Student Loan Horror Stories from NY Times

[Anonymous]

I was actually thinking about this the other day. It's true, since the recession loads of people have tired to make money off people by making them believe they need this and that qulification. And people are really buying into it. So many people are getting out personal student loans which they are not going to be able to pay back in their current situations. I think there should be improved career orientation help made available.

[Anonymous]

I think we should all be very saddened by this article.  No one is benefiiting from what is happening.  And to think, when I finished my undergraduate degree and graduate program, I had two loans totaling $3,500 (and this wasn't that long ago).  Really puts everything into perspective.

[castlefox]

The article didnt load for me.  But...   that does sound really crappy BUT people need to be more aware of the things they sign for.  I can understand how its a pain in the butt to read all the fine print BUT it needs to be done. 

Ya I didnt finish my undergraduate degree and I had 12,500 worth of debt a year ago.  I got it down to 3,000.   It didnt really feel like I owed that much until I had started to realize how much of my paycheck I would need drain into that debt.

[Anonymous]

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@Anonymous wrote:

so once the student borrows the money, it stays with them until it is paid off.

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I believe there is a 25 year rule where after 25 years, the student loans are automatically forgiven.  Not sure if that is 25 years of payments, or just 25 years from date of loan origination.

[MarineVietVet]

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@Anonymous wrote:

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@Anonymous wrote:

so once the student borrows the money, it stays with them until it is paid off.

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I believe there is a 25 year rule where after 25 years, the student loans are automatically forgiven.  Not sure if that is 25 years of payments, or just 25 years from date of loan origination.

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I'm not saying you are wrong but do you have a source for this?

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[laz98]

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@MarineVietVet wrote:

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@Anonymous wrote:

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@Anonymous wrote:

so once the student borrows the money, it stays with them until it is paid off.

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I believe there is a 25 year rule where after 25 years, the student loans are automatically forgiven.  Not sure if that is 25 years of payments, or just 25 years from date of loan origination.

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I'm not saying you are wrong but do you have a source for this?

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i might be wrong as well, but i believe this is ONLY if you are in the IBR program, and it's after 25 years of on-time payments.

[MarineVietVet]

Both of you are correct. At the Federal Student Aid website it says:

Income Based Repayment (IBR) Effective July 1, 2009

Income Based Repayment is a new repayment plan for the major types of federal loans made to students. Under IBR, the required monthly payment is capped at an amount that is intended to be affordable based on income and family size. You are eligible for IBR if the monthly repayment amount under IBR will be less than the monthly amount calculated under a 10-year standard repayment plan. If you repay under the IBR plan for 25 years and meet other requirements you may have any remaining balance of your loan(s) cancelled.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

The topic is near and dear to my heart as mine will be 25 years old in 7 years.  Just about the time for last years of med school.  But there is a plan beyond the IBR as well, right?

My med school loans will be forgiven because I will be a rural family physician (yes, I'd like to do pedi onc but it is highly unlikely that I will get to it at my age)...

[Anonymous]

What are qualifying payments? The Department of Education has indicated that the following types of payments will count towards IBR's 25-year forgiveness period, as long as you are in IBR at some point during those 25 years.

• Payments made in the Income Contingent Repayment plan (ICR) before July 1, 2009.
• All payments made on or after July 1, 2009 in the IBR, Income Contingent Repayment (ICR), and Standard (10-year) Repayment plans.
• Periods when the borrower has a calculated payment of zero in IBR or ICR (this occurs when your income is at or below 150% of the poverty level for your family size).
• Periods on or after July 1, 2009, when the borrower has been granted an economic hardship deferment.

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So... what I read is that I will qualify due to job loss, economic hardship deferment, forbearances, etc.

The interest has killed me.