justme
Senior Associate
Joined: Feb 10, 2012 13:12:47 GMT -5
Posts: 14,618
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Post by justme on Jan 29, 2020 14:35:54 GMT -5
I still think all federal loans should have the interest rate tied to the t-bill with a small amount allowed on top to cover administration.
Private lenders have two choices 1) follow the rules/rates of federal loan and non dischargable or 2) market loan rates and dischargable after criteria are met (something like after 10 years of payments & you meet bankruptcy criteria or after you've paid 110% of the originally borrowed amount) that are fair to all involved
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Cookies Galore
Senior Associate
I don't need no instructions to know how to rock
Joined: Dec 19, 2010 18:08:13 GMT -5
Posts: 10,731
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Post by Cookies Galore on Jan 29, 2020 15:06:36 GMT -5
I still think all federal loans should have the interest rate tied to the t-bill with a small amount allowed on top to cover administration. Private lenders have two choices 1) follow the rules/rates of federal loan and non dischargable or 2) market loan rates and dischargable after criteria are met (something like after 10 years of payments & you meet bankruptcy criteria or after you've paid 110% of the originally borrowed amount) that are fair to all involved This is where my head is at. I don't necessarily support blanket loan forgiveness, but I do support reasonable rates for student loans. I was in school from 2000-2004 and didn't start paying on my loans until May 2005 (I finished fall 2004, not spring). My final loan payment was in May 2014, and I only paid the minimum for the entirety of my loan. I only took out federal loans, so that helped, but my interest rate was only 2.3%, which really helped. Hell, my husband took out federal loans, defaulted on them for years, got them back in good standing, and he's still only paying 1.9% because the loan reverted back to the original rate. I find it wacky that I can get a better rate on a car than an education. I mean, I love paying almost no interest on my car, but still.
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Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,030
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Post by Rukh O'Rorke on Jan 31, 2020 10:53:41 GMT -5
I still think all federal loans should have the interest rate tied to the t-bill with a small amount allowed on top to cover administration. Private lenders have two choices 1) follow the rules/rates of federal loan and non dischargable or 2) market loan rates and dischargable after criteria are met (something like after 10 years of payments & you meet bankruptcy criteria or after you've paid 110% of the originally borrowed amount) that are fair to all involved This is where my head is at. I don't necessarily support blanket loan forgiveness, but I do support reasonable rates for student loans. I was in school from 2000-2004 and didn't start paying on my loans until May 2005 (I finished fall 2004, not spring). My final loan payment was in May 2014, and I only paid the minimum for the entirety of my loan. I only took out federal loans, so that helped, but my interest rate was only 2.3%, which really helped. Hell, my husband took out federal loans, defaulted on them for years, got them back in good standing, and he's still only paying 1.9% because the loan reverted back to the original rate. I find it wacky that I can get a better rate on a car than an education. I mean, I love paying almost no interest on my car, but still. also - the limits need to be raised on these 'reasonable terms' fed loans to more closely match the cost of education. I think it is 5500 for first year in college, and there are very few universities where that is going to even cover 1 semester. That's about 1/3 of tuition and fees for U of I campuses - then there are book, and of dorm, etc. living expenses. So it would maybe cover 25% of the cost for a commuting experience and 15% (?) for the traditional going-away-to-college. That won't get most students very far - and they reach for private/worse terms loans.
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