Student Loan Scheme

I've known some who have defaulted on student loans - pretty scary

I got Uncle to pay for mine. Since I have a minor combat wound, we're even

 

It does suck. I agree. I hope to never be in the default situation with my loans, and the government and SallieMae are making a farking killing on students. However I do believe that some sense of responsibility needs to be put on the student who takes out the loan. Just like people who bought houses in 2004-2006 and couldn't afford them, sure the bank is partly to blame but the home owner must also accept responsiblity as well. This nation is quickly becoming one where if people don't like what they've gotten themselves into they can just walk away, regardless of a contractual obligation. Does a persons signature have any integrity or meaning anymore? If a student takes out 85k in student loans to go to school, well then they should be very aware that they will have to pay that back at some point. Now I do think that the government should make lenders like Sallie Mae provide more options for payback and give better interest rates. If the governement is backing this then for gosh sakes can we get the loans at least a rate that is cheaper than what people who are not trying to better themselves can get on a new car loan. Screwed up system for a screwed up government.

 

When the government is making the loans, they pass their own special usury laws...big shocker.

If you don't like the terms of the loan, then don't take out the loan.

 

Personally, I could not have gotten through school without the loans. If I'd have been smarter about it, I would have used grant money for school... instead of computer upgrades (and food) at the time. However, I still cannot beat the payment and interest I have on the loan. It's somewhere around 1.825. And I have 30 years (well, 25 now) to pay it back. My loans are through the state, and if need be I can claim hardship to defer payment should I fall on hard times.

 

Are there any usury laws left?

I thought the credit industry got these laws repealed long ago. The common 25-30% credit card interest rates of the past decade would have been impossible under most of the old usury laws.

 

Thanks for sharing the link. This would be beneficial for those looking for a student loan.

 

Our student loans have enabled us to pay back the 160k we've borrowed in less than 10 years.

 

i am not a fan of the 6.8% interest rate that sallie mae is exacting, but neither of us could have finished school without loans. they are well below average and will be paid off next year, because we were prudent about it.

the legislation surrounding student loans destroys the original intent of promoting access to education. lots of things destroyed that.

 

A 1978 supreme court ruling (Marquette National Bank v. First of Omaha Service Corp.) decided that when you do business with an out of state bank, the state where the bank is located determines the laws, including interest rate caps.

In 1980, South Dakota to eliminated their usury laws to enable loans to farmers during the times (back then) of high interest rates.

Credit card companies moved there to take advantage of those laws (or lack thereof) and issue cards nationally. Alot of states do have usury laws, but your (out of state) credit card is not subject to them.

Other states caught on, like Delaware, Arizona, Virginia, New Hampshire, etc. That's why your credit cards come from those states.

 

Am I missing something? Take out a loan, pay it back. Refuse to pay it back, get kneed in your finances by bill collectors. What's unusual? Don't wanna play? Don't. What's the point of this thread?