Student Loan Crisis?

[Etoille]

The coming student loan crunch - MSN Money

I didn't even think about this. Wouldnt it suck to not be able to go back to school for your 3rd, 4th year having taken out loans like normal for the first few --- because a few too many people in the US wanted to live beyond their means?

Personally, now that I'm out of school i dont have to worry about this - in fact my payments have gone down (interest not principal) lately - anyone who can explain why (its tied to the LIBOR) to me gets a cookie.

[rinthea]

libor rates have gone down

now give me that cookie

[AladainAF]

Don't worry. If the student loans go into crisis mode, the government will come in and take care of you so you give them votes. They will just print some monopoly money if needed.

[Tyreny]

If its tied to LIBOR then your rate will have dropped considerably. Depending on which LIBOR rate it's tied to, most have been cut in half in the last year. The LIBOR rate stands for London Inter-Bank Offering Rate, which is the rate at which banks will lend money to one another. Since the central banks have been on a rate cutting spree the cost for Banks to access funds is significantly less.

I has a cookie?

[tjac]

Student loans are another bubble waiting to burst, aren't they?

The necessity of education and educational debt is cliche, there is very little risk evalutation, post-graduation job/salary prospects don't support average 20-30 year repayment schedules, and academic institutions calculate tuition to consume as much financial aid as possible.

On a whole, the student loan situation is a lot uglier than housing. At least in housing you can plausibly put some of the blame on reckless borrowers. But, with student loans, that sort of debt is seen as a responsible means to an end.

[Etoille]

Originally Posted by rinthea

libor rates have gone down

now give me that cookie

no shit sherlock :P but why? wtf is the libor?

Edit: Tyreny haz a cookie!

[Kuriin]

Student loans are the devil.

[Vinen]

Happy I did well enough in Highschool to get nearly a full scholarship- Ahh, being out of College with no student loans is nice.

[Kuriin]

I'm on a scholarship for having a high GPA (transfer) plus a quarterly scholarship that has to be renewed through application. It sucks though, because out of state tuition = 5-7k a QUARTER. :[

[AladainAF]

Originally Posted by Etoille

no shit sherlock :P but why? wtf is the libor?

Edit: Tyreny haz a cookie!

LIBOR is the London InterBank Offered Rate.

It is a daily rate based on interest rates at which banks lend unsecured monies to other banks on the interbank market. LIBOR or slightly higher than the bid rate (LIBID) for these unsecured monies. The LIBID rate is the rate that banks accept deposits.

LIBOR rate is also used as a rate of reference for many currencies, including USD.

edit: even though you mentioned it, I didn't see Tyrenys post. He wins the cookie =\

[Etoille]

yes student loans are satan. i have well over 6 figures of em. but thats fairly standard if you paid for law school using them.

ive considered declaring bankruptcy tbh - the federal loans dont go away but from my understanding the private ones will. now that the house is also in my name though i think that fucks us and defintely my credit in the next 7 years.

that and living responsibly in the last 5 years has allowed me to:

1. pay off a new car in 5 years (as of last month)
2. manage to pay down on 5 figures of credit card debt i irresponsibly racked up in college.
3. pay student loans
4. buy a house with my boyfriend.

something about that actually gives me a sense of pride. the fact that i didnt blame anyone else for my problems and took responsibility for my actions despite carrying - in combination with my mortgage and student loans, well over 500k in debt......i manage to live day to day in the black (credit cards are almost never used and when they are theyre paid off at the end of the month). i guess its why i dont give up.

man i fantasize about winning the lotto though. i dont want to be rich. i just want to be free of my six figures of student loan debt.

[Etoille]

Originally Posted by Vinen

Happy I did well enough in Highschool to get nearly a full scholarship- Ahh, being out of College with no student loans is nice.

:P so did i. then i went to the major leagues (grad/law school) and that shits a little different. i wont lie i got some scholarship in law school but not much.

[Vinen]

Originally Posted by Kuriin

I'm on a scholarship for having a high GPA (transfer) plus a quarterly scholarship that has to be renewed through application. It sucks though, because out of state tuition = 5-7k a QUARTER. :[

QQ, stay instate then. I went out of State to a Private College, tuition was ~25k/year.

You know, I've been wondering. Why do people go out of state for a state school if the costs are so damn high? I haven't been able to comprehend it. I went to a Private College as I got a shit load of scholarships and I wanted to goto a school which didn't have classes larger then 20 people. (Most of them had 5~10).

[AladainAF]

Sounds like you're doing find Etoille. Keep the sense of pride and responsibility going and pay off the student loans.

Edit: After high school, I said fuck college, and went into the private sector and make more today at a work-from-home job than any of my friends that went to college. Different strokes for different folks, I guess.

[Kuriin]

Originally Posted by Vinen

QQ, stay instate then. I went out of State to a Private College, tuition was ~25k/year.

You know, I've been wondering. Why do people go out of state for a state school if the costs are so damn high? I haven't been able to comprehend it. I went to a Private College as I got a shit load of scholarships and I wanted to goto a school which didn't have classes larger then 20 people. (Most of them had 5~10).

Staying instate to go to a shitty school is worse than having to rack up debt from one of the best schools in the entire country for my degree.

The good thing about grad schools are: GA, Grants, and scholarships.