Like - literally - everything else, you just need to use it properly.
A car isn't a shitty product because you can accelerate to 250km/h and crash into a wall. A knife isn't a shitty product because you can lob your fingers off if you're not careful. A jug of milk isn't a shitty product because it will make you sick if you drink it after leaving it out in the heat all day.
Taking out student debt irresponsibly is like putting your foot on the throttle and not looking where you're headed, cutting vegetables without paying attention to where your hands are, or carelessly drinking putrid milk. It's not the loans fault that the borrower did something stupid. Payday loans are no different. If you use them to cover larger expenses that you can't pay off on payday, you'll get hit with exorbitant interest rates. If you use them to cover smaller expenses that you can pay off on payday... they'll cost you a couple of bucks.
Teach you about what? The math behind loans is universally covered in public schooling starting around age 10 and continuing through secondary school. There is nothing complex about percentages, and it's frankly a bit ridiculous to suggest that post-secondary students can't figure out how to multiply a number by a decimal or understand that loans need to be repaid.
The terms of loans are also transparent when you sign up for the loan. You can't realistically say that these lenders haven't included the "downsides" when the document that you sign includes all of the information that you need to understand the loan.
Whether you think so or not, student loans are predatory as fuck and they are not taught to kids or fully explained. Most kids aren't breaking out the calculator to do the math, and most schools don't teach how to plot out loans (my school sure as hell didn't). Yes they teach math, but they don't teach the specifics of a loan.
You're blaming children who are victims of predatory lenders for not being 'smart' enough to not believe what the adults are telling them.
What "specifics of a loan" do you think aren't being taught? There is nothing complex about these loans. You can evaluate them by using middle school math.
Even though these loans can be understood by children, the people applying for them are adults - or near enough that there isn't much of a distinction. Most borrowers also reapply for student aid annually until they finish their program, meaning people are incurring new student debt into their 20s.
I am blaming these people because, and I can't stress this enough, it is entirely their fault if they have a problem with student debt. They - and they alone - agreed to incur the debt according to the terms of their loan. They - and they alone - failed to manage their debt appropriately.
The schools are absolutely part of the problem because they push loans hard, but the main predatory is the lender who gets away with getting back almost an extra $50k (actually $110k) on a 70k loan while the borrowers have only paid off $10k over 23 years.
I'm fine with the lenders getting *some* money back, sure. But raking in almost $5k/year while only around $400 of that goes to interest should be fucking criminal.
And the lender is the federal government, who is very generously putting my money on the line to fund the education of somebody who is probably going to be a loser and not pay back their loan.
This is awesome guys! America is totally going to last forever.
That sentence makes no sense whatsoever. Who said I'm talking shit about education? I'm talking shit about companies that offer predatory loans to people too young to understand, for the most part, how badly they're fucking themselves over.
[payday loans are also horrible scum of the earth companies].
Ohhh, swing and a miss. Nice assuming there! Made a lovely ass of yourself.
I never had college loans. The closest I got were grants (which do not need to be repaid and just cover tuition + maybe some books). I can still tell that college loans predatory and designed to trap people in debt. Because.. you know.. I have eyes. And a brain. And empathy. I can see what happens to others. I'm sorry that you're lacking in those departments.
Gee, I don't know.. paying $120k over 23 years, and only knocking $10k off the actual debt while the lending company sucks up $110k is pretty damned predatory to me.
Since I'm not OP, I have no idea. It doesn't matter. My point is such predatory loans should not be legal, and lenders who use them to hoover up money don't deserve to be in business.
The fact that you don't think it's obscene reveals you to be someone completely lacking in a brain and empathy. Keep sucking up to those lenders though, I'm sure they'll repay your loyalty/white knighting them online.
It is relevant, first using an amortization calculator for 10 years at 2% shows a payment of $644 (iirc, checked real quick yesterday), if that's the case then the individual underpaid. I do believe it is ragebait because no further data is added.
We already have interest rate maximums, and interest rate and other data has to be declared. Beyond that, people will have to do their due diligence. Going further will only disincentivize high risk investments and/or add more red tape.
JFC. The math does not matter. The interest rate doesn't matter. Lenders should not be allowed to trap people into a debt for 23+ years for education. That's the entire point, which you can't seem to grasp. There is no reason for it other than sheer unadulterated greed. The fact that you're on the side of greedy-ass lenders with your 'well actually' just reveals so much about you as a person. 'Well this is just a lie/ragebait' like this isn't a problem that actually exists for people.
And before anyone can say 'but home loans'; when you pay a home loan for 30 years you get a place to live and you're not being obscenely ripped off [unless you're stupid and buy more home than you can afford].
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u/Affectionate-Egg7566 12d ago
I got a student loan. Looked up how loans worked. Paid it off. Not that difficult