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Started By
Message
re: Student Loan payments restarting
Posted on 8/7/23 at 6:12 pm to Dead Mike
Posted on 8/7/23 at 6:12 pm to Dead Mike
quote:
think it is nuts to expect the average college matriculant to have a sufficient grasp of their career prospects and aptitude, to commit to tens of thousands (to $100k+) of non-dischargeable debt.
So don’t give it to them as easy as just sign your name right here…. We have to stop treating college like it is the 13th grade, college is not for everyone and not everyone needs to go
If I wanted to borrow 100k for a new business and I walked into a bank and asked for a loan, they would make me present a business plan, how much money I was going to need, how much I was going to borrow, what my expenses would be, when could I start paying it back and where the money that I was going to pay back was coming from etc etc, maybe we should make these borrowers do the same and have some one objectively review their “business plan” and see if it floats
But this handing out huge loans to anyone who fills out an application is ridiculous
0
Posted on 8/7/23 at 7:20 pm to Dead Mike
quote:
I think it is nuts to expect the average college matriculant to have a sufficient grasp of their career prospects and aptitude, to commit to tens of thousands (to $100k+) of non-dischargeable debt. Teenagers with little to no work experience and probably little educational experience outside of a given school system have very little perspective to base these decisions. Often their advisors (especially parents and relatives) have outdated knowledge from a different time and a different job market.
Not to mention 99% of high school grads who actually think about this kinda stuff at 17/18 will see what the top end of such profession makes and just assume that's the guaranteed starting wage.
Older people will always love to shite on the people in their 20sfor having no clue how the world works and how life happens etc.
Well why are these same people expecting 17 or 18 year olds to be better?
Posted on 8/7/23 at 7:46 pm to JohnnyKilroy
The entire process is only viable because of the government subsidization. Period.
Colleges love it because they feed on the relatively uncapped revenue stream. They have no incentive to stop it.
Colleges love it because they feed on the relatively uncapped revenue stream. They have no incentive to stop it.
Posted on 8/7/23 at 9:28 pm to Dawgfanman
So you consider a video for an 18 year old person sufficent when high school teaches zero financial literacy. This is part of thr problem. BTW, they say it has intrest not it has x interest. Most 18 year Olds do not understand the implications.
Posted on 8/8/23 at 7:48 am to FreddieMac
quote:
when high school teaches zero financial literacy.
good news is Louisiana Schools are required to teach financial literacy. hopefully it helps.
when my wife and i took out federal student loans we didnt have to watch any videos. they also encouraged us to take the max amount.
that was about 10 years ago
mine are fully paid and wife's are about 70% paid
https://law.justia.com/codes/louisiana/2021/revised-statutes/title-17/rs-270/
more recent article:
https://www.wafb.com/2023/06/22/la-high-school-students-will-soon-be-required-take-financial-literacy-course-before-they-graduate/
This post was edited on 8/8/23 at 7:50 am
Posted on 8/8/23 at 10:35 am to Pezzo
quote:
when my wife and i took out federal student loans we didnt have to watch any videos. they also encouraged us to take the max amount.
That is the practice going back to the 1990s, I can confirm.
Posted on 8/8/23 at 1:24 pm to FreddieMac
I never watched anything for my federal grad school loans. Clicked a handful of buttons and uploaded a handful of docs and the money was on the way.
Posted on 8/9/23 at 12:06 am to FreddieMac
quote:
So you consider a video for an 18 year old person sufficent when high school teaches zero financial literacy. This is part of thr problem.
At what point in time do we factor in parenting as part of the problem also?
Posted on 8/9/23 at 2:40 am to Pezzo
quote:
when my wife and i took out federal student loans we didnt have to watch any videos. they also encouraged us to take the max amount.
Can confirm when I was in college 1 semester I was going to run out of money towards the end because I lost some tutoring clients, went to schools bursar office to ask about additional loans to take out. I just wanted $500 but the lady kept pushing me to take out $2,500 over and over because "you can take out that much if you wqnt"...was very pushy about it.
I just got an additional $500 out, it was so strange to me the schools bursars office would do something like that back then. Kept saying no I don't need near that much, but kept pushing me to take out 5x what I wanted.
Posted on 8/9/23 at 8:41 am to DMAN1968
quote:
At what point in time do we factor in parenting as part of the problem also?
Well, this is a factor. Not every parent is good with money, therefore, maybe more financial literacy is warranted.
Posted on 8/9/23 at 9:40 am to Dawgfanman
quote:
This isn’t true. To obtain a federal direct loan (subsidized or unsubsidized) students are explicitly told about how interest will be calculated and when it will apply. They watch a video and it’s laid out in writing as well. My son just went thru this last year.
Didn't have the video, but everything was laid out in front of me when I was signing my loan docs back in the late 90s and early 00s. Said plain as day how much would not accrue interest as long as I was a full-time student, and how much would accrue interest while in school. Gave me my interest rates (and maybe an amortization schedule) and told me how to make payments if I wanted to make interest only payments to keep it from compounding.
Posted on 8/9/23 at 9:44 am to LSUFanHouston
I don't hate the idea, but if you are going to do a forgiveness plan, should make it a tiered forgiveness. Something along the lines of 50% for 2.0, 75% for 3.0, 100% for 4.0
I also would not mind seeing more of a push to send kids to community colleges to either learn trades or take all of those classes that are unrelated to their majors. You would most likely weed out a large percentage of the people that won't graduate anyway while they are still at community college, but at a fraction of the costs. I think preferred lending for these programs would be more palatable, but also will never happen because it's a potential solution to the underlying problem.
I also would not mind seeing more of a push to send kids to community colleges to either learn trades or take all of those classes that are unrelated to their majors. You would most likely weed out a large percentage of the people that won't graduate anyway while they are still at community college, but at a fraction of the costs. I think preferred lending for these programs would be more palatable, but also will never happen because it's a potential solution to the underlying problem.
Posted on 8/9/23 at 10:44 am to Dawgfanman
quote:
This isn’t true. To obtain a federal direct loan (subsidized or unsubsidized) students are explicitly told about how interest will be calculated and when it will apply. They watch a video
I can tell you anecdotally this is not true. Or atleast it wasnt 10 years ago. I know. I have loans I’m paying and I was encouraged to take out the max because it’s basically free money and I don’t have to pay until after I graduate. That was the extent of my consultation. No video. No explanation of payments plans or interest or anything
This post was edited on 8/9/23 at 10:55 am
Posted on 8/10/23 at 10:31 am to Richard Grayson
Who better to understand long term financial obligations than those just starting higher education. Most of which
Colleges get paid from loans paid funds. Only thing that fixes the system. Pretty sure some legislator just proposed this.
Colleges get paid from loans paid funds. Only thing that fixes the system. Pretty sure some legislator just proposed this.
Posted on 8/10/23 at 10:38 am to AUVet21
quote:
currently owe close to 100k in student loans
quote:
AUVet21
Doesn’t the government send y’all to school for free? You couldn’t save a little bit of that tax free 4 grand a month ptsd check?
Posted on 8/10/23 at 10:46 am to el Gaucho
quote:
Doesn’t the government send y’all to school for free? You couldn’t save a little bit of that tax free 4 grand a month ptsd check?
Veterinarian bro. Do better Gauch.
Posted on 8/10/23 at 11:24 am to Richard Grayson
quote:
I can tell you anecdotally this is not true. Or atleast it wasnt 10 years ago. I know. I have loans I’m paying and I was encouraged to take out the max because it’s basically free money and I don’t have to pay until after I graduate. That was the extent of my consultation. No video. No explanation of payments plans or interest or anything
Every student taking out a direct subsidized or unsubsidized federal student loan signs the agreement in the link on my post. Before signing it they watch a video. I witnessed my own son do this just last year.
Master Promissary Note
Posted on 8/10/23 at 3:41 pm to Dawgfanman
What I remember from my loan paperwork ~20 years ago is that I was signing multiple promissory notes (Stafford and Perkins) each semester but they only stated the amount of that particular loan. What was missing then, and I don't know if they include it now, was a running total of how much cumulative loan debt I had accrued to that point, plus a projection of what my total loan balance would be upon graduation.
I remember signing for $3,500 here, $5,000 there, etc but it wasn't until my senior year that I totaled up all of my loans to that point and actually knew what my total balance would be when I graduated. That should be written in bold print across the top of every loan package:
You have $37,562 in student loan debt as of 08/10/2023.
This promissory note will add $8,500 to that total.
Your projected loan balance at your anticipated graduation date of May 2025 is $78,437.
Maybe add something in about the anticipated loan cost per semester so that students can see the actual cost of taking an extra semester or two to graduate.
I remember signing for $3,500 here, $5,000 there, etc but it wasn't until my senior year that I totaled up all of my loans to that point and actually knew what my total balance would be when I graduated. That should be written in bold print across the top of every loan package:
You have $37,562 in student loan debt as of 08/10/2023.
This promissory note will add $8,500 to that total.
Your projected loan balance at your anticipated graduation date of May 2025 is $78,437.
Maybe add something in about the anticipated loan cost per semester so that students can see the actual cost of taking an extra semester or two to graduate.
Posted on 8/10/23 at 9:45 pm to Lightning
quote:
I remember signing for $3,500 here, $5,000 there, etc but it wasn't until my senior year that I totaled up all of my loans to that point and actually knew what my total balance would be when I graduated. That should be written in bold print across the top of every loan package:
Today all of this info is available to students online. It was easy for him to sign up and look at it. Once any interest starts accumulating (I assume it’s whenever repayments begin) I will pay that for him until he graduates or leaves school.
I’m not saying most of them pay attention to any of this, but I have ensured my son does. It should probably be more difficult for young adults to borrow money.
This post was edited on 8/10/23 at 10:32 pm
Posted on 8/11/23 at 10:17 am to Lightning
Don't know if done intentionally, or just happens that way; but from I recall was every one of my loans was a separate loan and had a different interest rate. So, when I graduated, I had 8 or 9 different loans that I needed to consolidate (and eventually refinance) when I started making payments.
This could be why they don't include the running totals of what you will owe, because it's viewed as a brand new transaction.
This could be why they don't include the running totals of what you will owe, because it's viewed as a brand new transaction.
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