Forgive my student loan!

mego07

I started reading some of the posts, but then i started to become annoyed at most of them. Has anyone actually read the bill?! Let us take a look at one point of the bill.

"1. 10/10 Loan Repayment Plan: Cleverly called 10/10, the plan caps payment amounts at 10 percent of a borrower's discretionary income (the same 10 percent cap as President Obama's Pay As You Earn proposal in terms of payments) and can provide forgiveness in 10 years.

The forgiveness provision kicks in after a borrower makes 120 payments, which must be either payments under the 10/10 plan; payments that were not less than they would have been under the 10/10 plan; or "payments" of $0 during a month the borrower was in deferment due to an economic hardship."

Also, this bill would cap the interest rate at 3.4. My student loan is currently at 6.9. I'm for it simply for the interest rate cap.

doorki

If people were going to college for fields in Science and technology, they wouldn't have a problem paying their debt. Bottom line, we have other things in our society that need funding more than the liberal arts degree you will probably never actually use. If you need you loans forgiven, as stated previously in this thread, there are ways to do it - teach inner city, join the military, ect. I was raised to pay off the debts I make and work as hard as possible to NOT be a drain on this country. But thats just my two cents.

Your hatred of Liberal Arts is apparent. But I have a Liberal Arts degree and a substantial income. Does that mean that my degree is not being used?

cannonsky

If people were going to college for fields in Science and technology, they wouldn't have a problem paying their debt. Bottom line, we have other things in our society that need funding more than the liberal arts degree you will probably never actually use. If you need you loans forgiven, as stated previously in this thread, there are ways to do it - teach inner city, join the military, ect. I was raised to pay off the debts I make and work as hard as possible to NOT be a drain on this country. But thats just my two cents.

Your hatred of Liberal Arts is apparent. But I have a Liberal Arts degree and a substantial income. Does that mean that my degree is not being used?

I actually don't know many people pursuing liberal arts degrees these days (myself being the exception) because many people find them useless. The truth is, while they might not translate directly into a specific job... they give you the versatility to go into a huge array of fields and they teach you to be creative with your skill set. Also, because of my liberal arts degree... I have learned a greater tolerance and respect for other people and their opinion.. something that a lot of people seem to never learn... and something that comes in handy when my education is constantly being insulted.

dovesgate

I'm all for capping the interest rates on student loans - 12% is asinine.

I am not for student loan forgiveness except in cases of disability. You chose to go to college. You chose to take out loans. You need to pay them back in full.

I did not go to college because I couldn't afford it and I didn't want to take out huge loans. That was my choice. I shouldn't be taxed more to pay your bills because you made a bad choice and want to get a handout now.

I do have to say that if this bill passes, you can bet I'm going back to school. If I can get a $250,000 loan and only have to pay back $250 per month for 10 years? Hell yes I'd take advantage of it! I'm at the point in my career that I need a degree to make more money. Why the heck would I not take out a loan that is more than my mortgage when I'd only have to pay a fraction back AND I'd be able to land a job in my area paying triple what I make now?

This is why the bill will not pass. Too much money stands to be lost if the government passes this bill.

Amy_nz

I haven't read all of the posts, but here's my two cents worth:

For many years in New Zealand, tertiary education was free (or as close to dammit as free). My parents actually literally got paid to go to teachers' college. But I knew that my tertiary education was going to cost me - I signed the student loan form knowing full well that I was going to have to pay it back. Did I wish it could still be free? Yup. Do I wish that Santa was real? Also yup.

I took out a loan as an adult (18, sure but that's an adult). I have to pay it back. I've never grumbled about it.

I have grumbled about the interest rates in the past, but now our loans are interest free AS LONG AS we're in NZ, working and making payments. That's made a huge amount of difference to me.

I get cross with the people (including my brother, by the way) who took out loans, then buggered off out of the country and didn't keep up with repayments. I'm a public servant working darned hard and paying back my loan (without interest, yes, but still), and it galls me that so many people took out loans and left, and don't intend to repay them. I'm paying for their qualifications, which NZ isn't getting any benefit from. Seems unfair to me.

migoi357

A couple of thoughts arise when reading this thread...

I can't figure out why anyone would sign a loan agreement with such outrageous interest rates and I am also amazed at how many people were apparently accepted to college without being able to execute a compound interest formula and do some basic adding and subtracting.

MrEmoticon

I started reading some of the posts, but then i started to become annoyed at most of them. Has anyone actually read the bill?! Let us take a look at one point of the bill.

"1. 10/10 Loan Repayment Plan: Cleverly called 10/10, the plan caps payment amounts at 10 percent of a borrower's discretionary income (the same 10 percent cap as President Obama's Pay As You Earn proposal in terms of payments) and can provide forgiveness in 10 years.

The forgiveness provision kicks in after a borrower makes 120 payments, which must be either payments under the 10/10 plan; payments that were not less than they would have been under the 10/10 plan; or "payments" of $0 during a month the borrower was in deferment due to an economic hardship."

Also, this bill would cap the interest rate at 3.4. My student loan is currently at 6.9. I'm for it simply for the interest rate cap.

I have no issue with capping the interest rate. But who cares how long it's been paid on without fail. It's still your debt. Just as my debt is mine.

MrEmoticon

I'd be interested to meet these so-called "priveleged" people. My father was unemployed due to disability (a massive stroke) when I started college. My mom was a public school teacher. They couldn't help me financially at all. What privelege are you talking about, exactly?

And somehow, some way, I never had to rely on anyone else to put food in my belly and gas in my car. I got a job pushing paper for $6.75 an hour and shared a tiny apartment with two roommates. And I kept my legs closed specifically to avoid getting pregnant before I could afford a child. So screw people without the same motivation. No one owes them anything.

And those evil right wing christians you rant about so ignorantly are statistically more charitable than folks who would see money taken through coercion to fund "charity" (which it's not if it's mandatory, by the way.)

http://www.realclearpolitics.com/articles/2008/03/conservatives_more_liberal_giv.html

But yeah, we should totally make individual problems into community problems. Because that's worked well in the past.

you can't be seroius right? the ones who are not privileged are the ones who can barely make it through high school b/c they have to work or their school does not offer a good enough education, or they can't get jobs like in Detroit where they are so out of money that they had to remove street lights to cut back on city bills. Just b/c you were blessed to have two parents in the home and did not have to go to daycare and you found a job to help keep food in your stomach, dont sit and bash the ones who are really struggling and college will never be an option. pathetic for you to say that ugh

This is so wrong.

I came from a home where my mother raised me on her own. Working 3 jobs. I had to work during the latter part of Jr. High and all through High School. 40 hours a week and more during my last two years of high school. I went to college, got loans, and worked during college to pay them off. And am still working now, and not complaining because I feel entitled to have my stuff paid for me.

What's really pathetic is for you to think that someone is privileged just because they went to college, when in reality it's more of a motivation based thing. Get off your *kitten* and do something about your situation instead of wanting someone else to do something about it. That's the way I look at it.

Crystal_R84

OH Sallie Mae..we are best friends because between my husband and I we owe well over 200,000 in student loans however we have great jobs and can just make the 2,000+ a month payment but I really do have a heart for those who owe a ton and don't have the job to pay it back. I believe in student loan forgiveness. lets not judge those who can't afford loans and those who can pay them off...either way the job market stinks and college is way over priced!

hikezilla

If you are stupid and foolish enough to go to college on borrowed money, then at least pick a degree that has some hope of employment with a livable wage. If you want to become a master of the ceramic arts, then do it with grants and your own money. If you want to become a degreed philosopher, then by all means feel free to pay for it yourself. Don't borrow money to get a degree in some field that has little or no hope of ever enabling to work in a field that pays enough to live on and pay the loan back.

My solution looks something like this:

The feds publish an annual list of degrees they will loan money on. They base this list on industry trends, and the likelihood of the graduate actually being able to find work in the field that has enough compensation to allow the debtor to repay the loan.

You can always do well in High School, and get grants, scholarships, and student bonuses...or you can join the military, work your *kitten* off, and earn your degree with no student debt when you get out.

If someone is dumb enough to borrow money for a worthless degree, they and the school should be responsible for it. That money doesn't just bubble up out of the ground...it was taken from the taxpayers and given to others.

dovesgate

lets not judge those who can't afford loans and those who can pay them off...either way the job market stinks and college is way over priced!

We aren't judging people who can't afford loans. We're judging people who took out those loans knowing full well they'd have to pay them back and now want the government to step in and take care of them.

I'm judging the heck out of people who moan and whine that they had no choice - Yes, you did sweetheart. No one put a gun to your head and forced you to sign on the dotted line. You wanted that education. You chose the most expedient method and took out the loans to get that education. Pay for it.

Let's use an analogy. My fridge motor went out. I need a new one. I don't have the cash on hand for a new one so I can either stick it out until I have the cash for the expensive one I love by using an ice chest I already own and filling it with ice, I can purchase a working used one from the used appliance store with the cash I already have, or I can go get a loan so I can get the really nice new one.

It wouldn't make sense for me to expect anyone to pick up the balance of my loan for a new fridge. It doesn't benefit anyone but my family to have a nice new fridge. A cheaper used one that would only take the money I have already earned would have sufficed. And the ice chest, by being something I already owned, would be the cheapest yet.

hikezilla

No one forced us? I didn't WANT to take out a ton in student loans, but when college is $40,000 a year, you kind of have no choice. I worked my *kitten* of to get the scholarships I could and that still didn't covor the costs...I worked 2 jobs while IN college, plus a 3rd jobb part time. and I am stil over 20,000 in debt, and graduated without being able to find a job. I currently have an extremely low paying job and am living paycheck to paycheck just to pay my bills and make sure I have enough gas to get to work to pay for those bills...a little help would be amazing wth the ridiculous interest rates that they apply.

40K a year? They saw you coming. No one forced you to overpay for a college education, you overpaid because you didn't want to make the sacrifices required to attend a school you could afford. What did you get your degree in?

Suck it up, buttercup.

hikezilla

I think it boils down to this.

The government needs to stop making bad loans with our money.

Home loans, student loans, small business loans...the feds make way too many bad ones. It's got to stop.

MFPAddict

lets not judge those who can't afford loans and those who can pay them off...either way the job market stinks and college is way over priced!

I did not post in this thread to judge anyone. I posted in this thread to object to my tax dollars paying for someone else's education.

doorki

No one forced us? I didn't WANT to take out a ton in student loans, but when college is $40,000 a year, you kind of have no choice. I worked my *kitten* of to get the scholarships I could and that still didn't covor the costs...I worked 2 jobs while IN college, plus a 3rd jobb part time. and I am stil over 20,000 in debt, and graduated without being able to find a job. I currently have an extremely low paying job and am living paycheck to paycheck just to pay my bills and make sure I have enough gas to get to work to pay for those bills...a little help would be amazing wth the ridiculous interest rates that they apply.

40K a year? They saw you coming. No one forced you to overpay for a college education, you overpaid because you didn't want to make the sacrifices required to attend a school you could afford. What did you get your degree in?

Suck it up, buttercup.

Okay, I'll bite. I went to a good school and got a degree in Philosophy and Religion. I now make a very good income and the only reason I got in the door for the interview was where I went to school. Everyone else in my office has either an advanced degree or undergrad degree from a prestigious institution. Did I overpay for college?

summertime_girl

The news today is reporting that 1 out of 2 college grads from 2012 is either underemployed or completely jobless. That is a sad state of affairs. My son is a sophomore in high school this year. I do not know what job prospects will look like when he's entering the career fields, but he had a hell of a time just finding an after school job, because positions like grocery bagger or cashier are being taken by adults who cannot find work in their fields. That sort of thing is hard to anticipate for a new grad.

Rhea30

Really? My husband put himself through school without taking any student loans and no help from his parents. Took him a lot longer, sure, but he graduated with no debt.

This may sound harsh, but you chose the school and its tuition, you chose the amount of debt to accumulate, you chose your career field...it's time to pay up.

That's the problem, people want things right now and its become a society of credit and loans. No one is teaching about saving anymore and as I wrote on this thread before so many students want the pricey prestige school when they can get the same degree at a state school which would be much cheaper. I got several friends who worked and paid for their schooling without loans and it was a wise choice since now they don't have debt and are living the American dream because of it, but they made proper choices is why and no they are not privilege, they've worked hard. Sadly that isn't being taught anymore, the choices and how a loan should be a last resort.

cannonsky

Really? My husband put himself through school without taking any student loans and no help from his parents. Took him a lot longer, sure, but he graduated with no debt.

This may sound harsh, but you chose the school and its tuition, you chose the amount of debt to accumulate, you chose your career field...it's time to pay up.

That's the problem, people want things right now and its become a society of credit and loans. No one is teaching about saving anymore and as I wrote on this thread before so many students want the pricey prestige school when they can get the same degree at a state school which would be much cheaper. I got several friends who worked and paid for their schooling without loans and it was a wise choice since now they don't have debt and are living the American dream because of it, but they made proper choices is why and no they are not privilege, they've worked hard. Sadly that isn't being taught anymore, the choices and how a loan should be a last resort.

Ok that's kind of over simplifying it... there is a pretty big difference between a degree from MIT and a degree from a state school (no offense to those that go to state school. Hell I do)... but if you are smart enough to get into MIT, why would you not take that opportunity? That's madness to me.

KDfor3

I read through some of the posts but there are so many I didn't get close to reading them all, so forgive me if somebody said what I'll say. With that said, you can't simply forgive student loans. It isn't the tax payers responsibility to flip the bill for education for people. Forgiving student loans doesn't erase the issue, it prolongs finding a solution. The next generation of college students will simply follow the foot steps of those before them, and we will be asking for that to be forgiven, when does it stop? Its unfortunate for those that have a ton of loans they have to pay, but lets not forget it was a choice they made. I graduated without student loans. I didn't go to MIT by any means haha, and it took a year longer than I would have hoped for. But, I did find a job in my field and I'm quite successful at it. I don't have a solution to fix it, but simply allowing people to walk away from it isn't a viable option.

hikezilla

Okay, I'll bite. I went to a good school and got a degree in Philosophy and Religion. I now make a very good income and the only reason I got in the door for the interview was where I went to school. Everyone else in my office has either an advanced degree or undergrad degree from a prestigious institution. Did I overpay for college?

You already answered your own question. How could I improve on that? I'm going to assume you got your education without obtaining federal guaranteed student loans, or you earned enough with your new degree that you paid them back. Either way, nice job.

hikezilla

The news today is reporting that 1 out of 2 college grads from 2012 is either underemployed or completely jobless. That is a sad state of affairs. My son is a sophomore in high school this year. I do not know what job prospects will look like when he's entering the career fields, but he had a hell of a time just finding an after school job, because positions like grocery bagger or cashier are being taken by adults who cannot find work in their fields. That sort of thing is hard to anticipate for a new grad.

Has your son considered going in to the yard care business? It's almost summer time. It beats making cones at the DQ.

2April

i think if this bill passes then more loans will be paid back.

cannonsky

The news today is reporting that 1 out of 2 college grads from 2012 is either underemployed or completely jobless. That is a sad state of affairs. My son is a sophomore in high school this year. I do not know what job prospects will look like when he's entering the career fields, but he had a hell of a time just finding an after school job, because positions like grocery bagger or cashier are being taken by adults who cannot find work in their fields. That sort of thing is hard to anticipate for a new grad.

Has your son considered going in to the yard care business? It's almost summer time. It beats making cones at the DQ.

hey now... making that swirly at the top should be considered an art form. I know I can't do it. lol

doorki

Okay, I'll bite. I went to a good school and got a degree in Philosophy and Religion. I now make a very good income and the only reason I got in the door for the interview was where I went to school. Everyone else in my office has either an advanced degree or undergrad degree from a prestigious institution. Did I overpay for college?

You already answered your own question. How could I improve on that? I'm going to assume you got your education without obtaining federal guaranteed student loans, or you earned enough with your new degree that you paid them back. Either way, nice job.

I am still paying off my student loans....after the refi, I only have another 20 years to have it paid off. But my point is that the expensive school is the reason that I am able to do this so while you will say that someone overpaid for a $40k per year school, I have to say that it was the expensive school that got me where I am.

2April

Really? My husband put himself through school without taking any student loans and no help from his parents. Took him a lot longer, sure, but he graduated with no debt.

This may sound harsh, but you chose the school and its tuition, you chose the amount of debt to accumulate, you chose your career field...it's time to pay up.

That's the problem, people want things right now and its become a society of credit and loans. No one is teaching about saving anymore and as I wrote on this thread before so many students want the pricey prestige school when they can get the same degree at a state school which would be much cheaper. I got several friends who worked and paid for their schooling without loans and it was a wise choice since now they don't have debt and are living the American dream because of it, but they made proper choices is why and no they are not privilege, they've worked hard. Sadly that isn't being taught anymore, the choices and how a loan should be a last resort.

Sadly we are human and often do not turn our minds to the consequences of our actions. More loans = more debt just as more calories = more pounds. I still don't think it is right to condemn those who need help in rectifying their bad choices. I see this bill as trying to help people manage to pay back their loans and I think more money will be recouped this way. It is always better to empower people. If a person feels their situation is hopeless then they will not attempt to repay their loan at all.

KathieSwenson

i think if this bill passes then more loans will be paid back.

I agree with this. IF you look at the debt forgiveness. as long as you are paying back at least 10% of your income for 10 years then it will be forgiven. IF YOU are not paying that back then it wont be forgiven. You have to pay to have your debt forgiven YES i made the decision did I have any other choice in it. NO. THe goverment denied me grants as my parents made to much when the goverment let people who owned their own business and made alot of money grants like the pell. at one point i made 11,000 dollars in one year and I still did not get the pell grant. So FIrst off. they need to revamp how they do their pell grants and give it to the people who really need it.

Also, just because you go into and industry that you have a "chance" to get a job right of does not mean you will get one. I have a business degree which you would think would be a guarenteed managment job. NO. they want 1 Year work experince in the field education just to be paid minimum wage at a assistant management position at somewhere like mcdonalds. SO no generalizing here that just because you went to a school to become something in high demand means you are going to be in that career.

I think this is a good incentive to get more people to make consistent payments on thier loans. IT would be nice if I was able to pay them off in 10 years but with interest rates so high i'll be lucky to have it paid of in 30 years. I pay regularly and I do believe that if my debt were forgiven they will free up more money as I would have 600 extra dollars a month to go buy stuff and pay of credit cards and mortgages etc. I would be happy if they would make all student loans interest free where my money acutally went to my loan and not the government because of that loan. I have been paying for 6 years and havent seen a single drop in the overall amount and i am at 3.2 percent interest which is much lower than some i have seen.

And for those stating that they dont want to pay for others education. THINK PELL GRANT! hate to tell you, you are paying for others educations, and most of the time they are business owners that have the money to pay for their kids educations but they put their whole income into the business to make it look like they dont make anything. I didnt believe it till i had a friend tell me thats how she got the pell grant.. And, just because I may eventually have my loans forgiven doesnt mean im not paying taxes either because I do pay taxes just like everyone else.

hikezilla

Has your son considered going in to the yard care business? It's almost summer time. It beats making cones at the DQ.

hey now... making that swirly at the top should be considered an art form. I know I can't do it. lol
[/quote]

Oh my...if I worked at the DQ, every cone I make would be taste tested. I'd last there less than an hour. That's why i cut grass when I was a kid. Hehehe.

hikezilla

I am still paying off my student loans....after the refi, I only have another 20 years to have it paid off. But my point is that the expensive school is the reason that I am able to do this so while you will say that someone overpaid for a $40k per year school, I have to say that it was the expensive school that got me where I am.

Your expensive school got you a job that allows you to take 20 years to pay back all that money. I sincerely hope you love your job, it sounds like you owe a mountain of money. Best of luck.

hikezilla

Sadly we are human and often do not turn our minds to the consequences of our actions. More loans = more debt just as more calories = more pounds. I still don't think it is right to condemn those who need help in rectifying their bad choices. I see this bill as trying to help people manage to pay back their loans and I think more money will be recouped this way. It is always better to empower people. If a person feels their situation is hopeless then they will not attempt to repay their loan at all.

i would like to see the feds start forcing the schools to pay back the money that got for selling worthless degrees. PT Barnum said it, there is a sucker born every minute, and some of these schools take advantage of that by allowing students with bad grades to come in and borrow money for two years to play catch up...before they even get a class that gives them any credit toward their field of study.

If you start your freshman year without knowing what your goals are, then you might as well stay home and work another year and saving all the money you can. These "General Studies" degrees are worth almost as much as a generic high school diploma and cost more than 50K in most cases.

I also think more of these kids need to consider cheaper voc-tech educations, learn a trade kids...be your own boss.

SARgirl

I'm not eligible:(. Luckily I have a good job and can pay my loan payments. My interest is low (3%) so I can't complain there. I was not eligible for grants (my mom had too many assets) and I worked three jobs while going to school but still couldn't afford college without loans.