent goes into debt themselves so their kid doesn't have a debt how is that any different? Even from when I graduated in 2010 costs are so much more now.

I'm a firm believer in paying back my loans on the other hand people should be sure when they make statements such as yours that they are actually aware of the details and know enough of a variety of people's stories. It's hardly a "you should have known the terms" when it comes to the student loan industries and the college education norms we have.

If a loan company committed fraud, then of course there will be repercussions. Those are repercussions that will be born by the loan company. I believe that was what happened with Navient(yes I have heard of them). I have also, like you, gotten a letter from our student loan company because, oops, we accidently lowered your interest rate so yeah you really owe more money than you thought. Paying back almost 300,000 of student loan debt here.

A loan company committing fraud and someone not knowing the terms of their loan are two different things.

 

[Disneychick13]

Some, not all, but some schools have very predatory lending practices that take advantage of low income students and those ignorant to how interest works.

Yes, I think it’s horrible that people take out loans without understanding how it works. That same predatory situation happens with credit card interest. But ignorance is really no excuse.

 

[Mackenzie Click-Mickelson]

If a loan company committed fraud, then of course there will be repercussions. Those are repercussions that will be born by the loan company. I believe that was what happened with Navient(yes I have heard of them). I have also, like you, gotten a letter from our student loan company because, oops, we accidently lowered your interest rate so yeah you really owe more money than you thought. Paying back almost 300,000 of student loan debt here.

A loan company committing fraud and someone not knowing the terms of their loan are two different things.

It's all wrapped up together. When I started college in 2006 there was a lot of private companies that did not engage in good business practices, sorta like get a free pizza if you sign up for a credit card with the booth right there on campus. There's a level of understanding to know that companies themselves were the originator of certain fundamental issues with the student loan industry.

Like I said I'm a firm believer in paying back my loans but I'm a far cry from generalized statements. They are like a soundbite that grab people's attention without laying it all out there how the industry was/is.

And 300K loans...geez...what happen with your loans?? Are you a doctor, lawyer? Something that would even anywhere near get you that high of loans?

 

[kymom99]

Some, not all, but some schools have very predatory lending practices that take advantage of low income students and those ignorant to how interest works.

Those loans wouldn’t be forgiven.

 

[Minnesota!]

We got screwed into taking out WAY more that we needed - I would call the loan officer at the school we were attending predatory vs the whole system. He fed off our situation - newly married, very young, parents had died, we were strapped for cash cuz dead-end jobs (which is why were in school). It was a horrible, horrible situation, now that I look back on it. He convinced us to take XXX each time (the full amount) and use that extra amount to pay our mortgage, other bills...which, seemed good at the time to some 20 year olds. But, compounding interest was never, ever a thought at that age. 770/month for 20 years after that, though, was rough. Ouch. A 2 year degree for my husband was 60K at the end of it.

I don't know what the solution is, but I think we start with interest rates and go from there.

 

[mjkacmom]

That’s always been the case. What’s different now?

Nothing is different, I was responding to a PP who seemed to think credit card debt, mortgage debt and student debt are the same.

 

[Disneychick13]

It's all wrapped up together. When I started college in 2006 there was a lot of private companies that did not engage in good business practices, sorta like get a free pizza if you sign up for a credit card with the booth right there on campus. There's a level of understanding to know that companies themselves were the originator of certain fundamental issues with the student loan industry.

Like I said I'm a firm believer in paying back my loans but I'm a far cry from generalized statements. They are like a soundbite that grab people's attention without laying it all out there how the industry was/is.

And 300K loans...geez...what happen with your loans?? Are you a doctor, lawyer? Something that would even anywhere near get you that high of loans?

I totally get that the student loan industry is a scheme. I don’t condone that. Reforming it is the key, not cancelling out student loan debt. My point is that canceling out student loan debt doesn’t hurt those companies at all. They will still get paid and they will continue to practice the same way they are now. It’s not helping anyone down the line. And it really is a slap in the face to all those who paid off their debt (even with how the system has been set up).

 

[hhisc16]

I read an article that said even if the student loan pause is ended on August 31st, payments cannot start until at least 21 days after an updated statement is sent to the borrower.

We have a student loan on undergrad and each on grad school between us (teachers).

Watching to see what happens.

 

[mom2rtk]

The things that always come to mind for me are (if anything goes forward) -

1. What happens to those who already paid their loans?

2. Is it "fair" for those with private loans not to get a break because they didn't qualify for federal subsidization?

Nothing about what is being kicked around is fair. And a lot people are going to have very strong feelings about it if it goes through.

 

[Minnesota!]

Some, not all, but some schools have very predatory lending practices that take advantage of low income students and those ignorant to how interest works.

Some, not all, but some schools have very predatory lending practices that take advantage of low income students and those ignorant to how interest works.

Yep, that was us. Super low income, parents had died, nobody around to really guide us, so we took what the loan officer was saying to be legit and the best way. We got screwed. I own that. We are both very smart people, but going through the worst phase of our life at that point and what was happening just did not compute. 20 years of struggle after that, due to it.

 

[Mackenzie Click-Mickelson]

I totally get that the student loan industry is a scheme. I don’t condone that. Reforming it is the key, not cancelling out student loan debt. My point is that canceling out student loan debt doesn’t hurt those companies at all. They will still get paid and they will continue to practice the same way they are now. It’s not helping anyone down the line. And it really is a slap in the face to all those who paid off their debt (even with how the system has been set up).

We're not in disagreement about canceling debt..that's why I said (twice) that I'm a firm believer in paying my debt. But you and I have a way different viewpoint on the situation as a whole despite feeling the same about taking out a debt you pay that debt.

Although it should be noted there have been various colleges that have ceased to exist so they don't all stay in business.

Still wondering about your 300K??? That just sounds outrageous how did you get roped into paying that much!?

 

[Mackenzie Click-Mickelson]

I read an article that said even if the student loan pause is ended on August 31st, payments cannot start until at least 21 days after an updated statement is sent to the borrower.

That was something I found interesting over the time of this pause especially when the date the repayment was supposed to begin would get close and the big question was would that get extended again, it was the companies that were servicing the loans who were the strongest voices on concern over repayment. They were/are very worried their systems cannot handle it.

 

[hhisc16]

That was something I found interesting over the time of this pause especially when the date the repayment was supposed to begin would get close and the big question was would that get extended again, it was the companies that were servicing the loans who were the strongest voices on concern over repayment. They were/are very worried their systems cannot handle it.

During this pause, my grad school loan has been transferred to three different companies! It has been crazy!

The current loan holder has not sent me an updated statement, so I am unsure when my payments will actually start (I have 0 interest accrued due to teacher loan program on it.)

 

[Disneychick13]

We're not in disagreement about canceling debt..that's why I said (twice) that I'm a firm believer in paying my debt. But you and I have a way different viewpoint on the situation as a whole despite feeling the same about taking out a debt you pay that debt.

Although it should be noted there have been various colleges that have ceased to exist so they don't all stay in business.

Still wondering about your 300K??? That just sounds outrageous how did you get roped into paying that much!?

300k= a lot of school=Maximum amount=advanced degree= no regrets= still sucks paying it

 

[LuvOrlando]

Some used the word predators, knowing the word means targeted victims, and yet declare it's no excuse when ignorance and vulnerability is precisely the thing sought after by predators. That's tricky, it sounds like some don't think there is any such thing as a victim in financial schemes, so it sort of follows you might feel there is no such thing as criminals, just the crafty and the suckers. Not really how I see things, I can't follow where this thought train goes.
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