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Student Loan Horror Stories from NY Times

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MattH
Senior Contributor

Student Loan Horror Stories from NY Times

Article

 

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Message 1 of 19
18 REPLIES 18
tengtengvn
Frequent Contributor

Re: Student Loan Horror Stories from NY Times



When TJ Williams arrived in Portland from his home in Utah to enroll at Le Cordon Bleu in 2007, he was shocked by the terms of the aid package the school had arranged for him: One loan, for nearly $14,000, carried a $7,327 “finance charge” and a 13 percent interest rate.

“They told me that halfway through the program, I could probably refinance to a lower rate,” he said.

When he tried to refinance, the school turned him down, he says.

Career Education declined to discuss Mr. Williams’s case, citing privacy restrictions and saying he had not signed a waiver.

Mr. Williams has been jobless since last fall and recently returned to Utah, where he moved in with his mother.



Look at the immigrants who come to this country with no money in their pockets and work their way up from scratch. 

I just don't feel sorry for people like this. That's life.

What's in your wallet?
-Not Capital One.
Message 2 of 19
jeffery581
Established Contributor

Re: Student Loan Horror Stories from NY Times

Yea, Some people are not happy unless they can see someone struggling because they struggled and are bitter themselves!

 

 

 

 

 

 

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Message 3 of 19
Jazzzy
Valued Contributor

Re: Student Loan Horror Stories from NY Times


@tengtengvn wrote:

 

Look at the immigrants who come to this country with no money in their pockets and work their way up from scratch. 

I just don't feel sorry for people like this. That's life.


I understand that you might not feel sorry for the students...but it is the taxpayers who are footing the bill. You can feel sorry for us.

 

I watch an area school take people who could barely scrape their way through their GED and are on all types of public assistance, and the school gives them thousands of tax dollars in the form of grants and loans. The school then takes most of this money in the form of tuition, fees, etc. Most of the students drop out, and the loans are never repaid. Even if they make it, they are training them to be $9 hr medical assistants.

 

It's a racket, and only a few lucky ones make it out with training that will get them a basic job. They won't likely make enough to pay the loans back...but hey...it's taxpayer money...so, no harm done.

Message 4 of 19
laz98
Senior Contributor

Re: Student Loan Horror Stories from NY Times

 


@tengtengvn wrote:


When TJ Williams arrived in Portland from his home in Utah to enroll at Le Cordon Bleu in 2007, he was shocked by the terms of the aid package the school had arranged for him: One loan, for nearly $14,000, carried a $7,327 “finance charge” and a 13 percent interest rate.

“They told me that halfway through the program, I could probably refinance to a lower rate,” he said.

When he tried to refinance, the school turned him down, he says.

Career Education declined to discuss Mr. Williams’s case, citing privacy restrictions and saying he had not signed a waiver.

Mr. Williams has been jobless since last fall and recently returned to Utah, where he moved in with his mother.



Look at the immigrants who come to this country with no money in their pockets and work their way up from scratch. 

I just don't feel sorry for people like this. That's life.


 

i have to agree.  i don't feel bad for any of these people.  some people can graduate with a four-year degree with a much lower amount of debt.  if you were dumb enough to fall for such a stupid idea, then you deserve to suffer the fallout.  sorry, but $41,000 for a 9-month program should sound off great big alarms in anyone's head!  if it doesn't, tough luck for you then.

 

& yes lynette, it sucks that it's always the taxpayers' dime bailing everyone out, so maybe one day we'll all smarten up enough & stop letting all this corruption go on & on around us.  until then, i guess we'll all have to sit & wait.

Message 5 of 19
LisaPA
Regular Contributor

Re: Student Loan Horror Stories from NY Times

Wow, you're a compassionate bunch. Couldn't get into a 4 year college? Too bad! Trying to better yourself? You deserve to be scammed! That's like saying it was the victim's fault for being mugged. These organizations are just like payday lenders--they prey on people who don't have the education to know better.

 

This has nothing to do with "bailing everyone out"--the government should support higher education, because an educated workforce is valuable to the economic success of this country. If it's taxpayer money being wasted that means the government should more closely regulate institutions that use these loans as bait to lure unsuspecting customers/students.

Message 6 of 19
Anonymous
Not applicable

Re: Student Loan Horror Stories from NY Times

Lynette I wouldn't put down people who make $9hr so long as they making an honest living. Student loans are for life so you cant runaway from them like credit cards. Yes, it's crazy for these people to be paying $41000 for  a 10 month trade school. There was another crazy lady in a NYT article who went to NYU for a libral arts degree and ended up with $100K in student loans.

Message 7 of 19
laz98
Senior Contributor

Re: Student Loan Horror Stories from NY Times

 


@Anonymous wrote:

Lynette I wouldn't put down people who make $9hr so long as they making an honest living. Student loans are for life so you cant runaway from them like credit cards. Yes, it's crazy for these people to be paying $41000 for  a 10 month trade school. There was another crazy lady in a NYT article who went to NYU for a libral arts degree and ended up with $100K in student loans.


i don't know if she's putting them down; i think she's saying if schools are going to charge so much for their degrees, then they could at least place the students in a job with higher pay.

 

Message 8 of 19
Anonymous
Not applicable

Re: Student Loan Horror Stories from NY Times

It's not the taxpayer's dime.  These borrowers will be paying on these loans until they die, and then their estate will be paying on the loans unless the loan carries a forgiveness clause at death (most student loans no longer carry a forgiveness at death clause).  Student loans are not dischargable in bankruptcy, so once the student borrows the money, it stays with them until it is paid off.

Message 9 of 19
Anonymous
Not applicable

Re: Student Loan Horror Stories from NY Times

X2 You probably forget that there is a extremely high number of students/people period that don't know what there credit score is or what a FICO is. Add that with dishonest lenders that prey on these types of people, you probably haven't heard the worse cases yet...
Message 10 of 19
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