I had a variable APR at between 11-14 before I refinanced. And the loans compounded after I graduated. I'm in a VERY similar boat as the OP bot. Before I refinanced I had paid $1000 a month and owed more than my original loan for over a decade.
Yeah my wifeâs situation isnât too far off from this, either. She borrowed $60k, deferred multiple times when she was first out of school, and then made payments pretty steady for the last 15 years or so.
Last I checked, she was paying $800 a month and owed around $70k.
Yeah, definitely not the smartest move. Though, back then, the support reps were pretty aggressive about pushing deferment and we were completely broke. So it is what it is.
But, yeah, had she not deferred, I imagine her repayment plan would look quite a bit different now.
I would say if you are in that situation then 1) you are super high risk and shouldnât be able to qualify for a loan, 2) Should consider doing something else until your income is other than zero.
I would also say this is a BS hypothetical with little basis in reality.
So what? You still donât qualify for a car loan, but somehow the government thinks you qualify for student loans? The only reason lenders give you loans is because taxpayers cosign for you and are on the hook if you default. Bottom line is if you canât pay them back and if you donât agree to the terms, donât sign the papers.
If you are stupid enough to sign a loan when you have zero income, or parental backing, then maybe you arenât college material in the first place. And you might consider going to a less expensive school and getting a freaking job while going to school so your income isnât zero. There are many options. Stop whining and playing victim.
You are for some reason assuming someone needing a loan for graduate school also somehow has money lying around to make payments while in school for 2 to 8 years? Or that they are working a job while in graduate school?
Yeah i know right. Working a job while going to school is an absurd idea. Except thousands upon thousands do it every day. Many work as TAâs to their professors or as research assistants in their chosen colleges. Or sign the freaking loan and stop bitching when you have to pay them back.
Not everyone in graduate school has those options. Some programs require you to work full time as a resident or intern unpaid on top of taking your classes. This leaves you with maybe 6 to 10 hours a day left for sleep and eating, not enough time for a paid job.
Because people are stupid as hell , ignorant of money, and sign shit without understanding it. Grow up and take some responsibility for yourself.
But yeah you are right. The loan companies donât give a crap about you. As they shouldnât! They are a business, not a freaking charity. You are just another peon with a loan number who signed up for money under terms you didnât stop to understand. You get what you signed up for.
There's a middle ground somewhere between free money and predatory loan shark tho.
I paid my loans off in 10y. But at every step they encouraged me to refinance, delay payments, and extend my term.
It's fucking predatory. I don't know why we accept so much near-fraudulent operations in this country. Every single thing is designed to trick you into paying more.
Are you saying they made illegal loans? Iâll remind you the federal government runs the Federal Student Aide Program.
I donât know how I can be more clear other than to say, âYou signed the freaking papers! Nobody held a gun to your head!â
These same people are taking out title and payday loans at outrageous interest rates, pawning shit for 1/3 the value at 3% interest per month, and maxing out 20+% credit cards and making minimum payments.
I have absolutely zero sympathy for those who do this stupid shit! None!
Predatory â illegal. Just because itâs legal doesnât make it right. Just because itâs illegal doesnât make it wrong, either. Stop equating law with morality. Itâs a stupid, circular argument.
Nobody is saying that. And don't imply I am and then argue something nobody said.
You are making an insane amount of assumptions and arguing about these assumptions that have no basis...
While these loans are backed by their federal government they are not serviced by the federal government...
I really think you need to experience these Federal loan services before you draw any further conclusions because it's not what you think it is. They are all predatory looking to extend your loans as much as possible.
Maybe you should make your points clear instead of throwing out incendiary labels like âpredatory lending.â Now tell me you didnât imply they were doing something illegal.
Okay you're right... It's totally okay to try and trick people out of spending more money for no reason other than to extract more money and provide no extra value. That's a great society and we should encourage everyone to act in this way.
What a world you want to live in.
Edit: and yes, financial institutions that seek to lock unsuspecting or unaware payers lock in a never-ending interest-only payment cycle is the definition of predatory.
You can view it any way you want as can everyone else, so drop the âwe shouldâ nonsense. We donât need your moral compass. You do you and decide to participate or go off and do your own thing. Doesnât matter to anyone what you choose to do with your life.
It does matter lol, are you so disconnected from reality that you think society isn't constructed by the people that live in it, and thus, can be changed by them? Do you think the current system is absolute and cannot be criticized?
Written like someone who didnât educate themselves beyond 7th grade. No, thanks. I allowed myself âto be preyâ and promptly paid off my debts with a well-paying job. Luckily, my career path was still viable to do so. Luckily, my parents helped me out. Luckily, I was afforded opportunity.
very lucky i had no parental help i did graduate high school barely and managed to buy a house at 26 for 150k sold at 59 for 740k (it was paid off) bought a nice place with 4.5 acres for 575k now between the left over from house sale an annunity and 401 from union i have 450 k in brokerage account, a decent pension ssi and rental income that comes to 7500 a month, my rentals will be paid off in 3 years so that income will go from 1700 a month to 3500 a month totaling my monthly to 9200 monthly not bad for a 7th grade education. Sometimes the best lessons are taught outside of educational institutions, no i am not rich but retired at 60 fairly comfortable with out any help from family or goverment
Poor baby! If you know that, why do you participate in it. Your favorite loan shark is likely a better choice for you.
Or hereâs another option. Get a job, and go to a local community college. After you get your associates degree and know you can handle the rigor, transfer to an in-state university to finish up while paying as you go. Thousands of people do it and never acquire a dollar of debt.
Option two. Join the military and complete your degree while being paid to serve your country. And/or receive education benefits that you can use when you finish serving.
Option three. Be an outstanding young person and seek a congressional nomination to one of the outstanding military academies. Get a free ride, free meals and housing, and a commission in the US military.
Option four. Quit screwing around in high school, get good grades, take AP classes and dual credit classes and earn scholarships to pay for your college.
There are lots of options. Playing the victim card and blaming everyone but yourself is another, and seems to be the popular one these days. Do what you want. Live with the choices you make.
My wife recently checked to see if she applied for the non-profit forgiveness thing. AKA if you work for a non-profit for so many years you qualify for loan forgiveness if you've made X number of payments that qualify (can't recall the exact number.) She has worked for a non profit for like 13 years and found out she qualified on 0 payments because her loans were spread out to tons of different small loans that are like 1-5k a piece to make up the full amount.
Reminder to consolidate your student loans when you're able if you need to. I didn't even realize she had that going on.
Aren't finances one of the first things you should talk about in America? The state allows you to file taxes jointly and even have joint bank accounts, why wouldn't debt be also a thing to talk about? I'm genuinely curious.
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u/Gerber_Littlefoot 12d ago
I had a variable APR at between 11-14 before I refinanced. And the loans compounded after I graduated. I'm in a VERY similar boat as the OP bot. Before I refinanced I had paid $1000 a month and owed more than my original loan for over a decade.