“The reasonable man adapts himself to the world: the unreasonable one persists to adapt the world to himself.
Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman
Last edited by MildSteel; 04-17-15 at 11:06 AM.
yes...i am in the car business
and "recovery rate" used by the guys i know in finance, means what % of the loans they get paid on after repossessions, auction fees, towing fees, etc
so ie a 10k auto loan with a 90% recovery rate means they get back 9k on average for those loans
i dont work for the government, but my assumption is everyone in the finance loan business uses the same meaning for the same terminology
of course "most" of them dont default.....
but the interest your daughter pays on her loan, and everyone pays on their loans, covers those that do default
what is total interest paid on her note? do you know?
it doesnt take too many defaulted loans at 25k-30k to eat up her interest paid, plus others
but...it doesnt matter
i'm done with this.....you keep bitching about the rate she is paying
and i'll send you a quarter.....call someone who freaking cares
“Most of the shadows of this life are caused by standing in one's own sunshine.”
Ralph Waldo Emerson
Last edited by Ahlevah; 04-17-15 at 11:55 AM.
And let's get back to the faulty premise of your poll--that federally-guaranteed student loans are "high." Thanks to the way government does its books, whatever profits you think the government is making on these loans are vastly overstated. Basically, to arrive at the cost of the loans, the CBO discounts the "net present value of the future federal cash flows" over the life of the loan. The CBO takes the term of the loan and compares is to a Treasury bond or note of a like term. No other lender, to my knowledge, does this. In essence, CBO is making the case that your daughter is just as likely to repay her loan as the federal government is to repay its loans, and this clearly isn't the case. So when we read a headline like "Government soaking college kids to the tune of $50 billion!" that's just bogus.
One more thing. In spinning this fairy tale, the CBO does not consider administrative costs. As we all know, it take a lot of bureaucrats at the Department of Education to administer these loan programs. In any case, if you look at a CBO breakdown, the government loses money lending to undergrads. Whatever "profits" will accrue over the next ten years will likely come from parents and graduate students.
Last edited by Ahlevah; 04-18-15 at 11:03 AM.