Forgive Student Loans?

#526
#526
VOLS INC. said:
I’ll jump in!

My wife graduated from medical school in 2018. I’m currently pursuing a Doctorate. Obviously we can pay for the Doctorate without borrowing, but we did borrow everything else. We have almost 300k to pay back in loans.

I don’t want a handout. I don’t want a 10k relief package. We borrowed the $$ and we knew the terms when we borrowed it.

What I want is an interest rate more on par with my other purchases. My wife’s loans are at nearly 7%! That’s insane for someone with a nearly 800 credit score. We understand we can refinance, consolidate, yadda yadda.

My overall point is, we will pay what we borrowed, as should everyone else BUT 7% is too high. 2 to 3% should be the range IMO.
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An easy step would be to lock in all student loan debt at 3% for the life of the loan.
 
#528
#528
luthervol said:
I, and many others, view the student loan situation differently. Many of the loans were only made because they were guaranteed by the government. The lender knew the loans were a bad idea, but it was a cash cow for them.
The government guaranteed the bad loans, time for the government to at least partially back up that guarantee.
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I believe the guaranteed loans come directly from the government since early in the Obama administration (2010?). Lenders aren't making bank on guaranteed bad loans - I presume the government is. The government is the lender and thus the recipient of the payments.

So the bulk of student debt is owed to the government; not to banks.

On another note this is the first time I've seen you acknowledge that government plans to "help" people actually do harm. Now let's apply this to all the negative unintended consequences from government action and have the government pay back those outcomes...
 
#530
#530
luthervol said:
An easy step would be to lock in all student loan debt at 3% for the life of the loan.
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I’m annoyed that we agree on something 😛

But yes. If we are looking for ways to make borrowing possible for the borrower while not drowning them in debt forever, and profitable for the lender, lowering interest rates is an easy step to take.
 
#532
#532
luthervol said:
Unless you start a business, run it for five years, and employ at least 10 people?
Then and only then do you not have to pay off your f*****g debts.

People always leave off the second part of the "life isn't fair" statement.
My version goes like this, "life isn't fair, which is precisely why people should be."

Or as Ann Richards said, “Life isn’t fair, but government must be,”
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So it's fair that I worked and paid off my loans and current debt holders don't have to? Where's the government fairness in that?
 
#533
#533
volinbham said:
I believe the guaranteed loans come directly from the government since early in the Obama administration (2010?). Lenders aren't making bank on guaranteed bad loans - I presume the government is. The government is the lender and thus the recipient of the payments.

So the bulk of student debt is owed to the government; not to banks.

On another note this is the first time I've seen you acknowledge that government plans to "help" people actually do harm. Now let's apply this to all the negative unintended consequences from government action and have the government pay back those outcomes...
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It would be equally as idiotic to claim government programs always help as to claim they always harm.
That's why I have never claimed either.
 
#534
#534
luthervol said:
It would be equally as idiotic to claim government programs always help as to claim they always harm.
That's why I have never claimed either.
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you did offer as rationale that the well intentioned actions of the government created a major problem that they should fix - I see no reason to limit that rationale to this particular instance
 
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#536
#536
luthervol said:
They're pretty intermingled.
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Nope. Private loans are not guaranteed by the government and thus are made on the same consideration as any other loan.

As noted above, the government stopped the guaranteed lending through banks back around 2010. The guaranteed loans over the last 12 years are direct from the government.
 
#539
#539
volinbham said:
I presume this includes room and board. So if someone worked 20 hours a week while going to school @ $12/hour 48 weeks a year they'd have about 10K/year to put towards this. I worked about 25/week all through undergrad. Same for graduate school.

Further, room and board is required whether you go to college or not so that should be subtracted out.

In fact, going to college is about the only way you can pay for room and board with a loan. No college and you have to pay for it yourself.
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Thats still not nearly enough. Not to mention books, food, gas. So you're still looking at graduating 100k in debt if no other financial assistance (parents, scholarship).

I worked full time, so it took me 5 years to graduate. Even then, I owed about 50k, and that's at ETSU.
 
#540
#540
luthervol said:
Who Actually Owns Student Loan Debt?
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https://studentaid.gov/understand-aid/types/loans/federal-vs-private

If it's a guaranteed student loan (since 2010) it is a government owned loan issued by the government.

If it is a private student loan (since 2010) it is like any other private loan

As further evidence of who owns the loan and who receives the interest

Is the government making money off your student loans?

And

https://studentaid.gov/understand-aid/types/loans

What types of federal student loans are available?
The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:
  • Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
  • Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.
  • Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.
  • Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.
 
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#541
#541
K-town Vol Fan said:
Thats still not nearly enough. Not to mention books, food, gas. So you're still looking at graduating 100k in debt if no other financial assistance (parents, scholarship).

I worked full time, so it took me 5 years to graduate. Even then, I owed about 50k, and that's at ETSU.
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food is "board" and as I indicated even without going to college you have food, lodging and gas expenses.

to counter your $100k in debt suggestion

Most undergrads finish college with little or modest debt: About 30% of undergrads graduate with no debt and about 25% with less than $20,000. Despite horror stories about college grads with six-figure debt loads, only 6% of borrowers owe more than $100,000—and they owe about one-third of all the student debt.

Who owes all that student debt? And who’d benefit if it were forgiven?

As you can see the $100k is exceedingly rare. 55% of students have 20K or less for a UG degree.
 
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#542
#542
85SugarVol said:
Well the complete dismantling of the Federal Student Loan program would have to be a core tenant of the “what do we get” analysis.

And with that would come a complete repudiation of that entire philosophy and line of thought.

That alone would make for an interesting proposal, but I think we would get more than that for our $1.7T
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I expect our government to make poor decisions.

Loan forgiveness seems possible.

Elimination of program seems inconceivable.
 
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#546
#546
Student loan forgiveness is something the Green Party was discussing as far back as 2010. That's at least when I remember the topic first discussed. Another idea that the democrat party stole from another political party.
 
#547
#547
K-town Vol Fan said:
4 years at UT, living on campus, is over 120k. How many 17 years old have that type of earning power? Thats 30k a year. I suppose you could work full time, and pay 100% of your salary and MAYBE get close to paying it off, but then you probably aren't going to be able to graduate in 4 years working full time. The whole system is ****ed. And don't get me started on the $130 text books. Its all ****ing money racket, and it needs to stop.
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I’m not seeing the problem. Most people would have a hard time living off 30k a year. For 30k a year they are fed, sheltered, and educated?
 
#548
#548
K-town Vol Fan said:
Imo the loans aren't the root cause. Its the tuition. A college education should not be equal a mortgage. Thats just people getting rich off of setting people up for failure.
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Once again, most people can barely live off 30k a year. If they feed, shelter, and educate you for that, it’s a bargain.
 
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