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Will there ever be a student loan bailout?

post #1 of 282
Thread Starter 
Just wondering. So many people are stuck with massive amounts of student loans that are next to impossible to get rid of. It's probably just wishful thinking on my part though - lol
post #2 of 282
I know so many people who owe so much money... like, 80K - 100K or more... and they're going to have degrees in anthropology when they're done, if they finish! One friend who owes 80K just dropped out, so she has an MPH and an M.A... another has over 100K in loans and hasn't even done her fieldwork yet, so she's nowhere near getting her PhD.

I don't know... they'll be paying close to $1000 a month, the way I figure it. I know people who stay in school and keep racking up loans because if they drop out they have to start repaying the loans... so it sort of snowballs.

I don't have a lot of loans - I wish I didn't have any, but then I'm also glad I took them so I could spend more time with my daughter. They're all interest deferred, too, so they won't accrue interest until after I graduate, and I shouldn't need to take any more. It does seem like a big problem for a lot of people, though...

dar
post #3 of 282
i only have about 25k although that has increased from i think 15k just with interest even though i'm forbearing and defering (dependin on which i qualify for.... i've done both)

but evn that amount... theres no way i can pay that back until i make a lot more...and thats just not hapening anytime soon

if i had known then... iwouldn't have evne gone to college, certainly not on loan $. i'm not encourging myy kids to go until they have had some life experience to know what they really want to go for or until they have to go as a prerequisite for employment

i mean i wasted all that money on something that while fascinating i'm not going to make a career of... and now that i know what i want to do i can't pay for it
post #4 of 282
Of course not. Working people don't get bailouts, only the rich get bailouts.

It would be nice if instead of bailing out the big corporations, some of the tax money went to working people to pay their mortgages, student loans, COBRA coverage for people who have lost their jobs, etc.

But see, when working people have financial setbacks, they're irresponsible. When fat cats have financial trouble, it's the economy.:

I'm feeling very cynical about the whole thing at the moment.
post #5 of 282
Wouldn't that be great! If that would happen dh and I would be doing pretty good.
post #6 of 282
Quote:
Originally Posted by bigeyes View Post

It would be nice if instead of bailing out the big corporations, some of the tax money went to working people to pay their mortgages, student loans, COBRA coverage for people who have lost their jobs, etc.
.
Well to be fair some of the bailout money is going to these things. The first 9 months of COBRA coverage are now being covered 65% by the feds..and its retroactive to sometime last year. Most states have received millions to beef up unemployment insurance so people can be covered longer. In many states this second provision is being blocked by the Republicans though...I know in California accepting this money was defeated by one vote, although they are going to try again.

But yeah, I hear you about the student loans...sigh.
post #7 of 282
Ha! I wish! my husband did an extra law degree in tax, to the tune of an extra 40K in student loans! We were told by everyone that when he finished, he would be a shoe-in for a great position paying $140-150k per year at one of the many snazzy DC firms. Ha! Then the economy collapsed and no one is hiring. So my husband is stuck doing tax returns for $30 an hour, with all these stupid loans!!!

Anyway, while there is no bailout planned, there is this, which was discussed on this forum a few months back: income based repayment, which are student loan repayment plans based on income, family size, etc.

http://www.ibrinfo.org/
post #8 of 282
Quote:
Originally Posted by Chamomile Girl View Post
Well to be fair some of the bailout money is going to these things. The first 9 months of COBRA coverage are now being covered 65% by the feds..and its retroactive to sometime last year.
We did COBRA for a little while last year. Where can I find info on this?
post #9 of 282
Quote:
Originally Posted by Dar View Post
like, 80K - 100K or more... and they're going to have degrees in anthropology
<snip> I know people who stay in school and keep racking up loans because if they drop out they have to start repaying the loans... so it sort of snowballs.
This would be me ~ only I've got the genius degrees in Creative Writing, Philosophy, and Religious Studies !!! Guaranteed employment I tell ya!
post #10 of 282
Well, on the upside, Income Based Repayment begins on, I believe, July 1 of this year. While it is certainly not a bailout, it is a big improvement.
post #11 of 282
Quote:
Originally Posted by bigeyes View Post
Of course not. Working people don't get bailouts, only the rich get bailouts.

It would be nice if instead of bailing out the big corporations, some of the tax money went to working people to pay their mortgages, student loans, COBRA coverage for people who have lost their jobs, etc.

But see, when working people have financial setbacks, they're irresponsible. When fat cats have financial trouble, it's the economy.:

I'm feeling very cynical about the whole thing at the moment.
:

bail out big businesses, bailout auto makers, but whatever you do, dont bailout the people. :
post #12 of 282
I owe $148K. I was unemployed for nearly 2 years. Now I finally have my big ticket job, but I owe so many people so much money from my two years of unemployment that it's sometimes mind-numbing. : At one point I got in a fight with the US Dept of Education. I told them I had resorted to prostitution to buy my groceries, so I suppose I could add one more trick each week to pay them the money they wanted every month for their help in funding the education that had allowed me to achieve such wonderful career heights. They made me talk to the manager. I have to pay $1200 per month for my "bankruptcy" for the next five years. Only then can I think about starting to pay back the student loans, which by then I'm sure will be closer to $200K.

I'd love a bailout. Don't see it happening though. For some reason, the return on my educational investment merits the wait-and-see approach - I should be able to pay off my loans some time in the next 30 years. Yet a bad mortgage? They don't have to wait for their market to rebound. Sigh.
post #13 of 282
Quote:
Originally Posted by mrsfrenchy View Post
We did COBRA for a little while last year. Where can I find info on this?

Here ya go: http://www.dol.gov/ebsa/faqs/faq-cob...ductionEE.html
post #14 of 282
I certainly hope not.

Quote:
Originally Posted by bigeyes View Post
...It would be nice if instead of bailing out the big corporations, some of the tax money went to working people to pay their mortgages, student loans, COBRA coverage for people who have lost their jobs, etc....
Yes, I agree. (Some) Tax money should go to the public to use for their own needs - mortgage, COBRA, student loans, etc.

(This thread makes me want to watch The Corporation again....)
post #15 of 282
We had to take out loans for my dh to go to school. To the tune of about $300 a month for 10 years. We didn't own a home for many of those years because of them. I get that we didn't take out nearly as much as some of you, I can't imagine paying $1200 a month in loans. But by living incredibly carefully we paid them off. It's such a good feeling and dh no longer has to drive his POS car.
post #16 of 282
Quote:
Originally Posted by mrs*kewpie*pie View Post

if i had known then... iwouldn't have evne gone to college, certainly not on loan $. i'm not encourging myy kids to go until they have had some life experience to know what they really want to go for or until they have to go as a prerequisite for employment

i mean i wasted all that money on something that while fascinating i'm not going to make a career of... and now that i know what i want to do i can't pay for it

Amen to that, had i known i would have gotten pregnant right after my last year of college i would not have finished. i only had 10k in loans, and that is down to 8k, but still, i'm sahming right now, can't even find a pt job to help out that is worth it, so essentially if i want a decent job i'd have to go back to school for 2 more years, which is not even an option at the moment, as i am not interested in getting more debt and i'm not that interested in going back to school all together. Granted my loan repayment is not that bad about 120$ a month on 10 year loan, but 120$ could def be used elsewhere atm. i am considering forebearance as i am having trouble paying the loans right now.
post #17 of 282
I keep thinking about what a horrible obstacle this is to our children's future. You have to have college to have a shot at a decent income, but you start out with this awful debt that keeps you in the hole for years....it seems like no matter what you do you're destined to have several years of living on very little money.

And if you save money for college, they give you less help when you try to get help paying for college. If you get scholarships, great, but if you don't, years of debt.

It's scary.
post #18 of 282
Quote:
Originally Posted by bigeyes View Post
You have to have college to have a shot at a decent income, but you start out with this awful debt that keeps you in the hole for years....
It seems like many people in this thread are saying that college did not give them a shot at a decent income... So the problem is a culture of "College at any price" rather than student loans being considered an investment in future income.

I believe College is another bubble just like housing. Sure higher education is a GREAT asset, and a often good idea, but borrowing too much money for what is often a "gamble" on future speculation isn't a good idea.

Everyone in america said "It is important to get a house as soon as possible, and to borrow the money at any cost." And it backfired. They have been doing the same thing with student loans too.
post #19 of 282
Quote:
Originally Posted by ShaggyDaddy View Post
It seems like many people in this thread are saying that college did not give them a shot at a decent income... So the problem is a culture of "College at any price" rather than student loans being considered an investment in future income.

I believe College is another bubble just like housing. Sure higher education is a GREAT asset, and a often good idea, but borrowing too much money for what is often a "gamble" on future speculation isn't a good idea.

Everyone in america said "It is important to get a house as soon as possible, and to borrow the money at any cost." And it backfired. They have been doing the same thing with student loans too.
I can't tell you how many times I've been passed over for promotions or missed out on jobs because I didn't have a degree, or how many times I've worked for someone who used me as their personal spell-checker, even though they were the one with the degree, the title and the big paycheck.

It matters. Even entry level positions in many companies require degrees now, and in some areas unless you want to work retail or food service you just about have to have a college education. If you don't have the money to get that education, what do you do? If you're like me, you go to work, and then if you get caught up in the trap of thinking you don't need the education...then years later when you're dissatisfied, you have debts and responsibilities, and when you're searching for jobs employers want to know why you don't have an education at your age. Since plenty of other people do, you're at a disadvantage.

I think the worst mistake anyone can make is to put off going to school. AFAIC it's the only debt that makes sense. But paying it off shouldn't be so rough. Payments should be income based or something.
post #20 of 282
Quote:
Originally Posted by bigeyes View Post
And if you save money for college, they give you less help when you try to get help paying for college. If you get scholarships, great, but if you don't, years of debt.
.
The other option is work and pay as you go (either the parents or the student).
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