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+--- Thread: How to rip off student loans (/showthread.php?tid=125775)
Re: How to rip off student loans - JoeH - 10-24-2011
Just like you say kj, you don't know the specifics. The default rate on student loans connected to regular, accredited institutions is around 5% overall as compared to 15% at the for-profit schools. Both groups' rates have risen in the last couple years as the economy has tanked.
As for whether the student loans should go away in bankruptcy, that I would rather leave to the courts. Instead of the blanket ban that was mostly instituted at the lobbying of the private lenders, I would rather see some priority set for the loans in the process. Let a court decide on the specific circumstances of each borrower's bankruptcy.
Re: How to rip off student loans - kj - 10-25-2011
rjmacs wrote:
kj,
I agree that lots of student loan money is borrowed foolishly, and the educations obtained aren't always of great quality. I'm not sure how best to approach that problem, and 'vet' the institutions that take the money. They have to be accredited in order to qualify for federal loans, but perhaps there should be other restrictions? Do you have ideas about how we could better ensure that borrowed money goes to better investments?
Edited to move the first part of my post to another thread.
I think both you and I could identify the scam institutions. I'll name 3 in my area: Carrington College, Stevens Henager, Brown-Mackie College. They are all "for profit". And they have really high default rates on loans used to attend them. I don't know how they should be regulated though. I think the consumer is going to have to make better decisions regarding the education they pursue. Their education, their responsibility. kj.
Re: How to rip off student loans - RgrF - 10-25-2011
If an institution is certified to accept guaranteed student loans, it's incumbent on that institution to perform at some minimal level. It would appear there is no authority available to certify or decertify the schools that are established for but one purpose -- cash checks from loan granting institutions.
Re: How to rip off student loans - kj - 10-25-2011
JoeH wrote:
Just like you say kj, you don't know the specifics. The default rate on student loans connected to regular, accredited institutions is around 5% overall as compared to 15% at the for-profit schools.
I don't know what you mean by that, but what I meant is that I don't know exactly what happens when people can't pay their student loans. I've known people who were not able to pay them, and I know I received a lot of calls (as their supervisor) from collection agencies. I don't know much more, except that they never paid them. So forgiven or not, they're not paying. Was the reality of it a lot different before the "blanket ban"?
I've read that about half of all defaults on student loans involve for-profit schools. And surely a lot less than half the students attend these schools, so I assume (as you say) default is much higher at the for-profit schools. At any rate, you seem to have some sort of beef with what I've said, but I'm not sure I understand what it is. kj.
Re: How to rip off student loans - kj - 10-25-2011
RgrF wrote:
If an institution is certified to accept guaranteed student loans, it's incumbent on that institution to perform at some minimal level. It would appear there is no authority available to certify or decertify the schools that are established for but one purpose -- cash checks from loan granting institutions.
Not to defend the schools in question, but I can see that establishing standards for that minimum level of performance might be pretty difficult. I hate to admit it, but in googling a bit, I find that the schools I've slandered appear to do pretty well at placing their graduates, at least in some degree areas (nursing, paralegal, and some others). I wonder whether traditional colleges do better? What other ways are there to measure the worth of an education? I've studied such things, but I'd have to say the results usually are less than impressive. I've been through rigorous accreditation processes, and they don't guarantee much, imo. kj.
Re: How to rip off student loans - vision63 - 10-25-2011
RgrF, I've actually read your post over the phone to parents and other prospective students desperate to educate their children who truly don't realize any other alternatives. It's easy for people to call these kids and their parents idiots (which they aren't) or ignorant (which they are), in order to remove the prospect of them being perceived as victims. Thanks for this post, it's being VERY helpful. VERY!
Re: How to rip off student loans - $tevie - 10-25-2011
RgrF wrote:My extremely reputable and highly regarded actual factual college accepted me back for another semester when even the bank questioned why they did so. I was doing very poorly for various reasons too personal to discuss here, so the bank called the college and asked, Do you really think we should lend her more money? Do you really think she is going to be able to cut it this year? To which the financial aid officer replied, Why sure, go ahead and lend her the money, we are confident that she'll be fine. Which I was not. (PS: I paid my loan back).
If an institution is certified to accept guaranteed student loans, it's incumbent on that institution to perform at some minimal level. It would appear there is no authority available to certify or decertify the schools that are established for but one purpose -- cash checks from loan granting institutions.
Re: How to rip off student loans - vision63 - 10-25-2011
$tevie wrote:My extremely reputable and highly regarded actual factual college accepted me back for another semester when even the bank questioned why they did so. I was doing very poorly for various reasons too personal to discuss here, so the bank called the college and asked, Do you really think we should lend her more money? Do you really think she is going to be able to cut it this year? To which the financial aid officer replied, Why sure, go ahead and lend her the money, we are confident that she'll be fine. Which I was not. (PS: I paid my loan back).
[quote=RgrF]
If an institution is certified to accept guaranteed student loans, it's incumbent on that institution to perform at some minimal level. It would appear there is no authority available to certify or decertify the schools that are established for but one purpose -- cash checks from loan granting institutions.
Well something must have happened because you are nothing short of brilliant!
Re: How to rip off student loans - $tevie - 10-25-2011
Thank you very much.
Re: How to rip off student loans - rjmacs - 10-25-2011
vision63 wrote:
[quote=$tevie]
Why sure, go ahead and lend her the money, we are confident that she'll be fine. Which I was not. (PS: I paid my loan back).
Well something must have happened because you are nothing short of brilliant!
$tevie wrote:
Thank you very much.
Get a room, you two! :barf: