Dangers of Student Loan Debt

  1. 2 Please check out www.studentloanjustice.org before getting in over your head with student loan debt!

    Check out the article www.valleyadvocate.com/article.cfm?aid=12585 to protect yourself and your loved ones!
  2. Visit  brandy1017 profile page

    About brandy1017

    From 'midwest'; Joined Jun '02; Posts: 1,629; Likes: 3,257.

    13 Comments so far...

  3. Visit  mamayogibear profile page
    0
    Yeah I wish I had known all that before I took out loans to send my daughter to daycare because her looser of a dad would not watch her while I was in school! All my tuition, fees and supplies were paid for by scholarships and grants plus I had a little money left over but that was not nearly enough to pay for the daycare at the college which was $1250 per month! Argh, I sure hope I can get any type of job when I am done with school and pay back these loans.
  4. Visit  Rodoon profile page
    0
    Those links are scary! I can't imagine having that kind of debt before my first day on the job. I can't help wondering if the people signing up for these loans are encouraged to take as much as they want, or if they can do the math that equates their debt to a mortgage payment over thirty years. Sadly, I can't see the lenders letting go easily. The truth is that heavy debt is a crushing burden that will ruin your life, your marriage, and your happiness. Go to state school, live at home, and forgo the "college experience" before signing on that line.

    Good Luck in the job hunt mamayogibear.
  5. Visit  elkpark profile page
    3
    I don't mean to sound heartless, but nobody holds a gun to anyone's head and makes them take out student loans, and nobody forces anyone to sign loan papers without reading all the fine print carefully and making sure they understand what they're taking on ...
    besaangel, Hospice Nurse LPN, and kids like this.
  6. Visit  That Guy profile page
    1
    Quote from elkpark
    I don't mean to sound heartless, but nobody holds a gun to anyone's head and makes them take out student loans, and nobody forces anyone to sign loan papers without reading all the fine print carefully and making sure they understand what they're taking on ...
    I am with you on that one. It blows my mind that people get all these loans and then are shocked at the payments/amount that they have to repay. Did you just think it was going to disappear?
    Hospice Nurse LPN likes this.
  7. Visit  DoGoodThenGo profile page
    0
    Quote from bugsy2902
    Please check out www.studentloanjustice.org before getting in over your head with student loan debt!

    Check out the article www.valleyadvocate.com/article.cfm?aid=12585 to protect yourself and your loved ones!
    Oh there are worse dangers that that.

    Pipe:
    http://www.huffingtonpost.com/2011/0..._n_913373.html
  8. Visit  WildcatFanRN profile page
    0
    You have to take a pre-advisement online course before taking out student loans. It plainly states to only take out what you need and to try to get other forms of financial aid. I will be way over my head in debt because of bad choices I made 20 years ago and I now have over 20 years worth of interest on my older student loans. I know exactly that I'll be paying out the nose when I actually get a job. I'm getting my BSN to try to enhance my ability to get a job so I can begin paying off these darn things. Will I ever pay them off, I seriously doubt it. But, it was the only way for me to afford school as even grants don't pay everything and I haven't received any scholarships as of yet. If I get any scholarships I'll be able to decline my student loans for the rest of my BSN program.
  9. Visit  MikeyBSN profile page
    1
    Student loan debt is a difficult ethical issue for me. On one hand, I think it is absurd that the United States is one of the only developed countries that charges such outrageous tuition for college. However, I will admit that countries with "free" college tuition have a much higher entrance standard, giving Americans more freedom to get an education.

    In terms of the actual loans, the blame falls on both the for-profit diploma mills and the students themselves. I knew plenty of kids in college who went on vacations, bought cars, ate out all the time and lived like Romans. I now know that they blew through every drop of loan money they could get their hands on. I worked 40+ hours per week during undergrad and went to a relatively cheap school. I was never given a dime from my parents or anyone else for my schooling, and my debt is peanuts compared with other students with similar academic credentials. People simply need to be more responsible. Although I can't completely blame people who get in over their head with student loans. After all, our role-model Congress tells us we can live on debt forever. Individuals and the country as a whole are in for a very, very rude awakening, and the alarm clock started buzzing last week.
    DizzyLizzyNurse likes this.
  10. Visit  Swiftright profile page
    3
    I think the issue is less about folks taking out loans that they may or may not need but about losing consumer protections that Americans have had since ww2

    Now I don't mind to much about the way you cant include student loans in a bankruptcy filing, you took out the loans pay em.

    My problem is how they stripped usury laws, rights to refinance, Fair debt collection rules, truth in lending requirements and fine limits.

    Now lets stop and look at the effects of this. Say you have been paying on your loans for the last 5 years and something happens and you lose your job. Now being a up right hard working kinda guy/gal you hit the pavement and are only unemployed for 1 month, but, being a crappy market you have to take past time or a pay cut. So you do the responsible thing and call up your loan officer and try to change your payment plan so you don't default. The loan officer tells you no (rights to refinance) and reports your lose of income which allows them them to start playing with your interest rates (usury laws).

    The date comes to pay your bill and you don't have the X dollars so you send in say 80% of your normal amount (better then not paying at all you think). A couple of days later you get a notice saying saying your getting fined for your sub par payment and that while it use to be a small fine it now is nearly equal to the amount you sent in (fine limits, usury). So now your really in trouble because your a month behind and you cant even make a normal payment. Soon you get notice that you are being taken into court (you live in CA the court they file in is in Wash DC this is a becoming a common tactic) Long story short you cant fly out to DC or if its local you just cant cough up 2 payments Right Now! so you default on you loan and in the best case you lose your tax return (this happened to me after I lost my job in 2008) and or get your wages garnished. Worst case they come after your car or you HOUSE (fair debt collection rules)

    People just don't realize how bad its gotten, when I lost my job in 08' my finances imploded, I had to drop out of pharmacy school and it took me 2 years of working 2 jobs to get my finances straighten out so I could start nursing school.
  11. Visit  subee profile page
    0
    WhyOwhyOwhyO, Mikey did you throw away two years of pharmacy school to go into nursing?
  12. Visit  ParkerBC,MSN,RN profile page
    2
    first of all, there shouldn’t be a single person defaulting on a federal student loan. the interest rates are ridiculously low for an unsecured debt. there are also multiple payment plans to pay back the student loans. http://www.direct.ed.gov/repaycalc/dlindex2.html there are also ways in which the person can cancel a portion of the loan balance http://www.direct.ed.gov/cancellation.html there are also forbearance and deferment options http://www.direct.ed.gov/postpone.html
    i am sorry to sound harsh, but if you default on a federal student loan, you deserve to get your ass sued off. there is no other credit product on the market with the same flexibilities as government student loans. students enter college and decide upon a major. it is the student’s responsibility to research the major to determine job market needs and whether or not he/she will be able to secure a job after graduation. there is no written law or rule that says if you earn a college degree, you are guaranteed a job. the job market is simple economics (supply and demand). that is what happened to the nursing field. when the economy went south in 2008, everyone went back to school to become nurses. now the market is saturated. because of that, employers are in the driver’s seat in hiring practices.
    the debtor signed a promissory note that he/she will pay back the debt. it may be necessary to live with parents and continue driving the beater until better opportunities come. in other words, if you rushed out to buy that new car and rent the loft downtown and now you can’t pay back your loans, that is your fault!
    my student loan debt is 130k, but i don’t complain. i earned a bachelors and masters before going back to school for nursing. i accepted full responsibility for the debt even if it takes me the next 25 years to pay back. everyone else should do the same. i don’t think there should be bankruptcy protection for student loans. in fact, except for rare circumstances, bankruptcy laws should cease to exist.
    besaangel and WildcatFanRN like this.
  13. Visit  Swiftright profile page
    1
    In a nut shell my mom got sick and died. Not to long after that my wife nearly died in child birth. In both cases I was so impressed with nurses that I decided to become one.

    Also the idea of having to choose sitting in the basement of an hospital or deaingl with retail drug seekers the rest of my working life was depressing.
    brandy1017 likes this.
  14. Visit  hiddencatRN profile page
    0
    Quote from elkpark
    I don't mean to sound heartless, but nobody holds a gun to anyone's head and makes them take out student loans, and nobody forces anyone to sign loan papers without reading all the fine print carefully and making sure they understand what they're taking on ...
    No, you're not forced to take out student loans. But when I was 18, they were presented as a great way to be able to pay for school in addition to the grants and scholarships I had. I knew I'd have to pay them back, but I didn't really understand the implications of non-dischargeable debt or how to estimate my monthly expenses post graduation (and our school gave us HIGHLY inflated examples of what we could "expect" our income to be with our liberal arts degrees). Luckily I've never defaulted, but I have friends who have run in to financial difficulty (because sometimes **** happens that radically changes your financial security) and it is a hard road to rehabilitate those loans.

    I think individuals still need to be responsible for their financial decisions, but I wish there had been better education available when I was first starting school. Even though I was legally an adult at 18, like most other 18 year-olds, I was still very inexperienced and reliant on authorities like my parents and the financial aid office at school. My parents went to college in a very different era than I did, and I was the first kid in college, so it was as new to them as it was to me. And my school's financial aid office....well, I realize now that they have their own interest in the matter that's not necessarily MY interest.

    Student loans are a good tool, and I've continued to use them judiciously to continue my education and we'll probably use them to some extent with DH's education. I think the entrance counseling for new loans needs to be a little more detailed, and I'm all in favor of financial management classes for young adults and high schoolers.


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