involuntary collections of student loans

[Anonymous]

Anonymous wrote:If you take out a loan you need to repay it. It’s that simple.

No more Starbucks. Forget about upgrading your iPhone. Door Dash isn’t a necessity. Vacations are for people that actually save money and aren’t deep in debt. It’s time for a second or third job. You can no longer afford all of your streaming services. Discretionary things like drinks with friends aren’t in the budget. Life is hard when you fail to manage your finances.

Why doesn't this rule apply to President Trump or the National Mortgage Bankers Association?
Why only students?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What is the interest rate on government student loans? Think government borrowing rate is about 4.5%. Is interest on student loans much higher and if so why?

Current rates, which are set by Congress:

Undergraduate Students:
Direct Subsidized Loans: 6.53% (for those demonstrating financial need).
Direct Unsubsidized Loans: 6.53% (no financial need requirement).

Graduate or Professional Students:
Direct Unsubsidized Loans: 8.08%.

Parents and Graduate/Professional Students:
Direct PLUS Loans: 9.08%.

These rates are fixed for the life of the loan. They cannot be refinanced with the federal government. You can refinance with a private lender, but you lose all the protections of federal student loans (eg, PSLF program, income based repayments, etc.)

Why is the rate for undergrads 50% higher than the government’s cost of borrowing? is this meant to cover admin cost and defaults?

Yep. And those of us actually making payments have to pay for those in forbearance, public service loan forgiveness, income based repayment, etc.

There should be a law that if you are borrowing for college, you must attend either an instate public college or if you attend out of state or private college, that college must certify they will not charge you more than instate tuition if you are a student borrowing for college. Period. And I don’t think grad school loans should even be eligible for income based repayment. No one should borrow for grad school to go into a low paying job. Exceptions can be made for doctors during residency only. That’s it.

Second paragraph is on track. Punish the predators, not the teenagers they prey on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What is the interest rate on government student loans? Think government borrowing rate is about 4.5%. Is interest on student loans much higher and if so why?

Current rates, which are set by Congress:

Undergraduate Students:
Direct Subsidized Loans: 6.53% (for those demonstrating financial need).
Direct Unsubsidized Loans: 6.53% (no financial need requirement).

Graduate or Professional Students:
Direct Unsubsidized Loans: 8.08%.

Parents and Graduate/Professional Students:
Direct PLUS Loans: 9.08%.

These rates are fixed for the life of the loan. They cannot be refinanced with the federal government. You can refinance with a private lender, but you lose all the protections of federal student loans (eg, PSLF program, income based repayments, etc.)

Why is the rate for undergrads 50% higher than the government’s cost of borrowing? is this meant to cover admin cost and defaults?

Yep. And those of us actually making payments have to pay for those in forbearance, public service loan forgiveness, income based repayment, etc.

There should be a law that if you are borrowing for college, you must attend either an instate public college or if you attend out of state or private college, that college must certify they will not charge you more than instate tuition if you are a student borrowing for college. Period. And I don’t think grad school loans should even be eligible for income based repayment. No one should borrow for grad school to go into a low paying job. Exceptions can be made for doctors during residency only. That’s it.

.

A lot of teachers need grad school for certification. Some states (including VA) don’t offer bachelor’s degrees in education at state colleges.

States need to stop forcing employees to pay scammers before getting a job.

[Anonymous]

Anonymous wrote:Physicians will be totally screwed. They take years before they are making the kind of money that can service the loans required to complete training.

Or the medical school can drop ripping off students. Why is medicls school so cheap everywhere except USA?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why wont they set rates for student loans to 2% instead of 14% with daily compounding interest. God forbid.

There has been a bill floating around to do this.

this would be a tremendous help.

I did college the poor way that is always suggested here: I went to NVCC for 2 years and then transferred to an in-state school. I borrowed a pretty modest amount compared to my peers - only $16k. I thought that amount would be very easy to pay off. I was a fool! Yes, they tell you that you'll have to pay that amount back. No one is disputing that. What we didn't get a firm grasp of was the interest and how much and how crippling that would be.

I am now 35 and have paid $33,419.65 and still owe $11,890.02.

Imagine buying a crappy $16,000 car at age 20 and you're still paying it off at age 35. No one finances a car that long. No bank would finance a car that long!

I've almost paid back what I borrowed x2. That's what upsets me. That's what upsets most of my peers who have loans, too.

How long did you extend the loan for and what were the rates? What was your monthly payment? How many times did you stop payment during that time. You seem to lack any personal responsibility for this. Of course you have to pay back more than you borrowed and of course that number goes up the longer you keep the loan outstanding.

I've never not paid except for the short grace period you get upon graduation. Mine are federal loans, and my payment is $621 per month & my interest is 6.8%.

How am I lacking personal responsibility? I've been paying for years. I did college the way that so many here suggest, as well. I went to community college and worked to pay my way there. I saved thousands doing it that way. I transferred to an in-state school. I worked while in college then as well.

Like what more do you want from us? I found a job within 4 months of graduating college, so I didn't even need the full 6-month grace period. I've been lucky enough to always be employed during my career, too. Even during Covid when things were paused, I kept up my payments.

It's the interest that is crippling us.

[Anonymous]

Are they also going to automatically withdraw payments for the PPP loans that everyone got during covid for all of their small businesses?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What is the interest rate on government student loans? Think government borrowing rate is about 4.5%. Is interest on student loans much higher and if so why?

Current rates, which are set by Congress:

Undergraduate Students:
Direct Subsidized Loans: 6.53% (for those demonstrating financial need).
Direct Unsubsidized Loans: 6.53% (no financial need requirement).

Graduate or Professional Students:
Direct Unsubsidized Loans: 8.08%.

Parents and Graduate/Professional Students:
Direct PLUS Loans: 9.08%.

These rates are fixed for the life of the loan. They cannot be refinanced with the federal government. You can refinance with a private lender, but you lose all the protections of federal student loans (eg, PSLF program, income based repayments, etc.)

Why is the rate for undergrads 50% higher than the government’s cost of borrowing? is this meant to cover admin cost and defaults?

Yep. And those of us actually making payments have to pay for those in forbearance, public service loan forgiveness, income based repayment, etc.

There should be a law that if you are borrowing for college, you must attend either an instate public college or if you attend out of state or private college, that college must certify they will not charge you more than instate tuition if you are a student borrowing for college. Period. And I don’t think grad school loans should even be eligible for income based repayment. No one should borrow for grad school to go into a low paying job. Exceptions can be made for doctors during residency only. That’s it.

Are you completely unfamiliar with the pathway to becoming a scientist. Almost everyone post-docs for low salaries for a few years after their Ph.D. before they are ready/able to start an independent lab. More than just doctors initially have low-paying jobs.

[Anonymous]

Agree that no one should get significant loans for private schools. But, also agree that we should better manage the interest rates of these loans. Same with loans for urgent/emergent medical care loans.

I had 3 jobs after college- FT position, PT evening 3x week, and a 1 weekend a month job. I lived with my grandmother for 2 years to save $. It can be done but does take sacrifice and discipline.

[Anonymous]

Anonymous wrote:Agree that no one should get significant loans for private schools. But, also agree that we should better manage the interest rates of these loans. Same with loans for urgent/emergent medical care loans.

I had 3 jobs after college- FT position, PT evening 3x week, and a 1 weekend a month job. I lived with my grandmother for 2 years to save $. It can be done but does take sacrifice and discipline.

And if you didnt have a grandmother to live with? What then? Screw those people? They shouldnt go to college? The lies you will tell about others while believing truths about yourself

[Anonymous]

Anonymous wrote:I really think that the people on this forum dislike Trump so much that they automatically come out against whatever he does. If he went the other way on student loans and said that we will have lax or non-existent requirements to pay back, everyone on DCUM would flip out over that and say it was terrible.

MAGA says what

[Anonymous]

Anonymous wrote:And if you didnt have a grandmother to live with? What then? Screw those people? They shouldnt go to college? The lies you will tell about others while believing truths about yourself

Pick up a hammer or a shovel and do some honest work.

[Anonymous]

The crux of the matter is that the federal government should not be backing student loans in the manner of the past 10 years. Students are allowed to get almost any amount in loans, and they are not told, “no, if you want to study Celtic folklore, you are not allowed to take out $200k of loans”. Universities are not backstopped in any meaningful way from increasing their tuition. Runaway tuition and runaway student loans have fed each other, and there have been few checks or balances in the setting of frequent relief (both Biden and Trump prolonged the grace period). Until now.

It might have been on dcum where a new parent said even if they added $600 monthly to a 529, they would still be one year short of funding college tuition for their 6 month old.

I hate to say it, but the government needs to tighten their leniency, cap loan amounts, and allow private banks to back more. Private college loans are the worst, but they will discourage students from taking on too much debt. A visit to the Facebook or Reddit student loan groups is very sobering. There are many who cannot get on top of the payments. It’s a mess.

[Anonymous]

Long overdue. I had 2 employees who jetted off to Miami and paid $6000 cash each for BBL’s. Of course they stopped paying their student loans during COVID but spent money on plastic surgery.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you take out a loan you need to repay it. It’s that simple.

No more Starbucks. Forget about upgrading your iPhone. Door Dash isn’t a necessity. Vacations are for people that actually save money and aren’t deep in debt. It’s time for a second or third job. You can no longer afford all of your streaming services. Discretionary things like drinks with friends aren’t in the budget. Life is hard when you fail to manage your finances.

Why doesn't this rule apply to President Trump or the National Mortgage Bankers Association?
Why only students?

Because that’s what these deadbeats signed up for genius

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you take out a loan you need to repay it. It’s that simple.

No more Starbucks. Forget about upgrading your iPhone. Door Dash isn’t a necessity. Vacations are for people that actually save money and aren’t deep in debt. It’s time for a second or third job. You can no longer afford all of your streaming services. Discretionary things like drinks with friends aren’t in the budget. Life is hard when you fail to manage your finances.

Why doesn't this rule apply to President Trump or the National Mortgage Bankers Association?
Why only students?

Because that’s what these deadbeats signed up for genius

DP actually what I signed up for was 10 years of income based payments followed by full forgiveness based on public service employment. And that's what I got, thank goodness my 10 years were up during the Biden administration.