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The maximum debt you can rack up on credit cards is very limited right now. I have spotless credit and a fair amount of assets and I only have around 20K in available credit on my credit cards. When I was 19, my credit limit was $1000. Also, credit cards have APR's at 20%+. Do you have any idea what rate the market would give an 18 year old with no appreciable assets looking to borrow 40K?
Crappy example. My husband had credit cards with 40k limits when he was 20. And no double-digit interest rates, either.
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If student debt is allowed to be taken away by bankruptcy then the debtor should lose the degree, transcripts, credits, etc.
Do you think that people who are suffering through severe financial hardship and what amounts to usury on the part of predatory lenders would care about being stripped of their degrees? Nope.
Let me lay it on you. People want to pay their loans. They just do not, in many cases, have the ability.
Treating all borrowers like freeloaders makes it easier to vilify them, I guess?
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They probably care for some of the same reasons I do. I paid for my education and didn't go overboard with loans, others had the same options. If someones college debt get wiped shouldn't those of us that had the ability do math and see what we could pay get reimbursement on what we PAID?
By some chance if student debt can ever be taken away in bankruptcy (I hope it don't happen) the individual should lose the degree (s) and the college should have to wipe all records of them attending. Just like losing a house, apples to apple if you want.
Why would a student be getting a loan through a private bank? Federal government student loan rates are low?
Was that the agreement the student signed when they took the money? Nope.
That's just snitty. I paid for one of my houses all through the housing market crash. I think it might finally have enough equity to sell without me paying to get rid of it.
I don't begrude the people who got loan modifications, though. What purpose would that serve?
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Do you think that people who are suffering through severe financial hardship and what amounts to usury on the part of predatory lenders would care about being stripped of their degrees? Nope.
Let me lay it on you. People want to pay their loans. They just do not, in many cases, have the ability.
Treating all borrowers like freeloaders makes it easier to vilify them, I guess?
But did they not realize money has to paid back and degrees don't guarantee jobs, sure they did. Sorry I feel bad for folks having it rough but I don't condone welching or really bad decisions. I was reading some of the stories on the occupy student loans site and seen people paying 40-80k on bachelor of arts degrees , What were they possibly thinking.
BTW I don't view borrowers as freeloaders, but when borrowers are saying they refuse to pay or they want bailed out then I do. And yes much of the youth in the occupy movement are flat out saying they refuse to pay. How can we blame the schools or the bankers when the papers that were signed stated the terms?
Last edited by introv78; 08-22-2013 at 08:37 PM..
Reason: Typing on a tablet is hard
But did they not realize money has to paid back and degrees don't guarantee jobs, sure they did. Sorry I feel bad for folks having it rough but I don't condone welching or really bad decisions. I was reading some of the stories on the occupy student loans site and seen people paying 40-80k on bachelor of arts degrees , What were they possibly thinking.
BTW I don't view borrowers as freeloaders, but when borrowers are saying they refuse to pay or they want bailed out then I do. And yes much of the youth in the occupy movement are flat out saying they refuse to pay. How can we blame the schools or the bankers when the papers that were signed stated the terms?
Soooo... Do we get rid of bankruptcy protections, too?
I'm totally serious.
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But did they not realize money has to paid back and degrees don't guarantee jobs, sure they did. Sorry I feel bad for folks having it rough but I don't condone welching or really bad decisions. I was reading some of the stories on the occupy student loans site and seen people paying 40-80k on bachelor of arts degrees , What were they possibly thinking.
BTW I don't view borrowers as freeloaders, but when borrowers are saying they refuse to pay or they want bailed out then I do. And yes much of the youth in the occupy movement are flat out saying they refuse to pay. How can we blame the schools or the bankers when the papers that were signed stated the terms?
I guess I don't understand your reasoning. You keep pointing the finger at students and student loan debt and saying they made bad decisions yet you don't point the finger at other borrowers making bad decisions with other types of debt. 40-80k in tuition for a Bachelors of any kind can be quite common, especially with tuition prices now a days. Some people don't have means or opportunity to pay there way through school with a job or get pell, map, or other grants or scholarships. If all students are graduating and not landing a job how do you think that applies when they are still in school?
Soooo... Do we get rid of bankruptcy protections, too?
I'm totally serious.
We get rid of loaning people money that can't pay back and we make people pay their debts. Knowledge can't be taken back, it's not a returnable good. I'm not for bankruptcy, bailouts, or welching period. But how can I feel sorry for someone who borrowed 50k on a arts degree.
With defaults and tuition rising year after year, jobs harder to come, and degrees not being as marketable we need to evaluate student loan laws and make them a bit fairer....especially compared to most other types of debts, unsecured or secured. There should be some kind of dischargeablility and more fairness with students that is easier to obtain then proving undue hardship, that's all I'm saying.
I agree 100%.
We need to evaluate who we give student loans to and make sure we only give them to students who show academic excellence and are more likely to go on to finish college. Once we mitigate the risk, we can once again allow student loans to be defaulted... as the likelyhood of default would be minimal.
We also need to scrap federal grants and convert them into loans. That's just costing the government money.
We need to evaluate who we give student loans to and make sure we only give them to students who show academic excellence and are more likely to go on to finish college. Once we mitigate the risk, we can once again allow student loans to be defaulted... as the likelyhood of default would be minimal.
We also need to scrap federal grants and convert them into loans. That's just costing the government money.
Exactly, to many folks in college that are not college material. Even with degree(s) some folks won't be highly successful in life and we are seeing a lot of that now. College acceptance, enrollment, financial aid, and loans needs to be based off from test scores and maintaining a strong GPA. We also need to quit giving money to students for non employable (SOFT) degrees.
I don't think you really read that article. It stated that, as a result of delaying purchases of homes and making investments because of money dedicated to paying off debt, the lifetime toll in personal assets was $200,000. That is nowhere like writing $200,000 in checks to the bank.
As a case in point, a person paying off that average student loan debt of $27,500 at 4.5% over 20 years will wind up paying out a total of $41,754, or $173 a month. This is not an unreasonable burden.
That means that a $200,000 debt upon graduation is utterly off the charts. If the person who has accumulated that kind of debt has not earned a seriously high-powered engineering degree, then he was an idiot for blowing through that kind of money and amassing such a crippling amount of debt.
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, What were they possibly thinking.
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