Students: Need a Loan? Borrow everything and then go work for the government.

Discussion in 'Too Hot for Swamp Gas' started by ncbullgator, Aug 10, 2013.

  1. GatorBen
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    GatorBen Well-Known Member

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    The public interest forgiveness only applies to federally guaranteed student loans, and the amount you can borrow annually on thise is capped at the number your school certifies as the total cost of attendance.
  2. wygator
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    wygator Well-Known Member

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    the atlantic
  3. icequeen
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    icequeen Well-Known Member

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    I don't think this is new at all. Haven't nurse/medical professionals and teachers among others been getting something similar to this anyhow? Especially in exchange for working in areas that have a shortage in their field?

    I don't know about forgiving the whole thing, but offering a discount might not be a bad idea - especially in fields that are going to be looking at more and more shortages, ie, geriatric care.

    Again, though, please stop making the rest of us look crazier by blaming Obama for something Bush did.

    That said, though, if there was an objection to it, and it was a 2007 bill, we are in 2013 so he's had 6 years to change it/pass something he thinks would be better. THAT portion I put on Obama.
  4. demosthenes
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    demosthenes Well-Known Member

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    That doesn't say how they compare to other loans. Is the rate double? Triple? I don't know. You also have to remember that these debts are non-dischargeable meaning someone could start paying years after being in default whereas bankruptcy or foreclosure might have set the banks losses much earlier with a standard secured loan.
  5. demosthenes
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    demosthenes Well-Known Member

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    Look at it this way, the government isn't paying for it all. You're required to work and pay toward the principle for 10 years. You're forgiven the balance at the end of that period.

    I have no information on it but if be curious to see on average what percentage of the original outstanding loans each side is responsible at the end of the day.
  6. icequeen
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    icequeen Well-Known Member

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    As long as someone's going to put in the work then I'm okay with something like that. You're weighing it against the cost (in nursing's case) of bringing in a "traveling" nurse (they go around the country to areas that have great need, but they're pretty expensive and not consistent), of then not having someone there consistently and the cost of transporting patients to facilities that do have the proper staffing (air ambulances, etc). I'd received info on this when I was going to go into surgical nursing and they were so desperate for people it included a signing bonus along with forgiveness of the student loan. (this was the facility offering it so not sure if this was government related at that time) You then would have the benefit of a "better paying" position in an area that would need the boost economically, too.

    It's kind of like local governments offering tax breaks/incentives to corporations to move their facilities to their locale to raise the tax base, get jobs into the area, etc. Except instead of the break going to a corporate entity it's being given to a student who will put the work in.

    I like that the student has to actually put the work in. It's not a free ride. I'm okay with this.
  7. VAg8r1
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    VAg8r1 Well-Known Member

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    Maybe this is the real student loan scandal

    link

    AJC

    Which political party will address the problem of high student loan default rates among students borrowed to attend for profit schools? A clue and it's not the party supported by most of the posters to this board.
    [​IMG]
  8. VAg8r1
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    VAg8r1 Well-Known Member

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    A little more on the subject

    link
  9. g8rjd
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    g8rjd Well-Known Member

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    You have no idea what you are talking about.

    In order to be eligible for this program, only federal student loans can be included. Further, you must make 120 on time payments and you have to be set for a 10 year repayment program. In other words, for the vast majority of people, you get no benefit. The only way that you get a reduced payment is if, after an income-based repayment calculation, you end up paying less than your 10-year monthly payment. In other words, it allows some foregiveness (not discharge of loans) for people to go into public service work despite a massive debt load who have completely and timely paid as their income would allow for ten years. Yeah, what a drain on society that is...

    Anyway, it also offers almost no benefit to present public service employees with massive debt loads because they too, after an income based repayment calculation, must pay 120 payments over 10 years before forgiveness can be applied. Additionally, as income increases, so do payments. Further, for those who put their payments on a 30 year repayment program (which, in case your math sucks, is 360 payments), they would have to pay for another ten years as well before forgiveness for federal loans can be applied.

    Finally, if your income exceeds your debt load under the calculation (which often happens), if your income increases beyond your debt load under the calculation (which also often happens and results in increased income-based payments), or if you leave public interest work (which happens far more often), you end up with no forgiveness after ten years at all.

    Frankly, the program offers little benefit to those who graduated before it was in place, results in limited benefit to those who can use it afterwards except for the most painfully debt loaded, which, frankly, probably is less of an impact on society than that individual declaring bankruptcy (even though their student loans are not dischargable there) for all their other expenses.
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