How About a Bailout for Debt-Strapped Students?

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?

Student Loans

As a nurse I can prove I did my time in school and I am now working in my field so where's my bailout??? I didn't waste my loan money on a career that is pointless and there are tons that are.. I have $60,000 in loans and struggling.. thank GOD I didn't buy a home. I was dumb enough to get more loan than I needed just like home owner got more loan than they needed.. so BAIL US student loan debters out. Better to have educated americans than homeowners who live above their means

Student Loans

I'm a school teacher making about 50,000 a year and felt I could not afford to go into debt to send my children to collage. I just found out that my wife signed for their first loan to get them started. This now has my wife and I on the hook for about $32,000. Both my children are at the University of South Carolina. My children then extended themselves by borrowing from Fannie Mae and since we didn't sign my children are being charged 11.75 % interest on loans that they keep getting forebearences on. The interest is running. This is nothing more than leagalized shylocking. They each owe approximately $60,000 and are not finished yet. My sons loan has already incurred 6,000 in interest and I don't know off hand how much interest my daughter has incurred. I'm taking out a 32,000 home equity loan to pay mine aand my wifes end but have no idea how the kids will manage their end especially with the job prospects out there.In the mean time while fannie is receiving bailouts our children are getting buried with debt. We called to try and consolidate the kids loans at a lower rate and were just about laughed at.What do we do???????????????

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Student Bailout

I would like to find out how much it is to bailout college students? 100 million dollars? 735 million dollars? 735 billion dollars? I do not understand why college students are getting the bare minimum from the federal government? I think investing in college students is a much more profitable investment and makes a great deal more sense than bailing out companies who failed to manage their funds appropriately. Investing in college student is the greatest investment and I would have to say by far has the most potential. College students do not take on debt because they are careless instead they decide to incur hundreds of thousands of dollars in debt to get a good job in the future. How does the government expect to the United States to succeed when they are neglecting the core factors of a successful future? If you are reading this and do not agree with what I am saying I really do not think you have any clue of what is happening.

bail out students

My daughter has $140k student loan debt and makes a low salary as an attorney for Legal Aid. Kim Clark, please let us know more details on Obama's Income-based repayment plan for student loans. You mentioned 2/25/09 on the Diane Rehm Show, NPR, students would pay no more than 15% of annual salary, make payments for 10 yrs, and the rest would be forgiven. This new federal program is due to start in July, you stated. Keep us informed!

Student Bailouts?

This is a really attractive idea to me, but why should students also be bailed out? I went into the Navy to pay for my undergraduate education. 6 years of service, a B.S. from the university, and no student loans. Now I can use my GI Bill for graduate school. Why aren't more students ponying up the work for their education? I spent a lot of time in classes with trendy fashionistas drinking Starbucks, while I'm in the Navy wearing my ratty jeans, and drinking yesterday's coffee from my pot at home. Before I could wholeheartedly support a bailout for students, I'd have to see more students budgeting and working.

the difference between overextension and education

The idea of the economy and life in general is that we spend within our means, and maybe take a risk here or there when the odds are in our favor. However, stupid people who get themselves into thousands of dollars of debt need to be punished, not bailed out. There should be consequences for being utterly inept at handling your money.

Something must be done.

However, a college student graduating with thousands of dollars of debt has NOT done anything wrong. They didn't unnecessarily spend beyond their means. They didn't continue spending when they knew they had no money. They merely chose to "buy" a higher salary in the future. Most college students have nothing. No possessions that can be used as collateral. Nothing. So before they even have a chance to start earning money, they are in the red. Is this how we want our country run? To have entire generations of youth shackled by debt before they even have a source of income, simply because they have not yet made it through the educational system to allow them to earn a salary to pay back that debt?!

something must be done.

I think it's ridiculous that we are not helping the fresh generation of job-seekers so that they have the ability to stimulate the economy. Instead, every would-be young spender is instead spending all their extra money for years after they graduate on their education instead of THINGS that will help better the economy. It is an unjust punishment for securing a better future.

something must be done.

I am ready to dive headfirst into $50K/year schooling, and my family makes too much for financial aid, and not enough to afford it, but the loan market is not looking at all favorable because too many graduates are defaulting on their student loans, and the banks are getting ripped off because the tuition is so expensive and there is so little help for upper middle class families like mine between wealth and poverty.

something must be done.

student loans

Instead of a bailout for students loans. Require fixed rates of 5%or less on all student loans.

Brandy Barnett wake up

Who exactly is the lazy moron? A hard-working college student or someone, like you, who thinks that government should only cushion the blows for greedy people in Wall Street. Seriously, what education, if any, do you have?