The Gun Counter

Read this first: Student Loans Are Predatory: Told You So

Then read the linked article: Student Borrowers Lack Understanding of Loan Terms

Student loans are the manacles of Satan, gleefully devised and riveted on by his eager minions - bankers, university administrators, and politicians. It's about the only debt that can't be discharged by bankruptcy, and the magnitude of it means nothing to kids whose largest purchase to that point has been a used car. The counselors paint rosy pictures of post-graduation earnings or completely neglect to tell the kid that Wymyn's Dance Studies has absolutely no employable career path.

We adults need to spread this word to every youngster who will listen to us - our kids, nieces, nephews, kids of friends, co-workers. They think they know that all about life, but here's a trap laid by the unscrupulous or the useful idiot that will profoundly retard their financial lives.

This thing really pisses me off.

Pretty much. I didn't have much for student loans, since the ones I used were only for dorm housing (the Illinois Veterans' Grant takes care of books & tuition, but not housing). I wound up doing some radical restructuring of my life to pay them off well ahead of time, and now they've been paid off for nearly five years. Those loans are the main reason why I decided not to pursue a Masters or Ph.D. Too much hassle for no guaranteed job.

I never took out any student loans.

I got college money from the military.

Jered wrote:I never took out any student loans.
I got college money from the military.

Me too.......after a fashion. At the time, members of the Louisiana Army National Guard were tuition exempt at public state colleges and universities, for up to 10 semesters. A GPA of 2.0 was required. The exemption was for class hours only, not books, student fees, or room & board. But I lived locally and commuted, so I didn't have room & board college costs. I also worked several part time jobs, in addition to my monthly Guard pay.

However, upon marrying Mrs. Termite in 1990, I immediately inherited over $8K in student loans.......

Termite wrote:However, upon marrying Mrs. Termite in 1990, I immediately inherited over $8K in student loans.......

I inherited $30k in loans. That's how you know it's true love.

Borrowing money that one can't realistically expect to pay back is a manacle of Satan.

I had student loans, but I worked like a slave during term, got good grades, graduated first in my class in law school, got a summer job followed by paid scholarships for further studies, and I paid off the loans before I entered the real job market.

I don't think I would have succeeded as well in my studies as I did, had I not enjoyed the luxury of the loans' saving me from working through term-time to pay my college fees.

For me, the loans were a good choice, but I was willing and able to pay them off quickly.

Changing the rules to allow discharge by bankruptcy could have widespread positive effects beyond just the finances. Lenders would be less likely to fund low payoff degrees in corrosive programs like all the various womens/ethnic studies and the various counter culture, red diaper doper baby depts.

Weetabix wrote:

Termite wrote:However, upon marrying Mrs. Termite in 1990, I immediately inherited over $8K in student loans.......

I inherited $30k in loans. That's how you know it's true love.

I should have checked her teeth first, too. I've dropped $$$$ in root canals, bridges, etc.......

Pretty much, most of the areas* left would be law, finance/accounting, and engineering... And, it would end most of the "silly" schools.

*Im sure there would still be education and military programs on a decent scale, funded w scholarships, but it would really benefit the whole system - should put an end to all the people who just don't belong in college.

The loans here are repaid with a fixed part of your income. If you earn good money you'll pay back a lot every year, if you get a low income job you'll be paying off the debt all your life. It really doesn't promote people not taking on debt, because they'll either pay off the same amount all their life regardless of how much money they borrowed, or they'll earn so much money that a few more thousand wont matter much. There's plenty of people that turn their studies into a career.

The interest is lower than it is on any loan you can get, so I don't think anyone pays it off early. I've just been paying it off in the requisite amount every year, thinking it's a lifetime deal. But then when I actually checked it turns out I'm well on the way to pay it off. I almost wish I could put my other loans into that one instead...