Current Events > Woman started with 80k in student loans. Still owes 76k after paying 120k.

(+) Yeah! (+)

https://twitter.com/ToyaRochelle/status/1299361307771179008

https://twitter.com/LaBeautyologist/status/1299399895497895939



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"give me money for free"

the fuck is wrong with these people

shes right and they are predatory

our entire economic system is a debt based system of predation

its why its not a real capitalist system and it will fail

Kaiganeer posted...

"give me money for free"

the fuck is wrong with these people

I'd be happy to give you Hooked on Phonics for free, help you with that shitty comprehension you've got.

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I feel like if you're somehow paying a higher than average interest rate on a debt that is three times higher than average you're not really the type of person who we should be incentivizing to borrow more money?

interest rates for loans like that should be criminal

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Owing more after paying 50% more than the principle is absurd.

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But I bet her monthly is really low

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g0ldie posted...

interest rates for loans like that should be criminal

definitely a better option than promising anyone who borrows money recklessly like this a bail out

Shit if I knew back when I started college to take loans then just ask to have the interest removed then I would have done that.

Lol at people actually defending this shit. What kind of cronie do you have to be to defend student loans

She said she's been paying off her loan for 10 years, and that in her last year she paid $6,000 as a lump sum. So how the hell could she have possibly paid $120,000 to this loan already?

More fundamentally, the only way she would have paid $120,000 after 10 years as if she had been paying $12,000 a year. Given that she's basically where she started, that would mean that the interest rate she took out on her $80,000 loan is 16%, but student loans are between 5 and 8% at the federal level.

So I don't think she took out a student loan. I think she took out a high interest rate bank loan. Either way, something's not adding up.

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This is why I don't pull loans for anything. You either pay it out of pocket or hope you can land yourself a scholarship that'll pay off half of the schooling or most/if not the whole expenses for going to school.

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s0nicfan posted...

She said she's been paying off her loan for 10 years, and that in her last year she paid $6,000 as a lump sum. So how the hell could she have possibly paid $120,000 to this loan already?

More fundamentally, the only way she would have paid $120,000 after 10 years as if she had been paying $12,000 a year. Given that she's basically where she started, that would mean that the interest rate she took out on her $80,000 loan is 16%, but student loans are between 5 and 8% at the federal level.

So I don't think she took out a student loan. I think she took out a high interest rate bank loan. Either way, something's not adding up.

Yeah her story doesn't sound right
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She probably has good credit, she should take out a bank loan, use it to pay off her student loan, then file for bankruptcy. No instead she wants to give her money away.

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*Takes out loan without doing research*

This is good.

*Struggles with debt*

No one could have predicted this!

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Darkrobotisback posted...

This is why I don't pull loans for anything. You either pay it out of pocket or hope you can land yourself a scholarship that'll pay off half of the schooling or most/if not the whole expenses for going to school.

Loans are necessary in a lot of situations, but the important thing is to pay them back on time so you don't get hit with too much interest.

Kaiganeer posted...

"give me money for free"

the fuck is wrong with these people

no one said anything even remotely close to that. who are you quoting?

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lincoln002 posted...

She probably has good credit, she should take out a bank loan, use it to pay off her student loan, then file for bankruptcy. No instead she wants to give her money away.

that will not fix the problem of student loans being predatory

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Something seems fishy about this.

She's been paying her loans for 10 years and just now checks the balance? And is surprised it is still so high?

Esrac posted...

Something seems fishy about this.

She's been paying her loans for 10 years and just now checks the balance? And is surprised it is still so high?

Exactly.


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I paid off about $150k in loans as soon as I graduated from residency and started making an attending income. Just not worth losing that much money.


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s0nicfan posted...

She said she's been paying off her loan for 10 years, and that in her last year she paid $6,000 as a lump sum. So how the hell could she have possibly paid $120,000 to this loan already?

More fundamentally, the only way she would have paid $120,000 after 10 years as if she had been paying $12,000 a year. Given that she's basically where she started, that would mean that the interest rate she took out on her $80,000 loan is 16%, but student loans are between 5 and 8% at the federal level.

So I don't think she took out a student loan. I think she took out a high interest rate bank loan. Either way, something's not adding up.

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Monolith1676 posted...

Exactly.

Don't get me wrong, the costs of education are still outrageous and I don't think people should have to take out 80,000+ in loans for it, but if you take out a loan, you should be prepared to pay it back.

Charging interest should be illegal. All loans should be interest free, collateral free, with no payback deadline.

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AlephZero posted...

Charging interest should be illegal. All loans should be interest free, collateral free, with no payback deadline.

Thats fine, but I imagine then you just won't have many lenders at all, since they'll have nothing to gain from lending.

Fuck kinda interest rate is she paying
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Either she is fucking horrible with money, or something in her story doesn't add up, because even with interests, paying 120k should be enough to cover the initial loan.

There is no way she "paid off" 4k with 120k.

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emblem boy posted...

Fuck kinda interest rate is she paying

I assumed it was 7%, since there is a "7% int" in the corner, but the math doesn't add up.

Nazanir posted...

Either she is fucking horrible with money, or something in her story doesn't add up, because even with interests, paying 120k should be enough to cover the initial loan.

There is no way she "paid off" 4k with 120k.

Paying lump sums makes me wonder if she misses payments.

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clap clap this is america

lincoln002 posted...

She probably has good credit, she should take out a bank loan, use it to pay off her student loan, then file for bankruptcy. No instead she wants to give her money away.

So that's actually against the law. You're taking out a loan in bad faith that you never intended to pay back. Your bankruptcy claim can be denied because of it.
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RedWhiteBlue posted...

You must not be familiar with Zero's posting style. He's being sarcastic.

My mistake.

the big take away from this is that you can apparently get like two master's degrees without actually understanding math

Did she take out a loan from a loanshark?

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this doesn't seem right. unless sh'es only been paying like $20/month

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harley2280 posted...

So that's actually against the law. You're taking out a loan in bad faith that you never intended to pay back. Your bankruptcy claim can be denied because of it.

Pretty sure you can also go to jail for fraud

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thronedfire2 posted...

this doesn't seem right. unless sh'es only been paying like $20/month

Which is impossible because she said that she's paid $120,000 in 10 years.

I'm thinking what's more likely at this point, given that the first reply in that tweet is her advertising her blog, is that she made everything up to drum up some cheap attention for her site and she didn't even do the basic amount of math necessary to make her story seem real.

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harley2280 posted...

So that's actually against the law. You're taking out a loan in bad faith that you never intended to pay back. Your bankruptcy claim can be denied because of it.

Yeah. It's much smarter to do what good ol' Sam Hyde did and take out the loan, use it to buy Bitcoin, and then just haggle the payments on the loan down as far as you possibly can.

They have no way of knowing that you didn't really hurt your leg.

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Many folks are saying that students should know better when taking out loans. But the fact is that students don't. Many students, particularly those from poor families who have never taken out loans, do not understand compounding interest rates. We as a society make it worse by making it deceptively easy to get those loans.

If you fill out a FAFSA, the loans are automatically added to your awards package whether you want them or not. You have to specifically opt out of them after they are awarded to you.

My job is to go out into the community and educate families about this, but too many people fall through the cracks. The system itself is broken, and rather than telling students to be smarter about taking student loans, we shouldn't be offering thousands of dollars in loans to 17-year-olds.

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Zanzenburger posted...

Many folks are saying that students should know better when taking out loans. But the fact is that students don't. Many students, particularly those from poor families who have never taken out loans, do not understand compounding interest rates. We as a society make it worse by making it deceptively easy to get those loans.

If you fill out a FAFSA, the loans are automatically added to your awards package whether you want them or not. You have to specifically opt out of them after they are awarded to you.

My job is to go out into the community and educate families about this, but too many people fall through the cracks. The system itself is broken, and rather than telling students to be smarter about taking student loans, we shouldn't be offering thousands of dollars in loans to 17-year-olds.

Even then something is weird, she has paid back 120.000 dollars, that's 50% more than the amount taken out as a loan, but she still owes 76.000 dollars after that?

I am calling bullshit.

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Boomers be like I worked part time at McDonalds and paid for my education pull up em bootstraps


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Either she was absolutely irresponsible with her repayment (late payments, missed payments, interest-only payments), or she's simply a goddamn liar because even assuming 7% interest and 25 year loan period, she would only have had to pay just under $68k in 10 years and have a principal balance of $63k assuming she paid the minimum amount and on-time.

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Zanzenburger posted...

Many folks are saying that students should know better when taking out loans. But the fact is that students don't. Many students, particularly those from poor families who have never taken out loans, do not understand compounding interest rates. We as a society make it worse by making it deceptively easy to get those loans.

If you fill out a FAFSA, the loans are automatically added to your awards package whether you want them or not. You have to specifically opt out of them after they are awarded to you.

My job is to go out into the community and educate families about this, but too many people fall through the cracks. The system itself is broken, and rather than telling students to be smarter about taking student loans, we shouldn't be offering thousands of dollars in loans to 17-year-olds.

Her math definitely doesn't add up, but I agree that too many students simply aren't taught about any of this.

My Calculus teacher made it a point to teach us about credit cards and loans before we went off to college. He explained the interest rates and gave us examples of how easy it was to rack up huge debt. He also explained the negatives of only paying the minimum balance every month. It was really illuminating and I appreciate that he did that for us.

And as you say, banks are more than happy to loan money to college students, so they can have them paying off debt for years. It's really messed up.

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I really don't get the "you shouldn't take loans to go to college if you won't be able to pay them back" argument for the sole reason that we're basically told from day one that you'll amount to basically nothing if you don't go to college.

You won't know if you can pay them back until you take the loans and go to college.

And even then, you won't know what the job market will be like in four years, or if you'll meet the right people.

Academia is a forced gamble, and the worst part is that academia knows it can charge whatever it wants because you don't really have a choice.

And it's done an excellent job of shifting the blame to the lenders. Everyone's upset with banks / lenders... but here's the deal - they're just the middle-men. The real problem is academia itself. You wouldn't need a loan if it didn't cost a ridiculously huge amount of money to go.


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Poop2 posted...

shes right and they are predatory

our entire economic system is a debt based system of predation

its why its not a real capitalist system and it will fail

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