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Tue, 11-10-09 - 11:26 am by Shootme2020

US Credit system sucks..

The US credit system sucks. We are soo used to living on credit and now that credit is not available to hard to get, we find it hard to keep this economy moving.

College loans are good when we are in school and trying to get that degree, but then you are hostage to it for the rest of your life. In that case, what good is the loan. Maybe you are better off without a degree if you don't have the money.

Without a degree, if you can get a job for 40-50k and with a degree you make $150k but have to live on 50k, it doesn't make sense.

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Mon, 11-09-09 - 06:43 am by Benji17

I agree that this is much

I agree that this is much like the credit card fiasco which we will start to see much more of by mid next year. Student loans should be also allotted based on one's ability to be paid back at future date. This makes me wonder why colleges do not somehow base their tuition on future salaries. I am concerned about recent graduates not having the ability to pay off loans because they are unable to secure jobs after graduation. The loan problem, and I encompass mortgages, student loans, and credit cards in this, are a huge problem right now. Banks are just gouging everyone-our government needs to step in and reduce these incredibly high interest rates so that people can pay the loans off eventually. This is impossible to do when the interest on those loans is as much as the loan. Although our current administration has stepped in and forced credit card companies to stop their high interest tactics, this is not taking place until next year. In the meantime, credit cards are raising rates to almost 30 percent in many instances and student loans are also being affected. I used to put tuition on my credit card. I wonder how many others do the same?

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Sun, 11-08-09 - 10:37 am by Benji17

I agree that paying off

I agree that paying off student loans can be tough, but you are comapring apples to oranges. The sub prime loans were doled out to those who did not qualify for home loans in the first place. Many people actually look ahead to see what they can and can not afford and buy according. It does not take a 'financial expert' to see that it was the fault of both parties-the banks who OK'd the home loans, and the people who knew they could not afford the home. As I see it, unless a former student cannot find a job, these loans are supposed to be paid off-that is the loan agreement. To owe this much, I am assuming these 2 attended private colleges. Apparently they also did not qualify for any grants which means their parents have some $$$. Although I am sympathetic to their plight and the plight of those struggling to pay off student loans, I feel that not having a 'financial' background is not an excuse-I have no financial background, yet I find a way to live on a third of what they make. And, as an attorney, in a few years, he will be making a lot more money than most students will ever see. Living in a small apartment is not 'suffering', it is what they have to do right now to make ends meet. Many, many people without the opportunity to attend college are doing the same. It is not the end of the world to be responsible for the debts you incurred. Also student loans are not wiped away by filing bankruptcy. I am sure this attorney wants his clients to pay, as does the bank.

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Sun, 11-08-09 - 02:34 pm by ronstone

Thanks for the thoughtful comments. I certainly can see your point of view. Perhaps a better analogy is the credit card disaster, where credit cards were mailed out indiscriminately without regard to the ability to pay back debt incurred. The ability to borrow to go to school is a good thing but perhaps there should be some limit as to the amount of debt that can be incurred recognizing that the future earning power of the borrowers is speculation. Some schools, like Princeton, have recognized the burden this debt places on its graduates and have taken steps to ameliorate the situation.
While the bankruptcy act may prohibit discharging the debt, I believe there should be some ability to reduce and/or reschedule the debt like other creditors can do. Forget my friends situations. I suppose they can work for the next 30 years and pay off the debt. But what about someone who has no way of repaying the loan. What do they do for relief?