- Sep 2, 2008
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- #41
Didn't quite answer my question . . . but thanks. I"ll try and find the answer.
Oh. Maybe this will help.
Student Loans | Federal Perkins, FFEL or Stafford, Federal PLUS Loans and More
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Didn't quite answer my question . . . but thanks. I"ll try and find the answer.
Here's a little clue.
It will be raised to 10% very quickly as the federal deficit worsens. The Treasury auctions are already requiring higher interest rates. Other rates will follow suit.
i thought it meant that the total payments couldn't be more than 10% of income of individual after graduation. whatever.
if i had it to do over again, i would be a licensed electrician rather than a BSEE. you meet a better class of people and the money's about the same.
It does.
What I'm wondering is suppose you graduate and get a job making say $30K w/20K to pay off in loans. This means your capped at $3,000/yr repayment. Suppose you win the lottery for $100K (just humor me). Does the 10% cap mean that you can't pay off the loan but rather, have to take 7 years or so to pay if off? Does the cap mean you can't pay the loans off early? Anyone know the answer to this?
Government is not and should never be your private lending institution... more bullshit from our power hungry government
These student loans were coming from the government to begin with.
And I don't agree with the fact that it has been that way... we should be out of that all together... what next, government auto loans? Government 'education' loans so you can go to stripper school?
Didn't quite answer my question . . . but thanks. I"ll try and find the answer.
Oh. Maybe this will help.
Student Loans | Federal Perkins, FFEL or Stafford, Federal PLUS Loans and More
The United States Department of Education administers two Stafford Loan programs--the Federal Family Education Loan (FFEL) program, for which private lenders provide the funding and the William D. Ford Direct Loan program, for which the federal government provides the funding. Both programs allow students to borrow money for college.
I seem to recall you mentioning that you had a student loan.Government is not and should never be your private lending institution... more bullshit from our power hungry government
These student loans were coming from the government to begin with.
And I don't agree with the fact that it has been that way... we should be out of that all together... what next, government auto loans? Government 'education' loans so you can go to stripper school?
Great! Go into debt to the Feds for an overpriced education.
Have you ever wondered why college inflation is worse than health insurance inflation?
From the link :
The United States Department of Education administers two Stafford Loan programs--the Federal Family Education Loan (FFEL) program, for which private lenders provide the funding and the William D. Ford Direct Loan program, for which the federal government provides the funding. Both programs allow students to borrow money for college.
This I did not know, I thought all Stafford Loans were gov't loans. So this private funding just got swallowed up by uncle?
FFEL was initiated by the Higher Education Act of 1965 and is funded through a public/private partnership administered at the state and local level. In 2007-08, FFEL served 6.5 million students and parents, lending a total of $54.7 billion in new loans (or 80 percent of all new federal student loans). Since 1965, 60 million Americans have used FFEL loans to pay for education expenses.
On 24 April 2009, President Barack Obama called for an end to the FFEL program, calling it a wasteful and inefficient system of "taxpayers...paying banks a premium to act as middlemen -- a premium that costs the American people billions of dollars each year....a premium we cannot afford."
In the FFEL Program, private lenders make federally-guaranteed student loans to parents and students. A major difference between FFEL and the other major federal loan program (the Direct Loan program) is FFEL's use of government funds. Private lenders who make loans to students under FFEL receive subsidies from the federal government
Government is not and should never be your private lending institution... more bullshit from our power hungry government
These student loans were coming from the government to begin with.
Government is not and should never be your private lending institution... more bullshit from our power hungry government
These student loans were coming from the government to begin with.
And I don't agree with the fact that it has been that way... we should be out of that all together... what next, government auto loans? Government 'education' loans so you can go to stripper school?
Do banks offer low interest student loans? We went with the subsidized Stafford loan because no interest has to be paid until 6 months after graduation.
If that were the case then what part did the banks play in the first place?
I believe that the banks provided the cash for the loans... does that mean that the federal government is now going to start providing the cash with tax dollars? more borrowing? Tax credits to the institution?
Where is the cash for the loans going to come from if the banks are not involved?
And my impression from the OP is that repayment of the loan will be capped at 10% of income. Therefore if 10% of your income is less than the monthly interest charges you are going backwards not forwards on the loan at least until such time as that changes.
I'd like to know how this is going to save the government $68 billion over the next decade.
Immie
If that were the case then what part did the banks play in the first place?
I believe that the banks provided the cash for the loans... does that mean that the federal government is now going to start providing the cash with tax dollars? more borrowing? Tax credits to the institution?
Where is the cash for the loans going to come from if the banks are not involved?
And my impression from the OP is that repayment of the loan will be capped at 10% of income. Therefore if 10% of your income is less than the monthly interest charges you are going backwards not forwards on the loan at least until such time as that changes.
I'd like to know how this is going to save the government $68 billion over the next decade.
Immie
The banks provided no $$$ for loans if I am reading correctly. The bank were the middlemen. Now we're cutting out the middlemen and saving $60 billion over 10 years.
Government is not and should never be your private lending institution... more bullshit from our power hungry government
These student loans were coming from the government to begin with.
If that were the case then what part did the banks play in the first place?
I believe that the banks provided the cash for the loans... does that mean that the federal government is now going to start providing the cash with tax dollars? more borrowing? Tax credits to the institution?
Where is the cash for the loans going to come from if the banks are not involved?
And my impression from the OP is that repayment of the loan will be capped at 10% of income. Therefore if your 10% of your income is less than the monthly interest charges you are going backwards not forwards on the loan at least until such time as that changes.
I'd like to know how this is going to save the government $68 billion over the next decade.
Immie
I seem to recall you mentioning that you had a student loan.These student loans were coming from the government to begin with.
And I don't agree with the fact that it has been that way... we should be out of that all together... what next, government auto loans? Government 'education' loans so you can go to stripper school?
Do banks offer low interest student loans? We went with the subsidized Stafford loan because no interest has to be paid until 6 months after graduation.
Well, let's look at it this way. What bank is going to loan a 18 year old kid $20,000 a year for something that 50% end up dropping out of? (College).
The whole reason that the government has to get involved in the first place I assume (keyword assume) is that banks wouldn't take the risk in lending to college students in the first place. Which is why the Government gave money to the banks to do so.
Now the government is telling the banks that they're just going to do it themselves.
That's what I get out of this anyway. See Post #49 by the way.
These student loans were coming from the government to begin with.
If that were the case then what part did the banks play in the first place?
I believe that the banks provided the cash for the loans... does that mean that the federal government is now going to start providing the cash with tax dollars? more borrowing? Tax credits to the institution?
Where is the cash for the loans going to come from if the banks are not involved?
And my impression from the OP is that repayment of the loan will be capped at 10% of income. Therefore if your 10% of your income is less than the monthly interest charges you are going backwards not forwards on the loan at least until such time as that changes.
I'd like to know how this is going to save the government $68 billion over the next decade.
Immie
I know that Stafford Loans are gov't backed loans. We went with the subsidized loan because no interest had to be paid until 6 months after graduation.
I was under the impression that all these loans/grants (Pell grants, Stafford Loans, etc.) were loans from the bank but backed by the gov't and if someone defaulted it was the gov't at risk? That the banks were the 'middle man' so to speak. But with the banks we could choose which bank, which terms, etc. Now the gov't has taken them out of the picture.