Damn Student Loans

No, better that you don't have to depend on IBR, TBH

Filed my first FAFSA ever, got the full Pell and $6500/semester in loans. I don't like the prospect (given that I'll have a liberal arts degree from a 'fifth-tier national research university'), but I took the full amount as a cushion for the economy shitting the bed. If I don't end up needing it, my interest rate (which is like 2.9%, if I read my Stafford Counseling session shit right) is lower than some other debts I have.

don't spend all of your loan money at a bar treating your friends, like I did. bad move.

word

stupid US dollar is so weak right now, my student loan repayment next month is gonna be a lot more than i expected (loan is in NZ).

I didn't think about that...maybe I should move back to UK and pay off my (US) loan from there

No fears of that. Got all that out of the way years ago (via Discover rather than student loans). All my friends have more money than I do now.

So, a movement/petition appears to be gaining traction that aims to forgive ALL student loans, in the name of stimulating the economy.
http://signon.org/sign/want-a-real-economic.fb1?source=s.fb&r_by=142663

the idea seems kind of naive to me, but major media outlets have covered it(http://www.washingtontimes.com/news/2009/mar/30/financial-pinch-stifles-college-ambitions/ , http://www.usnews.com/blogs/capital-commerce/2009/03/08/the-next-bailout-cancel-us-student-loans.html , http://www.businessweek.com/bschools/content/mar2009/bs20090323_558993.htm , etc), and Rep. Hansen Clarke (D-MI) has introduced legislation (H. Res 365) on the topic.

i'm deep in student loan debt (paying around $500-600 a month just to stay even - i'm not even cutting into the principle), so don't get me wrong, i would love it if it magically disappeared. but since the amount of student loan debt totals around $800 billion, "forgiving" it would be a massive, MASSIVE investment that would mostly benefit those who least need it. the unemployment rate for college graduates hovers around 5% iirc, whereas it's ~10% for high school graduates, and higher for those without high school degrees. it just seems like an asshole move to invest more money than the stimulus and almost totally ignore the people who are suffering the most.

on top of that, there's the argument that very little of the $800 billion investment in debt forgiveness would actually make it into the economy in the first year, because only about 4% of the total student loan debt is actually in payment each year, once you take into account students still in college, people in forbearance, etc.

anyway, just seeing if anyone has thoughts.

I read a lot about student loans even tho I only have like 1-2k worth (and they're interest-free)...partly because I know so much people w/ debt, partly because I'm always tempted/being pushed towards some expensive grad program and hold back because of it.

I think people really underestimate how massive and slow-building this crisis is. also it's not gonna be something you can solve w/o a massive reform of our university system.

on a political level, forgiving nearly a trillion dollars worth of student loans anytime soon is unthinkable. it's not a public issue right now, and it would have to take a long time to build into one. lotta people are gonna have to be suffering publicly and the economic effects are gonna have to be noticeable before it gets *any* attention.

but forgiving all loans is also basically impossible. for one, we can't have taxpayers paying some harvard mba's loans. I would imagine the end-game will involve making it possible to discharge them via bankruptcy and some sort of bailout will be paired w/ that? but there will be no 'free ride', that's for sure.

oops "so much people w/ debt" = "so many people w/ debt"

I just want mine forgiven. That's all. Then I'll stimulate the economy all by myself.

i'd love to not have to pay back my loans (30K+) but it will never, ever happen.

um, i'm kind of really annoyed at direct loans right now as they decided to change sites and i never received any communication saying i'd have to re-submit monthly deduction info. now my account shows past due. i'm sure if i call them they'll fix it, but i just don't think i should have to waste my time doing this crap when they could have just sent me an email/letter to say 'hey, you'll need to re-submit your payment info in order for auto-deductions to continue. make sure you do this by x date!'

Huh, wonder if I'm pass due.

whaaaaaaaa?
FUCK

great, and it doesn't recognize my email address for logging in?

oh wait, i need to register for a new account?

i'm several gimlets and herbsaints in, i can't handle this shit

yeah i had to register a new account. ugh.

OK, mine was past due, but Jenny's (which I also manage) was not. WTF.

Also, lol at seeing the total debt again. Since I had autopayments set up, I hadn't looked at it in awhile. Doesn't seem to have gone down much.asdjfklasdfjlskdf

my principal hasn't decreased in 2 1/2 years, despite making monthly payments.

hah i switched to income-based repayment about 6 months ago so i expect my balance will stay the same for the next 10 years (or until i start making mad $).

my principal's being paid down, but it's like watching paint dry or golf on TV. i'll be paying them shits off till i die ;_;

Also, lol at seeing the total debt again. Since I had autopayments set up, I hadn't looked at it in awhile. Doesn't seem to have gone down much.asdjfklasdfjlskdf

LOL at you coming in the bedroom and announcing my outstanding debt when I'm still in bed on the one day of the week I get to sleep in. *bitter*

I forgive you, by the way. I just thought it was funny.

How can you sleep when we have so much debt???

http://online.wsj.com/article/SB10001424052970204644504576653043088346786.html

Sweet.

Wait, I don't think my private loan is government backed. Oh well. Sweet for other people, though!

so my payment was deducted after all! Just late. I think they owe me a penalty fee?

And the same thing happened to me..... So I ended up paying double. I suppose there are worse things in this world. They'll get 1 month less interest from me. Idiots.

I've only ("only") got about $24,000 total spread across three things ($9000 Direct Loan, $12,500 HESAA NJClass loan, $2500 Perkins loan) and I'm thinking abt consolidating them under the Federal Direct. This is the best way to consolidate, right? Are there any downsides to consolidation? And does anyone know the system well enough to be able to tell me that, if I'm paying a total of $250ish/month now, whether having them consolidated into one loan would make that go up or down?

i would hope they would waive penalty fees for at least the 1st month they are transitioning 2 this new system. i went thru the re-registration & it wasnt really clear whether the autopay was still set up or if that also needed 2 be re-inputted.

also there are still ~1M ppl im guessing in the n.east (me included) w/o power right now & for the near future probably

Okay, I've decided to consolidate; has anyone done this recently that can give me tips on who to consolidate with? Or does it all depend on diff shit?

I think it's best to consolidate everything into a federal loan if you can since they have lower interest rates.

That's what I've read before and that's where I was leaning. I've also been told that rates are at their lowest and that if there's a time to consolidate, it's now.

Surely the slowest and most ponderously bureaucratic process ever?? It takes you 2 months to read my 2-page IBR form? Seriously???

You'd almost think they don't WANT you to pay your loans...

Since the fed loans website changeover, it really screwed up my auto debit, which I thought was resolved. I was looking at my checkings account the other day and though wow, I'm doing OK. But then I became suspicious and realized that the last 2 months they hadn't taken my loan out.

https://www.youtube.com/watch?v=yfySK7CLEEg

Let's talk IBR. Do you have it?

from several months ago:

but forgiving all loans is also basically impossible. for one, we can't have taxpayers paying some harvard mba's loans. I would imagine the end-game will involve making it possible to discharge them via bankruptcy and some sort of bailout will be paired w/ that? but there will be no 'free ride', that's for sure.

― iatee, Thursday, September 15, 2011 6:03 PM (6 months ago) Bookmark Flag Post Permalink

i think that a large part of the student loan problem would be resolved by making all student loans fully dischargeable in bankruptcy (subject to a waiting period of however many years or income caps so that Harvard MBAs/white-shoe lawyers/Kim Kardashian's plastic surgeon don't immediately try to get rid of their burden).

Well, I would more or less qualify for ten year forgiveness under IBR for my current work situation. But it's sort of difficult then how to think "tactically" about paying my loans. I also see a lot of conflicting opinions on whether or not the forgiven amount is subject to tax - seems like it should be, but apparently not?

i don't think that the amount forgiven under IBR is taxable (though i don't have a citation for that) mainly b/c if it was there would've been a pretty big stink about it.

sweeet

I have a citation for it somewhere...

http://www.finaid.org/loans/forgivenesstaxability.phtml

Some loan forgiveness programs are taxable and some are not. Under current law, the amount forgiven generally represents taxable income for income tax purposes in the year it is written off. There are, however, a few exceptions. Generally, student loan forgiveness is excluded from income if the forgiveness is contingent upon the student working for a specific number of years in certain professions.

Public service loan forgiveness, teacher loan forgiveness, law school loan repayment assistance programs and the National Health Service Corps Loan Repayment Program are not taxable. Loan discharges for closed schools, false certification, unpaid refunds, and death and disability are considered taxable income. The forgiveness of the remaining balance under income-contingent repayment and income-based repayment after 25 years in repayment is considered taxable income.

so IBR IS taxable income then ... unless you are eligible for one of the loan forgiveness programs that explicitly states that the amount forgiven is non-taxable.

i am also on the IBR plan, about 2.5 years down, 7.5 more to go. after all these months of payments, i still haven't even cut into the principle, so if i don't follow through to 10 years i'm screwed.

/indentured public servant

so IBR IS taxable income then ... unless you are eligible for one of the loan forgiveness programs that explicitly states that the amount forgiven is non-taxable.

Right, although I believe I will qualify for PSLF like ZS. Just getting my certification now.

Do you just pay the minimum, Z S? Good luck to you! - 1/4 of the way there is pretty good going, IMO. You'll hopefully be one of the first over the finish line!

I just pay the minimum, yep. which is still like $450 a month. what's sad is, before i got on the IBR plan, i was on another repayment plan for several months that was more like $600 a month, and i STILL wasn't cutting into the principle at all!

I will be paying more than twice what you pay, bro!