Student Loans Loan forgiveness programs qualification

D

drowningstudent

New Member
Jurisdiction
New York
I'm a student in a graduate program in a New York university and I'm trying to understand how to qualify for the billions of dollars of debt disqualification that seems to be handed out to so many people but not me. It doesn't seem fair that some people aren't just getting their interest dropped but their entire loans are wiped away, at least that is what some students are telling me. If they work in a government job they get this benefit? If they are disabled they get this benefit too? 6 years of payments doesn't qualify but 10 years does? How is this legal?

While I think a reduction of the interest is certainly fair, I don't understand how some people are getting completely free tuition while others like me have to deal with our loans and pay for theirs with our income. I appreciate the irony that I am trying to get onto this gravy train that I complain about but, like everyone else, I'd rather get a benefit than continue to be punished. I hope you understand.
 
drowningstudent said:
How is this legal?
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The way that laws work in the United States is that everything is legal unless some law says otherwise. I'm not fluent in any of the student loan forgiveness programs, but you've hinted at a few situations in which lines may have been drawn. To the extent I understand what you're saying, none of those lines could be challenged on any constitutional grounds.

"Fair" is, of course, in the eye of the beholder, but the notions that you are paying for anyone's loans other than your own or are being punished are absurd.
 
zddoodah said:
"Fair" is, of course, in the eye of the beholder, but the notions that you are paying for anyone's loans other than your own or are being punished are absurd.
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Not so absurd. You and me and all the other US taxpayers are paying for the forgiveness. I paid for my education. What about you?
 
Well, let's see. I talked with one woman whose loans were $80,000. She has so far paid back, I don't remember the exact number but it was more than double what she borrowed - $178,000 maybe? - and she still owes $87,000 more. I'd say she's paid for her education.
 
welkin said:
Not so absurd. You and me and all the other US taxpayers are paying for the forgiveness. I paid for my education. What about you?
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I had taxpayer help for my education. US taxpayers paid me a monthly stipend under the GI Bill (veteran's benefit) during college. NY State taxpayers awarded me a scholarship. But I never borrowed money that I couldn't pay back.

My taxes pay for a lot of things I don't approve of:

Yeah, student loan forgiveness is one of them.
Wars that we have no business being in.
Supporting illegals that have no business being here.

By the way, thank you. Your contributions for Social Security come right to me in my Social Security Checks.
 
cbg said:
Well, let's see. I talked with one woman whose loans were $80,000. She has so far paid back, I don't remember the exact number but it was more than double what she borrowed - $178,000 maybe? - and she still owes $87,000 more. I'd say she's paid for her education.
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I agree with you. She has paid far more than she should have. But what is the difference between an education loan and any other loan that consumers take out? If the woman didn't understand the terms of the loan and what she would have to pay back and by when, then she should have found another way to finance her education.

Would it be OK with you for you to start making my mortgage payments because the prime rate is just adding too much interest to my payments and by the time, I pay it off, I will have paid more than double in interest of the loan amount? Just as an example. What's next? Should the government start paying off or forgiving mortgages or CC debt or how about car loans?
 
adjusterjack said:
By the way, thank you. Your contributions for Social Security come right to me in my Social Security Checks.
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Let's not forget that you paid into SS your entire working life. Had you the discipline and been able to invest the money you paid in; you would be getting a bunch more than you are getting now.
adjusterjack said:
(veteran's benefit)
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I have no problem with veteran's benefits or scholarships to help those that qualify for them.
 
welkin said:
I agree with you. She has paid far more than she should have. But what is the difference between an education loan and any other loan that consumers take out? If the woman didn't understand the terms of the loan and what she would have to pay back and by when, then she should have found another way to finance her education.

Would it be OK with you for you to start making my mortgage payments because the prime rate is just adding too much interest to my payments and by the time, I pay it off, I will have paid more than double in interest of the loan amount? Just as an example. What's next? Should the government start paying off or forgiving mortgages or CC debt or how about car loans?
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Most people are still in their teens, or at the very least their early twenties, when they apply for their loans. The interest rates are presented in such a convoluted way that you'd have to be a licensed financial analyst to understand them, and would be considered usury in any other setting. Sorry, but I don't think anyone - not the government, not anyone - should be paying what is now exorbitant interest on long-paid loans; I think the remaining interest should be dropped, period.
 
cbg said:
Most people are still in their teens, or at the very least their early twenties, when they apply for their loans.
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That's the inherent problem of the whole student loan program.

It's basically children (yes, I include early 20s there) that are borrowing the money with absolutely no clue as to what will happen in 4 years when they are saddled with 6 figure debt that could take decades to repay.

And the deferral system makes it even worse. They can set aside the debt while getting married, having children, buying cars and homes, all of which costs lots of money and runs up even more debt. The student loan debt stays unpaid until some socialist thinks it's a good idea to forgive the loans en masse.
 
I'm not in favor of cancelling repayment of the loan itself, and neither is anyone else I know, no matter how far left. And certainly reasonable interest is to be expected.

What I object to is interest compounded in such a way that the interest comes to multiple times of the full loan, as in my acquaintance above. I don't know of anyone who thinks cancelling the loan is a good idea - it's cancelling the accrued interest in excess of the loan itself. And no, I don't mean having the government pay it; I mean cancelling it in the true, dictionary sense of the word.
 
cbg said:
I'm not in favor of cancelling repayment of the loan itself, and neither is anyone else I know, no matter how far left. And certainly reasonable interest is to be expected.

What I object to is interest compounded in such a way that the interest comes to multiple times of the full loan, as in my acquaintance above. I don't know of anyone who thinks cancelling the loan is a good idea - it's cancelling the accrued interest in excess of the loan itself. And no, I don't mean having the government pay it; I mean cancelling it in the true, dictionary sense of the word.
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That can be said about other loans such as CC debt or mortgages that have introductory rates that have ballon payments or loans with introductory rates in general. What starts out as manageable soon turns to exorbitant. And the Prime Rate pulse the Vig take off exponentially.

The average CC interest rate is now 22.8%. That is usury in my opinion when the Prime rate is 8.5%. But the point is that all this is known (or should be anticipated) when someone decides to borrow money. Student loan institutions advertise introductory rates (today) as low as 4.11% with a maximum of 17% on variable rate loans. So any student applying for a loan knows that the low rate is only for a select period of time. It's no surprise when the introduction is over, that the interest is going to skyrocket.

On what bases should the government just cancel the money contracted to pay in interest to the lending institutions? They can't. So, it will be the government that pays what is forgiven.

Where are the parents? I'm an old, retired fart. But when I went to college (1968), my parents oversaw everything I did to pay for my college education. If I needed help, they were there. It's not fair to blame only the student (however naive) for entering into loan contracts just because the can when they are 18 years old.
 
It look me 18 years to pay back $14 grand of student load debt. My brother paid off $100k plus in roughly 10-12 years by working for the USDA.

Fairness is something the government doesn't understand. The government is so massively large that it doesn't solve problems, it only creates more.

All the free stuff will ultimately come tumbling down, too many years of 8-12 percent deficient with only 3 percent GDP.
 

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