View Poll Results: Are student loan interest rates to high?

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Thread: Are student loan interest rates to high?

  1. #221
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by tres borrachos View Post
    You can't pretend a private loan is for student loan purposes if it isn't. That law also changed when the law was changed to take private lenders (with the exception of one bank somewhere in the Midwest) out of student loans. If you borrow from a private lender to pay for education, the purpose of the loan has to be defined in the note as "education". Those same lenders are required to disclose competitive information about education loans with the disclosures. It compares the loan they are making with the federal programs. It was a change to Regulation Z in 2009.
    I'm not doubting that, but I have seen many articles where people have claimed to owe massive amounts of "student loans", then when you read further it's quite clear that what they are calling "student loans" wouldn't fit anyone's definition of a student loan (public or private). In one article, the person claimed that her home mortgage was education related because since she was going to be attending college for at least 4 years she thought it made sense to purchase a home in that community.

    What I am saying is that it's popular for people to blame student loans for their debt problem, even when their debt problem has little to do with student loans. They get sympathy by claiming it's student loans, when in reality if was a car loan, or credit card money that they simply blew.

    Students Loan Debt Horror Stories - Business Insider

    Students Loan Debt Horror Stories - Business Insider
    Quote Originally Posted by ocean515 View Post
    ...I'm not interested in debating someone who is trolling for an argument....
    Quote Originally Posted by Papa bull View Post
    I see a big problem with the idea that whatever the majority wants is OK.

  2. #222
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by MildSteel View Post
    I did not ask for your financial advice.

    What you did was suggest that someone could refinance a 13% loan with an unsecured loan at a cheaper rate. So again, that is something that is not a practical option for most borrowers. How many times do I have to say it before you understand it?
    Because you can. You can take a loan against your home. You can take a loan against your 401K. You can pledge life insurance or CDs or other things for collateral. You can take a credit line. You can take an installment loan. And anyone with good credit can get a loan cheaper than 13%. You have to find the lender that will give it to you. Most community banks and credit unions can and will make a personal unsecured loan for as much as $50,000. You have to ask what their credit requirements are for every loan type they make, and every loan dollar amount they make. As I told you at the beginning.

    You have to do your own research on things, and you can not make a blanket statement that it isn't a "practical option for most borrowers. You are not privy to the financial status nor the credit rating of most borrowers.
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

  3. #223
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by imagep View Post
    I'm not doubting that, but I have seen many articles where people have claimed to owe massive amounts of "student loans", then when you read further it's quite clear that what they are calling "student loans" wouldn't fit anyone's definition of a student loan (public or private). In one article, the person claimed that her home mortgage was education related because since she was going to be attending college for at least 4 years she thought it made sense to purchase a home in that community.

    What I am saying is that it's popular for people to blame student loans for their debt problem, even when their debt problem has little to do with student loans. They get sympathy by claiming it's student loans, when in reality if was a car loan, or credit card money that they simply blew.

    Students Loan Debt Horror Stories - Business Insider

    Students Loan Debt Horror Stories - Business Insider
    Ah, I got you now. And yes, you're 100% right. I've heard of people who say they can't pay their student loans back, while driving a 1 year old cherry red Audi and carrying a Prada purse.
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

  4. #224
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by tres borrachos View Post
    You have to ask the lender. All lenders have different credit score requirements. There is no blanket answer to that.

    more than just credit scores will determine if eligible

    are co-signors available?

    are there any assets available to be used as security?

    what terms is the borrower looking for? ie 5 yr payback, 10 year, etc

    what income and debts does the borrower have

    there is a LOT that goes into the decision....

    my daughter refinanced hers just a few months back

    she got 3% or close to it.....but a shorter term to payback
    “Most of the shadows of this life are caused by standing in one's own sunshine.”

    Ralph Waldo Emerson

  5. #225
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by gdgyva View Post
    more than just credit scores will determine if eligible

    are co-signors available?

    are there any assets available to be used as security?

    what terms is the borrower looking for? ie 5 yr payback, 10 year, etc

    what income and debts does the borrower have

    there is a LOT that goes into the decision....

    my daughter refinanced hers just a few months back

    she got 3% or close to it.....but a shorter term to payback
    Income is also one of the most important issues, it's been my experience that borrowers have to be able to prove that they can (currently) handle the payments, and banks don't go for speculative income. That's why I don't understand how anyone can manage to get a student loan from a bank without there being some sort of guarantor. Few full time students are going to have a significant income and the prospect of a potential future degree in no way indicates that the student will ever have a decent income.
    Quote Originally Posted by ocean515 View Post
    ...I'm not interested in debating someone who is trolling for an argument....
    Quote Originally Posted by Papa bull View Post
    I see a big problem with the idea that whatever the majority wants is OK.

  6. #226
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by imagep View Post
    Income is also one of the most important issues, it's been my experience that borrowers have to be able to prove that they can (currently) handle the payments, and banks don't go for speculative income. That's why I don't understand how anyone can manage to get a student loan from a bank without there being some sort of guarantor.

    usually they dont, unless they have assets to back the debt

    the government gives out the initial loans.....

    but that doesnt mean you have to keep those original loans once you have a job and can refinance them at better terms
    “Most of the shadows of this life are caused by standing in one's own sunshine.”

    Ralph Waldo Emerson

  7. #227
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by tres borrachos View Post
    Because you can. You can take a loan against your home. You can take a loan against your 401K. You can pledge life insurance or CDs or other things for collateral. You can take a credit line. You can take an installment loan. And anyone with good credit can get a loan cheaper than 13%. You have to find the lender that will give it to you. Most community banks and credit unions can and will make a personal unsecured loan for as much as $50,000. You have to ask what their credit requirements are for every loan type they make, and every loan dollar amount they make. As I told you at the beginning.
    The problem with what you are saying is that it is not practical for most people, especially someone at the beginning of their career to get a unsecured loan, to put up home equity are collateral, or have enough money in a 401k to be able to borrow $27,000. You say because you can, but not many people will be able to do that, practically speaking.

    Quote Originally Posted by tres borrachos View Post
    You have to do your own research on things, and you can not make a blanket statement that it isn't a "practical option for most borrowers. You are not privy to the financial status nor the credit rating of most borrowers.
    According to THIS SOURCE, here's how average credit scores break down by age.

    Are student loan interest rates to high?-credit-score-age-png

    If that is any indication, it would not be practical to expect that a young borrower would be able to get an unsecured loan, as you suggested in an earlier post. Therefore the government should allow student loan consumers to refinance their debt.

  8. #228
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by MildSteel View Post
    The problem with what you are saying is that it is not practical for most people, especially someone at the beginning of their career to get a unsecured loan, to put up home equity are collateral, or have enough money in a 401k to be able to borrow $27,000. You say because you can, but not many people will be able to do that, practically speaking.



    According to THIS SOURCE, here's how average credit scores break down by age.

    Are student loan interest rates to high?-credit-score-age-png

    If that is any indication, it would not be practical to expect that a young borrower would be able to get an unsecured loan, as you suggested in an earlier post. Therefore the government should allow student loan consumers to refinance their debt.
    Do you ever read and pay attention to posts? The poster was talking about his wife's student loans, not some "young borrower" or "young people".
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

  9. #229
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by imagep View Post
    Income is also one of the most important issues, it's been my experience that borrowers have to be able to prove that they can (currently) handle the payments, and banks don't go for speculative income. That's why I don't understand how anyone can manage to get a student loan from a bank without there being some sort of guarantor. Few full time students are going to have a significant income and the prospect of a potential future degree in no way indicates that the student will ever have a decent income.
    Banks can't go for speculative income. Their regulators won't allow them to anymore.

    Student loans are great things. It's the only time a borrower with no income and no credit history can get unsecured credit.
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

  10. #230
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by tres borrachos View Post
    Banks can't go for speculative income. Their regulators won't allow them to anymore.

    Student loans are great things. It's the only time a borrower with no income and no credit history can get unsecured credit.
    Which is the reason I support the federal student loan program. Without it, we would either have an under-educated workforce, or we would have to subsidize individuals education even more. I find a reasonable student loan program to be preferable to freebies or to having an inadequately educated workforce.
    Last edited by imagep; 03-31-15 at 07:13 PM.
    Quote Originally Posted by ocean515 View Post
    ...I'm not interested in debating someone who is trolling for an argument....
    Quote Originally Posted by Papa bull View Post
    I see a big problem with the idea that whatever the majority wants is OK.

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