VaardArk
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Jan 12, 2020 11:28 PM
VaardArk
106216
2926
118
DayGloOrangeFrisbee
Well this makes my 7k car loan sting a little less now
kjd46
I’m a Med student. Tuition is 55k/year. Unsubsidized loans at 7.2% and rising. My debt is over 220k, after paying off college
RenaissanceFaireMan
So while you're in school, you're earning over $1320 a month in interest?
Surbies
I owed 80k. Passed 12 years government has taken my entire federal tax return. Last year they stopped. Only owe 7k now.
DustinByfuglien
Idk if it’s really this bad for everyone. My total loans were about 28k with varying interest. Paid all off within a year for about 29k
overpolitemidwesterner
Refinance for fuck sake! Student loans suck and shouldn't be this terrible. We refinanced my wife 135k and it will be gone in 7years
Darooks
Paid on mine for 10 years and it never went down. Only paid it off because a family member died and left me money.
doctorhat
Did you always pay the minimum? Any penalties for prepayment?
RenaissanceFaireMan
There are no penalties for prepayment for fed loans.
KapThat
Just curious what was your interest rate?
abacab87
That's only possible if you wern't paying or had an interest only loan, which means you would have known your balance wouldn't budge.
RenaissanceFaireMan
Large loans can have 30 year repayment plans and you would be paying mostly interest for the first 10 years.
DisgruntledFerret
In addition to the usual victim-blaming, there's also a weird kind of spite against fixing this. "I want people to suffer just like I did."
kaleldc86
Well. The solution often involves higher taxes. So If i paid off my loans, why would I want to pay higher taxes to cover yours too.
LoudBirb
Or you can redistribute. None of the GOP fiscal conservatives batted an eye when Trump snagged $4 Billion out of the defense budget to...
LoudBirb
Help pay for his wall. Hell, if we moved copied Germany's healthcare system and got similar results we'd save enough money to pay for...
LoudBirb
All current tuition costs for every student in the US several times over.
kaleldc86
4 billion dollars. That's what you're worried about. Everyday of the Obama presidency increased our deficit by 3 billion. But I digress.
preemptiveenema
welcome to modern indentured servitude
epoke
Indentured servitude still exists. To claim that as an equivalent is rather disingenuous.
GoblinOfPoliticalSuccubus
Yeah, but it's edgy to say. That's what counts.
fadingtheory
Apparently, way to make it worth while is to never miss a payment. After so many years, the debt gets automatically forgiven. Weird system.
arewenotkingsandqueenstogether
The debt forgiveness plan is a scam, only 1% have been firgiven
RenaissanceFaireMan
Because the forgiveness plan requires 20 to 25 years of repayment and they've only been around since 2009.
Themidge22
Even if it's forgiven you have to pay the taxes as if it's a gift, a 200 or 300k gift... that gets taxed
dillanb
Not necessarily, there are programs where that’s the case, but usually only for public sector jobs (i.e. teachers). And those programs 1/2
Dionysus187
The public jobs are just quicker, it applies to all federal loans for other but its a few decades more iirc
dillanb
are nearly impossible to keep up with/fulfill the requirements. And often, when people follow them to a T, they get the run around in th end
fadingtheory
Thank God for my GI Bill, then
FreePalestineAndTheWorldFromIsrael
Y'all don't have interest-free student loans?
RenaissanceFaireMan
There ARE subsidized loans that don't earn interest during a deferment.
CapricornAngel
I would have saved $14K if I did.
FreePalestineAndTheWorldFromIsrael
Thats just tragic, I thought it was universal! Id be drowning in debt if they added interest to mine.
CapricornAngel
I would not mind paying a cost of inflation increase every year, but having to pay increasing interest on a federal loan is not right.
RenaissanceFaireMan
Federal loans are fixed.
MoonMoon89
Never pay just the minimum amount. The minimum is calculated to keep you paying as long as possible. Even a little extra helps.
Dionysus187
the fact that can become a bad state and they allow it makes them predatory. People act like the loans simply being available is huge favor
DisgruntledFerret
Isn't that in itself proof of the predatory nature of student loans?
RenaissanceFaireMan
What makes you think they're 'predatory'?
epoke
No, the loans are not predatory. The companies that service the loans post-graduation are. Many people don’t read the contracts they—
epoke
— sign prior to getting the loans cash, but they’re not long and explain it all. In addition to pre-graduation loan statements.
RenaissanceFaireMan
How are loan servicers predatory?
epoke
https://www.nytimes.com/2019/10/03/business/student-loans-forgiveness-pheaa.html
RenaissanceFaireMan
The forgiveness program’s rules are complicated & the form for it, though short, isn't easy. The 10 year program started...10 years ago.
RenaissanceFaireMan
Note: That's one servicer and it's about PSLF, not very typical.
milchuck1000
Loans used strictly for education should have a low capped interest rate as to not discourage our population from learning.
kaleldc86
They do have a low capped rate. Between 3 and 8 depending on when you started school.
milchuck1000
That's too high for people trying to get an education. Our population is getting dumber by the generation.
kaleldc86
They're backed by nothing. That's an amazing rate considering theres no collateral on the loan, and credit score isnt considered. Compare it
kaleldc86
to credit card rates. They're amazing compared to 20-35% most people get on cc.
milchuck1000
Not the point. Getting an education and being a productive member of society should not almost bankrupt you.
Zahnradfee
Isn't that the plan though? Dumb people are easier to rule, because those who don't know anything have to believe everything.
milchuck1000
Don't know why you were downvoted because it's true...less intelligent people are easier to manipulate.
RenaissanceFaireMan
Federal loans for school have a fixed interest rate based on the 10-year treasury note. Right now it's 4.53% for the 2019/2020 school year.
Shinycapn
grad school PLUS loans are in the 7% range
RenaissanceFaireMan
PLUS loans are usually high, it's 7.08% right now. 6.08% for grad loans.
dohcohv
From my experience with my coworkers, people suck with money. They make 60k/yr, their rent is $800, and they go further into debt every year
Gababu
I went to a local college on financial aid and didnt have to paid crap in NY. People need to be aware there are choices even on this.
KeezieWeezie
Seriously. I’m a teacher and a single mom and I don’t have any debt. A coworker recently told me that when we went from getting paid twice a
KeezieWeezie
Month to once, she and her husband struggled to pay their bills....it’s the same amount of money and they have two incomes vs. my one
dohcohv
Then blame the system, the people in charge, the company for not paying them more etc. My MIL has less saved for retirement than I do,
dohcohv
Sharing a house with her son and they both pay, meanwhile I'm the sole income in my house with my wife and three kids. They finance big SUVs
dohcohv
From shady dealers which break, so they trade them in ,underwater on their loan, for another SUV from the same dealer.
yallmfsneedjesus
Yes. Mine make more than me (years of service) and they could not wrap their heads around how I could afford my home.
dohcohv
That's how it was at my last job, I was making $13/hr, saving $1,000/month and in less than a year I had saved enough for closing costs
dohcohv
On my house. I got a zero down loan because I knew the market was going up, in four years my house doubled in value.
dohcohv
My coworkers couldn't "afford" rent. We paid the same.
Gover57
We bought our home when I was on reduced hrs - 2 days/wk. so we budgeted around that. Paid off a 30 yr mortgage in 14 yrs. Friends were 1/2
Gover57
asking us how and we told them. Don't buy at the top of what the bank approves you for and pay down the principle.
dohcohv
I bought at what the top of what the bank approved me for, it wasn't much since my credit history was one $300 limit secured credit card
dohcohv
I had always paid in cash/debit and they only approved me for a $700/mo mortgage because I had bank records for a year where I paid rent
Chereazi
Thank god I live in a civilized country with a better system...
ChikkenandFrikken
Haha the ppl that downvoted you are so triggered bc you have a civilized nation.
nccstarbuck
Yeah, german dude here, and I don't get the arguments here at all...
thegonzoesquire
You're welcome - John Marshall
whadupdalg
Woman at work complains about her student loans at 11%. Won’t refinance and bought a new pickup and trailer for $70k. PRIORITIES.
RenaissanceFaireMan
11% is pretty high, what interest rate did she get on the truck/trailer?
whadupdalg
Good question. I don’t know. But the shiny toys are more important to her than financial responsibility. Ugh.
techteach
I took all federal loans. Fixed interest and payments for 10 years and I’m done. Do these people not read into what they’re borrowing?
AIComments
They seem to be mostly *not* undergrad. In which case you don't get federal loans and the interest rate is similar to a car loan.
WarKittyKat
At 18, often, no. Mom and dad assured me everything would be fine in life if I just got a degree and I was dumb enough to believe them.
SaturnineCult
Well that's probably how it was when they were young.
WarKittyKat
I'm sure it was. Just think we shouldn't put so much blame on poorly informed 18 year olds.
RenaissanceFaireMan
Some people call up a loan servicer and ask, "What's the lowest payment I can get?".
Justadude101010103000
Same here. I don't get how people can say that they understand math AND don't understand how their loan works.
NotACyberman
1. We could easily wipe the interest if someone just acted. 2. The problem is the greedy institutions, not the debt.
ChikkenandFrikken
And politicians that take lobby money
idrinkandiknowthings3
Wiping the interest just puts the burden on other people, it doesn't magically disappear
MasTequila
No it's the lack of financial acumen
AtypicalMammal
Why are we still even going to a bunch of expensive physical buildings for education? A well designed online course can be as effective if
epoke
In theory, but distance education has not yet proven to be a sufficient replacement to brick and mortar education.
AtypicalMammal
Like, has anyone actually tested this? Or are recruiters just being traditionalist snobs and not hiring online graduates?
epoke
Constantly researched. https://www.insidehighered.com/digital-learning/views/2017/06/21/online-learning-not-working
epoke
https://www.forbes.com/sites/dereknewton/2019/05/29/what-if-online-education-simply-doesnt-work/#6c9bfc3e6764
whatthefuck9999999
There is research on this. The top students do just as well with online courses, weaker students benefit from in-person.
AtypicalMammal
A good online course will have real human assistance. I'm not talking about watching YouTube how-to videos here.
AtypicalMammal
You could even do like a benevolent pyramid scheme thing, where advanced students get a discount on tuition by assisting beginner students
AtypicalMammal
Would work really well for programming courses and such
AtypicalMammal
not more so, for most non-medical majors. I wish online colleges were better accredited and legitimized, it's much more efficient.
IfYouDontChewBigRedThenFYou
Currently looking for in state online options because I hated my school. Any one have recommendations for Indiana?
copperdomebodhi
Replies are like, "It's all your fault for not becoming an electrician." How many electricians can the market employ?
Dynme
715k electrician jobs in 2018, vs say 824k lawyers, to use a degree-requiring example. And 10% growth vs only 6% (projected, anyway).
TheyCallMeTheHiphopopotamusIgotFlowsThatGlowLikePhosphorous
own detriment. (2/2)
Dionysus187
Im baffled how many people talk about trades and provide ZERO information on how to go about it.
OwMyRupturedSpleen
Because its shockingly easy to get into a trade. Just look for union halls in your area.
letters2u1992
Step 1: contact your local union labor shop
Hairyoldfart
Google "Trade school for electrician near me" or insert other trade.. in place of electrician, then research the schools reputation.
LoudBirb
The reason Bach degrees got so devalued was exactly because an entire generation told their kids "this is the smart thing to do". They...
LoudBirb
All did it and the value of the degrees dropped immensely. Same thing will happen if everyone suddenly switches to the trades.
TheyCallMeTheHiphopopotamusIgotFlowsThatGlowLikePhosphorous
Electrician is just one example. Basically a tradesman. Everybody needs them but we tend to "look down our noses" at them, often to our (1)
foxmichaels
.... "How it happens" - you are paying the minimum, which is equal to or less than the interest rate. Not that it's /right/, but..
TheSixthDimensionalPlanetSmasher
I was about to post this. Some might not even be paying the minimum.
foxmichaels
True. "Never missing a payment" != "Paying the minimum".
VaardArk
That minimum can be hundreds or thousands a month, even with consolidation. It’s hard for many to afford.
vihra
... then don't take the loan?
VaardArk
Remember that these students are walking into these loans at a young age with no true concept of what their financial life will be out of
VaardArk
college. Only promises that it will be worth it and work out in the end
thisaintmyname
If you are able to take a loan you should know the consequences.
Dionysus187
predatory loans should be illegal
vIRLWarlock
which isn't reality unfortunately. When you are told pay 20k a year or work McDonalds the rest of your life while society is pushing you to>
vihra
fiscal responsibility is something that parents (and schools) are supposed to be teaching. I feel like they are setting up kids for failure
vIRLWarlock
thats exactly what happened. There was a huge push for every single kid to get a degree when I was going through primary.>
KartFnocker
Yep. People blaming 17 year olds for not predicting their financial future for the next 20 years is wack
SnortCokeOffAWeiner
They pretty much are. Compound that with how it's expected that everyone goes to college, and you've got a gen fucked out of the gate
vihra
Is this just a "only paid the minimums" issue?
WolfRamX4
Has to be this, and a combination of agreeing to an utterly horrible loan. I know nobody that's taken more than 8 years to pay their loans.
kaleldc86
Sorta. The govt also offers a bunch of different payment plans...some dont even cover the interest every month.
minipancho94
look at home loans, if you pay the minimum there you are still paying principle. its predatory if there isnt some principle being paid.
RenaissanceFaireMan
Student loan payments don't go to principle if you owe interest.
joot
Not true, a portion of a full paymen goes to principal.
Gover57
it's just like a credit card. the statement shows the min payment which is the interest that month - you need to pay down the debt portion.
HelloMax
Anything the government touches gets ridiculously expensive. These are basically predatory loans backed by the US government.
epoke
Often it is. That’s why most people don’t post their details like principle, interest, monthly pay, and monthly payment history. —
epoke
— They would rather push the narrative of crippling debt with hopes that someone will pay it off for them.
Dionysus187
so you think people are just refusing to pay when they otherwise could? lol, must work for a collector
ChikkenandFrikken
I pay my mortgage in 30yrs if I only do the minimum. A payment plan should take account for that. $300 a month is a lot for some ppl.
Gover57
Credit cards don't do that... banks are out to make more money. the longer you owe them, the more money they make off of you.
RenaissanceFaireMan
Student loans are rarely owned by banks.
TheyCallMeTheHiphopopotamusIgotFlowsThatGlowLikePhosphorous
One potential problem I see is that your mortgage is backed by an asset of value. Many college degrees have no value which is a problem.
ChikkenandFrikken
Doing any more than the minimum shouldn't be the only way to get out of debt. Payment plans should help someone get out of debt within x yrs
PhailRaptor
That's not how loan sharks make money, though...
RenaissanceFaireMan
All standard repayment plans will eventually pay off the loan.
JordyHerm
I understand “free college” is an idea many people feel strongly about. What about either a) no interest or b) limited interest on loans?
epoke
I’d be happy if it was just a flat, simple interest to cover cost and the gov’t laying out the funds and taking the risk.—
epoke
— Compound interest is the profit source for the private loan services and the actual source of the problem.
epoke
— well, aside from predatory for-profit bulls hit schools like Phoenix, ITT Tech, bible colleges, cosmetology schools, etc.
RenaissanceFaireMan
Fed loans are flat/fixed and simple interest.
epoke
When interest gets capitalized: https://www.nerdwallet.com/blog/loans/student-loans/how-to-calculate-student-loan-interest/
FoxyEllie
I'm more interested in "affordable". We don't need to give money away, rather we need to find a way to end the gouging. In healthcare too.
Noblert
It would just drive up the cost. Low interest and federally backed loans is the prob Em in the first place.
RenaissanceFaireMan
What do you mean by limited interest?
kahless01
i sure as shit dont want gvmt mandated testing in college too. or them telling me what i can study and for how long and where
IdUpvoteYouButYoureAt69
I hope with a new presidency that if the extreme doesnt happen (wipe student debt) then at least interest rates disappear or are limited.
ChainmailleAddict
Wiping student debt doesn't eliminate the root cause, and in fact would only encourage colleges to charge more.
ChainmailleAddict
A better idea would be to make college not for-profit.
arewenotkingsandqueenstogether
Wiping student debt would be a huge boost to the evonomy
PhailRaptor
The thing about "free college" is that the student doesn't pay to attend. Everyone in the country pays for them to attend.
LoudBirb
So? If it's that big an issue then appropriate some or all of the money from the defense budget. Total tuition costs in the US are...
LoudBirb
$70 Billion, and the defense department's current discretionary budget is $689 Billion. We can even compromise and only make State...
LoudBirb
Institutions free and do a mix of added tax and budget appropriation. Put stronger limits/regulations on tuition increases. Or hell...
LoudBirb
Copy Germany's healthcare system and use a fraction of the money we'd save to pay for everyone's education. Lots of potential solutions...
WorldsSmallestMegaDick
#6 is complete bullshit minimum payment has to at least be the interest
Kemi337
A lot of programs will allow you to defer the payments for up to 6 months after you graduate and the interest can snowball before you finish
vihra
Yeah I'm having a hard time believing some of these. I know folks that have paid off their student loans.
WorldsSmallestMegaDick
The ones you know are false are the ones saying theyve never missed a payment but the principle has increased.
RenaissanceFaireMan
An Income Based Repayment or Income Driven Repayment plan can easily have payments under the interest.
Randyw8483
Unless you defer a ton of payments.
Dionysus187
Almost like they hit hard times where they had to use plans to defer or pay less than the interest
minipancho94
banks and private schools do some predatory shit. can see some loophole allowing the min payment to be only interest w/o principle
yallmfsneedjesus
Yea, most likely. That or they deferred payments until after graduation. Interest builds that entire time. People dont realize this.
RenaissanceFaireMan
Almost all loans are deferred while a student is in school, no payment is 'required'.
yallmfsneedjesus
Right. Just because it isnt required, doesnt mean its good or right. I agree its predatory, but there is alsk irresponsibility at play
RenaissanceFaireMan
When I was in the industry, would suggest people pay off any interest that was piling up on un-subsidized loans...if possible.
RenaissanceFaireMan
Interest on subsidized loans doesn't build up, unsubbed does.
RenaissanceFaireMan
After you get out of school, both types of loans start to build interest though...
yallmfsneedjesus
You can defer dor 6 months post graduation if im not mistaken.
pokebug666
Deferred interest maybe? While they never missed a payment, payments also did not start until they graduated, 4 years after loan originated?
RenaissanceFaireMan
Subsidized loans don't add interest while the student is in school. Unsubsidized loans start interest from day one.
yallmfsneedjesus
Bingo. If you don't make payments for years after taking it out, you're gonna have a bad time. Just because you CAN doesn't mean you SHOULD.
Decstorose
Pay your fucking principal?
RenaissanceFaireMan
Student loan payments go to interest first, then the principle.
Themidge22
Some people can't afford it. If I paid my principle it would be almost double my monthly rent. And I have no undergraduate loans
LoveAndArtAreTheBestThingsPeopleDo
It’s bad fucking planning to take out school loans if the job your degree qualifies you for can’t pay your loans.
Themidge22
That would probably qualify for 90% of doctors, unless their parents paid for med school. So yeah, let's not have doctors anymore.
LoveAndArtAreTheBestThingsPeopleDo
vIRLWarlock
nevermind there are people who fail out part way through a degree for unavoidable situations. I know someone who got 125 out of 140 >
LoveAndArtAreTheBestThingsPeopleDo
None of these tweets are complaining about the misfortune, they just didn’t pay enough of their loans.
vIRLWarlock
I concede that. A lot of people don't realize some people just get dealt a bad hand and everyone who struggles with it are solely to blame
vIRLWarlock
credits at an engineering school, natural disaster took everything from him, and his illness got worse as a result and couldn't stay afloat>
vIRLWarlock
financially, had to try for a trade while having most of a degree's worth of debt. Shit happens to people.
arewenotkingsandqueenstogether
Don't be a dick. Markets change.
LoveAndArtAreTheBestThingsPeopleDo
Markets changing are the exception rather than the rule. Most people don’t care to do the math.
LoveAndArtAreTheBestThingsPeopleDo
None of these people are complaining about markets changing in their tweets. You are making excuses for them.
TheyCallMeTheHiphopopotamusIgotFlowsThatGlowLikePhosphorous
He's right though you just don't want to hear it, and "markets change" is a very flimsy excuse.
Noomzeu
Excuse me, but what are they talking about? They pay their debts and are still in debt?? Wtf!
CokieMonster69
https://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx Make sure to increase interest to 7%.
LateNightWithImgur
People paying the bare minimum
JoshuaPaul
They must just pay their interest owed, not their debt balance
dillanb
Interest rates & fees outweigh payments borrowers can make, despite those payment amounts being designated as appropriate by the lender
MeghanMichelle
opkraut
These people sound like they're only making minimum payments and aren't paying off the principal
CapricornAngel
I rarely made a minimum payment, had excellent credit and still got killed with all of the interest added on. Loan: $35K, Paid $49K.
ChikkenandFrikken
I pay the minimum on my mortgage and it's done in 30yrs. It seems wrong to pay the minimum and be more in debt on a payment plan.
virtia
That's not how this works. Half the point of a loan like this is that they expect low wages for recent grads. The minimum is intentionally
virtia
at or below interest-only levels to allow for precisely that situation, with the expectation that you increase up to an "appropriate"
virtia
payment over time, as your earning potential increases.
minipancho94
any minimum payment should be enough to pay off principle as well. any organization that does not do so is predatory. yea you can still 1/2
minipancho94
end up paying double or triple with min payments, but you should still eventually pay it all off. also interest shouldnt accrue interest 2/2
virtia
Minimum payments on student loans are meant to reflect the low earning potential of recent grads. They specifically lay out what payment
virtia
you should be making, which is a wildly different number. The minimums are generally at or below interest-only levels.
charlie2979
Some people are poor.
epoke
The idea behind student debt is that once you have a college degree, you have accumulated enough knowledge or skill to get a job that—
YouWontBelieveWhatIFound
That's the idea, sure. When everything goes tits up, though, what you meant to do doesn't count for much with what your options are now.
epoke
— will make you NOT poor. And it generally works out. That’s why so many people go to college.
charlie2979
You've been beaten over the head by capital for so long you cant see past it.
IraqiWalker
Except for the part where you're saddled with exorbitant fees, interest rates, and payments.
FatboyRich
Went to collage for two years- partied and flunked out. Became a carpenter- learned to build boats, and don't have a mountain of debt.
FatboyRich
It sucks the life out of you- I would rather have next to nothing than have to work my ass off and still live in fear of losing everything.
clutchthepearls
All you gotta do is glue pictures. How did you flunk that?
WeAllFloat
*college....hahaha
MedicSailor
Right??? 6 ppl downvoted you, while this person states they went to collage instead of college. Degrees don't mean much most of the time.
schmidy
To each their own I guess. I went to engineering school and law school and have debt. But my earning potential is essentially uncapped
stannisconfartsticks
I bought machinery and tools and make great money. You have to invest wisely. Oh I also bought engineering books and taught myself.
011100000110100101100101
The one downside to teaching yourself is that most employers won't give you a job because you read some books
stannisconfartsticks
Start your own business its a big world
011100000110100101100101
Businesses (especially new ones) can fail, all I'm saying is that the piece of paper is worth more than the education in this society. 1/2
kahless01
i wanna start building wood kayaks. they look so damn nice. gotta clean out my garage and make room to do it
Gherkincensed
Hoo boy. Got money?
kahless01
nope thats another reason i havent started. the night heron kit isnt bad just takes time. better than heavy plastic kayaks.
PigsWeGetWhatPigsDeserve
Collage? In art school?
nerotep
One way to combat this is work on changing the perception that you should go directly into college after high school. Work and learn first
BasilPembroke
college. you went to college. not collage. clearly you flunked out.
Ganonderf
IWasToldThereWasCake
[deleted]
[deleted]
[deleted]
[deleted]
smirf8813365
Congrats on your hard work
quaggie
That's not just lucky. That's a ton of work and a dash of luck in the right places.
Gherkincensed
Carpenters are not boat builders and vice versa, don't conflate them.
FatboyRich
A lot of “boat builders” find that seasonal work doesn’t pay the bills, so interior finish carpentry supplements the income
Gherkincensed
So maybe he's a carpenter when working a sidejob, but that shouldn't be his normal description
jd48191
There is nothing wrong with becoming a carpenter if that's your true calling
2074red2074
No offense to you, but your mountain of debt will come later when you need to get your knees and other joints replaced from manual labor.
FatboyRich
On the contrary, manual labor has kept me physically fit.
potatorat45
Planning for this is part of life. Don't plan to work your whole life at the ground level, plan to move up in your trade.
kahless01
people in this country need to do that because the enormous weight they carry around wears them down. so it could happen anyway
changerofways9
Great point. It's important to assess the benefits of college vs. things like trade schools. But I do find it funny you misspelled college.
BabyYodasChickenTendies
Maybe he didn’t misspell, and he did go to a collage...a collage of parties
FatboyRich
wish I could remember
epoke
The rib-jabby irony is definitely there. :)
VaardArk
Hey, I dropped out of college and I think wordsing good is overraided
FatboyRich
Point well made, but I'll blame it on the lack of proofreading, or the four beers, before I'll cop to my lack of literacy
TheThirstyMoose
Hence why he flunked out he kept thinking he was supposed to arrange a group of pictures
brandsilven
Nah, it was a party and flunking collage, nice and artsy. That's why he dropped out of college, though.
rebelhead
It's like they want to drive us to develop some sort of educated organized crime syndicate
calisaya
They call that "finance"
rebelhead
Ok first thing, we target those who profit on the loan system(CEOs, etc) then find litigious reasons to sue.
rebelhead
Then we're going to pass profits back to the lonees based on a lottery.
rebelhead
Anybody with a grievance with these loan companies or individuals within these companies.
VeyaVictaous
That's what they did already. Now you have to pay these criminals.
rebelhead
Whose with me? Looking in your direction lawyers of imgur..
bestscarface76
Pirate textbooks and self employ (Assuming you can self employ in the chosen field and can learn through reading)
CirclejerqueDuSoleil
https://www.gnu.org/philosophy/words-to-avoid.en.html#Piracy
CirclejerqueDuSoleil
*Who's
PaintedSlate
It's my understanding that it is technically against the law to do crime.
rebelhead
We could avoid actual crimes and attack in other ways.
PaintedSlate
Sounds good, what departments are anticipated?
rebelhead
Legal is our biggest. Then marketing(we'll run ads targeting people with loans). Probably we can use a CRM for tracking opportunities.
CirclejerqueDuSoleil
hmm yes the floor here is made out of floor
goudist
Hopefully no math majors.
tigercheesesteak
Underrated comment
Gherkincensed
For real, my eyes were squinted this whole post.
unaskedtabitha
It’s not about the math, it’s about discipline and grit. Even finance majors screw up a budget or worse don’t have one
nerotep
Maybe the first class everyone takes in college should be explaining loans. Each student calculates their own loans, future job income, etc
DigitalBang
Would be a bit late. And at this point, those kids.. their parents should understand it enough to teach these things by now.
letters2u1992
It doesn't take a math major to say, "hey, understand your liability before accepting anything from anyone."
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ychen
Obviously you're not a math major...
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unaskedtabitha
They meant bc if they did math you should’ve known how to pay it off
SeriouslyAwkward
He was making a joke since math majors should be good with numbers but what he should. Have said was finance majors which would be clearer
ajahdjzjabda8888
What
fuckthisishard
That sentence really lived up your username.
kahless01
thats why i hate these bs posts. people sign loan paperwork they dont understand and dont ask questions about. its a pride problem, not debt
investigation27
Many expected to use the education to get higher paying jobs. They did the math based on the hypothetical salary of someone with degree.
nerotep
You're right, but also most highschool kids don't have a full understanding of cost of living since they've never paid their own bills.
VinerialBlumpkin11
Once people understand they still accept the payment plan that never pays off principle. It's a willful poor choice.
braamdepace
Yeah I was about to say, number 2 is off by about $30,000
RenaissanceFaireMan
Grad loans have a higher interest rate, she might be paying 8%. Which means she's earning $2450 in interest a month.
RenaissanceFaireMan
If she's only paying $2500 a month...well, the balance isn't going to go down quickly at all.
braamdepace
Interest rate doesn’t matter in part of the calculation she got wrong. She said $2,500 a month for 6.5 years for a total of $165,000.
CokieMonster69
No kidding. Making your own amortization table and figuring out the numbers is step 1 to any loan. Also, make extra payments to principal
AstroFizX
Get a grip, the problem is predatory loans to students who many times have no other option. Not a fucking amortization table.
Epi4Hire
Good thing they teach you what an amortization table is and what it means before telling you that you can’t have a good life w/o ed /s
ChainmailleAddict
If the interest is more than around 4%, pay off as much as you can immediately unless you REALLY know what you're doing.
kruug
When being told in high school to go to college, you’re told you’ll make $75k+ a year. Once graduated, you’re lucky to start at $40k.
LewdSomnambulist
*Laughs in engineer*
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Chaimgoldbergenstein
You're making the mistake of assuming you need to be smart in order to "take on" college and graduate.
Gherkincensed
No that's actually the problem. All these people are "educated" and don't understand that paying minimums leads to more debt.
investigation27
You can't pay more than the minimum if that money isn't coming in. Lots of people with degrees are underemployed.
Gherkincensed
Right and that's also society's fault for pushing college with no plan in place, just COLLEGE, but then what? Go into trades, kids. Big $$$.
AngstAussie
In australia your loan has no intrest but gets indexed each year to match the price of inflation and the loan is direct to the government 1.
AskingTheRealQuestions
Same in Norway. + tuition is free, and you can postpone payment for 3 years after graduation, which I'm of course doing.
AskingTheRealQuestions
Oh, yeah, and up to 40% of it is converted into scholarship upon completion.
BananaWood
NZ student dept is the same. We also have student allowance (pocket money from the government) which you don’t pay back. Work/life balance
AngstAussie
2. The school is paid by the gov loan so the school loses no money. The government makes no money but the country is smarter as everyone 3
Legateus
Read ur thread. Canada operates much the same. Was a breeze to pay mine off.
AngstAussie
3 can use this program for their first bachelor's degree. If you want extra education then you pay yourself. Also once you earn over 50k .4.
seir
I didn't pay for my MBA. It was on the loan scheme. Did they change the rules?
AngstAussie
I think so as people were just becoming professional students and not actually getting jobs to pay it back.
AngstAussie
4. Then they take a percentage of your income each paycheck similar to federal tax to pay it down. This way people who dont get great jobs 5
AngstAussie
5. Arnt stuck in a debt cycle. And people with good jobs can pay relatively quick and then also earn more and pay more taxes which helps 6.
AngstAussie
6. The country overall. You can also make self contributions whenever you want. They had a 50% match and I had $1k so it =$1.5k when i paid
AlphaKenneyBody
My wife borrowed 68,000 10 years ago. We’re down in the 29,000’s now.
HatefulViking
When you are busy trying to float your economy, you wont fuzz about stagnant salaries, long workhours or lack of social security net.
odragon
Got two degrees from german universities. No debt. Free Education rules!
BabyYodasChickenTendies
Ya same! $50k loam, it’s down to $26k after 10 years... I’ll have paid $60kish total though when done :/ sucks but it’s going down slowly
RenaissanceFaireMan
Some of the longer (standard) repayment plans can more than double your original loan.
PianoMan2112
All my guesses on interest and monthly payments show you'll be paid off around late 2025; good job!
AlphaKenneyBody
Should finish it this year. We’ve paid off everything else, and we’re rolling on this loan now.
AlphaKenneyBody
Making payments on principle now.
RenaissanceFaireMan
If you're making extra payments to the loan, ask your loan servicer if you can pay down the loan group/id with the highest interest first.
tiffwhaaa
*principal, but that's great!
AlphaKenneyBody
I thought principal was the person in the office at school. Like they are your ‘pal’ or whatever. Ah Fuck I had a 50/50 chance.
exponentiate
You’re not wrong, it’s that too! -pal for objects, -ple for concepts. :)
AlphaKenneyBody
We also don’t have/want kids for what that’s worth. (Which is a lot of money)
investigation27
Same. At 12/107K after 6 years, but kids have been delayed, perhaps permanently.
epoke
Sounds like you understood how debt works and followed a responsible payment plan. These tweets represent those who don’t plan ahead.
Gherkincensed
THANK YOU. You have to make MORE the minimum payment...I mean hello, what did you expect dudes.
investigation27
Jobs that pay well enough to make more than the minimum payment.
Gherkincensed
Many people with loans didn't get a degree in a well paying field. Partly because being young and all but COLLEGE should have a plan too.
Gherkincensed
Like what will you do afterwards. Everything is geared towards getting a degree but many people don't even find a job in their studied field
investigation27
I have $12K left out of 107K (2014). I had no idea how hard it would be. 2+ full time jobs for most of that time. I'm so tired.
thanatos777
Yeah, I know I was fully prepared to comprehend complex loan products when I was FUCKING SEVENTEEN.
epoke
I know I was. I was taught compound interest in the 7th/8th grade. Seriously. It’s seriously just algebra.
FabulousBadass
It's not that complex, but it isn't taught either.
investigation27
I would go so far as to say the reality was deliberately obscured. Many were misled about the reality of the increased earning potential.
ElChupaNuggra
It's why interest rates only say the .XX percentages on loans, etc when advertised makes them sound appealing, what they don't tell you 1/?
ZaberMK12
If you couldn't comprehend loans maybe college isn't for you.
zoeelane201
I get what you're saying, but is it seriously ok that they spent 10+years paying off a debt for an education?
kaleldc86
Well. It's all in black and white upfront. No one forces them to go to school and take out loans.
HoldOnToYourMutts
This.
Iwilltrytobenicer3
Yes. They signed up. But. College's have figured it out. Schools * Government = a racket
AlphaKenneyBody
Yes
imgurianInferno
No but it seems like a lot of it has to do with these folks making too small of payments for too long. Would have better to scrimp for a 1/2
imgurianInferno
2/2 few years to pay much more and quicker. I still think college is expensive and there need to be reasonable rates, but got to plan still
Shitheid
My issue was that scrimping on a minimum wage job didn’t even get us to minimum payments for a while. We’re doing much better but 1/2
princessgoldie
But they weren’t paying off debt they were paying interest. You can’t just make the min payment.
hamsterpoots
Minimum payment is about as much as a mortgage :( hard to get out from that
SmellyKittens
"Have you tried just, like, not being poor". I'm pretty sure a lot of people struggle to make those payments.
puffcorn237
It's like anything in general though. If you don't understand it, you probably will get screwed
thanatos777
We do that to seventeen-year-olds, and Republicans are fucking okay with it. There is something deeply fucking wrong with us as a society.
Torquemada10110
This happened when government became the only game in town with student loans. May 39th 2010.?
AlphaKenneyBody
Republican?? Don’t borrow money if you don’t have a an idea of how to pay it back. Don’t loan money you expect to be returned.
puffcorn237
I mean we still also have people of all ages that aren't responsible enough to use credit cards. This is kinda a deep rooted problem
tacticalattackterriers
I mean, while uni costs are stupid high in the U.S., some of these people must have fucking crazy interest rates.
whakalaka
At least in USA you have the chance to get well paid jobs
wolfpreist
yup, they dont read the fine print or understand how intrest works, then blame the system. (which does need reform dont get me wrong)
starked
Some of the "owed" amounts are probably calculated out with interest over X years.
fign37
In Germany we have Zero Student loans... Uni is free...unless you go to one of those fancy private ones which btw are not that good.
NobodyWorthThinkingAbout
Those stupid high uni costs are one of the reasons we can't fix healthcare. Because guess who pays for the doctor's student loans?
Zeth0
And who sets the astronomical price for a doctoral degree? Its not those who pay for it but those who can benefit from the extortion.
NobodyWorthThinkingAbout
Exactly!
ASquare
Yee, I love when government intervenes and ruins it. Backed by death, banks have no risk. Colleges have kids with infinite money tuiting ip
LikeTotallyNotTheNSA
Interest rate: How much you got?
jellybeandaddyjl
The crazy part is folks are Soo naive to just go headlong into college that they will put themselves into crippling debt...quite ironic.
rumpleforeskinforthewin
If I could do it over, I would not have gone to college
jellybeandaddyjl
It's fine to do so...just pick a better method of funding for the school
bonly89
These people had no business getting loans or going to a college that prestigious.
ImNotAnOrange
My retarded ass spent nearly 9 years at 5 different schools trying to get a 4 year degree and i have no debt, so i have no idea whats up
slothyslothysloth
Interest on US student loans is high and starts accumulating right away. In Canada interest doesn’t start until you graduate
zanarchy805
I’m still paying off my loans. I understand that there should be some interest. But 6% is pretty steep.
TimeFoDat
My private loans are 12.5%. The interest alone is about $1200/month. I can only afford $1400 which is > my rent, insurance, car & phone.
echonite
Yeah, I have a 14k loan and I pay more than the monthly payment sointerest doesn't build up as much. I'll be done in a few years.
echonite
These people just sound like mismanagement and/or stupidly high interest rates.
tacticalattackterriers
I mean, my loan is notably higher than yours because I was an idiot in HS and my parents made too much to qualify for financial aid, but...
tacticalattackterriers
...My rate of depletion isn't THAT much different from yours, although I'm sure I have to overpay by more than you do....
tacticalattackterriers
...It'll probably still take me about 8 years.
drunkleqrow
Yeah. I paid off my loans in 3 years by eating ramen with ketchup. And putting in WAY more than the minimum.
thrillhousegaming
Information would indicate private loans. FAFSA I think is capped around 4.5?
RenaissanceFaireMan
Current rate is 4.53%.
ILikeReallyLongAndPointlessUserNamesCuzWhyNot
Maybe a while ago. Move are as high as 8%.
ILikeReallyLongAndPointlessUserNamesCuzWhyNot
Mine*
sixeyedcat
It you take out loans for grad school they’re typically 6.8% (or that was the standard when I went)
RenaissanceFaireMan
Grad and PLUS loans are usually higher.
boomtractor
Yup. Worked through college + 36k loan debt -->10yr @450/mo , paid off 3 months ago, 56k total. (Deferment can be ruinous, last resort ONLY)
boomtractor
Worked as much OT as possible when not in class, w/ base construction pay $11/hr-->$16.50 OT, no vacations. Degree was absolutely worth it!
boomtractor
Minimized all expenses, took FAFSA subsdzd & unsubsdzd stuloans only when necessary, folks made too much to get much for grants. The math--
boomtractor
--about "buying a pizza w/stuloan $ will cost 5-8 times more over 10 years" was a solid warning when reading the stuloan pamphlets
HotSauceEnema
Mines 13% because my pArents had a forclosure even tho they have nothing to do with my loans
tacticalattackterriers
I feel you, dude.
Autumlove
Depending on your income and situation, you may want to look into taking out a personal loan at a lower rate. Refinance.
Autumlove
Woah! You can get cheaper credit cards.
Tonberryc
The minimum payments are also deliberately set below the interest rate.
RenaissanceFaireMan
Don't think that's true at all.
DHDragon
Oh no I assure you it's absolutely true. I don't have experience with student loans in specific, but in general, EVERY loan will have >
DHDragon
a higher interest rate than the minimum payment. That's why you should never pay the minimum payment, if you can possibly avoid it. It's >
DHDragon
just a trap meant to keep you paying while never actually reducing what you owe. Same goes for credit card debt, etc.
tacticalattackterriers
Like, my tuition wasn't as high, but I was still cracking principal within a year without overpaying by much.
JayEnfield
I mean if you're selling crack to the principal of course you're going to be in good shape financially.
jonbobonfofonanon
Correct, these people made bad decisions.
TimeFoDat
That's not necessarily a fair statement. Private loans have shitty rates. My payments are so high, going above minimum is almost impossible.
TimeFoDat
And yes, I'd love to go back and tell 17-year-old me to ABANDON SHIP & go to a state school but hindsight is 20/20. 32-year-old me is wiser.
TimeFoDat
It doesn't help that I went to school in 2005 when they were giving loans out like candy w/o setting realistic expectations for paying back.
MiguelCamino
My wife was able to work and save up most of her tuition costs before each semester began. She graduated owing less than $2k.
MiguelCamino
What kind of bitter little bitches downvotes that?
tacticalattackterriers
Fuckin' right? Although I'm impressed she was able to either find that high paying of a job, or that low of a useful tuition.
tacticalattackterriers
Because I was the dipshit who was running 80 hour weeks between school and work in order to pay bills, and I still had to take out loans...
MiguelCamino
She got an MBA from University of Houston. Took her a couple of years longer because she only took what she could afford but she got it done
INeedMoreGifMeMoreJustOneMore
Yeah, I'm also not getting how it's possible to go UP if you keep paying? Why would student loans be more expensive than house loans?
SwarthyBastard
The real answer to your second question is because there's no collateral. You don't pay your mortgage, they take your house back and sell it. It sucks, and the interest on student loans is insane, but there's logic to it.
TimeFoDat
Compounding interest + you get into a payment plan where technically you're not even paying full interest, you just get to not be in default
INeedMoreGifMeMoreJustOneMore
The thing that's crazy about that is that people living in debt is NOT A GOOD THING for them or you!
RenaissanceFaireMan
Can buy a house for less than some of the people's student loan debt.
YouWontBelieveWhatIFound
Because the "promise" of lucrative work is better bait than owning your own house. Better bait means shittier terms.
tacticalattackterriers
Hah. I went into teaching. I knew my income would be low-ish from the get-go. Just decided to do it anyway.
investigation27
Income based repayment is capped at a percentage of your salary, so you can pay less than the accrued interest each month, compounds.
INeedMoreGifMeMoreJustOneMore
But why would the Banks allow that, unless they want you to live like a serf...ooooooh
tacticalattackterriers
Ding ding ding, we have a winner!
RenaissanceFaireMan
Banks don't offer income based repayment plans.
INeedMoreGifMeMoreJustOneMore
Even better, government!
savemebabyjebus
In new zealand we have intrest free student loans
HaikuSorrow
Australia, as well.
WoodfolkFae
Netherlands to
EmotionallyCrippled
In Czech republic and Slovakia (I’m sure also other countries in EU) it’s free the first 5 years. And even after that it’s not that high
BannedFrom12DifferentHotTopics
It’s 0,16 % in Sweden
astralfields
Germany here, education is free. A friend of mine pays ~450€/semester (mostly for materials and a public transport ticket). Additionally ->
astralfields
-> you can get gov't money to help cover living expenses, which is half grant and half interest-free loan.
PeanutsaurusRex
1ish % in Scotland
bonerific
Same as in Oz
Fireblade927
Mostly due to the fact that you have socialized aspects to your country in part due to the lack of diversity, high crimes and only 5 mil ppl
settlersofyourbutthole
Yeah nah
DeathsDeathOfRats
Lack of diversity and high crimes? What the fuck?
Fireblade927
They are 75% of exactly the same origin and have almost no crimes. The u.s. has the worst crime in the world with the most diverse culture
DeathsDeathOfRats
They are me so I think I have a better understanding of what this country is. None of those excuses are reasons for extorting students.
BroseidonKingOfTheBros
He's one of those people that believes the world would be a better place if nonwhite people didn't exist
mrmayortheiv
God you are stupid.
Fireblade927
What part of what I said is specifically incorrect, I'm not saying America's system is great I dont think it is. But what did I say falsely
thestruggleisntreal
Any stats for the crime rate? And how it links to the cost of higher education?
mrmayortheiv
Not false, stupid. How do people think that the fact that America is big and diverse disqualifies us from making universal healthcare work?
DeepAnalTongue
Meh. Quick Google suggests diverse. https://www.stats.govt.nz/news/new-zealands-population-reflects-growing-diversity