Dangers of Student Loan Debt
- 2Aug 19, '11 by brandy1017
- 0Aug 19, '11 by mamayogibearYeah 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.
- 0Aug 20, '11 by RodoonThose 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.
- 3Aug 20, '11 by elkparkI 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 ...
- 1Aug 20, '11 by That Guy, BSN, RN, EMT-BQuote from elkparkI 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?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 ...
- 0Aug 20, '11 by DoGoodThenGoQuote from bugsy2902Oh there are worse dangers that that.
- 0Aug 20, '11 by WildcatFanRNYou 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.
- 1Aug 21, '11 by MikeyBSNStudent 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.
- 3Aug 21, '11 by SwiftrightI 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.