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  1. #1
    Join Date
    Dec. 2, 2004
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    3,249

    Default Paying Off Student Loans (Sallie Mae Rant)

    What a crock. They don't make it favorable for prepaying these loans. The heavy student debt load has been a point of conversation now in politics. But the govt is not stepping up.

    They make it extremely difficult to payoff this loan debt, ie don't want to let you do so. No principle payoffs can be made. I'm going to try to word this right - any extra payments do not go to the base equity they are figured as extra payments that come off the back side of the loan and anything extra paid cannot be considered extra principle.

    DD just went thru the 'process' of paying off one of her loans that is for a small amt. When we called for the pay-off they made it as difficult as they could and complained that they would 'have' to refigure a new automatic deduction amt 'now.' Like that is not an easy part of a banking service nowadays with computers.

    And paying off one loan only saved her $4/month!

    What are the terms of these loans (length in yrs)? that is not a full reveal either, obviously ALL the interest is stacked up front b/c very little goes to principle.

    My home equity line is set so that additional prinicple can be paid at my convenience of choice. These loans should be structured the same way.

    If these loans were set up so that young people could more easily pay them down then it would reduce the individual's debt load and open up earnings for buying first homes, investing in businesses, etc etc. A win win for this country.
    The truth is what you can get other people to believe.

    -- Tommy Smothers



  2. #2
    Join Date
    Dec. 28, 2008
    Posts
    1,418

    Default

    I'm a vet student and thankfully only have government loans but it's not a whole lot easier to pay on those either. I work two jobs to keep on top of interest from my non subsidized loans as best I can plus start chipping away at the principle. Every 4 months when I go to make a payment there seems to be a new hoop to jump through and we won't even talk about the fact that I had to spend 5 hours one day in the beginning of vet school to even find out where I needed to go to view my loans! Not as easy as the loan education quiz you have to take makes it sound...I never understood why they make it so difficult.



  3. #3
    Join Date
    Jul. 31, 2007
    Posts
    15,135

    Default

    And another thing!

    No one should be borrowing $80K to get a bachelor's degree from University of Utah.

    Had I paid full freight, my degree from Stanford (150 years ago) would have topped out at $70K or so.

    Now you'd be looking at closer to a quarter million for all the fixin's at elite universities.

    Yikes! People need to do some calculations regarding the ROI on a huge debt for Harvard vs. a still honkin' debt for U of U.

    I pity the modern undergrad. It ain't right, OP.
    The armchair saddler
    Politically Pro-Cat



  4. #4
    Join Date
    Mar. 9, 2006
    Location
    IL
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    2,528

    Default

    The government is stepping up - or at least attempting to -

    there's a bill being proposed to forgive student loans (10 years paying at least 10% your discretionary income. If it passes those who have already spent 10 years paying at least 10% discretionary income would be automatically approved).

    http://www.govtrack.us/congress/bills/112/hr4170
    *The Quietman ~ Irish Approved Gr.1 Stallion
    www.windyislesfarms.com
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  5. #5
    Join Date
    Mar. 4, 2004
    Location
    Louisville, KY
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    3,983

    Default

    I HATE Sallie Mae. Luckily I do not have a bunch of debt (relatively small, actually, especially for undergrad + masters). Their website payment sucks...why on earth does it take 2-4 days to apply payment? I can pay any other bill online and it is paid that day. They also sold one of my loans but didn't notify me. Three months later I get a call wondering why I hadn't paid...uh, because I had no idea that I now needed to pay someone else???
    Caitlin
    *OMGiH I Loff my Mare* and *My Saddlebred Can Do Anything Your Horse Can Do*
    http://community.webshots.com/user/redmare01



  6. #6
    Join Date
    Aug. 12, 2008
    Posts
    364

    Default

    I don't have a huge student loan, so maybe it is easier for me. I have had no problems with Salle Mae. I pay a little extra for each payment and it always prompts me if I want to apply towards the principle or next payment (always choose principle).

    It may also help that I only needed one small loan and that I don't have multiple ones.



  7. #7
    Join Date
    Jan. 23, 2000
    Location
    Virginia
    Posts
    7,892

    Default

    The government is stepping up - or at least attempting to -

    there's a bill being proposed to forgive student loans (10 years paying at least 10% your discretionary income. If it passes those who have already spent 10 years paying at least 10% discretionary income would be automatically approved).
    That to me isn't stepping up, it's screwing the people that busted their ass to pay what they owed.

    I do agree with MVP though, the costs are astronomical and are frequently well above the value of the degree. We need to do a better job of counseling students going into school what exactly it's going to cost them and help them to make more responsible decisions in that regard.

    I was applying to enter one program and told them I intended to pay out of pocket, and was subjected to a twenty minute lecture on how I should talk to one of their loan counselors because "unlike a house or a car, education cannot be taken away from you." I had to to repeat myself at least three times that I could afford to pay for school myself. There is something really wrong when we're foisting these things on students.
    ---
    They're small hearts.



  8. #8
    Join Date
    Mar. 9, 2006
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    IL
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    Default

    Quote Originally Posted by Trixie View Post
    That to me isn't stepping up, it's screwing the people that busted their ass to pay what they owed.

    I do agree with MVP though, the costs are astronomical and are frequently well above the value of the degree. We need to do a better job of counseling students going into school what exactly it's going to cost them and help them to make more responsible decisions in that regard.

    I was applying to enter one program and told them I intended to pay out of pocket, and was subjected to a twenty minute lecture on how I should talk to one of their loan counselors because "unlike a house or a car, education cannot be taken away from you." I had to to repeat myself at least three times that I could afford to pay for school myself. There is something really wrong when we're foisting these things on students.
    And you're saying that people who haven't been busting their asses to pay what they're owed - aren't going to be helped? If you've been paying already you will be forgiven the rests.

    This bill if it goes into affect it wouldn't just be for government loans, it would go after private lenders such as Sallie Mae they are working on legislation to curb the insanity of the Student Loan Lending Racket (because that's exactly what it is).

    It's attacking, and attempting to fix, a symptom of a much bigger problem, yes. I hope that it goes through and then it gets the ball rolling for more higher education (and costs)reform. Right now Student Loan debt has surpassed credit card debt and is over 1 Trillion Dollars. Costs have risen something like 800% in the past 30 years for college.
    *The Quietman ~ Irish Approved Gr.1 Stallion
    www.windyislesfarms.com
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  9. #9
    Join Date
    Sep. 6, 2005
    Location
    Iowa
    Posts
    1,074

    Default

    I was surprised to see my federal loans have been handed over to a servicing vendor.

    I have a lovely letter stating that they would stop accepting payments on March 1st... The letter was dated March 18th. Thankfully I opened it before I made my payment (they said it would take 1-2 weeks for a payment to 'transfer' which would have meant I would have paid the loan twice in March). It's also amazing that I even opening the envelope considering how much 'consolidate now!' mail I still get after 6 years of paying on these darn things. (I can't consolidate, my Perkins loan is paid and my other loans are private).

    My Perkins loan was actually sold... with $40 left on the balance. That was a pain and pretty pointless.



  10. #10
    Join Date
    Feb. 6, 2012
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    876

    Default

    Quote Originally Posted by Sassenach View Post
    And you're saying that people who haven't been busting their asses to pay what they're owed - aren't going to be helped?
    How would this help people who were responsible and paid off their loans by taking the amount of debt they could afford and sensibly accumulating the debt?
    I have CDO. It's like OCD, but all the letters are in alphabetical order, as they should be!



  11. #11
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    Mar. 9, 2006
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    IL
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    Default

    Quote Originally Posted by Tapperjockey View Post
    How would this help people who were responsible and paid off their loans by taking the amount of debt they could afford and sensibly accumulating the debt?
    You know I really really hate that word responsible.

    You know what's responsible?

    Going to college.

    Busting your ass at getting good grades and a "good" degree.

    Interning.

    Working hard.

    Doing everything right. All those ~responsible~ things that you are told to do.

    Then you get out and the economy is in ruins and there are no jobs.

    Or you find out the degree everyone told you would get you a job is useless and you need an advanced degree (be it a MA, MBA or JD). (More common than a lot of people like to admit).

    So you do that.

    Because you're being responsible.

    Stacking the deck and hoping that when it's all said and done you can get a job and ~responsibly~ pay off all those loans you accumulated.

    I wish it worked that way.

    I've seen too many ~responsible~ friends who Did Everything Right. Followed All the Rules. Now trapped in debt with no way of getting out of it (unlike oh say credit card debt which can be cleared by bankruptcy.) and underemployed if they are employed at all.

    The ones with the ~irresponsible~ debt that I know would LOVE to be able to find a job that would earn them enough so they could pay off their debt ~responsibly.~

    But with the current system they won't be debt free for many, many years. (If ever).

    They were the responsible ones. They are doing their best to be responsible.

    It's the system that isn't responsible. It's the system that is broken.

    So if this bill fixes at least some of the current problems and starts a snowball effect to address the bigger problems I am all for it.
    *The Quietman ~ Irish Approved Gr.1 Stallion
    www.windyislesfarms.com
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    1 members found this post helpful.

  12. #12
    Join Date
    Feb. 6, 2012
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    876

    Default

    Nope. Being responsible means that if you accumulate debt, you pay it off. Maybe it takes your whole lifetime, but no one is forced to take on these debts, it is a choice.
    I have CDO. It's like OCD, but all the letters are in alphabetical order, as they should be!



  13. #13
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    Mar. 9, 2006
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    IL
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    Default

    Quote Originally Posted by Tapperjockey View Post
    Nope. Being responsible means that if you accumulate debt, you pay it off. Maybe it takes your whole lifetime, but no one is forced to take on these debts, it is a choice.
    We're going to have to agree to disagree there.

    I believe in student loan forgiveness.

    I believe in rewarding those who did everything right and weren't handed a golden ticket and had things fail them (life factors they couldn't control: i.e. family illness or death, getting sick and having to drop out of their programs without a degree, the economy crashing and burning and leaving them with no job prospects etc).

    I believe it's a step forward in fixing the higher education system.
    *The Quietman ~ Irish Approved Gr.1 Stallion
    www.windyislesfarms.com
    Like Us on Facebook


    1 members found this post helpful.

  14. #14
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    Jun. 23, 2010
    Location
    Connecticut
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    Default

    Tapperjockey is right, there's nothing responsible about accumulating a huge debt that you have no hope of paying back, and then crying the blues because your debt won't be forgiven. Those loans you're paying back are not monopoly money, it's real money, earned by your fellow taxpayers, that was paid out to your school for your education...with no guarantees that the education would pay dividends for you.
    And yes, I DO have a college education, and I did graduate into a lousy economy where my degree meant nothing, and I did pay off my loans. And some of that is why I couldn't have a horse until I was in my 40's.
    As for the OP's complaints, Sallie Mae should have options to pay down principal, just like any loan, and should make it as easy as possible to make payments and to get information.



  15. #15
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    Feb. 6, 2012
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    876

    Default

    Quote Originally Posted by Sassenach View Post
    We're going to have to agree to disagree there.

    I believe in student loan forgiveness.

    I believe in rewarding those who did everything right and weren't handed a golden ticket and had things fail them (life factors they couldn't control: i.e. family illness or death, getting sick and having to drop out of their programs without a degree, the economy crashing and burning and leaving them with no job prospects etc).

    I believe it's a step forward in fixing the higher education system.
    That's everyone!! No one I've ever met has been handed a golden ticket. Life is not always good. Death, Illness, economic down turns, etc.. All part of life. Not one person, no matter what, isn't touched by that. And plenty of people still managed to go to school, get a degree, get a job and pay off the loans that they took out. The loans aren't a guarantee of a job, or of a degree even. A degree isn't a guarantee of a job, and never has been. It may help your chances, it may not... depending on how wisely you choose. They are taken out and used, and the person has the education they used those loans to pay for. If you use something, you should pay for it. Otherwise, it's stealing.
    I have CDO. It's like OCD, but all the letters are in alphabetical order, as they should be!



  16. #16
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    Jan. 23, 2000
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    Virginia
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    Default

    but no one is forced to take on these debts, it is a choice.
    That's the thing. Mr. Trixie, for instance, would have gone to a much better school but he choose to go to one that he can afford. He paid for a lot of it out of pocket while bartending at night - and busted his ass to earn the money for it. Ultimately, I chose to attend a community college then state school since it's significantly less expensive that way and worked throughout. My brother attended a state undergraduate school insted of the one he wanted to go to - and worked hard and got a free ride for grad school. To forgive student loans tells the three of us that we shouldn't have bothered.

    And you're saying that people who haven't been busting their asses to pay what they're owed - aren't going to be helped? If you've been paying already you will be forgiven the rests.
    I don't see how this helps them so much as gives them a portion of their education for free while the rest of us paid for ours.

    I don't disagree that the system needs to be reformed, but I do disagree with going about it like this.

    ETA - when I say "the system" I mean on a greater level. Students need to stop paying $100K to get a degree in puppeteering, but employers need to stop demanding a degree for entry level positions without hope of promotion.
    ---
    They're small hearts.



  17. #17
    Join Date
    Jul. 11, 2004
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    6,830

    Default

    The whine of the modern student.

    "I don't want to pay my loan, it's too hard, it's not fair, college should be free, the banks screwed me over by loaning me money and they never told me I had to pay them back....Wah! Wah! Wah!

    Of course, these same students demand everyone else pay for their loans (that's all loan forgiveness is, taxpayers get screwed for these delicate flowers).

    So, instead of going to a local/community college and getting a "useful" degree with a job at the end of it, all these children took "fun" courses with no future at high rates. So, the chickens came home to roost and now, it's so unfair unless we let them remain children.

    Rights without responsibility is the definition of a child
    Responsibility without rights is the definition of a slave.

    These students would have us be slaves so they don't have to be responsible for their choices.
    "Sic Gorgiamus Allos Subjectatos Nunc"



  18. #18
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    May. 8, 2006
    Location
    Northern Indiana
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    757

    Default

    The problem with student loan forgiveness is that I will graduate in a year and pay off my loans within two years. Yes, I *could* stretch those payments out over 10 years and get some forgiven, but instead I will be choosing to not increase my lifestyle until my debt is completely paid off.

    I have friends who decided to finance VERY expensive undergraduate biology/music teaching degrees which I find ridiculous. Does a $45k/year degree *really* help you get into professional school? Then again, I realize it was their choice, not mine. My degree from a state school is extremely valuable.

    Also, where is the money coming from? Us. My mother. My fiance. Myself. I'm not sure how I feel about paying for someone else's education when I've already paid for mine and will most likely be paying for my children's.
    To be loved by a horse should fill us with awe, for we hath not deserved it.



  19. #19
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    Jul. 31, 2007
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    Default

    God, you "haves" are ungenerous. If you are *not* looking down the barrel of being an undergrad now, thank your lucky stars.

    Look, the price of a college education *has* escalated significantly.

    The value of a BA/BS has dropped off badly.

    Yet the earning potential of someone with just a HS Diploma is still in the toilet.

    Now kids are asked to start adulthood behind the starting line--in debt. Or they are out of debt but with a college diploma and not a whole lot of substance behind that. Then employers will have another complaint (to the extent it has not already begun)... and college will still be expensive and most worth less. There will be an even large divide between those who can afford the on-campus experience and those who don't get anything close for the same piece of paper. I don't want to see a return to the 19th-century when education was only for the very rich.

    And you want to "teach them a lesson"? What would that be? That they should forego what you did not? That they should not pursue the most advertised and likely path to a well-paying career? If they can't do otherwise, students will *still* borrow and be unhappy about it.

    Note that after 2008 bankers, car companies and adults signing mortgages they didn't understand/couldn't afford were bailed out or excused. Of all the people who should have known better and could have done otherwise, how can you say that students shouldn't also get to be in line with their hands out?

    And where *was* the government when for-profit scumball colleges like Phoenix University were using poor college students to launder money?
    The armchair saddler
    Politically Pro-Cat


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  20. #20
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    Jun. 2, 2008
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    Quote Originally Posted by Sassenach View Post
    We're going to have to agree to disagree there.

    I believe in student loan forgiveness.

    I believe in rewarding those who did everything right and weren't handed a golden ticket and had things fail them (life factors they couldn't control: i.e. family illness or death, getting sick and having to drop out of their programs without a degree, the economy crashing and burning and leaving them with no job prospects etc).

    I believe it's a step forward in fixing the higher education system.
    Sassenach, do you ever think about who will pay for student loan forgiveness? It won't be free. The government (i.e., taxpayers) will pay. Not a good idea given our country's debt crisis. As a country, we're broke and can't take on expensive commitments like paying for everyone's student loan.

    Having said that, I do think that there should be much more publicity about the drawbacks of student loans, and young people should be encouraged to think long and hard about cost when choosing a college.



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