8
   

College Loan Forgiveness

 
 
Linkat
 
  1  
Reply Wed 26 Jun, 2019 08:10 pm
@neptuneblue,
I came from a blue collar. I was that story...the first to go to college. I worked to pay for college as my parents were not in a position to pay for it.

I did not have a financial support system to help pay for it nor did my parents know anything about applying for college or how to obtain financial help. I did 90 percent of this on my own.

Now kids get hand fed from high school how to do this complete with review of their personal statement . There was some direction when I was in high school but you needed to do most of the research yourself. Including the details of student loans.

The positive of having to learn this when I was young is I knew the best way of handling my student loan payments.

Yes my kids are lucky because I went through this. But I did not have the support system they have but I still managed to pay back my student loans. And as one poster that is complaining they are unable when there appears to be little difference in the amount of loans we had.

Unless I am missing something or misunderstood the amount.
neptuneblue
 
  1  
Reply Wed 26 Jun, 2019 08:18 pm
@Linkat,
No, YOUR kids get hand fed.

And i'm glad for it. But you are disparaging every other child that isn't as fortunate as yours.

There are extremely vast differences from then until now. You say quit cuddling kids. I say, start with YOURS.
Linkat
 
  1  
Reply Wed 26 Jun, 2019 08:40 pm
@neptuneblue,
Yes you stated it the rest is grants which DO NOT need to be paid back. Seeing the most you can get in loans via FAFSA.. and this would be either subsidized or unsubsidized (meaning you either do not accrue interest until you graduate or start accruing when the loan begins) as a freshman is 4,500 ... (which the amount increasing each year)...the remains financial need would be federal grants which do not need to be paid back.

So the less your family earns and has saved the more you receive in which you never have to pay back. So you are incorrect that the rest is debt.

FAFSA does determine though how much they think your family can contribute ...many families do not want to cut back on extras causing some families to then go outside and get a private loan or many schools do not cover 100 percent of the financial need. Then that gap can be paid by private student loans

What happens is many families instead of seeking colleges that cover most if not all financial need or make personal cutbacks to help pay...they pay this gap via private loans which boosts up the student debt.

How to poverty students pay for college...they use their smarts that got them into college , do some research and seek out colleges that provide grants that cover 100 percent or as close as possible of their need...this includes room and board . They are out there...you might just need to settle for a college that might not be your number one choice.

If you do this you will likely still have loans but they will be minimal.

Any IVY league school will cover 100 percent of your financial need .. and there are other non ivy that do as well you just need to do your resesrch.
chai2
 
  2  
Reply Wed 26 Jun, 2019 08:46 pm
@neptuneblue,
neptuneblue wrote:

You are so missing the point.

FAFSA only generates $4,500 of subsidized loans for incoming freshman, regardless of tuition. ($5,500 for sophomores, $6,500 for juniors and seniors in a higher education program.

The rest of it is student grants, un-subsidized loans and parental contributions. Let's just say your family contribution is $4,000. That means an incoming freshman gets a Stafford Loan for $4,500, parental contribution for $4,000 and the rest is outstanding debt.

A student gets a job for the rest. Let's say a part time job, usually at minimum wage at McDonald's (here $7.80) for 10-15 hrs a week.

Let's do the math, $7.80 x 10 hrs a week is $78.00 minus taxes. Still not enough to make a dent into anything, let alone living expenses.

Again, tell me how poverty stricken young adults afford to go to college to NOT continue working a minimum wage job.


Well, first off, I, nor anyone here, said anything about any student not working while they are in college. In fact, both Linkat and I have talked extensively about how she, I, and her kids all worked during college, and summers.
For my first degree, I always worked one or 2 jobs year round, while getting the degree. Went to school year round so I could take one less class and make up in summer
For the degree I was working on, but stopped, I worked full time. I may have even picked up weekend work as extra. Wouldn't surprise me if I did.

I think every student if they can should work while they are in college.

So subsidized loans over 4 years of $23,000 (that's considered outstanding debt too, isn't it? I mean it has to get paid back)

I don't see where you put what the unsubsidized loans are? Can you give me a figure? Just for the hell of it, I'm going to double the $23,000 and call and entire loan debt of $46,000. Tell me if that not fair. I really don't know.

Don't students start paying off loans when they graduate? Like they don't make payments while they're in school.
Just looked it up, they have a 6 months grace period until after graduation. So they have that time to get employment. I hope they do.

No one is asking the student to make any dent in their loan while they are in school.

So when you say "I am so missing the point" it seems you are somehow putting the student in the position the full time employee will be. I mean, I know/guess students can pay off loans early, but this one shouldn't.

It feel like you are holding 2 distinct, separate things in your mind, and are trying to merge them.

I am taking the stance that the debt issue starts after graduation, not during school.

Isn't the point of all this is that why people are paying these loans for so long, for so much, when if they are willing to put even modest extra amounts in, it wouldn't be nearly as painful?

If the parent is giving them 4K a year, and the student is netting $72 a week after taxes (social security 7.65%. They won't be paying state or federal taxes at such low earnings).

So 50 weeks pay would be $3600, plus parents $4000 is $7600, divided by 52 weeks is $146 weekly cash flow. $630 a month (or more, see below). Not really clear what that's going for. Food and housing? I gotta plead ignorance on what someone can get by with paying as a roommate. At least they're getting a couple of meals free at Micky D's a week. Lots of beans and rice, very healthy.

Anyway, why is this student only working 10 hours a week? I know you said 10-15, but you're only giving him 10 hours worth of pay. If he does work the 15 hours, he'll have an extra $144 a month, so $874.
Why isn't this student taking one less class, and going to school year round? Doesn't this college offer summer classes? Where I went did. One less class equals more hours to work.

Finally, we're assuming all this student can find is minimum wage for the entire length of his school career. In my city, even fast food workers start at $13 an hour. Damn, even if he could land a job at $10 or $11 and dump the minimum wage job, he'd be in better shape.

So, going back let's say a $46,000 loan. Unless you correct my figures.....oh what the hell, let's round it up to an even $50k

All right! Whew.

Looked it up and "The rates for the upcoming 2019-2020 award year are 4.53% for undergraduate students"

So the payments on a 50k loan at 4.53% for 20 years is $317 a month.
That about $73 a week. Can this person do anything to even make part of that back? Again, this is maybe a strange concept to some or many people, but picking up extra work is just not the end of the world. In fact, I think it makes the spare time you do have that much more enjoyable.

The free time is going to be that much sweeter.
Poverty is hard.
Getting an even halfway decent job after graduation must be mind blowing. Investing a little of your time for that little bit extra to pay off your debt without dipping into your regular wages must be beyond reality.
Paying off that debt earlier would be heaven.

If the person manages to send an extra $20 a month, 22 months are shaved off the length of the loan (1.8 years) and a total of $2682 is saved.

Ok, this next part I am totally spitballing. Let's say every time the person gets a raise, he increases his extra money paid by $5 a month. He does this every year, for 10 years, so at the 10th year his extra contribution total $65/month. Then he decides to just leave it at an extra 65. Because life/kids....The average of these increases is about $42.
So with your permission, can we call it that he will end up on the average contributing $42 extra a month?

Well, in my personal opinion, the results kinda suck, because he ends of shaving 4.3 years off the 20 year loan, and saving a little more than $6200 in interest.
That sucks because he still paid almost $20K in interest on a $50K loan.

In Chai Teas's world...I would increase those extra payments by $10 a months each raise (**** it would be a lot more, but gonna go with that), making the average extra payments $85 a month.

With that, the loan would be paid off 5.9 years early, and the savings would be about $8500. Total interest paid, $17,600 approx.
0 Replies
 
Linkat
 
  2  
Reply Wed 26 Jun, 2019 08:49 pm
@neptuneblue,
I was 18 years old when I signed for my student loan. My parents did not explain this to me I read it. And when I graduated college I paid my loans off on full.

In my senior year of college with tuition continuing to climb I had to research to get a private loan to pay the gap. I did the research myself and determined which was best for me.

I was far from the brightest student at my college, but I used my common sense to do this.

As I stated before you can go back and quote that if you like where I stated you do not need a college education to understand the terms of a loan.

I will also admit that I was condensing when I said someone is dumb that does not realize they can pay more than what the monthly statement ssid..that was more as a result of returning a condensing comment.
0 Replies
 
neptuneblue
 
  1  
Reply Wed 26 Jun, 2019 08:56 pm
@Linkat,
Don't get me wrong, I'm glad your kids get your support.

You seem to forget how that happens. Where an 18 yr old has no option than to maintain a minimum wage job until they age out at 26 to qualify as a independent student.

Again, I'm not interested in your absolutely condescending attitude where you completely disregard how "doing research" benefits ME. Apply that to YOUR children, quit thinking you know how poverty works and come up with a better solution to student debt.

Imagine where YOUR children would be. Now imagine where they would be without you.

Now imagine they're poor.
Linkat
 
  3  
Reply Wed 26 Jun, 2019 08:57 pm
@neptuneblue,
So I am cuddling my kids because my college daughter is spending her summer working two jobs? Because I said I won't pay for extras? That she needsaid to pay half her credit hours? She needs to pay for her personal products?

That I informay her she will need to pay back these loans when she finishes school so if she wants to pursue something beyond her BSC she will need to do so on her own?

Or would you prefer I tell her to go ahead and take out as many loans as she wants because the government will forgive them? Which is better to teach your child?

What next it isn't fair that housing prices are so high so let's give everyone a mortgage and then forgive them...wait didn't this get the government in trouble before?
neptuneblue
 
  -1  
Reply Wed 26 Jun, 2019 09:07 pm
@Linkat,
Yes, you're cuddling your kids.

You make excuses, pay for it, then blame the American Dream because you suck as a parent.

Is that really what you want me to say??

Get a grip.

0 Replies
 
Linkat
 
  1  
Reply Wed 26 Jun, 2019 09:08 pm
@neptuneblue,
You still did not read where a poorer student would get more in grants which does not need to be paid back. This includes coverage of room and board, books and fees. You do not need to be 26 to qualify. If your parents earnings are such that you are at poverty levels as a family FAFSA would determine your need at 100 percent. You would be given 4,500 subsidized loan and the difference .... if your school covers 100 percent of need .. would be given in grants. Your debt at graduation from freshman year would be 4,500.

chai2
 
  3  
Reply Wed 26 Jun, 2019 09:11 pm
@neptuneblue,
neptuneblue wrote:

Tsar said he and his wife sought a continuing education subsidy for his wife. I'm sure they thought about the ins and outs for them to pursue that path.




Tsar isn't married neptune. I mean, I'm pretty sure he isn't. tsar?

I did a search for wife, and came up with this that coastal rat said, which was...

As for being able to prepay on student loans, the answer is yes. My wife went back to school a few years back and we incurred a small amount of student loans (around $4,000 if I remember correctly.) When it came time to start paying on them, I picked an amount we were comfortable with and paid it monthly, even though it was more than I needed to pay. The extra did go against the principle and it was paid off more quickly with less interest than it otherwise would have been. Even if they had applied it to next month's payment, if I had continued paying what I wanted to pay, there would have come a time that I would have prepaid, if you will, the balance owed.

Did tsar mention this on another thread.

The only thing I see is someone saying they made pre payments and paid the loans off more quickly.


As for your comment you gave to linkat....

"Many people do not have that option, to live at home, being subsidized every laundry load, toast popping or six-pack beer money that mommy throws her way."

Again, I'm not clear on this anger that is toward both BB because they screwed up the lives of everyone under 35....or are you angry at young people that are in school but had the misfortune of being born into a household where they can still keep their bedroom while they go to school....or are you just mad at everyone?

Also, maybe I don't understand the following....

Are unsubsidized loans ones that start accuring interest from the moment they are made? As opposed to subsidized loans where the interest starts accruing after graduation, and the payments start?

So on my example of a total $50K loan, half being unsubsidized, unless my math is off, during that 4 years of school, about $4000 to $5000 extra interest would accrue, that doesn't start getting paid off until 6 months after graduation? That would add about $30 to your monthly payment, even if you just paid it without extra payments.

Maybe I am misunderstanding. Correct me if I am. I mean, even if I'm a complete bozo, and the interest accrued over the 4 years was $10K, that's like $60 a month extra.


chai2
 
  3  
Reply Wed 26 Jun, 2019 09:18 pm
Oh.

Are you angry because everyone is not poor?

Me? I don't think anything linkat said was condescending. If you don't read a contract, that is really dumb.

Explaining how a loan works is not condescending.

Because someone doesn't like what someone said, does not make the person who said it condescending.
neptuneblue
 
  1  
Reply Wed 26 Jun, 2019 09:18 pm
@Linkat,
Grants are merit based, although it can be economic. The Pell Grant is economically based.

Independent status is at age 26.

Schools do not cover any type of monetary need; scholarships, grants and loans both subsidized and unsubsidized do, whether that's a federal, state or local level.

Debt at graduation is cumulative.

Are you sure you know what you're talking about?
chai2
 
  2  
Reply Wed 26 Jun, 2019 09:24 pm
@chai2,
chai2 wrote:



The only thing I see is someone saying they made pre payments and paid the loans off more quickly.

Are unsubsidized loans ones that start accuring interest from the moment they are made? As opposed to subsidized loans where the interest starts accruing after graduation, and the payments start?

So on my example of a total $50K loan, half being unsubsidized, unless my math is off, during that 4 years of school, about $4000 to $5000 extra interest would accrue, that doesn't start getting paid off until 6 months after graduation? That would add about $30 to your monthly payment, even if you just paid it without extra payments.

Maybe I am misunderstanding. Correct me if I am. I mean, even if I'm a complete bozo, and the interest accrued over the 4 years was $10K, that's like $60 a month extra.



Oh wait! I'm wrong half of the $50K loan is $25,000 unsubsidized.

The interest accrual for 4 years at 4.53% interest would be a total of $2950.

Over 20 years, that would be an extra $19 a month.

Is that what is making you so angry?
0 Replies
 
neptuneblue
 
  1  
Reply Wed 26 Jun, 2019 09:25 pm
@chai2,
I'm not angry, I'm sympathetic.

Yes, Linkat's responses ARE condescending.

If Linkat really knew how the process worked, she wouldn't be so apt to have a condescending attitude.

And yes, I do not like what Linkat has to say.
chai2
 
  3  
Reply Wed 26 Jun, 2019 09:27 pm
@neptuneblue,
So you don't like what she said.
So you're sympathetic.

To whom, the poor? Who isn't?
What if you're not poor, but are dying of something while you get to go to college? Does that make up for not being poor?

So you're upset over an extra $19 a month payment on an unsubsidized $25,000 loan.

So you don't like that some people keep their bedroom and get fed when they go to college.

So you think linkats condescending.
So I don't.

So ok.
neptuneblue
 
  0  
Reply Wed 26 Jun, 2019 09:34 pm
@chai2,
So, it's not ok.

Millions of dollars are defaulted on.

I've tried to explain why, who, when and where these situations happen. Yet, somehow, it falls on deaf ears.

The never ending cycle.

It's not ok.
0 Replies
 
nacredambition
 
  1  
Reply Thu 27 Jun, 2019 12:25 am
Coddling?

If the users pay and then go fishing do they know that cod are ling?

roger
 
  0  
Reply Thu 27 Jun, 2019 12:33 am
@nacredambition,
Sorry, I prefer to think of someone cuddling a cod.
0 Replies
 
Linkat
 
  1  
Reply Thu 27 Jun, 2019 08:27 am
@neptuneblue,
neptuneblue wrote:

Grants are merit based, although it can be economic. The Pell Grant is economically based. - no they are not - scholarships are merit based.


Yes they are scholarships are merit based.

"The terms “scholarship” and “grant” are often used interchangeably, but there are usually differences between these two forms of aid. Most scholarships are merit based. This means that they are awarded to students with certain qualities, such as proven academic or athletic ability. ... Most grants are need based."

https://bigfuture.collegeboard.org/pay-for-college/grants-and-scholarships/the-basics-on-grants-and-scholarships
0 Replies
 
Linkat
 
  1  
Reply Thu 27 Jun, 2019 08:29 am
@neptuneblue,
neptuneblue wrote:

Independent status is at age 26.


Yes I never argued that - what I did argue is if your parents are poor i.e. determined your parents earn (based on their tax returns and how many dependents they have) are at a poverty level - then FASFA will determine you have 100% financial need. So if your family is poor your financial need really won't be much if any different whether you are independent or not independent.
0 Replies
 
 

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