tskeeter
Junior Associate
Joined: Mar 20, 2011 19:37:45 GMT -5
Posts: 6,831
|
Post by tskeeter on Aug 24, 2022 22:35:58 GMT -5
Ya kinda missed my real point. It’s not about fluff degrees. It’s about education lenders having no risk of loss when they lend massive amounts of money for educations that will generate very modest incomes. Making loans that borrowers are unlikely to be able to repay generally isn’t good business. It is for these lenders though! That's the problem. Absolutely correct. The poor policies established by Congress have made what should be a poor business practice into something that has been very lucrative for student loan lenders.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 25, 2022 5:47:45 GMT -5
I tried to log in to Student Aid.gov. Can't. There's too much volume. I'm trying to find out if I received any Pell Grants while I was a student. Looks like everyone else is trying to do the same, lol.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 25, 2022 5:51:09 GMT -5
I'm so confused about the forgiveness announced yesterday. Happy, of course, but confused. For example, are the 10k going to be applied towards undergraduate balances only? Because I have both undergraduate and graduate loans. I would prefer the money goes towards graduate, but who decides? Another question. Apparently, the undergraduate loans are forgiven after 10 years of payments, if the original balance is less than $12,000. Well, I took 4 loans while I was doing the undergraduate degree, one for each semester, and none of them was over $12,000. So, does one of them qualify, all of them, none? I started paying on them in 2012, but then stopped payments because I went to graduate school from 2013 to 2015, and restarted payment in 2015 until the pandemic. These loans were in IBR.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 25, 2022 6:08:32 GMT -5
I could finally log in to Student Aid.gov. I didn't receive any Pell Grants. That means I qualify for 10k, not 20k.
|
|
anciana
Well-Known Member
Joined: Sept 20, 2011 11:34:57 GMT -5
Posts: 1,084
|
Post by anciana on Aug 25, 2022 9:09:45 GMT -5
I'm so confused about the forgiveness announced yesterday. Happy, of course, but confused. For example, are the 10k going to be applied towards undergraduate balances only? Because I have both undergraduate and graduate loans. I would prefer the money goes towards graduate, but who decides? Another question. Apparently, the undergraduate loans are forgiven after 10 years of payments, if the original balance is less than $12,000. Well, I took 4 loans while I was doing the undergraduate degree, one for each semester, and none of them was over $12,000. So, does one of them qualify, all of them, none? I started paying on them in 2012, but then stopped payments because I went to graduate school from 2013 to 2015, and restarted payment in 2015 until the pandemic. These loans were in IBR. I just heard on the radio this morning that the loan forgiveness will apply to both undergrad and grad loans but I don't know who decides when you have both. Hopefully more info comes out soon
|
|
|
Post by minnesotapaintlady on Aug 25, 2022 9:49:39 GMT -5
I tried to log in to Student Aid.gov. Can't. There's too much volume. I'm trying to find out if I received any Pell Grants while I was a student. Looks like everyone else is trying to do the same, lol. Yeah, the website is a hot mess right now. I got in, but it shows no data under the dashboard for DS. Even his loans aren't showing up.
|
|
tractor
Senior Member
Joined: Jan 4, 2011 15:19:30 GMT -5
Posts: 3,457
|
Post by tractor on Aug 25, 2022 10:55:36 GMT -5
One of my sons will benefit, the other won't. With the first we did all private loans, the second we did a mix of fed loans and private. He just graduated this spring, and based on the $10k amount, all of the federal loans will be forgiven for the second one.
It not fair, but such is life, neither son was all that concerned. My wife and I will help either way, so the burdens more on us than on them anyway.
|
|
jerseygirl
Senior Member
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 4,817
|
Post by jerseygirl on Aug 25, 2022 11:15:41 GMT -5
Wishing something had been done for students now and future. Significantly lower interest rates now it seems minimum payments based on income often aren’t sufficient and cause interest increases
Could anything be done to lower tuitions? Rapidly increasing tuition is a huge problem and cause for taking these loans. With more generous loan amounts the colleges just raise tuition
|
|
NomoreDramaQ1015
Community Leader
Joined: Dec 20, 2010 14:26:32 GMT -5
Posts: 47,331
|
Post by NomoreDramaQ1015 on Aug 25, 2022 12:14:28 GMT -5
Personally and I don't know how you would achieve it, there needs to be encouragement for training on the job again. I was talking way back when with a phlebotomist and she said it used to be an apprenticeship when you started. Then you took the test and your pay reflected you were an experienced phlebotomist with a license. They could start recruiting in high school. Now you have to take a program that costs at least $5k or more and your pay is $10/hr because you aren't "experienced" yet. It has to be a post HS program AND they only accept 10-12 people a year. There is a massive shortage but it saves the hospital thousands that go straight into adminstrative pockets to outsource training. It's not like pay raises now that the hospital doesn't take on the costs of training technicians. I was reading an article about some hospitals are thinking about restarting candy striping programs because not enough people are going into nursing. They see it costs $80k (that is for a BSN at UNMC) just to get the degree and decide the ROI isn't worth it. Plus again the programs only accept a handful of people a year, many people move on rather than keep trying to get accepted. The striping program would start in HS and then you can eventually move into an accelerated program with credits for work done. It's the same everywhere and I don't buy for a second that it is because we've all gotten stupid like Phil used to claim. If an employer can require me to spend thousands out of my own pocket for education AND then turn around to pay me peanuts as a new graduate why wouldn't they? Then they turn around and bitch there are no workers. Well there are but people are starting to clue in that the entire college education system as it is currently set up in the US only benefits the colleges and corporations. Maybe it's time to reevaluate your expectations.
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 5,898
|
Post by haapai on Aug 25, 2022 12:34:50 GMT -5
Wishing something had been done for students now and future. Significantly lower interest rates now it seems minimum payments based on income often aren’t sufficient and cause interest increases Could anything be done to lower tuitions? Rapidly increasing tuition is a huge problem and cause for taking these loans. With more generous loan amounts the colleges just raise tuition I think something has been done for future students. Study the proposed new IDR program and existing IDR programs. Hint, AGI is the income number used and currently 150% of the poverty line for a family size of one is just a hair under
$20K. Excluding the first $30K of AGI and only taking 5% of the rest means that a whole lot more student borrowers are not going to be making payments that cover the interest for several years after they leave school. That practically guarantees that large balances will eventually be forgiven. It may not even matter much whether unpaid interest is wiped away annually or forgiven at the end. If you don't pay down any principal for a couple of years and then start making very small payments which are capped at what your ten year standard repayments would have been, you are very likely to have a balance remaining after 20 years.
That practically guarantees that large balances will eventually be forgiven. It also does absolutely nothing to control tuition.
|
|
teen persuasion
Senior Member
Joined: Dec 20, 2010 21:58:49 GMT -5
Posts: 4,057
|
Post by teen persuasion on Aug 25, 2022 12:59:26 GMT -5
Wishing something had been done for students now and future. Significantly lower interest rates now it seems minimum payments based on income often aren’t sufficient and cause interest increases Could anything be done to lower tuitions? Rapidly increasing tuition is a huge problem and cause for taking these loans. With more generous loan amounts the colleges just raise tuition I think something has been done for future students. Study the proposed new IDR program and existing IDR programs. Hint, AGI is the income number used and currently 150% of the poverty line for a family size of one is just a hair under
$20K. Excluding the first $30K of AGI and only taking 5% of the rest means that a whole lot more student borrowers are not going to be making payments that cover the interest for several years after they leave school. That practically guarantees that large balances will eventually be forgiven. It may not even matter much whether unpaid interest is wiped away annually or forgiven at the end. If you don't pay down any principal for a couple of years and then start making very small payments which are capped at what your ten year standard repayments would have been, you are very likely to have a balance remaining after 20 years.
That practically guarantees that large balances will eventually be forgiven. It also does absolutely nothing to control tuition.
The big gotcha here is that you must enroll in the IDR program, and make EVERY payment on time - for 20 years for large balances. What happens when not-very-money-savvy young people miss a payment? I do wonder about how much gaming of the system there is to be done: after graduating, manage your AGI (pushing it all to pretax retirement accounts, HSA, etc ?) to keep required payments really low (govt pays most of the interest). You would never get around to paying any principal until your income bumped you up a lot. Can you make extra principal payments, after making the required min payment, to whittle down the balance? It would be interesting to figure the tradeoff - pay min payment * 240 then total principal is forgiven, vs pay min payment to trigger govt interest payments, and make extra principal payments off-schedule to pay down balance in less than 20 years - which can come out lower in total?
|
|
|
Post by minnesotapaintlady on Aug 26, 2022 8:32:06 GMT -5
It looks like the forgiveness covers current students as well (loans distributed before July1, 2022) so DS is probably eligible for up to 20K on his first two years of school. He only has 8K and we only took the 8K because it was subsidized and we could let the investments ride another 4 years. Feel a little weird about getting it forgiven, but won't go out of my way to figure out how to turn it down if it happens.
DS has been extremely lucky/blessed when it comes to college funding, and frankly covid has been a huge part of it...which also feels kind of weird.
|
|
jerseygirl
Senior Member
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 4,817
|
Post by jerseygirl on Aug 26, 2022 9:10:39 GMT -5
Would a better choice have been to prevent the college loan disaster continuing for future students? Thinking federal loans are big part of this problem. If Biden can forgive $10 or 20 thousand couldn’t he have forgiven the interest component of the loans? Decreased interest for future loans to maybe 1% over prime? Some payment plans don’t even cover interest plus principal? Federal money is going to great majority of these colleges and universities. Doesn’t Inflation Reduction Act limit price increases of drugs to inflation? If raised more than inflation there’s a BIG penelty So if colleges universities increase tuition over inflation then reduce federal money. Or if governance of the universities is not within acceptable bounds then reduce federal money Now tuition increases cause increases in loans Here in NJ Rutgers Univ has continuing excess paid for football. Coach left due to miserable record then hired back for millions - still miserable record. Team Spent almost half million of Doordash and is $73 million deficit. Yet tuition keeps increasing and kids keep taking loans frontofficesports.com/rutgers-football-reportedly-racked-up-450k-doordash-bill/
|
|
|
Post by minnesotapaintlady on Aug 26, 2022 9:19:28 GMT -5
Would a better choice have been to prevent the college loan disaster continuing for future students? Thinking federal loans are big part of this problem. If Biden can forgive $10 or 20 thousand couldn’t he have forgiven the interest component of the loans? Decreased interest for future loans to maybe 1% over prime? Some payment plans don’t even cover interest plus principal? He did do that as well, it's just that all anyone is talking about is the forgiveness part. Although, I'm not sure what "proposing" means. I hear it's a done deal and that it's not. No negative amortization would be huge.
|
|
jerseygirl
Senior Member
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 4,817
|
Post by jerseygirl on Aug 26, 2022 9:37:26 GMT -5
Thanks for info MPL Those proposals will help pay loans but do nothing to prevent students and parents taking out large loans - and allowing the large increases in college costs In fact making payments easier might encourage higher loans
|
|
bean29
Junior Associate
Joined: Dec 19, 2010 22:26:57 GMT -5
Posts: 9,971
|
Post by bean29 on Aug 26, 2022 9:39:08 GMT -5
Yeah, I saw they expect the Supreme court will say that The President does not have the Authority to do this, but they said the Administration has a plan B, and they think Plan B will pass muster. Which is probably why they extended the payment pause until December.
I might get part of my Parent Plus loan forgiven, idk- and it looks like they will each get the $10,000 forgiveness, but it will not be the end of the world if it does not. I would be satisfied if they just cap the interest and or refund the origination fees. Is that just a YM thing, or has there been some kind of a proposal for that?
I told DD that Parent Plus Loans were not recommended but I only have them b/c I did not want to have an argument with her Dad about pulling on the HELOC...so we might luck out. She laughed. I can afford to pay them. I was waiting to hear if Biden might do something before I paid more $$ down.
|
|
|
Post by minnesotapaintlady on Aug 26, 2022 9:42:36 GMT -5
Thanks for info MPL Those proposals will help pay loans but do nothing to prevent students and parents taking out large loans - and allowing the large increases in college costs In fact making payments easier might encourage higher loans Not sure if the loan changes apply to Parent Plus which can be much higher balances, but the Direct loans are limited to 31K for your entire undergrad.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 26, 2022 10:00:51 GMT -5
I'm still confused. Like I said before, I have four undergraduate loans, one for each semester. I did undergrad on four semesters because I did the first two years at the local CC. So each of my loans has an original balance below the $12,000 threshold. Do they all qualify, or is it cumulative? Because if it's cumulative, the plan doesn't really help that much.
|
|
|
Post by minnesotapaintlady on Aug 26, 2022 10:14:05 GMT -5
I'm still confused. Like I said before, I have four undergraduate loans, one for each semester. I did undergrad on four semesters because I did the first two years at the local CC. So each of my loans has an original balance below the $12,000 threshold. Do they all qualify, or is it cumulative? Because if it's cumulative, the plan doesn't really help that much. What 12K threshold are you talking about? The one for the new repayment proposal where they are forgiven after 10 years of payments? I don't believe that is going to apply to current loans, but payment plans set up going forward. Basically the current borrowers get the forgiveness and the future ones get the new loan restructuring.
That's how I've been reading it anyhow.
|
|
NomoreDramaQ1015
Community Leader
Joined: Dec 20, 2010 14:26:32 GMT -5
Posts: 47,331
|
Post by NomoreDramaQ1015 on Aug 26, 2022 10:17:50 GMT -5
This works out nice because I am still waiting on Creighton to give me back the paperwork. They are insanely backlogged but have assured me it will get to me before the October 31st deadline. With this news I get it forgiven either way because my remaining balance is just shy of $10k. We'll see which one is faster. The extension works out good too. I was going to keep paying but my balance is so small and the interest is practically nothing at this point it makes more sense to wait and see if in the next couple months my balance is erased. I'll start putting that money towards other things now.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 26, 2022 10:22:48 GMT -5
I'm still glad about the 10k, but after taking a deeper look at my situation, it doesn't change things too much for me. It looks like I'll go back to a very similar situation I had before the pandemic. I was supposed to pay XX amount in IBR, and I did for a while, but my balance grew around 10k more. Some people think you can let it grow, and it will eventually be forgiven. But my worry is that my credit score was coming down a lot due to the increasing debt, and also I would have to pay taxes on the forgiven huge amount, eventually. So I started paying double what I was supposed to pay, just to cover the accumulated interest, and remain at the same balance. It was a very big financial burden, and I'll go back to it in a few months.
I know it's a very complex problem, and there's no easy answer.
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 26, 2022 10:29:55 GMT -5
I'm still confused. Like I said before, I have four undergraduate loans, one for each semester. I did undergrad on four semesters because I did the first two years at the local CC. So each of my loans has an original balance below the $12,000 threshold. Do they all qualify, or is it cumulative? Because if it's cumulative, the plan doesn't really help that much. What 12K threshold are you talking about? The one for the new repayment proposal where they are forgiven after 10 years of payments? I don't believe that is going to apply to current loans, but payment plans set up going forward. Basically the current borrowers get the forgiveness and the future ones get the new loan restructuring.
That's how I've been reading it anyhow.
I thought it was for current and existing loans
|
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,086
|
Post by Rukh O'Rorke on Aug 26, 2022 10:36:22 GMT -5
I'm still glad about the 10k, but after taking a deeper look at my situation, it doesn't change things too much for me. It looks like I'll go back to a very similar situation I had before the pandemic. I was supposed to pay XX amount in IBR, and I did for a while, but my balance grew around 10k more. Some people think you can let it grow, and it will eventually be forgiven. But my worry is that my credit score was coming down a lot due to the increasing debt, and also I would have to pay taxes on the forgiven huge amount, eventually. So I started paying double what I was supposed to pay, just to cover the accumulated interest, and remain at the same balance. It was a very big financial burden, and I'll go back to it in a few months. I know it's a very complex problem, and there's no easy answer. I think that the forgiveness after IBR is easier under then new proposal, so take a look at that. lower payments on IBR, easier forgiveness, not sure of the details. It seems that they are trying to make sure people aren't paying for more than 20 years. Maybe they are serious this time? I will also go back to the same situation as before the pause. I did pay off a few small loans after the pause as they had been consolidated and did not get the pause. Think I paid off the private before the pause, but the details elude me. Overall lowering my min monthly payment by maybe 100, so not alot. Not sure what my payments will resume as, but I think defintily more than 1k/month. Maybe about 1250ish. Plus side is that I am making more money than when the pause hit, so hopefully it will seem more manageable. I don't even know where my loans are! Changed a few times the past 2 years. I reestablished my online access after one change and paymetns were going to start, now I just don't know where they went after that!
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 26, 2022 10:54:31 GMT -5
Rukh O'RorkeIt's not clear whether the new payment plan applies to existing loans, and then only to undergraduate. The bulk of my loans are for graduate. So no relief there, I go back to the high interest, etc. And I would like to know how they apply the 10k. If it goes to undergraduate only, or it's pro rated, or you can choose, etc. when you have both undergraduate and graduate loans.
|
|
|
Post by minnesotapaintlady on Aug 26, 2022 11:20:36 GMT -5
What 12K threshold are you talking about? The one for the new repayment proposal where they are forgiven after 10 years of payments? I don't believe that is going to apply to current loans, but payment plans set up going forward. Basically the current borrowers get the forgiveness and the future ones get the new loan restructuring.
That's how I've been reading it anyhow.
I thought it was for current and existing loans It could be, I can't find anything that hashes out the details which makes me wonder if they've even worked those out! That combined with them saying it's a "proposal".
|
|
Ava
Senior Member
Joined: Jan 30, 2011 12:23:55 GMT -5
Posts: 4,181
|
Post by Ava on Aug 26, 2022 11:22:02 GMT -5
I know, all the information provided is very light on details right now.
|
|
jerseygirl
Senior Member
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 4,817
|
Post by jerseygirl on Aug 26, 2022 13:03:12 GMT -5
Plus Nancy Pelosi said loan forgiveness can only be done by congress? Changed her opinion?
|
|
pulmonarymd
Junior Associate
Joined: Feb 12, 2020 17:40:54 GMT -5
Posts: 7,416
Member is Online
|
Post by pulmonarymd on Aug 26, 2022 13:19:10 GMT -5
Why not change her mind, Republicans have decided that having confidential documents when you shouldn’t have them is no longer a big deal. Or did you forget “Lock her up”.
The interest rate was set at 6.8% by a Republican congress, it was 3.4% before that. At a time when mortgage rates were about 3%. In sure republicans will support interest free loans.
The support that states give to public universities has fallen dramatically. This lead significant increases in tuition at these schools.
Donors and alumni want football. The schools comply because they are afraid that donations will dry up. If legislators really want to put a stop to this nonsense, they can mandate that no way public funds are used for sports, and they can be funded by attendance and donations. Don’t see anybody doing that. You have private universities in New England being sued by alumni because the dropped from D1 to D3 basketball. Priorities are screwed up
|
|
jerseygirl
Senior Member
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 4,817
|
Post by jerseygirl on Aug 26, 2022 13:57:14 GMT -5
No problem if she changes her mind. But is there a problem with legality? Only congress ? Think Biden said something about emergency measure?
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,275
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Aug 26, 2022 19:36:19 GMT -5
From what I read and I am not an expert, Biden by himself can only do certain things when it comes to student loans and what he did yesterday is what he can do. I have no idea on the amounts.
My understanding is that only Congress can change terms, etc. on federal student loans.
Without GQP votes, Congress can change nothing.
|
|