Wealthiest US colleges suing students over default loans

[Pirian]

One of the programs I'm looking into specifically says "do not apply if you need to work while in this program", and the school doesn't allow research positions to the students in the program. If my parents decided that they didn't want to pay for it then I would have to take out a private loan.

I know this is kind of an unusual example, but I just thought it funny that I had something that so specifically went to the contrary

[SephYuyX]

I just don't really get it, I mean my grad school was, what, 21k a year and I got through my two years with just work-study, a small TA stipend and a bunch of government loans. Why are people needing private loans?

Because people are terrible with money.

[Dotsudoku]

Maybe too much of a derailment, but Archi, is there kind of a 'best' government loan to take out? Going to have to get that going soonish to prepare for next semester.

On a happier note, at least I start qualifying for a Pell Grant in a few months.

inb4 "there's only one federal loan you can take out". Humor me if this is stupid. I know dickall about student loans.

[Headspace]

Phd programs are hella expensive.

[archibaldcrane]

I'm 8 years out of grad school, so I'm not the best resource. Talk to your financial aid office, and then research what they say.

[Headspace]

Also, there are no longer any pell grants or subsidized loans for grad school. Weeee

[archibaldcrane]

Also, there are no longer any pell grants or subsidized loans for grad school. Weeee

oh

that would suck

[Ayn]

I just paid off my shitty Perkins loan a couple days ago. 5% interest? Fuck you. My other loans got consolidated to 2.875%, but they couldn't consolidate the Perkins for some reason.

I paid mine off a year or so ago. I saw the interest rate and just started paying $1000 or so a month until it was gone.

Grad school loan's done in a few months. Just waiting for taxes to be debited (work between multiple locations, so always owe).

I really have mixed feelings about this topic. I've a friend who's mired in about the same amount of debt I was, but had worse luck with jobs (lived abroad), and I've done relatively well but had to bust tail to pay off loans (plus I HATE having that debt hang over me).

The lack of financial literacy is apalling though. A student about my age in one of my classes (she's pretty high up in a bank) gave some good speeches about it, and was really passionate about increasing financial literacy education in schools.

I'm decent with money, but I shudder to think of the kids who aren't, especially those from poorer families who are pretty much told "YOU HAVE TO GO TO COLLEGE TO MAKE IT" without having the options spelled out for them.

Been trying to tell my family that sending my cousin to one of those schools like ECPI is just going to put him further in debt (he went to a private 2 year college and wracked up a ton), but ugh. The youngest is going to a private school where she's going to wrack up a ton of debt unless she gets scholarships. I've just kind of given up.

[Lucavi]

I've just kind of given up.

Sadly, that's the best option, considering just how prevalent the lack of financial awareness is, especially when you have a breakdown between parents and children. I have two sets of families that I've been discussing this with: the first family has a mother who is smart about college, but her son is throwing a hissy fit about out-of-state. Naturally I told her that its not her job to be a friend to him, but instead to look out for him, and to have him do 2 years of community and then get a scholarship for the final two years, since he wasn't serious enough about school to bust it in public education to get a scholarship right out of the gate (like I was). Of course, she's wavering because that's her little angel, so I washed my hands of it.

The second is the opposite: a kid who wants to stay in-state because he's got a partial ride, but his folks want him to go to their alma matter, but only want to pay for the first year, wanting him to bust it and get a scholarship after the first year, which is highly improbable. So it goes both ways; there are idiots on all sides of the spectrum.

[Ayn]

That's face-palm worthy.

Of the family mentioned, only the middle kid's the smartest. He flat out said "Yeah, if I went to college, I'd fail out because I'd be partying all the time", so he joined the Navy and is in Japan right now.

Oldest pretty much whines that no one helps him, but that kid got way, way more support than I did with school and has fucked up a lot more.

Youngest one just went to college because that's what she was supposed to do. I'm not against it, but I tried to say 'do a Community College first, but stay on her about it'. "Oh no, she just wants to go off to college so bad and I don't want to stop her".

It was just a long, painful conversation, where the parents assumed it was ok for her to have an asston of loans, since that'd 'be on her' to pay them back. I get that, but telling a kid 'you have to go to college' but do nothing to educate them financially fucking infuriates me.

[AoE]

That's face-palm worthy.

Of the family mentioned, only the middle kid's the smartest. He flat out said "Yeah, if I went to college, I'd fail out because I'd be partying all the time", so he joined the Navy and is in Japan right now.

Oldest pretty much whines that no one helps him, but that kid got way, way more support than I did with school and has fucked up a lot more.

Youngest one just went to college because that's what she was supposed to do. I'm not against it, but I tried to say 'do a Community College first, but stay on her about it'. "Oh no, she just wants to go off to college so bad and I don't want to stop her".

It was just a long, painful conversation, where the parents assumed it was ok for her to have an asston of loans, since that'd 'be on her' to pay them back. I get that, but telling a kid 'you have to go to college' but do nothing to educate them financially fucking infuriates me.

That's how it was for me essentially. Buncha family members heavily suggesting college with no explanation or warnings beyond that. Probably doesn't help that the youngest graduate beyond an associates were people who didn't have to pay shit for college back when it was cheap. Luckily I had enough foresight to not go to the 14k a year school because I knew damn well I wasn't gonna get any help for it and it was gonna come out of my pocket.

[Lucavi]

Hell, you've got some richie-rich and middle-class parents out there that fully anticipate and expect their kids to do nothing but lay around and party while at college. I can't remember where I read the article, but it was recent, and parents were quoted as saying that college is the best time in a person's life, so they shouldn't have to pay for it or work hard; just enjoy themselves for the first two years, at least.

First world problems, man.

[RKenshin]

I was forced to take out some pretty serious loans, but I busted my ass to get a decent job out of college and lived like absolute shit for 4 years to pay off my loans ASAP. Twenty years of interest? Hell no.

Pretty much the same situation as me. If I didn't find my current job I'd likely be screwed, but taking the opportunity to pay it off as quick as possible.

I graduated with debt in $60-70k range, interest rates from 4-12% (fu sallie mae), and it took me 1.5 years to land the job I have now (working a crap job in the mean time, with loans in deferment and then forbearance). I've been at it for about 2 years now, and by the end of the this year I should be debt-free... Which will ultimately save over $20k in interest on the life of the loan, even with a refinanced rate at 4%.

Short-term suffering, but sure as hell pays off in the long-term.

[Lucavi]

You coulda sold your XI chara and made enough to pay it off, Ruke.

[Guyverarmor]

Pretty much the same situation as me. If I didn't find my current job I'd likely be screwed, but taking the opportunity to pay it off as quick as possible.

I graduated with debt in $60-70k range, interest rates from 4-12% (fu sallie mae), and it took me 1.5 years to land the job I have now (working a crap job in the mean time, with loans in deferment and then forbearance). I've been at it for about 2 years now, and by the end of the this year I should be debt-free... Which will ultimately save over $20k in interest on the life of the loan, even with a refinanced rate at 4%.

Short-term suffering, but sure as hell pays off in the long-term.

Yeah, with interest, I am about 100k -_- but I just had my second interview that will bump my pay considerably where I am at. Along with consolidating my loans, I should be okay to start paying on them in April.

[Seraph]

interest rates from 4-12% (fu sallie mae)

I simply nod with understanding.

[RKenshin]

Indeed.

@ sallie

You coulda sold your XI chara and made enough to pay it off, Ruke.

My poor character is still just sitting around somewhere, deactivated.

[Quicklet]

SallieMae can eat a dick. The amount of spam they send me trying to sell me on other promotions and products dwarves all my other lenders.

[Ayn]

Upromise by Sallie Mae!

Or whatever it's called.

Oh well. This thread motivated me to pay the last few thousand on my grad school loan I'd socked money away.

There's a small one left from undergrad, but the rate's ridiculously low (like 2.6% or so), but still, I hate debt.

No, don't give me that crap about writing off the interest. That shit phases out when you make above a certain amount.

[archibaldcrane]

One of my two credit cards is from Sallie Mae. 5% cash back on gas and groceries, no annual fee. Why not? My other is a Priceline card, 2% cash back on everything, no annual fee. Use them for everything, pay them off monthly. Saved thousands.