involuntary collections of student loans

[Anonymous]

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.

[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.

Physicians are going to be just fine. They can do income base repayment if their incomes are low enough. They can choose public service loan forgiveness jobs if they want. They also can get 0% down mortgages with no PMI so they're not saving for a down payment on top of student loans.

[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.

Ok Dave Ramsey… 🙄

People can learn a lot from Dave Ra.sey an out avoiding debt and getting out of debt. Hard work and self discipline can make one's life much better!

He’s a moron. He’s giving advice like it’s 1990 with a heavy side of judgement. So many other better financial advisors out there.

[Anonymous]

Anonymous wrote:

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.

Physicians are going to be just fine. They can do income base repayment if their incomes are low enough. They can choose public service loan forgiveness jobs if they want. They also can get 0% down mortgages with no PMI so they're not saving for a down payment on top of student loans.

Look anyone who has parents that can pay for college out of pocket will be going to college. Smart poor kids, not so much, unless they get a full ride all the way through.

[Anonymous]

Tons of young people with nothing left to lose getting their food money taken, while billionaires profit from the most corrupt administration in history.

What could possibly go wrong?

[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.

You are out of touch with real people. Door dash? Starbucks? Vacations? lol. As if.

[Anonymous]

Anonymous wrote:We really need a system that distinguishes between in-state public education and everything else. It is in society's interest to have an affordable public college system that doesn't burden 21 year olds with loans. That's what we need to build and subsidize - affordable public colleges for qualified students. And everything else - private universities, LACs - should sink or swim with market demand. There isn't ever going to be public support for forgiving the loans of someone who chose to go a gazillion dollars in debt to attend NYU or Colby. And retroactively forgiving those loans does nothing to make college more affordable for this generation of students. Focus on public education, and let market forces sort out how private universities go about attracting students. I strongly suspect the cost of private colleges will go down significantly if we make it difficult for teenagers to go into debt to attend, especially when they have very good and affordable in-state alternatives.

All those Colby grads defaulting on their loans….? No, it’s disproportionately online grads.

https://www.pewtrusts.org/en/research-and-analysis/data-visualizations/2024/who-experiences-default

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are headed back to debtors prison when they deduct it from your pay and people end up on the street.

And so your solution is for the taxpayers to pick up the tab for other people's degrees? Sorry, no.

Where was that energy when the taxpayers were picking up the tab on the PPP loans for tons of Republicans (and others who didn't need them, IMO)...

Short list of GOP:
MTG - a modest $180k forgiven
Matt Gaetz - $476k forgiven
Brett Guthrie of KY - whopping $4.3 MILLION forgiven
Carol Miller of WV - $3.1 MILLION forgiven
Vern Buchanan of FL - $2.8 mil forgiven (and the dealerships he owns had $7mil forgiven)
Foremost Maritime Co. (run by Mitch McConnell's wife) - $420k forgiven

And PPP loans from people who didn't need them, IMO (Celebs, YouTubers & influencers):
-Jeffree Star Cosmetics - $414k forgiven
-FaZe Clan - $1.2 million forgiven
-MrBeast - $377k forgiven
-Several of the former The Bachelor and The Bachelorette stars received loans from $11k up to $180k all forgiven.
-Ruby Franke the now disgraced 8Passengers YouTuber abusive mom received $160k forgiven
-JayZ - $5mil forgiven
-Gwyneth Paltrow - $145k forgiven
-Tyler Perry - $3 mil forgiven
-Seth Rogen - $1.8 mil forgiven
-Kanye West - $5 mil forgiven
-Reese Witherspoon - $1 mil forgiven
-Celine Dion - $1 mil forgiven
-Billy Joel - $1 mil forgiven
-Oprah - $1 mil forgiven
-Khloe Kardashian - $2 mil forgiven
-Kylie Jenner - $3 mil forgiven
-Tom Brady - $972k forgiven

And so many thousands more.

If we can forgive all those, we can forgive student loans for those making under $70k/yr, which is what Biden wanted.

[Anonymous]

Pretty soon we will have to cut from social security checks as well.

[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.

HEY GUYS!! THIS PERSON FIGURED IT OUT!! THEY SOLVED ALL OUR PROBLEMS!

You sound like a complete moron, just so you know.

Vacations? Door Dash? Starbucks? Only 3 jobs? What a dream life that would be!

I make $61k/year as a teacher. That's job #1.
Job #2 is tutoring where I make an additional $5,000-9,000 depending on how many students I have.
Job #3 is working at Kohls parttime (and becomes fulltime during the summer) where I usually make around $20k.
Job #4 is picking up bartending shifts when I do have free time and the pay varies, but my W2 from them from 2024 shows I made $6,231.
Job #5 is passive income I get from some lesson plans and teaching printables I made and offer for sale, and I usually make $2,000-3,000 a year from these.

Last year, even with all these jobs, my total income was $88,743.

My last "vacation" was in January when I went to FL for my Nana's funeral. I guess today could be considered a vacation since I took the day off for a dental appointment and yearly pap smear.

I haven't DoorDashed since 2020 when I was ill and needed meds delivered. I don't even drink coffee, so that's a huge savings for me anyway. I don't even eat out anywhere that doesn't have an app to get a meal deal. $5.99 for some chicken nuggets from McDonald's? Never. I wait until my app tells me I can get a free 6 piece that day with the $1 purchase of a drink.

[Anonymous]

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?

The problem is government loans for undergrad are so low. $5000 to $7000 a year— which won’t make a dent at UVa/WM/VT Engineering— the instate options for top kids. The balance is made up by private loans, which are predatory AF.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We really need a system that distinguishes between in-state public education and everything else. It is in society's interest to have an affordable public college system that doesn't burden 21 year olds with loans. That's what we need to build and subsidize - affordable public colleges for qualified students. And everything else - private universities, LACs - should sink or swim with market demand. There isn't ever going to be public support for forgiving the loans of someone who chose to go a gazillion dollars in debt to attend NYU or Colby. And retroactively forgiving those loans does nothing to make college more affordable for this generation of students. Focus on public education, and let market forces sort out how private universities go about attracting students. I strongly suspect the cost of private colleges will go down significantly if we make it difficult for teenagers to go into debt to attend, especially when they have very good and affordable in-state alternatives.

All those Colby grads defaulting on their loans….? No, it’s disproportionately online grads.

https://www.pewtrusts.org/en/research-and-analysis/data-visualizations/2024/who-experiences-default

+1. And the number one college in terms of student loans owed? Liberty University— and this is largely (but obviously not entirely) for online degrees.

Now, let’s get real here— how much earning power does your online degree from Liberty University get you?

[Anonymous]

Anonymous wrote:

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.

Ok Dave Ramsey… 🙄

People can learn a lot from Dave Ra.sey an out avoiding debt and getting out of debt. Hard work and self discipline can make one's life much better!

He’s a moron. He’s giving advice like it’s 1990 with a heavy side of judgement. So many other better financial advisors out there.

He's far from a moron. Just probably too conservative for you.

[Anonymous]

Biden was such an imbecile. He could have focused on systemic fixes like tying loan rates to majors or making loans subject to the same bankruptcy process as other debt but of course he chose the idiotic band aid approach to pathetically buy votes. All theatrics, never substance. Senile old fool

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Ok Dave Ramsey… 🙄

People can learn a lot from Dave Ra.sey an out avoiding debt and getting out of debt. Hard work and self discipline can make one's life much better!

He’s a moron. He’s giving advice like it’s 1990 with a heavy side of judgement. So many other better financial advisors out there.

He's far from a moron. Just probably too conservative for you.

So they can use Ramit Sethi or Suzy Ormond or Millionaire Next Door or whoever. They are all going to agree that the above are luxuries you cannot afford if you cannot afford your student loan payments.