General Question

johnny0313x's avatar

Is this amount of debt for a graduated student right?

Asked by johnny0313x (1837 points ) February 3rd, 2009

So my student loans right now each month are
$46 gov
$168 gov
$668 private
——————————
$882 a month – next 50 years

needless to say I have the private deferred but I can’t do that forever and it’s only making matters worse.

Does anyone else have Student loans like this? Is this even morally right for them to charge this?

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18 Answers

nikipedia's avatar

I think it’s completely absurd for schools to charge that kind of money, but the only way to stop them from doing it is to refuse to pay it. Sorry, dude.

johnny0313x's avatar

well if refuse i destroy my credit and my tax returns…which I feel is wrong too

johnny0313x's avatar

I did the math and over 50 years thats like over 500,000 just for a freakin Associates degree!!!!!

I guess thats interest…..

Fieryspoon's avatar

Uh. I don’t think that’s right.
What is the interest rate of your loans and the full amount you took out?

cartooner's avatar

How many years, How much for each year,

What are the interest rates? With that information you can find out what is going on.
It is very possible to renegotiate your interests rates depending on the lender and the conditions…

I have never heard of an associates degree costing $800 dollars a month.

If you borrowed 60,000 dollars at 8% for 40 years…your payment would be about $417 dollars a month.

You either borrowed way more than that or you are being charged an interest rate which may border on criminal.

chyna's avatar

What is the 668.00 private?

johnny0313x's avatar

Well I consolidated all the federal stuff so that’s locked in at 6. something which is fine….and my gov loans are about 21,000 I believe. HOWEVER the private loans are about 60,000 which I did not borrow that much I borrowed like 20,000 as far as I knew which was more then I wanted to and that interest rate is like 14% and nobody will consolidate it for me. I have been out of school since the end of 07 so I guess from deferring and not making payment while I was in school they went up that much…I really didn’t’ know much about finance and my parents didn’t either since they didn’t go to college. To be honest when I was 18 I didn’t even no what money really meant or how much 20,000 was or 50,000 they were all numbers to me unfortunately and I just assumed this was what people did. Now I see my friend going for his Bachelors and only has about 8,000 of debt….

chyna's avatar

Did you keep the paperwork and receipts for all this? The private loan is way over the top.

fireside's avatar

The real question is how much interest is being paid versus how much capital each month.
I would probably go see a financial adviser, considering the alternatives it would be worth the cost.

johnny0313x's avatar

I have alot of the paper work, but most of it doesnt make sense to me, I dont know what I have and don’t have to be honest.

artificialard's avatar

14% is insane – how is this a student loan? Except for the fact that they were trying to bribe gullible students.

I would make an appointment with campus financial advisors or one of those credit clinics (there are free ones where I lie) ASAP.

One thing you can look into is if you’re in such a situation without comparable credit the government loans can be renegotiated, deferred, or even written-off (once again this is in Canada)...

osakarob's avatar

You borrowed $21,000 on government loans and $20,000 with private lenders for an associate’s degree? I find that very hard to believe. What did you do with all that money? Were you using it to live on? I have never heard of a community college costing $41,000.

fireside's avatar

@osakarob – i agree, it’s all very wrong.

johnny0313x's avatar

@osakarob No the school was just under 40k and i did have housing at the school for a little while.

The school is shutting down and they were sued and had to pay 200,000 which the gov used to make a program to make students more aware of finanacial aid…but that doesnt really help anyone that got screwed over.
http://www.claws-and-paws.com/node/1114
http://www.redorbit.com/news/education/277436/spotlight_to_be_on_lehigh_valley_college_loans/

fireside's avatar

Yeah, that really stinks. I guess the most important piece of education you can get out of this is that you never sign anything without knowing what you are getting into.

I would definitely see a financial adviser or lawyer considering the following line from on of those articles:
LVC has on at least two occasions — once last year and once last month — offered to help students who have called the school to complain about high-interest loans, according to sources familiar with the cases.

dynamicduo's avatar

You really need to go see a financial adviser with all the paperwork you have. They will be able to figure out how you got to be where you are, and what you can do to continue into the future.

That said, you agreed to the loan, thus you are responsible for paying it back. Ignorance of the terms or how you got to be where you are is no excuse for not paying it back. However, if the private loan company did something illegal, such as blatantly lying or deceiving you about the terms, then you may have grounds to sue them.

Zaku's avatar

Personally, I think the system is morally bankrupt.

SeventhSense's avatar

Well my 58,000 feels downright manageable now.
Don’t worry the whole house of cards economy is going to collapse soon and we’ll be flung into the Dark Ages. We’ll settle our debts for a bag of gold, three pigs and a cow.

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