How About a Bailout for Debt-Strapped Students?
As details of a massive financial bailout are being hammered out in Washington, D.C., some educators are asking: Hey, what about college students? Senate negotiators raised the prospect of a little help for anyone facing tuition bills by slipping into the new bailout bill an extension of the tuition tax deduction that was set to expire at the end of this year.
But advisers gathered at last week's Seattle conference of the National Association of College Admissions Counselors said they are worried there are lots of students who are in just as much financial trouble as overextended homeowners, as rising student loan default rates indicate. The average college graduate owes almost $20,000. And many leave school owing more than $50,000. With today's economic troubles and growing unemployment, more young graduates may have trouble making their payments. So, if Congress is contemplating bailing out mortgages, college advisers are asking, why not student loans?
Tags: student loans | students | tuition
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stuent loan debt
I graduated in 1995 from college in pennsylvania. I had a 21,000 debt when I got out thinking I will get a public school job in a few years. As years went by we established a small home in which I remodeled and was allowed to defer payments or met the economic hardship rules. PHEAA the holder of my loans but since tried consuladating them to a lower interest rate was no help. They declined a $100 payment back in 1997 and tried garnishing my wages but then returned that money. As time continued my loan grew and I now owe 680000 and only make 37000 a year. My payment would be over 500 a month. My mortgage is almost that everything else continues to increase but the workin peoples luck. I know how you feel this country has given itself to many problems it can't fix.
FEDERAL Student Loan...key word here 'FEDERAL'
I graduated from college in 1988 with about $20K in student loan debt. I paid over the years, but through those years I also fell into hard times. Job loss, other debt, etc.
My loans have been deferred, forebearanced, defaulted, and have changed hands many times over the last 20+ years. One agency that handled the payments demanded over $600 a month always to be sent via Western Union but when my spouse lost his job, I requested to be able to send the $600 a month in 2 payments a month to relieve some of the pressure. I was told "no". So we stopped paying.
I now am fighting a garnishment of my wages to which they are asking 15% of my disposable income or a lump sum payment of over $95K...yes for real...$95K! I hired an attorney to dispute all the extra interest and fees over the last 20 years. I had to send a financial disclosure, all our bills, childcare payment receipts, tax returns...which I did in January.
Yesterday, I received a letter from the US Department of Education saying they did not receive any of my information and I have been denied for relief from garnishment...unless of course I make voluntary arrangements with the collection agency that is now handling my loan.
Keep in mind, this is the same agency that has called all our relatives, my child's school, and my employer harrassing SOMEONE to pay this $95K! I did file a grievance with the Attorney General's office to which they sent the agency a letter threatening fines because of the Consumer's Rights Act.
I have volunteered to pay $450 per month to avoid the garnishment which as the date of this writing, will have me paying it every month for the next 17 years! And did I say in the beginning, this is for an Associate's Degree, not a Bachelor's, not a Master's, not a Doctorate!
And our government is bailing out banks and car manufacturers??? What about us American Citizens who have FEDERAL Student Loans and have done their very best to pay?
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