@Anonymous wrote:
In today's age where handouts are expected I can understand why the 1% of the balance counting towards monthly liabilities is a problem for many people. The standard payment for these loans would be at least 1% of the balance. IBR means you really can't afford the existing student loan debt and have a payment that is less than what is required to actually pay it back. I would bet that many of these loans are never repaid in full and the tax payers are left to foot the bill for irresponsible borrowing. If someone can't afford to pay back their student loans why would a lender trust them with a mortgage?
No one is expecting a hand out for a mortgage, particularly if they are already paying rent. If one can pay rent, they certainly can afford a mortgage.
Why is it o.k. for banks and corporations to receive handouts for their irresponsible actions but an IBR payment is indicative of irresponsibility? In the scheme of things Americans are damned if they do and doubly damned if they don't. You may be able to find a decent job without a college degree but you'll always be concerned about your marketability not to mention educating yourself is the best investment you could ever make. The average graduate will have at least 25K of student loans if not HIGHER. If you attend a graduate program worth it's salt, you will owe the amount equivalent to a small home of which most responsible graduates make payment arrangements(IBR or whatever works for them individually). And, I haven't heard one peep from the government about the price of tuition being regulated.
According to your logic, if you can't buy a home outright and pay it in full without a mortgage that must mean you really can't afford the house (especially if you ever decide to refinance!)
