Banks are borrowing money at almost zero percent interest rates. However student loan customers are being gouged at interests rates ranging from 4.7 to 7.2 percent. Why is it that are elected representatives in the government are allowing the people to be robbed in this way?
My student loans are locked in at almost 3%.
The way I understand the lending process to be, the riskier the loan, IE, if a bank feels that giving person A money is a higher risk than person B, then they increase the interest for person A.
With that in mind, student loans are the LEAST risky loans a bank can ever do, because there is no debt forgiveness on them. A student loan is with you FO LIFE, or until they are paid, period. Which means, low risk, which means...low interest...?
No one forces one to take a student loan. If the rates are too high, would the number of loans taken be as high as they are?
On the other hand, the whole idea of government finance for the university system through individual students is horrible. Less loans would equal lower tuition and more educational innovation to attract students. The idea that there should be no scarcity of dollars or students in the university system has done immense harm. Tuition is high, students are borrowing money for living expenses, grants are being squandered, the work ethic is low and the sense of entitlement high.
And the schools can pretty much always count on recooping their losses through Government funding as well, because no one wants to cut education funding.
It's a cronyist racket, plain and simple. Prospective students are sold on an over-hyped product, and then charged through the teeth for it, while colleges simply sit pack and rack in the dough while double-dipping on whatever funding the Federal Government happens to toss their way.
Disgusting.
Yep. And we continue to play the game because, these days, you need a degree just to be a retail dept manager.
And that's just insane and begs the question: How did we get here?
Banks are borrowing money at almost zero percent interest rates. However student loan customers are being gouged at interests rates ranging from 4.7 to 7.2 percent. Why is it that are elected representatives in the government are allowing the people to be robbed in this way?
Yep. And we continue to play the game because, these days, you need a degree just to be a retail dept manager.
Banks are borrowing money at almost zero percent interest rates. However student loan customers are being gouged at interests rates ranging from 4.7 to 7.2 percent. Why is it that are elected representatives in the government are allowing the people to be robbed in this way?
So let's see. A student, with little to no credit history, is provided loans into the $10's of thousands, based on no income, or at the very most, the hope of future income, and you consider 4.5% to 7.2% gouging?
It's difficult to know where to go with that.
Who you going to higher as a cashier, if all other things are equal...the college grad, or the non college grad?
Is defaulting or filing bankrupt on a student loan possible?
Student loans are THE safest bet you can make. You got an 18 year kid with their entire life ahead of them. That's 80 years or more to recoup that loan, baring a premature death.
Yep. And we continue to play the game because, these days, you need a degree just to be a retail dept manager.
That is because a HS diploma (or GED) does not mean that an applicant is trainable or or even possesses a basic grasp of math or English. Our own government does this as well - college education (usually in ANY field) is required to be a commissioned military officer or to advance to the upper GS civilian ranks. Nobody wants to do thousands of interviews or to face dopey EEO lawsuits - so the herd of applicants is first thinned by using college as an essential requirement.
That is not the point. Is the interest rate too high, considering the risk?
Have programs been introduced to forgive student loan debt?
The interest rate should be the lowest availble if it is a government supported loan...
but my question is when does it kick in?
By rights it should be two to five years after graduation
That is not the point. Is the interest rate too high, considering the risk?
Have programs been introduced to forgive student loan debt?
Since being a cashier doesn't require college graduate knowledge, I'd hire the one who could be most punctual and reliable as well as flexible to cover other positions when people inevitably call out.
We're assuming all other things, like these criteria, are equal.
Someone with a degree has a proven record of reliability.
I could be wrong but I think that's how it works - my nephew got a private loan for college about 7 years ago now and at one point it was 14% which is insane. He had to start paying on it 2 years after graduation - but my sister paid it off for him and he paid her back without the interest which was nice of her to do. I don't know if that applies to government loans since I think the a few years ago all loans had to go through the US government for college or some such thing.
How does one gain acceptance into College without a basic grasp of math and english?
14%????
That's outrageous! Interest rates on consumer loans are a fraction of that...who's making the big profit?
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