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Discussion » Questions » Education » Can this be true and if it is, how the hell is this allowed to happen?

Can this be true and if it is, how the hell is this allowed to happen?

Posted - June 18, 2018

Responses


  • 6023

    It could be true ... depending on the interest rate and what they are paying on it.

    EG: If they missed a payment, they'll have late fees and fines tacked on.



    BTW - you want a real mess?
    Read up on the "grants" people get to be teachers, and how they are being suddenly turned into "loans".

      June 18, 2018 8:34 AM MDT
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  • 43
    I am not an American so not sure what the situation there is but I cannot understand how the US government (of whatever shade) hope to have a highly educated (or do they?) population if getting an education can lead to this type of financial debacle. When you consider that a country like Scotland can offer free education up to and including university level, okay strictly speaking it is not 'free' as it is paid for out of taxes but at least it offers every child with the capability the chance of a high level of education, which can only be good for the country as a whole.
      June 18, 2018 9:17 AM MDT
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  • 16202
    Works that way in Australia too.


    America ... land of the fee. 
      June 18, 2018 8:43 PM MDT
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  • 43
    When I was living in Oz, there was 'voluntary' donation (seem to remember it was approx $200 per term) to the school among other charges and I for one was most willing to pay these 'charges' for my son's education, even though strictly speaking it was voluntary.
      June 19, 2018 12:31 AM MDT
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  • 10449
    The same principle applies to houses and credit cards.  Most times the minimum payment on loan (which is the amount many people pay) is less than the accruing interest.  When paying back a loan much of the payment goes towards interest due, not the principal.
      June 18, 2018 9:23 AM MDT
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  • 6023

    Yep.

    When I have gone shopping for large items that require a loan (car, house) ... I figure what I can make payment wise, and cut that in half ... that tells me how much loan I can afford.  Then I can pay it off faster, or meet the minimum payment if an emergency comes up.

      June 18, 2018 1:44 PM MDT
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  • 32538
    That is crazy. I would get a regular bank loan and offer a settlement for the original amount of the loan. 
      June 18, 2018 10:10 AM MDT
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  • 43
    Would a student in full time education be able to get a bank loan without security to back it up?

    Edit, sorry I misunderstood what you were saying, I thought you meant that you would get a bank loan instead of a student loan to begin with. This post was edited by C.D.R. at June 18, 2018 11:09 AM MDT
      June 18, 2018 10:55 AM MDT
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  • 17364
    Sure it can be true.  High interest is the first thought.  Today it's almost 7%.  Penalties on late payments are killers.  

    The moral of the story is to not borrow money for college.  Either get a job where the employer pays tuition and go to night classes or work/save, then go to school for a semester, over and over until you are finished.  

    The other moral is to ignore these idiot Facebook-type memes and the like and share instructions as well as the probable associated go-fund-me online panhandling.  


    This post was edited by Thriftymaid at November 26, 2018 11:32 PM MST
      June 18, 2018 10:30 AM MDT
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  • 43
    Do you not feel that the government of a country should have some obligation to ensure that its population gets the best education possible? If the education cannot be fully funded by tax dollars then at lest it could be funded by federal interest free loans, after all it is the country's money not the government's money but I suppose you only get the government you vote for and if the voters do not want equality in education, then they will not get equality in education.
      June 18, 2018 11:06 AM MDT
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  • 17364
    The Constitution charges parents with educating their children, not the government.  Think about that.
      June 18, 2018 10:05 PM MDT
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  • 43
    As it is your constitution I suggest that it is you who should give it some thought, your constitution is over 200 years old and written at a time when there was no public education anywhere. Many other countries remedied this fault and at the end of the day your constitution has been amended 27 times in the past and can be amended again if the government/population have any desire for equality in education. In my opinion the lack of money should not equate to the lack of access to a good education, it should be in the country's interest to have a highly educated population (even if only to gain more tax from the higher earnings of the educated) and as such should be paid for by the federal/state governments.
      June 19, 2018 12:54 AM MDT
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  • 17364
    As a non-American your opinion, to me, is completely irrelevant.  
      June 20, 2018 2:32 AM MDT
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  • 43
    Fair enough, have fun burying your head in the sand behind your isolationist wall.
      June 21, 2018 8:34 AM MDT
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  • 6023
    Not to mention credit card companies target college students.
    And credit card interest rates are ridiculously high.  Even if you have stellar credit.

    I think credit cards are more "predatory" than those cash-advance storefronts.
      June 18, 2018 1:47 PM MDT
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  • 17364
    You're off topic.  I have no experience with credit card companies targeting my college students.  A college student can read.  I acquired cards for my kids in high school and they learned how to handle carrying a card.  
      June 21, 2018 9:08 AM MDT
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  • 6023
    You raised the "topic" of interest rates.
    You mentioned 7%.
    Not sure what that is for ... but many college students get cards at "benefit fairs" put on by the colleges.  And they are told they can use those cards to pay for things like meals and books - which they do.  Only to find out later that the cards charge over 20% interest.

    It was a big story a couple years ago.  Because colleges were encouraging students to get high-interest credit cards at these "fairs", without full disclosure that the college was often getting "kickbacks".  I believe there were even some state investigations.
      June 21, 2018 9:45 AM MDT
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  • 17364
    Yes, in the context of student loans. 
      June 21, 2018 4:24 PM MDT
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  • 7775
    I got out of my loans because of mental illness and still didn't graduate.
      June 18, 2018 2:00 PM MDT
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  • That looks to me  like a balloon loan I got once. I borrowed $500 paid $2500, at the last I still owed $650 and they got angry when I added them to my bankruptcy case. I believe the student loans should be forgiven.  
      June 18, 2018 2:14 PM MDT
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  • 43
    So do I or at least paid back with no interest once the student starts earning over certain amount per annum.
      June 18, 2018 8:28 PM MDT
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  • 17364
    No way!
      June 18, 2018 10:09 PM MDT
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  • 5835
    If they are smart, how do they get sucked into such a stupid deal?
      June 18, 2018 7:29 PM MDT
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  • 43
    I think the general idea is to get the loan in order to become smart.
      June 18, 2018 8:30 PM MDT
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