Reply to This story of loan forgiveness does not sit well with me

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don’t believe in loan forgiveness. But I was shocked at the way student loans are ran. Seems to me that interest shouldn’t start until you graduate. My Dh had 50k in loans that ballooned to 80k by the time he paid them off at 27. Ridiculous. [/quote]

I don't believe in loan forgiveness either but why is it ridiculous? When you take a loan for your house does the interest on the mortgage start accruing 4 years later? No. If you want to borrow money there is a cost and it's called interest. The facts are anyone who takes out a loan for college is accepting the terms of the loan when they sign. No one holds a gun to their heads forcing them to take out the loan. And then there are HS graduates who forego college and enter the work force right after high school or take a loan to start a business. What a raw deal for those folks. This program is all about Biden and the Democrats buying votes for this upcoming election cycle because their horrendous policies are not enough to get people to vote for them.[/quote]

The difference is that when you take out a mortgage in a house, you get the benefit right away-- you own the house and can live in it, rent it out, or sell it. Of course interest accrues immediately.

Education loans are very different different because you are not buying a tangible asset. You are buying a non-transferable credential that you only get the benefit of if you complete the program (which will require lots of labor). Education loans have no collateral,cannot be discharged in bankruptcy, and may result in long term debt for a benefit the borrower never actually receives (if they fail to complete the program). So there are a lot of reasons to treat education loans differently that a mortgage, car loan, credit card, HELOC, etc. They are very unique.[/quote]

Nope sorry no. When you take out a student loan you get the benefit right away, it’s called attending college. Those tenured professors and bloated university staffs don’t work for free. What you make of your degree is on you.[/quote]

1st pp here. DH's loans were at 6.5%. I figured at that rate (2x what the interest rate was at the time), they wouldn't start until he graduated. Plus, you can't even discharge them in bankruptcy.

We paid them off quickly and I'm glad student loans are there to give poor students like dh a chance to go to college, but they absolutely are a rip off.

I do think it's interesting that so many new graduates run out and buy a 30-50k car. They complain about their student loans, but pay off the car loan in 5 years. We drove complete junkers for years. [/quote]

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