What is FREAKING you out today??

[Trilby]

for me - it's the notice of my student loan coming due.

OH.

MY.

GOD.

they want how much??

What's freakin' your storm, rider?

[toranokaze]

I know that feeling all too well.

[footfootfoot]

Student loan is at the bottom of the totem pole, What are they gonna do? repossess your brain?

[skysidhe]

Yes, I think they can.

I made sure to keep my student loan burden down to the amount a car payment would be.

My car is paid off, It just needs to stay running, otherwise I will be riding the bus to a new job. Hopefully, If that's worse case scenario, I'll take it.

[TheMercenary]

To bad but the Republickins bent down to the loan system in the mid 2000's and passed a bill that will not allow student loans to be part of a bankruptcy settlement, you still have to pay them off. I guess they persuaded them to many people were defaulting on them by simply declaring bankruptcy.

[skysidhe]

I don't think they should be discharge- able. The interest rate is good.

You receive what you finance, unlike vehicles, which sometimes turn out to be lemons, a degree is worth it's weight in gold. Even if in this economy, the degree doesn't produce a job right away, you can frame your degree and pat yourself on the back for doing a job well done, while you eat cold beans from a can, and sleeping in your car.

[footfootfoot]

A degree is worth it's weight in gold. (sic)
8.5" x 11" 30# stock (heavy weight paper) = approx .2 oz.

gold spot price as of today = $1385/oz

1385 x .2 = $277.

If you paid more that $277. for your college degree you were robbed.

[Shawnee123]

Originally Posted by footfootfoot

Student loan is at the bottom of the totem pole, What are they gonna do? repossess your brain?

Oh my (puts fingers in ears and hums.)

Student loan default is a big deal. So much so that a lot of pressure is being put on schools to take more than an active role in keeping default rates down. A school with a high default rate could be in danger of losing access to Title IV funding.

In fact, just this year, my department added a new position (under my supervision...egads) of Default Management technician. We also limited access to unsubsidized loans and make the students come to an extra counseling session to access the full limits of their loans. Most students don't know how much they've borrowed or have any idea what their initial monthly payment would look like. We practically try to scare them into borrowing less. Good for the student, in the long run...but sadly many people are living off this funding.

Want to know how much you've borrowed and access repayment calculators? Log into www.nslds.ed.gov.

For those who have trouble making payments, I urge you to contact your servicer. There are deferments and forebearances for all kinds of issues. Once you go into default, you've paved the way for some actual and real serious consequences.

[/oligatory job-related free advice]

[HungLikeJesus]

Originally Posted by Shawnee123

...
For those who have trouble making payments, I urge you to contact your servicer...

Are you a servicer?

[Shawnee123]

No, the servicer is whoever currently holds your loan.

http://www.finaid.org/loans/servicers.phtml

[HungLikeJesus]

That's too bad.

[footfootfoot]

That strategy sounds not unlike the war on drugs and terrorism, create a demand for a product (degree) put that product out of people's reach (cost) but make having it an imperative (job requirement) offer money to fund purchase (loan) neglect to tell borrower that even with the degree their earning power will not be likely increased to the point where the degree purchase is justified but offer counseling discouraging them from borrowing too much.

The other problem for the school is if the student doesn't borrow they don't fill the seat...

One of the problems with defaulting on a student loan in NYS is that you are ineligible to apply for a state job (which is stupid, you'd think they'd want you employeed where they could garnish your wages as a term of employment, but whatever) and you are also not eligible for some types of state aid, again, kind of stupid, if you can't afford to pay for your loans, then maybe you might be in need of public assistance too, and if you are just defaulting despite ability to pay, then you probably won't be applying or eligible for public assistance.

I remember reading, about the time when they changed the rules about discharging student loan debt with bankruptcy, that the majority of money owed by defaulters was from doctors and lawyers who felt that they didn't really need to repay their loans.

Maybe you have more info on that alleged factoid, Shawnee.

[footfootfoot]

Originally Posted by HungLikeJesus

Are you a servicer?

Hope springs eternal...

[Lamplighter]

Ft3, that strategy is exactly what (some of ?) the "for profit" colleges have used,
and the Feds are starting to do something about it...
Maybe the Feds are going to make such colleges ineligible for the individual grants and/or guaranteed loans.

Such colleges are fighting back with ads on TV are running now.
Once you see one, the spiel makes more sense.

[Shawnee123]

Originally Posted by footfootfoot

That strategy sounds not unlike the war on drugs and terrorism, create a demand for a product (degree) put that product out of people's reach (cost) but make having it an imperative (job requirement) offer money to fund purchase (loan) neglect to tell borrower that even with the degree their earning power will not be likely increased to the point where the degree purchase is justified but offer counseling discouraging them from borrowing too much.

There is no doubt education is big business, no matter how noble a bow we tie around it.

What you just said is part of the reason for our new restrictions and the new position: identify WHO is defaulting, and why. It's a fact that students who succeed (reach their educational goal) are more likely to stay out of default. Student retention is a college-wide initiative.

Also, the "not telling" part is exactly why proprietary schools are under such attack. A lot of money for credits that will never transfer, unbeknownst to the student often until it is too late.

Let's face it, I work for a CC: I see way too many people who really have no interest in being there. I also see people who have successfully turned their life around. Providing the access to all results in the attrition...but the benefits for those who make it are immeasurable.

Maybe you have more info on that alleged factoid, Shawnee.

I do not. I do know that doctors can amass a huge debt, and that the consequences of default would probably not really touch them.