Stop attacking the symptoms and attack the disease!
First of all let me start by saying that this organization is seriously overdue. I have taken it upon myself to wrestle with the behemoth known as the US student loan system for some years now.For some reason, we are the only post-industrialized society in the world that forces its nation's college students to a life time of bone crushing debt. This does not happen in Western Europe, Canada, East Asia, Australia, New Zealand, etc. College is entirely subsidized their respective governments and even by many corporations within their countries.
We can 100% subsidize our students' college educations as well. Sounds like a pipe dream?! Well I have done the research. In 2003-2004 according to the U.S. Dept. of Ed's Nat'l Center for Ed. Stats, we (both as consumers and as state and federal governemnts) spent $866 Billion on all levels of education (from Kindergarten to Ph.ds)These figures do not include institutions that confer only bachelor's degrees. 59% off this amount went to K-12, 41% to post-secondary ed. We spent 7.9% of our GDP (@ $11 trillion) on k-12. 3.2% of our GDP is spent on post-secondary ed. That is all!!! Are we to say as a nation can not afford to fund this?!
One more thing, according to the 2002 Dept. of ed. stats, I tallied what as a country we owed then for money from loans already borrowed to fund higher ed.This figure came out to $289 Billion (this was the most exorbitant estimate). Most of it going to fat cats like Sallie Mae, etc.
I believe it is now time to fight for the following objectives:
1) All forms of Post-secondary ed. should be entirely subsidized.
2)All outstanding student loans should be forgiven (let's face it student loan borrowers will not pay their loans--nor should they-- when they see the current college population going to school under fully subsidized means).
3)People who's credit has been destroyed by defaulting on student loans should have their credit restored to good standing.
4) Immediately repeal the draconian restrictions that were placed in the bankruptcy laws that forces people in bankruptcy to pay back the entire amount of the student loans once their seven years is up.
Post-secondary ed. is no longer a luxury-- it is a necessity. At one point in time in our country, secondary ed. was considered a luxury as well . Things change and societies evolve.
Let us move forward.
No, No, NO!!
We don't need any damn socialistic bullshit on this forum. We seek fairness for overwhelmed student loan debtors only.
God forgives--Why doesn't the Government?
Entitlement
Federal Student loans are an entitlement, like social security.
Big Brother didn't make you borrow from him, you chose to.
You don't agree with "damn socialistic bullshit" and yet you borrowed Big Brother's money, and you were stupid enough to not keep your agreement with Big Brother about repaying it,
yet you somehow don't agree with the idea that Big Brother just give the money, and not make people repay.
Is your life better because Big Brother is making you pay, pay, and pay some more?
problematic
Yes, many people willingly borrowed money for tuition, as I did. BUT, I was told, over and over again, that my loans would be LOW interest, and that I would have a payment of around $100 per month. I was told this every time I went to the financial aid office.
Now, imagine my surprise when I received my first loan bill and the interest rate was 9.75% AND my payment was almost $400. This was in 1994. I was stunned.
I paid what I could, but the loan companies, and the US Dept of Education were SO unhelpful. Their suggestion? I pay them $10,000 cash which would lower my payment. And the woman was SERIOUS!!
I asked them to reduce my interest rate repeatedly, and they said they would only do that IF I consolidated. They only tell you in VERY FINE PRINT that if you want to consolidate loans, any interest and/or penalties will be consolidated along with the original loan amount. So you are now paying interest on previously accrued interest and penalties. It's counterproductive, because even though your interest rate is lower, you've just added quite a bit more money to the principal balance.
I also called the Dept of Education and asked if they could just stop charging me interest, and let me pay them $200 until the entire amount is paid. They said "NO". We won't stop charging you interest and we won't lower your interest rate unless you consolidate.
What is problematic is that universities have to have federal financial aid recipient's or else their attendance will fall. So they in turn trick students, or sugar-coat the reality of a life burdened by student loans, so kids will apply and continue studying at their schools.
The entire system is riddled with inaccuracies and misleading information.
My general physician and I recently had a discussion about student loans, and she was trying to get her own class action lawsuit due to the fact that she borrowed $70,000 for medical school and has paid back $60,000 of it, but still owes over $40,000. It's a racket people.
Student loans are a ripoff and a scam. It is a way for the government to make money off kids who need an education.
And now the govt wants to let illegal aliens have in-state tuition.
Brainiacs. All of 'em.
Brainiacs indeed
I dunno. When I went to college there were enough credit card applications being mailed to me to wallpaper my room. Problem is I read them and did some math. I also read those student loan app/promissory notes, and did math. Between the two, the student loans were honestly about 50x more consumer friendly.
I somehow find myself wondering if you or your doctor know how to do math and read. In the last 30 seconds I figured out that if you borrowed 25k at 9% APR and had 10 years to repay it (and you actually made the payments each month) you would repay about 36,800. If you repaid that same loan in 20 years you would repay over 55k.
Now...get a 150k mortgage with 30 years to repay at 5% APR... and you pay back about 290k.
All of the above use simple interest with no capitalization.
Reading (regardless of font size) and doing basic math are things you learn for free long before you even take the SAT.
No one in their right mind should sign anything they don't read. Your word about what happened in a face-to-face transaction doesn't hold up well against the contract with your signature saying something completely different.
Brainiac is indeed the word.