Robbery

[ILG]

Originally Posted by CC1

My SIL's student loan bill after getting his Masters degree is almost what my house cost!

However I don't blame the government. How is it the governments fault? I had a student loan when I went to college and understood that nothing is free. I paid interest (a lot more than 6.8%).

BTW - 6.8% is not a bad interest rate. To compare a student loan interest rate with home mortgage rates is not really fair. How about comparing it to credit card interest rates? At that 6.8% is a bargain!

The idea of student loans is not for students to "let it sit and make interest on it". When that happens it just becomes one more government program intended to help people that gets misused.

I really disagree with your thought process. Here is why. They give out quite a bit of (what at first seems to be) free and easy money to these kids who have no idea what a dollar earned means. These kids borrow more than they should and have boatloads back to pay.

Back in the day, tuition was cheap. Now, since guaranteed student loans have become available, college costs have skyrocketed! Do you see the correlation? The kids are paying some pretty hefty salaries and the like. Now, tuition is way, way up there and, while the Fed holds interest rates at zero, the government is charging 6.8%!!!

If you play your cards right (no pun intended) your credit cards will be zero percent interest, as ours are. I tried to pay off my loan today on my credit card so I could get 1% cash back. Then, I was going to turn around and pay the credit card off. Do you know they would not let me?? I think I know why. The government knows that you CANNOT DECLARE BANKRUPCY ON STUDENT LOAN DEBT. The benevolent government does not allow you out of your student loans for ANY reason, but they know that credit cards are unsecured debt. Looks like they are in bed with the credit card companies on that one.

If I am smart enough to make money on money they loan me rather than pay through the nose 6.8% interest forever more, more power to me, I'd say. It is not misuse, it's smart use. The money was offered to me because I was in school. I took it and I payed it off.