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Have you paid off your student loans?

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Have you paid off your student loans?

Postby Henry Vilas » Sat May 25, 2013 10:40 am

I didn't have to take out much money to go to college. Tuition was much lower when I went to school than it is today. I did have a relatively small loan when I left school and joined the Navy. When I got out, I finished my degrees with the help of the GI Bill. But today, many graduates are burdened with heavy debt. Some even say that it wasn't worth going to college, because of that debt.

I found the following quotes quite interesting:
“You can’t discharge student loans in bankruptcy, there is no refinancing of student loans, there is no statute of limitations on student loans,” (Scot Ross, executive director of One Wisconsin Now) said.

“I like to say there are five crimes with no statute of limitations: Murder, kidnapping, treason, war crimes and student loans.”
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Re: Have you paid off your student loans?

Postby Violet_Skye » Sat May 25, 2013 10:48 am

I agree with them. It's a life sentence.
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Re: Have you paid off your student loans?

Postby TeachInPeace » Sat May 25, 2013 11:17 am

I got lucky - tuition didn't really go up dramatically until my senior year. I escaped with about 9,000 in loans, which mostly got discharged and paid off with Americorps Service Awards. I do find irony in borrowing money from the govt to go to school, and then paying that money off with more govt money. I guess that makes sense to someone though.
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Re: Have you paid off your student loans?

Postby rabble » Sat May 25, 2013 3:53 pm

When I graduated I was in my forties and owed about 30k. My last parent passed away two years later. My share of the estate was a little over 35k.
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Re: Have you paid off your student loans?

Postby Sandi » Sun May 26, 2013 1:37 am

For what college costs today, one could realistically hire a full-time private tutor for their kids.
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Re: Have you paid off your student loans?

Postby rabble » Sun May 26, 2013 10:05 pm

Yes, that would look just as good on the resume.
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Re: Have you paid off your student loans?

Postby fisticuffs » Mon May 27, 2013 9:34 am

Sandi wrote:For what college costs today, one could realistically hire a full-time private tutor for their kids.


I'm sure you could get top talent for $22k/year. And access to the same facilities.
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Re: Have you paid off your student loans?

Postby Sandi » Mon May 27, 2013 4:22 pm

fisticuffs wrote:I'm sure you could get top talent for $22k/year. And access to the same facilities.


It was in a Bloomberg article. I didn't check the math but feel free...

With the average cost of a year of public college at $22,000 and of a private one at $43,000 a quick bit of (high school) math nets the per-hour cost of the education using Vedder’s hours spent at $24.50/hour (public) and $47.77/hour (private).
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Re: Have you paid off your student loans?

Postby Stebben84 » Mon May 27, 2013 5:05 pm

Still paying mine off and have a about 5 years or so to go if I pay the set amount. The problem is how the loans work. Once you consolidate the loan, you're locked in. You can't pay down the interest because it set and that's a scam. This is what needs to change first. It should be treated like any other loan. There is no incentive to pay a consolidated loan off early.

Sandi wrote:For what college costs today, one could realistically hire a full-time private tutor for their kids.


Better yet, more people should go to trade schools. A tutor is a one trick pony. They're going to have expertise in one field and subsequently the student isn't going to get a well rounded education. Tutors are there to supplement your education not replace it.

That said, the only thing I'd change if I had a do over is not take the full amount. I was young, naive and didn't think much about the costs associated with the loan. Other than that I don't regret taking loans out to go to college. I couldn't have afforded it without the loans and I wouldn't be where I am at today without the degree.
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Re: Have you paid off your student loans?

Postby Igor » Mon May 27, 2013 5:26 pm

Stebben84 wrote:Still paying mine off and have a about 5 years or so to go if I pay the set amount. The problem is how the loans work. Once you consolidate the loan, you're locked in. You can't pay down the interest because it set and that's a scam. This is what needs to change first. It should be treated like any other loan. There is no incentive to pay a consolidated loan off early.


Yeah, that is a big factor. I only had about $4000 worth, which was small even for back then. But you can't pay it down, and (at the time) it didn't help my credit rating either. Maybe that has changed since.
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Re: Have you paid off your student loans?

Postby rabble » Mon May 27, 2013 5:37 pm

Seems to me that I saved some money by paying mine off early but I was so happy to get out from under the monthly payment that I didn't really pay attention.
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Re: Have you paid off your student loans?

Postby Stebben84 » Mon May 27, 2013 6:17 pm

rabble wrote:Seems to me that I saved some money by paying mine off early but I was so happy to get out from under the monthly payment that I didn't really pay attention.


If you didn't consolidate your loan then that may be the case. Once you consolidate, the amount you owe is fixed and you can't pay down your interest. I remember unconsolidated loan rates ridiculously high and I couldn't afford it. At the time most consolidated rates were about 6 or 7 percents. I got shafted cause they are now at about 3 to 4 percent. Things could change though.

STUDENT LOANS: Rates Set To Double
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Re: Have you paid off your student loans?

Postby rabble » Tue May 28, 2013 8:27 am

Stebben84 wrote:
rabble wrote:Seems to me that I saved some money by paying mine off early but I was so happy to get out from under the monthly payment that I didn't really pay attention.


If you didn't consolidate your loan then that may be the case. Once you consolidate, the amount you owe is fixed and you can't pay down your interest.

I remember that there was more than one loan at the end because I know I paid one or two off and almost all of another.

The thing is, I also distinctly remember turning several loans into one after I graduated.

There was so much going on then, like child support, sick parents, new job, new residences, girlfriend family problems, girlfriend's kids, and more stuff that I can't remember. Odd to look back on all that and realize here was hardly any substance use, let alone abuse, and it's STILL a blur.
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Re: Have you paid off your student loans?

Postby bleurose » Wed May 29, 2013 8:33 am

Paid mine off early. I recall that my final year of undergrad when you get the required "financial counseling", I was appalled at what my total debt was at that point. I got enough in grants and loans that year that I was able to turn down all the loans and finish with just the grant $$. I was going on to vet school so I knew that I did not have to start paying on it yet, but I still did not like the amount. It was ~ $10,000 for undergrad. My sainted mother, god bless her, paid off my undergrad loan balance as a graduation gift. So now I would only have the loans for vet school. I think I got out of there with approximately $40,000-$45,000 total. Worked in private practice for three years and started the payment gig. I did consolidate several loans at some point for what turned out to be a ridiculous interest rate, 7-8%. And other posters are right - once you consolidate, you have no further option to lower your interest rate. You might as well engrave it on your tombstone because they absolutely will not let you lower it. I tried because at some point, rates had dropped to the 3-4% range, but no go. Then I got a residency and everything went on hold again until I finished, about another 4 years. Once I got a position in my specialty, I started back paying again. In the meantime, I'd gotten married so was part of a 2-income household which made things easier. So I went into overdrive on the student loans and made triple payments. Even with that, it took a solid seven to eight years to get out from under.

I remember one of my resident mates did the consolidation thing too right as she was finishing her residency. She was overjoyed because the consolidation and slightly lower new interest rate resulted in quite a low monthly payment; I think she said it would be about $250/month. And she had no intention of paying a penny more than that each month. She did not get that she would be paying those loan payments with her monthly social security check because her principal balance was on the north side of $100,000. And she was quite a bit younger than me.
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Re: Have you paid off your student loans?

Postby Henry Vilas » Fri May 31, 2013 12:16 pm

Obama is encouraging students and their families to contact their congressional representatives in order to keep student loans affordable.

Obama repeats strategy in student loan fight

"Higher education cannot be a luxury for a privileged few," he said at the White House with college students standing behind him. "It is an economic necessity that every family should be able to afford, every young person with dreams and ambitions should be able to access and now's not the time for us to turn back on young people."

The Rose Garden appearance angered GOP leaders, who contend they have proposed a reasonable solution.


The GOP's "reasonable solution" is to raise interest rates.
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