Adam Posted April 28, 2008 Share Posted April 28, 2008 What if we went with something like this- if the student pays the loan back within two years of graduation- no interest If the student will take more than two years, they pay a base of $1,000 extra with $100 added each extra year beyond the two years. I am not an economist nor a politician- This is something that popped into my head, and I am sure many of you could tell me more about the impact something like this would have. I may be naive, but I figure this would bring more than enough money to the loan companies Link to comment Share on other sites More sharing options...
DC Tom Posted April 28, 2008 Share Posted April 28, 2008 What if we went with something like this- if the student pays the loan back within two years of graduation- no interest If the student will take more than two years, they pay a base of $1,000 extra with $100 added each extra year beyond the two years. I am not an economist nor a politician- This is something that popped into my head, and I am sure many of you could tell me more about the impact something like this would have. I may be naive, but I figure this would bring more than enough money to the loan companies Actually, I'm not sure it would even cover overhead. That's $1800 on a ten year term regardless of loan size...and nothing if it's paid off in two years. A better fix would be to admit that not everyone needs a college education. Link to comment Share on other sites More sharing options...
yall Posted April 28, 2008 Share Posted April 28, 2008 Actually, I'm not sure it would even cover overhead. That's $1800 on a ten year term regardless of loan size...and nothing if it's paid off in two years. A better fix would be to admit that not everyone needs a college education. But Tom, we DESERVE a college education. I'm certain it's a right guaranteed by out constitution. It reminds me of when Obama forst enterted the frey a while back (and right now he might be my favorite candidate - so keep that in mind) and he was giving some bleeding heart speech about how some poor working girl couln't earn enough to go to the college of her choice. I felt like saying "Hey, guess what, the Coast Guard is hiring if you really want to go to college", which is a short way of saying that if you are determined, you will find a way. Some of us have to work harder than others. That's life. Link to comment Share on other sites More sharing options...
PastaJoe Posted April 28, 2008 Share Posted April 28, 2008 The starting point would have to be when they get a full-time job, not when they graduate. You're allowed to request to defer paying on your loan if you have difficultly finding permanent employment after graduation. Link to comment Share on other sites More sharing options...
John Adams Posted April 28, 2008 Share Posted April 28, 2008 WTF is wrong with interest? Jesus H. Link to comment Share on other sites More sharing options...
KD in CA Posted April 28, 2008 Share Posted April 28, 2008 WTF is wrong with interest? Jesus H. Accountants do it with Interest! Link to comment Share on other sites More sharing options...
DC Tom Posted April 28, 2008 Share Posted April 28, 2008 WTF is wrong with interest? Jesus H. Interest is bad. Loans should be free. No one should ever profit off providing something to someone else. Link to comment Share on other sites More sharing options...
Adam Posted April 28, 2008 Author Share Posted April 28, 2008 Interest is bad. Loans should be free. No one should ever profit off providing something to someone else. Never said that- I was just wondering about a hypothetical. Interest should not be eliminated, nor should it be an eight on its side Link to comment Share on other sites More sharing options...
DC Tom Posted April 28, 2008 Share Posted April 28, 2008 Never said that- I was just wondering about a hypothetical. Interest should not be eliminated, nor should it be an eight on its side Never said you said it...just commenting on the logical extreme of JA's observation. And right now, interest isn't infinite. Last I checked (on student loan consolidations, a while ago), it was around seven percent. That is only infrequently comparable to infinity. Link to comment Share on other sites More sharing options...
Alaska Darin Posted April 28, 2008 Share Posted April 28, 2008 Never said you said it...just commenting on the logical extreme of JA's observation. And right now, interest isn't infinite. Last I checked (on student loan consolidations, a while ago), it was around seven percent. That is only infrequently comparable to infinity. Well, it's divisible by 3.5... Link to comment Share on other sites More sharing options...
John Adams Posted April 29, 2008 Share Posted April 29, 2008 Never said that- I was just wondering about a hypothetical. Interest should not be eliminated, nor should it be an eight on its side But why come out with a different payback plan? The interest rate on gov't-backed loans is pretty low. How about this: you have to have a full-time job while you're in school to be eligible for a loan? That way the loan recipient actually shows they can hold a job before they get a load of cash. I want to punch the people who complain about student loans. Get a job. Don't take out the loans. Stop being such a whiney B word. Link to comment Share on other sites More sharing options...
ieatcrayonz Posted April 29, 2008 Share Posted April 29, 2008 The starting point would have to be when they get a full-time job, not when they graduate. You're allowed to request to defer paying on your loan if you have difficultly finding permanent employment after graduation. This plan would mean hippies would NEVER have to pay back. Oh wait, that's just like the current system. Link to comment Share on other sites More sharing options...
jshockeyguy7 Posted April 29, 2008 Share Posted April 29, 2008 I have 70kish in loans for an undergrad degree... I'm fine with paying interest, as the loans gave me the opportunity to go where I pleased. The problem? The interest rates aren't fixed on my loans, to fix the program, offer fixed rates creating more competition between companies offering the loans, I'm not so much worried about the base of the loan, as I am the interest it will accrue. Link to comment Share on other sites More sharing options...
Bill from NYC Posted April 29, 2008 Share Posted April 29, 2008 But why come out with a different payback plan? The interest rate on gov't-backed loans is pretty low. How about this: you have to have a full-time job while you're in school to be eligible for a loan? That way the loan recipient actually shows they can hold a job before they get a load of cash. I want to punch the people who complain about student loans. Get a job. Don't take out the loans. Stop being such a whiney B word. What disturbs me is the inability to deduct the interest after a certain income level. That is just b.s. It is the same as the tuition deduction for dependants. You are allowed to deduct 4K per kid. I had 2 in college at the same time, and spent a whole lot more than this. My total deduction? 2 K for both kids combined. Why? Because I am "rich." After a combined income of 60 K, the deduction decreases. Now, do our lawmakers really care about education? Huckabee did. He wanted to give free tuition to illegal aliens. It is the same thing wrt energy. I spent $3,200 on a new, energy efficient heating system. Tax deductible, right? Sure....but I only saved a whopping 168 dollars. Why? You guessed it....I am "rich." Now, do our lawmakers really care about saving energy? Edit: Yes, this is a whining post and I am sorry for this. Things were more fun when I was fooled by the political b.s., ya know? Molsen and Pasta Man must be some happy m.f.s. Link to comment Share on other sites More sharing options...
PastaJoe Posted April 29, 2008 Share Posted April 29, 2008 This plan would mean hippies would NEVER have to pay back. Oh wait, that's just like the current system. You have to show proof that you are actively seeking employment by submitting information about your job search. Link to comment Share on other sites More sharing options...
blzrul Posted April 29, 2008 Share Posted April 29, 2008 What disturbs me is the inability to deduct the interest after a certain income level. That is just b.s. It is the same as the tuition deduction for dependants. You are allowed to deduct 4K per kid. I had 2 in college at the same time, and spent a whole lot more than this. My total deduction? 2 K for both kids combined. Why? Because I am "rich." After a combined income of 60 K, the deduction decreases. Now, do our lawmakers really care about education? Huckabee did. He wanted to give free tuition to illegal aliens. It is the same thing wrt energy. I spent $3,200 on a new, energy efficient heating system. Tax deductible, right? Sure....but I only saved a whopping 168 dollars. Why? You guessed it....I am "rich." Now, do our lawmakers really care about saving energy? Edit: Yes, this is a whining post and I am sorry for this. Things were more fun when I was fooled by the political b.s., ya know? Molsen and Pasta Man must be some happy m.f.s. Lucky you, we are not allowed to deduct a dime for our kid's college. And even with medical expenses of $12k plus, same. Go figure. And we ain't rich, just comfortable. Link to comment Share on other sites More sharing options...
John Adams Posted April 29, 2008 Share Posted April 29, 2008 [gov't screws "rich"] I hear you. If the point of the loans and energy is to encourage behavior, why not just make everyone eligible for it? Link to comment Share on other sites More sharing options...
John Adams Posted April 29, 2008 Share Posted April 29, 2008 I have 70kish in loans for an undergrad degree... I'm fine with paying interest, as the loans gave me the opportunity to go where I pleased. The problem? The interest rates aren't fixed on my loans, to fix the program, offer fixed rates creating more competition between companies offering the loans, I'm not so much worried about the base of the loan, as I am the interest it will accrue. Guess it depends on the loans. After I was done with school, I consolidated my loans at a low fixed rate. Link to comment Share on other sites More sharing options...
ieatcrayonz Posted April 29, 2008 Share Posted April 29, 2008 You have to show proof that you are actively seeking employment by submitting information about your job search. And what information would a hippie submit? They were too stoned to remember searching and got kicked out of the office because of their smell anyway. Now your plan would for them to start paying back because they can't document their search? What would they use to pay? Pot plants, tie dye shirts and surplus laziness? I think we should implement a draft for these hippies. This way they move to Canada like they did in the 60s and the Canadians are so preoccupied with the stench that they move even further north and away from us. This is an example of killing two birds with one stoner. Link to comment Share on other sites More sharing options...
Chef Jim Posted April 29, 2008 Share Posted April 29, 2008 You have to show proof that you are actively seeking employment by submitting information about your job search. Yeah, that's hard to do. Link to comment Share on other sites More sharing options...
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