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DameBruschetta -> RE: student loans (2/25/2011 2:44:14 PM)
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quote:
ORIGINAL: barelynangel
I dont know who is telling you that they have gone into default because their loans were sold and they sent the payment to the wrong place but they are either BSing you or themselves. First of all, they send more than one letter so they are either not checking their mail or reading the letters, second, if their checks are being cashed then the money is being applied to their loans, if they aren't being cashed then they are being irresponsible in not wondering why and contacting someone to find out, third, you don't go into default with ONE payment being messed up. Again, if they aren't wondering why their checks weren't cashed and followed up, then they are being silly.
Sorry but i really think you are reaching here with this "concern." With this day and age of online, you are also able to have access to your loans online. If you are diligent on keeping your mail address updated, checking your payments are being taken out of your bank account when you pay them and such, i dount you will have any trouble.
Here's a clue, the lender wants to get paid. So its not conducive for them to "fake" out the borrower.
angel
I was going by what the first article said, not rarely but "more than a few." As for the lender wanting to get paid, I'm not sure that's true either. I've read they want students to go into default or forebearance so they can add an extra 30% to their student loan balances.
"borrowers have been set up to fail because defaulted loans are more lucrative for lenders than loans that are paid, especially loans that are paid on time."
Here's the second article I got this quote from.
http://www.valleyadvocate.com/article.cfm?aid=12585
quote:
ORIGINAL: LaTigresse
I read through the article and cannot say I am surprised by what I read.
Most people that borrow money do not take the time to actually READ the paperwork they are signing. They have no clue what they've agreed to. I've always thought that many student loan programmes sounded too good to be true and apparently they are.
This is not directed towards any particular person.
I have found that most people never read their contracts either. In my experience though - all of my lenders (and I've had about 8 at this point, with several sales) that every single one of them has always been willing to work with me when I couldn't make payments. When I graduated and couldn't find work for almost a year each of my deferrals were granted, both times. When one of my deferrals didn't go through in time (and I was neglient in making sure it did) and missed a payment they worked with me. Never once did I get penalized or given a hard time. Then again I never made then chase me either. I have however heard some really crappy things about sallie mae and I avoided them like that plague. Sadly however - they found me and are now the owner of one or two of my loans. There will always be people that the media can talk about. I am sure there are tons on that site that the article mentions. But - people with issues and people with problems are the ones that speak out. Not the ones that have no issues - or understand the risks and aren't angry. Happy or relatively content people do not have the desire to scream said loan happiness from the rooftops. It just doesn't happen. I know that there are some very unhappy people with loan issues out there - that will always happen. I think out media with always creates scandal (or you wouldn't read it) and sometimes greatly exaggerates. I think so even say that 1/3 of the borrowers out there have actual real issues would be an exaggeration.
With interest, my 26k in loans has balooned to almost 40k with defferment and the intrest accruued while in school. Yeah, I am pretty much one of those people in the article. But I read my contracts, I realized what I would be paying in the end. Half my graduating class had the same problem that article talks about. Interest adds up - most college students fail to ever think about that. Where does that blame lie? It can eat you alive so to speak like it did for most of the people mentioned in that article. Perhaps my thoughts are just way out there - but I do not believe it is the lender's responsiblity to make the borrower realize the end result. Students take out loans, they have to pay interest on those loans. If said student does not realize that X amount = interest amount = a possibly very large end payment I do not see how that fault should reflect on the lender like this article keeps attempting to do. I have friends who spent 60k on school, with room & board combined. I have no bloody idea how much that comes to with interest I don't even want to think about that. then again I can't fathom spending that much on a simple undergraduate degree when there are cheaper, much cheaper options. They made that choice though, just like I am sure every since person cited in that article did. They made the choice and decided that whatever they were paying and having to take a loan out every year for was worth it. Yeah, perhaps in some aspects the loaner took advantage of that, set a high interest rate - but no one forced them to sign at that rate. No one said "you must get a loan to go to school" or "NO you cannot work though college or go part time."
LaTigresse, I think the thing that I find so humoring about the article is that if in the whole grand scheme of things - is that in the whole article about corruption and bad deals the writer never once mentions stafford loans. Almost everyone I talk to has had more problems with their stafford loans then they have with private lenders. My stafford loans have more then twice the interest rate then my private loans. I'll most likely consolidate my loans this years simply because the interest rate on them is just so absurdly high and I think its absurd that I pay less then 2% on my private loans and almost 10% on my federal loans. IMO feds are going to mess you over more then the private loan holders are - because guess who buys out the stafford loans with the super high interest? Private lenders... (which actually have been the only loans of mine that have been sold.)
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