Reply to $100,000+ loan club

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote]Count me in. I pay about $1,200/month on my loans. It sucks. I think it should be against the law for lenders to charge interest on student loans while students are still in college as that made up the bulk of my student loan payments last year.[/quote]

Why?  Do you not understand basic finance?  Interest is how lenders make their money.  Perhaps you should have considered all of these factors before you took out the loan.  You don't get to cry foul now that you have to accept the consequences of your actions.  [/quote]

I'm not crying foul.  I'm paying every penny back.  I just think that there should be a rethink of the student loan industry. :)[/quote]

Ugh! Making loans no-interest while a student is in school would distort the higher ed "market" even more than it is already. Thanks to easy loans, tuition is [i]ridiculously[/i] high now...it's a giant bubble that's got to pop sooner or later. That's why we're all suffering, not because we accrued interest on four years' worth of loans, but because of skyrocketing tuition costs in the last 2 decades.

And I say that as someone who works in higher ed. I'm all for affordable education, but anything that works to increase loans will bite us in the ass as a country in the long run -- all that happens is that private loan providers get rich.[/quote]

They get rich off the interest.  I paid 16,000 in interest last year so to say that the problem isn't the interest [/quote]

Hit submit before finishing. Anyway I completely agree that the root of the problem is the cost of university bubble.  It will certainly burst at some point just like the housing bubble and that free flowing loan money is also the problem. Lenders would still make plenty of money on student loans even if interest didn't accrue until after graduation I think, but I do get both your and the snarkier poster's points. I notice that neither of you address that student loan debt cannot be discharged in bankruptcy unlike pretty much any other kind of debt. Though I would not renege on my financial obligations[b] I do think it odd that one cannot discharge student loan debt.[/b] [/quote]

It can't be discharged because it is unsecured debt and if it were allowed, there would be a LOT of graduates declaring bankruptcy. I would declare bankruptcy in a New York minute to get rid of my student loans. ($130k) At least with a home or car there is some form of collateral. You can't take back a degree (though I would give mine back if it were possible to do so to get rid of the debt).[/quote]

But it's the same with medical, credit card or gambling debt.  What are they gonna do?  Take back that transplanted kidney?  Seize the overpriced handbag you charged to your credit card?  Shake down the slot machine?  And the law was only changed in 1998 for federal loans and 2005 for private loans to not allow discharge of student loans in bankruptcy and there have been bills proposed or introduced to change that, so clearly it's not an out-in-left-field proposal.[/quote]

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