Grieving parents taking on student loan debt

[LegendKiller]

Dang - you should have said something before I colored you stupid. Now it's too late, as surprised on top of stupid still looks stupid.


As is only smart and responsible.

Something else that many people are missing is that these programs need to exist in perpetuity. If lenders irresponsibly handle the money, there will not be money for future students. That's why borrowers such as this young lady need cosigners and why lenders aren't going to simply forgive a hundred grand. Especially a hundred grand spent on raising illegitimate children and abusing prescription drugs.

Depends on the investor and issuer. National Collegiate was owned by First Marblehead. They were/are notorious for Direct To Consumer loans, no school verification of need. They also ran a guarantee fund, TERI, to "insure" the loans. However, TERI is insolvent and FMD was pretty much bankrupt and isn't generating new loans. Why? Because they had low-co-signers and high DTC loans. Some of the investors at the AAA level of NCSLT deals are going to take losses, mainly because they were crap.

I've seen several First Marblehead execs floating round, guys who ran their risk departments. I won't approve a single deal if I see an exec from there in that capacity. Others don't care.

Lenders have just as much responsibility to lend responsibly as borrowers have to borrow responsibly.

 

[waggy]

And as far as this student loan brouhaha....

Dischargability of student loans existed before, it was abused, but that abuse can be curtailed significantly through bankruptcy requirement and oversight of which people get the discharge. The immediate ability to repay is less important than the long-term ability.

The problem with student loan lending is that the equation is asymmetrical. I can lend you unlimited amounts of money and all I take is payment risk, not credit risk. When you pay, not if. However, I take no responsibility for how much I lend you, it is all your responsibility.

That, ladies and gentlemen, is a broken system. Lending requires both the lender *and* borrower to acknowledge the risk, otherwise the lender's sole motivation is to get as much money as possible from you, hence student loans.

This is also part of the reason why tuition is so high. Under the prior systems states funded the schools and the USG lent out some money. State legislators had oversight into the school's budget. Under the current system the state funds much, much, less and has less oversight. The schools get the money from somewhere, so they turned on the bottomless barrel of federal spending. They don't care if the students default, they already got their money, and they aren't on the hook for shitty degrees.

This is why the US government long-term default projection is 20%+, why more than 40% aren't paying (excl. in school) and why those in repayment have a 15%+ severe delinquency rate.

People treating this as an interest rate problem are getting this wrong. It is a tuition problem and that is caused by the structure of student loans.

I agree.

lenders (mainly the feds) have no reason to reduce lending. they "lend" money to state colleges. the colleges charge insane amounts. the kids rack up thousands in loans that will be paid and the feds make money off it every step of the way.

My Sister-in-law has roughly 30k in loans. she keeps dropping out. yet they continue to give her a loan. every now and then she goes and passes 3 class's to make sure she gets loans. she is nowhere near graduation.

My oldest is 21. When she was looking at colleges we told her we would not co-sign and i was not paying 20k a year. I would pay for CC for 2 years then a transfer to get her BS degree. Though we got lucky and she got a full ride to UofI

 

[NetWareHead]

Not going to bother reading the 6 pages of BS this thread has become. IMO, this thread should have died when on the first page with this post:

moral of the story: don't cosign on loans you aren't prepared to repay yourself.

/end of thread plain and simple.

Oh and this was hilarious

That is really mature. I appreciate your point of view. This open discussion and your valid points have helped me deepen my understanding and broaden my view of the world. I feel like I should co-sign a loan for you to show how truly appreciative I am of this knowledge you have imparted.

 

[BoberFett]

Bober, coming to stir the pot!

As opposed to your... what exactly are you doing other than cursing at people because they have the audacity to disagree with you?

LOL, "liberals".

 

[IndyColtsFan]

My butt is feeling fine, actually.

That's amazing, considering how far your head is shoved up it.

 

[jhbball]

Do you realize that you add nothing to the conversation? You simply attack people. It is the definition of trolling. I suppose it may be fun for you, but I want you to know how truly worthless your input is.

Well, other than pointing you out as the piece of shit you actually are. Continue coveting what poor people have, middle class white guy.

 

[jhbball]

That's amazing, considering how far your head is shoved up it.

UH OH. We've got a super important IT manager checking in.

 

[jhbball]

As opposed to your... what exactly are you doing other than cursing at people because they have the audacity to disagree with you?

LOL, "liberals".

Oh, I'm stirring the pot. You're my conservative equivalent.

 

[IndyColtsFan]

UH OH. We've got a super important IT manager checking in.

I'm an IT manager? Better change those business cards, I guess.

Back to work, monkey!

 

[nehalem256]

Well, other than pointing you out as the piece of shit you actually are. Continue coveting what poor people have, middle class white guy.

Why does his race matter so much to you?

Are you a racist?

 

[Londo_Jowo]

My oldest is 21. When she was looking at colleges we told her we would not co-sign and i was not paying 20k a year. I would pay for CC for 2 years then a transfer to get her BS degree. Though we got lucky and she got a full ride to UofI

I did the same thing with my oldest, she joined the Army before she got her associates degree. Now she will be able to finish using her GI Bill benefits.

I also doing the same with my middle daughter, she currently going to the local junior college working a getting a general studies associates degree. There's a U of Houston branch at the same campus as the junior college and I'm hoping she will choose to get her bachelors degree from them.

Son will be a high school junior this year so I have a couple of years before we go again.

 

[Jaepheth]

Protip:

Get life insurance on your kids sufficient to cover outstanding student debts you're a cosignatory on. Given they're young the insurance should be very cheap.

Hell, if I ran a company in that field I'd bundle the loan and the insurance.

 

[jhbball]

I'm an IT manager? Better change those business cards, I guess.

Back to work, monkey!

Haha, damnit. *Gets back to work*

 

[JockoJohnson]

Homophobe? Who knew?

You are right. I apologize and should not have insulted homosexuals. I just threw out a derogatory term. However, you are deserving of any attacks that are brought upon you. I should not have dragged any particular group into this as I did not mean to insult them in the process.

You are putting up a huge fight in this thread and several people have inquired about it. It can't be just because you "feel" it is right. You haven't provided a logical argument to forgive the CO-SIGNED LOAN except because it feels good to you because the poor daughter died. Did you do something stupid like take out a large student loan and try to weasel your way out of paying it? Point to the spot on your body where it hurts.

There is an inherit risk when you co-sign for a loan. LegendKiller has stated much better than I ever could. All of his points make sense but nothing excuses anybody from having to pay the debt that they incurred.

 

[Apple Of Sodom]

Well, other than pointing you out as the piece of shit you actually are. Continue coveting what poor people have, middle class white guy.

Where is Moonbeam when we need him? Project, much? Why are you so filled with hate? Why are you only able to personally attack people and not provide anything of substance?

That's pretty cute that you think I am middle class.

 

[dphantom]

well they would be really fucking idiotic to sit in a apartment with the lights off until they are successful. thats the thinking that got them poor.

what they should do. go get a job. get a education to get a better job. work hard. '

then they can afford a cell phone plan without the taxpayers help.

agreed. Get a cell phone, tv, other nice to have's once you have your basic necessities taken care of - food, shelter, clothing

 

[Apple Of Sodom]

Question: why is it the lender's responsibility to ensure people are only taking out what they need? Their terms and conditions are plain as day; laws require them to be. I think it lies with the person borrowing. You are buying a service. This is a buyer beware society.

 

[Mai72]

Protip:

Get life insurance on your kids sufficient to cover outstanding student debts you're a cosignatory on. Given they're young the insurance should be very cheap.

Hell, if I ran a company in that field I'd bundle the loan and the insurance.

The problem is most people don't know the consequences. Call it ignorance. They don't read the fine print. They sign away not knowing what they are getting themselves into.

This is what's wrong with people today. Thru know sh*t about finances. Sad.

 

[Apple Of Sodom]

agreed. Get a cell phone, tv, other nice to have's once you have your basic necessities taken care of - food, shelter, clothing

I saw an EBT sign on Jack in the box... not sure why we allow that.

I think those in need of food should have it provided by the government. Instead of letting them buy whatever junk they want at the store they go down weekly and get their protein, fruits and veggies. Everyone gets the same nutritious stuff each week. If you want a cheeseburger then use your own money. Otherwise you get a box with shit to cook.

 

[Apple Of Sodom]

The problem is most people don't know the consequences. Call it ignorance. They don't read the fine print. They sign away not knowing what they are getting themselves into.

This is what's wrong with people today. Thru know sh*t about finances. Sad.

I don't believe that for a second. If you are smart enough to get into college (which sometimes just takes jumping through hoops) then you are smart enough to know what a loan payment is. I think we claim they are ignorant because we don't want to face the truth, which is they are apathetic and think if they get in trouble they will get bailed out.

 

[jhbball]

Where is Moonbeam when we need him? Project, much? Why are you so filled with hate? Why are you only able to personally attack people and not provide anything of substance?

That's pretty cute that you think I am middle class.

Oh, should I revise that to "upper middle class" or "rich guy"?

 

[nehalem256]

Question: why is it the lender's responsibility to ensure people are only taking out what they need? Their terms and conditions are plain as day; laws require them to be. I think it lies with the person borrowing. You are buying a service. This is a buyer beware society.

So why did the bank make me provide documentation of assets and income before they would give me a mortgage loan?

 

[Apple Of Sodom]

Oh, should I revise that to "upper middle class" or "rich guy"?

Whatever makes you feel most comfortable.

Or you could just quit making wild assumptions about people altogether. My income level really has nothing to do with someone whining about cosigning for a loan and not wanting to pay it back.

 

[nehalem256]

I don't believe that for a second. If you are smart enough to get into college (which sometimes just takes jumping through hoops) then you are smart enough to know what a loan payment is. I think we claim they are ignorant because we don't want to face the truth, which is they are apathetic and think if they get in trouble they will get bailed out.

You do realize we are talking about a nurse that died of a drug overdoes right?

 

[dmcowen674]

Grieving parents taking on student loan debt

http://money.cnn.com/2014/07/28/pf/parents-student-loans/index.html?hpt=hp_t2

Man's daughter dies of liver failure at age 27. She was in nursing school and had $100K in student loans that he co-signed for. Now he has to pay.

Another student was murdered and had $40K in student loan debt that his parents co-signed for. While they were able to get 150,000 people to sign a petition to have the lender forgive debt the lender didn't. (duh)

-----

Why the fuck would you think this should all be forgiven? And who goes $100K in debt to get a fucking NURSING degree. Most nurses have an associates, btw. Some go for a bachelors degree, sure. But it is sufficient to have two years of schooling to become a nurse.

I am sick and tired of people making poor decisions and then crying about it later on.

Are you in the U.S.?

Why do you hate America and Americans so much?