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Current Events => The DUmpster => Topic started by: Miss Mia on December 28, 2008, 12:28:48 PM

Title: Student loans turn into crushing burden for unwary borrowers
Post by: Miss Mia on December 28, 2008, 12:28:48 PM
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Liberal_in_LA  Donating Member  (1000+ posts) Click to send private message to this author  Click to view this author's profile  Click to add this author to your buddy list  Click to add this author to your Ignore list      Sat Dec-27-08 01:16 PM
Original message (http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4723696)
Student loans turn into crushing burden for unwary borrowers
   
http://www.latimes.com/business/la-fi-collegedebt27-200...

Student loans turn into crushing burden for unwary borrowers

Kathy M. Kristof:

Some who think they are getting a federal loan find out later that they hold a private loan. The difference can be costly.

Kathy M. Kristof, Personal Finance
December 27, 2008


Marja Lopees of Burbank is a few years out of school and makes about $70,000 a year as a lawyer. But she racked up $196,253 in debt and says her student loan payments swallow 40% of her earnings.

Lopees turned to private loans when she hit borrowing limits imposed by the federal student loan program. Now she has $88,303 in private loans that charge an interest rate of 8.84%. The payment on that loan is her second-largest monthly expense, after rent.

"I'm making interest-only payments on one of the loans, and still the payments keep going up," she said. "It's just overwhelming."

When she just makes minimum payments, her debt and rent consume 60% of her after-tax income. That's before she pays for food, clothing, utilities, and gasoline or saves for long-term goals.

"No one tells you to be careful of taking on too much debt when you're in school," she said. "It's just the opposite. They just keep giving you loans and saying, 'Don't worry about it. You're going to be a lawyer. It's no big deal.' "

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ProudDad  (1000+ posts)  Journal  Click to send private message to this author  Click to view this author's profile  Click to add this author to your buddy list  Click to add this author to your Ignore list      Sun Dec-28-08 12:12 PM
Response to Original message
64. When I was young and in college
   
kids got Scholarships and Grants.

But that didn't line the pockets of the rich so...

Beginning with saint ronny ray-gun (may the devil fry his soul for eternity) they were converted into interest bearing loans to line the pockets of the already rich with more "money".

Just as the easy money in the real estate mortgage business fueled the housing bubble and helped trigger the latest example of the collapse of the evil Corporate Capitalist system, making kids take out crippling loans in order to go to school allowed colleges and universities to piss away money (and salt it away in "endowments") and contributed to what can only be called a "schooling" bubble that must eventually burst when not enough can afford it.

You know, in the Civilized World a college education is subsidized by the government (that is, they the People) because they know an educated population is an economic and social good.

------------------------------------

PS: Marja should go Chapter 7...

Okay, this is the funny part:

Quote
ProudDad  (1000+ posts)  Journal  Click to send private message to this author  Click to view this author's profile  Click to add this author to your buddy list  Click to add this author to your Ignore list      Sun Dec-28-08 12:13 PM
Response to Reply #64
65. WHO THE F*CK
   
Edited on Sun Dec-28-08 12:16 PM by ProudDad
Or what the F*CK software comes up with the ads in these threads!!!

It's f*cking disgusting!!!!

Here we're in a thread about the evils of student loans and on the bottom...ads for student loans!

(http://i4.photobucket.com/albums/y138/firelatte/CC/studentloans.jpg)



:rofl:
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Chris_ on December 28, 2008, 01:28:13 PM
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ProudDad  (1000+ posts)  Journal  Click to send private message to this author  Click to view this author's profile  Click to add this author to your buddy list  Click to add this author to your Ignore list      Sun Dec-28-08 12:12 PM
Response to Original message
64. When I was young and in college
   
kids got Scholarships and Grants.

But that didn't line the pockets of the rich so...

DUmbass -- they still have scholarships and grants -- for kids who work hard. I assume yours don't.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Tantal on December 28, 2008, 02:41:23 PM
Once again, AdBot is there to throw fuel on the fire. :-)
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: jukin on December 28, 2008, 03:04:55 PM
Hey sooper smarter Dummies, are the evil conservatives in charge of the universities or is it your money hungry leftists?

The more money the government gives out the more money it will cost to go to college.

Things will only get worse as hard science and engineering degrees go by the way to womyn's/minorities/social studies and law degrees that do NOTHING< NOTHING to add GDP to the USA.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Carl on December 28, 2008, 03:42:33 PM
Hey sooper smarter Dummies, are the evil conservatives in charge of the universities or is it your money hungry leftists?

The more money the government gives out the more money it will cost to go to college.

Things will only get worse as hard science and engineering degrees go by the way to womyn's/minorities/social studies and law degrees that do NOTHING< NOTHING to add GDP to the USA.

BINGO!
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Texacon on December 28, 2008, 04:28:02 PM
She is bitching about unsecured money at a rate less than 9%?!  Every couple of years I end up going to my local bank and borrowing anywhere from $8k - $15k to pay my frigging taxes due to a strong quarter or two that was unanticipated.  I get the money on a 60 day note and my banker will charge me 9% - 10%.  This is a guy I do business with all the time and it is a short note.

She has no reason to bitch.  She has an education in a field that has the potential to pay her many times what she owes.

KC
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Splashdown on December 28, 2008, 04:44:51 PM
Does BadCat run adbot? Just sayin'  :-)
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: BlueStateSaint on December 28, 2008, 05:04:06 PM
Does BadCat run adbot? Just sayin'  :-)

WTF???  Didn't you get the OPSEC memo??????? :banghead: :banghead: :banghead: :banghead:
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: rich_t on December 28, 2008, 05:08:47 PM
Quote
"No one tells you to be careful of taking on too much debt when you're in school," she said. "It's just the opposite. They just keep giving you loans and saying, 'Don't worry about it. You're going to be a lawyer. It's no big deal.' "

So it's somebody else's fault that you're stupid, and didn't realize you'd have to pay those loans back?  I hope like hell you didn't get into banking law.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: BlueStateSaint on December 28, 2008, 05:12:06 PM
So it's somebody else's fault that you're stupid, and didn't realize you'd have to pay those loans back?  I hope like hell you didn't get into banking law.

It's the Official Age of Irresponsibility, with the Obamessiah coming to the White House . . .
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: rich_t on December 28, 2008, 05:27:17 PM
It's the Official Age of Irresponsibility, with the Obamessiah coming to the White House . . .

Sure looks that way~!
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: USA4ME on December 29, 2008, 08:49:53 AM
Quote from:
ProudDad

You know, in the Civilized World a college education is subsidized by the government (that is, they the People) because they know an educated population is an economic and social good.

Yep, the gov't either pays or picks up a large majority of the costs of college.  And then they go broke, for example like in California where the State *does* in fact pay for a majority of the tuition costs, one of the main contributing factors to their economic woes.  But according to you, dimwit prouddad primitive, that should have never happened, because when California subsidized college education, that should have been an economic good which would have prevented the State from going bankrupt.

Honestly, the DUmmies are getting more and more stupid.

.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: DumbAss Tanker on December 29, 2008, 08:53:11 AM
If ol' Maria is using 60% of her 70K to cover her rent and loan payments (a little convenient grouping for story purposes there, given Californistan rents) she's sitting pretty.  Someone just out of professional school needs to answer the mail on accumulated debts before worrying about 'Long-term goals.'
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Rebel on December 29, 2008, 08:57:53 AM
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LostinVA  Donating Member  (1000+ posts)Sat Dec-27-08 04:27 PM
Response to Reply #9
34. That's what law school costs, which is why I didn't go
   
It's why many law school graduates who would LOVE to do civil rights law, etc., can't -- or at least can't for a long time.

I have much sympathy for her.

And yes, I do think then government should mpay for at least part of EVERYONE'S education.

Screw you, moron. So someone that doesn't want to go to college, and would rather just become a mechanic or a plumber, should have to fork over their earnings so one of you moonbats can go to school?

You want to go to school get a loan, a grant, or a scholarship. I'm assuming you were too much of a dumbass to get a grant and too stupid or lacked the ability to do anything extra-curricular like play a f'n flute to get a scholarship. College costs money. Always has, always will. Why? Professors don't work for free and buildings aren't built and maintained by "volunteers".
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Rebel on December 29, 2008, 09:03:10 AM
Hey, remember when the USSR covered the costs of a college education? Many couldn't go....period, and others were forced into professions that they otherwise would not choose.

Great plan, ya f'n DUmbasses. When the government controls all forms of education, and picks up the tabs, it'll start picking and choosing who to invest it's money in, .....that was stolen from the taxpayer.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Zeus on December 29, 2008, 10:06:34 AM
Depending upon where you live $70K/yr isn't a bad income. Now if I was a lawyer, I'd be embarassed to admit that's all I make. hell I know lawyers fresh out of school making in excess of $100K/yr and all they do is basically a little more than Notary work, cookie cutter law work. This isn't in some big time law office either it's small town hang out a shingle work.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: BEG on December 29, 2008, 01:36:23 PM
DUmbass -- they still have scholarships and grants -- for kids who work hard. I assume yours don't.


My kid got several scholarships and we are considered too "rich" to deduct any of his college expenses on our taxes.  I'm so glad they only give scholarships to the evil repug's kids.  :p

*Please excuse any typos, I'm typing in the car.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: NHSparky on December 29, 2008, 02:15:48 PM
Balls...lots and lots of balls...all bouncing around....

LINK (http://www.payscale.com/research/US/Job=Attorney_%2F_Lawyer/Salary)

Median Salary by City - Job: Attorney / Lawyer (United States)
Los Angeles--$94,043

Oh, and someone should tell this idiot that it's possible to finish college without ANY loan debts.  I did.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Zeus on December 29, 2008, 02:27:15 PM
Doing simple estate work & uncontested divorce and simple bankruptcy work can bring in a couple grand a week easy. Still make happy hour regularly also.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: Chris_ on December 29, 2008, 02:38:57 PM
My kid got several scholarships and we are considered too "rich" to deduct any of his college expenses on our taxes.  I'm so glad they only give scholarships to the evil repug's kids.  :p

*Please excuse any typos, I'm typing in the car.

Please don't do that again, hon.  Driving is for driving and there is no room for cell phones, texting or the internet when you are om the move.

Now if you is just parked and having KB problems with the PDA -- then God love ya and been there :)
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: BEG on December 29, 2008, 03:32:50 PM
Please don't do that again, hon.  Driving is for driving and there is no room for cell phones, texting or the internet when you are om the move.

Now if you is just parked and having KB problems with the PDA -- then God love ya and been there :)



I'm not the driver, my husband is.  It is just hard to hit the correct keys when the car is moving.  We are going to Tulsa, very boring drive.
Title: Re: Student loans turn into crushing burden for unwary borrowers
Post by: DumbAss Tanker on December 29, 2008, 06:22:54 PM
Balls...lots and lots of balls...all bouncing around....

LINK (http://www.payscale.com/research/US/Job=Attorney_%2F_Lawyer/Salary)

Median Salary by City - Job: Attorney / Lawyer (United States)
Los Angeles--$94,043

Oh, and someone should tell this idiot that it's possible to finish college without ANY loan debts.  I did.

That's fairly consistent with a starting salary of $70K for a new associate with no previous experience, actually.  FWIW the non-flyover parts of the country pay quite considerably less for the same thing, of course in those parts of the country the cost of living and the things one is expected to maintain to present the appearance of success are considerably more pricey, so in terms of quality of life it mostly works out.