That is how we got into the HOUSING MESS!!!!!!
Obviously, we are looking at another bank bailout funded by taxpayers.
"Student loan lenders brace for rise in defaults; Cite recession, and larger debt in the last year" by Jillian Jorgensen, Globe Correspondent | May 6, 2009
WASHINGTON - As the most heavily indebted class of students in history graduates from college into one of the worst job markets in memory, holders of the nation's roughly $670 billion in student loans are bracing for an increase in the number of students who cannot pay them back....
And guess who will, taxpayers?
As a result, lenders have taken unusual steps to restructure their programs. Starting in July, eligible borrowers will have the option of paying the federal loans back as a percentage of their starting salary - meaning that those who get high-paying jobs would pay more quickly, while those with lower-paying jobs or no job can pay little or nothing at first.
What do you mean graduate from college for lower-paying or no job? After all the smoke shined up our asses about ejerkashen?
Students would have to agree to pay 15 percent of their income, above 150 percent of the poverty level, to pay off their loans within 10 years. Meanwhile, the nation's largest provider of private loans, Sallie Mae, will now require students beginning classes this June to start paying back interest on their private loans while still in school - a heavy burden for students, but one that ultimately saves them 40 percent of the total amount of interest paid on the loan, since interest no longer accrues over their years in school.
Why is school about $$$$ rather than KIDS in AmeriKa??
This is just the kind of shit that leads me to believe in socialized education -- you know, like France where COLLEGE is FREE!!!!
Also see: Pigs at the State Trough
"There are severe and lasting impacts of loan default for students, and it costs taxpayers billions of dollars each year. So we are committed to working with students to help them avoid default," said Martha Holler, a spokeswoman for Sallie Mae, which services 10 million private and federal student loans.
Ever notice banks are always first in line for loot, American?
Related: Sweet Salle Mae Back in United States
Sallie Mae, which began as a government-sponsored corporation but became fully privatized in 2004, makes federal loans under a government program that sets interest rates, fees and terms of those loans, and guarantees 97 percent of the loans - so when a loan goes into default, the government takes the majority of the loss.
In this case, that means YOU, taxpayers!!!
Sallie Mae also offers private student loans, for which it sets the interest rates, fees and terms of default. Students who do not receive enough financial aid and loans from the federal government can pay for their education using the more costly private loans, and in many cases are able to borrow up to the full cost of attending school. Sallie Mae and similar companies can then sell those private loans to securities markets to increase the amount of cash available to their company.
Because some students may not be able to afford monthly interest payments while taking classes, fewer students are likely to take out the loans, but the chance that those loans will be repaid should increase, because less creditworthy borrowers will not take the loans, and borrowers will have less to repay upon graduation, said Deanne Loonin, director of the Student Loan Borrower Assistance Project, part of the National Consumer Law Center.
See? It is ALL ABOUT the BANKS, not the KIDS!!!!
I'm wondering where all those trillions went -- you know, the ones that were supposed to be for loosening up credit markets.
"It does restrict who can afford the products, but in terms of debt management, it's going to be a good thing for a lot of borrowers," Loonin said. The private loans carry a variable interest that, depending on a borrower's credit history, currently range from 4.63 percent to 16.06 percent, based on Sallie Mae's formula.
"These are expensive, risky sources of credit, like a credit card or a sub-prime mortgage or a payday loan," said Asher of the Student Debt Project. "They are not financial aid. They may be helping you pay some bills but it comes at an extremely high cost, and a cost that you can't predict."
By contrast, federal loans have had a fixed interest rate of 6.8 percent since July 1, 2006. The neediest students can qualify for the special Perkins Loans program, which has a 5 percent interest rate and no default fees. Defaulting on a private loan can lead to expensive lawsuits, while defaulting on a federal loan means the government can withhold a borrower's tax refund. Defaulting on any type of student loan can seriously damage a borrower's credit score.
Unbelievable. They can withhold your own money from you after they looted you for the bank.
The best thing students facing default can do is contact their lender, Loonin said, and see if they qualify for extended repayment plans, loan forbearance or, for federal loans, a deferment program. "To those who have federal loans: don't panic, there really are a lot of options out there," Loonin said. "You just need to be informed. You need to ask a lot of questions."
Yeah, as long as they aren't about 9/11.
Btw, why should the kid have to do all this leg work? Why can't he just learn?
You know, the REASON he/she is SUPPOSED to be there?
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Well, at least there is the credit card, 'eh, kids?
NEW YORK - Irena Cabrilo got a free lunch during her freshman year at the University of North Texas in exchange for signing up for a credit card from Bank of America Corp. Eight months later, she was carrying a $1,500 balance and struggling to pay an 18 percent interest rate.
Need I even type it, readers?
"They made it sound so easy," said Cabrilo, now a senior majoring in marketing and advertising. "Just sign up, you'll get approved and have access to money. They don't talk about interest rates and what will happen to your credit history."
The Senate may vote on a bill as early as tomorrow that would prevent credit card companies from targeting college students such as Cabrilo by requiring parental consent for a borrower under age 21 unless there is proof of independent income or completion of a financial literacy course....
First of all, why aren't the politicians looking after your interests, readers? Because they are working for and funded by the credit card companies?
Meanwhile, I guess the ONLY THING you can do at 18 is FIGHT in WARS, kiddo!!!!,
As for the financial literacy hoop, how about making the geniuses of Wall Street take one before they get more bailout money? Hello?
Credit card issuers market to students because they want to inspire brand loyalty from a young age and believe parents will step in if their children default, according to Bill Hardekopf, chief executive officer of LowCards.com, a Birmingham, Ala., research firm.
Yup, usurious vampires posing as your friends!
The lenders also expect college graduates to have higher-paying jobs, he said.
I wouldn't count on that if I were you (not as if they care; parents will just be forced to pay).
Many students need the accounts because they don't have sufficient financial aid or enough savings to cover college costs, the Sallie Mae study said. More are turning to credit cards as the gap between financial aid packages and tuition widens, said Ed Mierzwinski, consumer program director at the US Public Interest Research Group in Washington.
Trillions for wars, trillions for banks, billions for Israel... and I get tired of typing it. You get my point, right, readers?
Credit card interest rates are often higher than private student loan rates, and funding college costs with credit cards should only be used after exhausting other loans and for necessary expenses, said Mark Kantrowitz, publisher of FinAid.org, a college funding information website.
"You should live like a student while you're in school so you don't have to live like a student after you graduate," he said. Recent graduates who are repaying their debts should make the minimum payment on every loan and apply any remaining money to the loan with the highest rate, Kantrowitz said.
Translation: Give all your money to the usurious banks.
And I'm sick of that agenda, Globe.
Cabrilo, the senior at the University of North Texas in Denton, worked as a waitress the summer after her freshman year to pay down the balance on her Bank of America card, which currently has a 22 percent interest rate....
So they jacked it up 4 points on here while she was waiting tables, huh?
Why do banks need bailout money then?
Getting it from all angles, aren't they?
Time to stop paying bills, America, and get into the streets!
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