involuntary collections of student loans

[Anonymous]

Anonymous wrote:

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?

Okay, so get rid of the ability to borrow for online crap programs. Problem solved.

[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.

.

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

[Anonymous]

Anonymous wrote: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?

This

[Anonymous]

Anonymous wrote: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

Trump could also focus on these systemic fixes. He could have from 2017-2020. He could now. And yet, he isn’t. Senile old fool.

[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.

Okay fine they can have income based repayment too but only as long as they are actually employed as teachers.

[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.

Okay— that’s not true. DD is at WM— which has an undergrad school of education. Has a good friend at VT in the undergrad school of education.

[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.

You are a disgusting MAGA !

[Anonymous]

Anonymous wrote:

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.

You are a disgusting MAGA !

+1 Most of this forgiveness is on the interest, not the principal

[Anonymous]

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.

[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.

You believe physicians are generally defaulting on their student loans? This seems very unlikely to me. They tend to be smart and conscientious enough to call for a payment plan.

Doctors are notoriously bad at money but not so bad that they generally default on their 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.

That’s a bit hard to take seriously from a president who was bailed out of half a dozen bankruptcies and made people who worked for him sue instead of just paying them what they were owed.

[Anonymous]

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

+1

[Anonymous]

Make the colleges pay a share.

[Anonymous]

Borrowing money isn't free. Why are people confused that with loans you pay more back than you borrowed?

[Anonymous]

Anonymous wrote:Borrowing money isn't free. Why are people confused that with loans you pay more back than you borrowed?

The money is literally created out of thin air by the government and handed over to universities. It's not free, but it's also not 8% interest paid by the feds.

Student loan interest payments are a cash for Congressional spending and tax cuts.