College: attending, paying for, etc.

Blue&White
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Re: College: attending, paying for, etc.

Postby Blue&White » Fri Dec 21, 2018 8:52 am

They offered the same thing in this case - a repayment plan for 20 something years that would not touch the principal at all. And, at the end, they would forgive the debt and leave her facing a massive tax penalty for their generosity.

That is seriously, serously fuqed up.
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psu_dad
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Re: College: attending, paying for, etc.

Postby psu_dad » Fri Dec 21, 2018 9:13 am

There's a documentary (Maxed Out) about the debt crisis in this country. I think it came out about 10 years ago. There was one snippet where they went inside a collection agency's "boiler room". Man, there was some cold-hearted sh*t going on in there. Not a job for people with a conscience.
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Blue&White
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Re: College: attending, paying for, etc.

Postby Blue&White » Thu Dec 27, 2018 11:54 am

So, my wife was officially rejected on her application to refinance her student loans. My wife makes just about the mean income in the US and yet she couldn't refinance her loans - loans she is already paying TYVM - at a consolidated lower interest rate because she owes to much. To get this done, we had to reapply using my income instead of hers.

It really ticks me off we couldn't do this based on her income. In truth, we did better doing it under my income because we ended up getting an even better interest rate (not by much - 5.5 vs. 6.1) but of course people who earn more should pay less. But, there is something really wrong when people like my wife - who went to grad school to get a degree and now work with children in schools - can't refinance their loans. How do people who are not married to someone who earns more than 2X what they do manage this? And, while her new payment would be higher than her old payment (we are consolidating her 20 year loan into a 10 year), a simple view of her loans would show them she had been over paying - and paying more than what her new payment would be) and was on track to pay the 20 year term off in ~12 years or so. She had even paid off one of the loans in full and was on target to get a 2nd loan paid off within the next year. But, none of her payment history was factored in.

The whole process just really freaking annoyed me. And, it highlights how tough it must be for kids coming out owing upwards of $100,000 in student loans. It's an insane amount of money and there is no easy way to get out from under it. I suspect at some point I'll use the equity in my house to wipe out my kid's debt if I have to, but I really don't want to go that route.
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psu_dad
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Re: College: attending, paying for, etc.

Postby psu_dad » Fri Dec 28, 2018 9:21 am

How do people who are not married to someone who earns more than 2X what they do manage this?

As near as I can tell, not very well. I've seen more than one article that mentioned the same rule of thumb: students who borrow an amount that exceeds their subsequent annual salary generally have great difficulty.

Putting aside the sub-prime mortgage debacle, home mortgages have historically been handled differently. If you don't make enough money to qualify for the loan, you don't get it. But undergraduate students are given loans before they're even employed. And to my knowledge, they don't base eligibility on the likelihood of a high-paying job. It's a tricky business. It falls entirely on the student to decide whether they're making a prudent business decision.
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tempe
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Re: College: attending, paying for, etc.

Postby tempe » Fri Dec 28, 2018 9:39 am

Fortunately, at an early age, I saw the movie, Grease, and knew better than to attend -

https://www.nytimes.com/2018/12/26/busi ... -iowa.html

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Blue&White
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Re: College: attending, paying for, etc.

Postby Blue&White » Fri Dec 28, 2018 10:03 am

Put another way: An Iowa cosmetologist who has a heart attack can have her life saved by a medic with one-sixteenth her training.

Ooof. That stings. The politicians who back this bullshit should be run out on a rail.

And, it's not just for profit schools. My wife is a speech therapist. That required her to get a Master's degree that required over 80 credit hours, or just shy of what I needed for my undergraduate degree. It's an insane amount of credits. And, now the accrediting governing body is considering forcing you to need phD to be accredited. So, basically, you will need the same amount of education that a physician needs but in a field that pays, on average, 65k a year. Who is going to sign up for that.

My wife runs the district she works in and she earns above that average (but not by a dramatic amount). She has a bunch of more junior SLPs who work under her. They all are under contract, none of them get benefits, they earn around $55-$60k a year, and their monthly student loan nut averages around $750.

An economy filled with people so deeply underwater financially is not a growth economy. We've tied a massive anchor around this generation and they are going to drag all of us down with them.
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