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(The Consumerist)   "Sorry to hear your son died. But you owe money for his student loans. We can't tell you how much you owe, but we expect payment on time. Have a wonderful day"   (consumerist.com) divider line 300
    More: Sick, student loans, federal student loans, ProPublica, sons, payments  
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25419 clicks; posted to Main » on 14 Jun 2012 at 8:15 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-06-14 07:03:37 PM  

timujin: What evidence do you need? It's been going on, quite literally, for all of human existence. And by "it", I mean people's tendency to believe that they work harder than everyone else around them, that their circumstances are what it takes to bring out the best in people and that the younger generations are all shiftless layabouts that just need the same kind of a kick in the butt that they got when they were that age.


Nah, there were plenty of people who worked way harder than me. But of the people I did work harder than, the majority of them were not paying their own way (nor were they merit scholars).
 
2012-06-14 07:07:38 PM  

downstairs: Majick Thise: I would tell them that until they either A) They give me the info I need or B) They take me to court, they can C) fark Right Off

Can't you just not pay a loan if they can't produce the documents, and not get in legal trouble?


In my state yes but that might differ from state to state. Without all the proper docs they would get laughed out of a courtroom. (me)"Yes Your Honor, I would be happy to pay this bill if only they can prove that I owe it" (them) "um.... " {crickets} (Judge) "Fark Right Off"

Which is likely why they would continue to hound this person rather than actually go to court. Of course, as has been mentioned, there is probably more to this than we have heard.
 
2012-06-14 07:22:13 PM  
easy enough to fix
judge: how much is owed on the loan and who current owns the loan
lawyer tard: we dont know
judge: debt is decreased to amount paid - all loans are paid in full. come back to my court again and I will have you shot. in fact, you have to pay the defendants lawyer fees. treble. now go away before I have you publicly flogged.
ballif: mutter mutter mutter
judge: what do you mean I cant have him flogged???
 
2012-06-14 07:40:33 PM  

bdub77: TheBeastOfYuccaFlats: doglover: bdub77: And the kid should be earning money his two years in CC/university on the side, so he can afford tuition/room and board later.

HAHAHAHAHAHAHAHAHAHAHAHAHHAAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA H HAHA


Oh wow. You're a riot. Good luck with that.

Yeah. Even at a state college, working on the side isn't going to make much of a dent in the 2 years on the community college side. Student would be better off concentrating on their studies.

I paid room and board and living expenses for 3 years of college. My parents paid a small part of tuition and the rest were student loans I picked up and paid off.

And I don't consider myself an ass for wanting to make my kid responsible. Again, best laid plans. There's no saying what will happen in the future, but that's what I plan to do. I think college is worth it now, but in the future who knows?

Personally I think it's hilarious that everyone wants to entitle their kid to everything. Good luck with that.


You're just insane for not paying attention to the price increases in tuition and huge student loan crisis.

If you think your kid'll get enough money to go to college on his own credit score at 18, you're going to up the creek.

My advice, do your plan to the kid, but start saving NOW so you can pay his way anyways. Worst case scenario: you wind up with an extra $300,000 or something.
 
2012-06-14 08:05:52 PM  

Majick Thise: In my state yes but that might differ from state to state. Without all the proper docs they would get laughed out of a courtroom. (me)"Yes Your Honor, I would be happy to pay this bill if only they can prove that I owe it" (them) "um.... " {crickets} (Judge) "Fark Right Off"


"I have the money for your payment, but, I can't reveal the location of the check."
 
2012-06-14 08:18:59 PM  
If dad didn't co-sign, well good luck with that.
 
2012-06-14 08:25:03 PM  
Kind of hard to be outraged. Sure, banks are crooks and private loans are pretty pricey but why didn't the kid get a federal loan? Did he have a drug conviction? Why did the dad co-sign for a private loan? This is like being mad at an US Bank building's shadow covering the area you planted your new garden in.
 
2012-06-14 08:27:01 PM  

doglover: .

You're just insane for not paying attention to the price increases in tuition and huge student loan crisis.

If you think your kid'll get enough money to go to college on his own credit score at 18, you're going to up the creek.

My advice, do your plan to the kid, but start saving NOW so you can pay his way anyways. Worst case scenario: you wind up with an extra $300,000 or something.


Well she'll be 20 and I plan to make sure she has some credit history by then. And trust me, I know what you're saying. But we'll see where we are then and adjust accordingly.

I consider myself lucky, I had a good education and my family certainly helped me. But I made several financial mistakes, and I attribute some of that to not being properly educated on financial responsibility. I don't plan to make that mistake with my children. And I found the more independent my parents made me, the more responsible I became monetarily. I learned to live with less. And yes college kids are irresponsible dipshiats, I know from personal experience, having been one.

The student loan crisis is caused by the exploding costs of students going to a four-year college, getting a shiat degree, and then not being able to get a job due to the recession. The exploding cost has a lot of factors, but there's a bubble there. Either way, this is making payment for those loans worse. By going the CC route you avoid the major costs of university. I don't even really advocate going to college if you aren't planning to do something in STEM, but I'm certainly not going to force my kid to choose that path, just nudge them a bit. They can forego college to if they are so inclined.

Besides, who's to say I'd even be able to afford the full cost of college by the time my kid is 20?
 
2012-06-14 08:28:00 PM  
Doesn't the FCRA apply here? I know my wife is one of thousands in a class action against Freddy Mac for this type of BS. His "lawyer" should be getting ready for the arse farking sans lube.
 
2012-06-14 08:29:13 PM  
NO bill no money.
 
2012-06-14 08:31:09 PM  
Something missing in that story. ANY collection agency asking for money knows exactly how much is owed, and who it is owed to. If they can't tell you that, you owe nothing, tell them to fark off.

And, "all the companies" who have contacted him? Debt does get sold, but not every week, so who are all these companies calling him? A student loan might get bundled and sold, but it isn't divided up amongst different companies. One debt, one creditor, one debt collector.

Don't know what's happening here.
 
2012-06-14 08:31:35 PM  
Suck? Yeah. But reality.

Only problem I see is that he "hasn't been able to get a handle on just how large the loan is, or even who currently holds the loan."

Seems to me that ought to be simpler than they make it sound:

"I would tell them to call the lawyer," he tell ProPublica. "And they would still say, 'The lawyer doesn't owe us. You're the one who owes us. You're the one who has to pay us.'"

"Yeah, to do that I kinda need to know who the fark you are and how much I supposedly farking owe you. Mind sending me a bill, jackass?"
 
2012-06-14 08:32:03 PM  
My offspring education plan is:

1. get the kids out of the house at 18.
2. who the hell cares what they do then?
3. use all my newly available money to buy a nice, nice car.

I don't think that's too much to ask, after all they should be glad I'm not sending them a bill for the many many thousands it cost to raise them to the age of majority. Besides, getting some dirt under their fingernails will do them a world of good.

Rarr!
 
2012-06-14 08:33:06 PM  
Cosigned the loan?
No story here, no imaginary butthurt.
Life is hard. Default or pay up, take your pick.
 
2012-06-14 08:33:27 PM  
The easiest thing to do.

Father: I don't dispute that I co-signed on a student loan but until you provide me with proper accounting of the balance owed and the current and correct holder of this note you will not be recieving any money nor any further communication from me. You may mail said full accounting of the charges to P.O. Box....

OR better yet. Father: I am invoking my rights under the FAIR DEBT COLLECTION ACT to refuse further telephone calls and wish to be contacted only by mail at P.O. Box....any further calls to me, my family members, employer etc...will be considered a violation of my rights and I will sue you for each count of violating my rights. I will be recording all my calls so you have been informed, please make a not of this in my file.

Then do it! How hard is this people? Collection companies are like 7th graders who can't shut up and have to have the last word. They will call.
 
2012-06-14 08:34:24 PM  

what_now: The loan's current servicer - ACS Education Services - is obligated to reveal this amount, but the father is having trouble getting the truth out of the company, a subsidiary of Xerox.

Bullshiat. There are some servicers that are shady. This isn't one of them. The father probably doesn't have the students account number, SSN, ID number etc.

There's an awful lot missing out of this story.


THIS. I've had a lot of trouble with Sallie Mae, but I have absolutely NO complaints about ACS. They have been absolutely amazing to me. Just bulletproof customer service.
 
2012-06-14 08:34:36 PM  
And people think that we moved out of Feudalism.

Capitalism is just feudalism with a mobile serf class.
 
2012-06-14 08:36:25 PM  

bdub77: downstairs: bdub77: Maybe you shouldn't have cosigned the loan.

Yes, it's this guy's fault for cosigning. Still, the loan servicer, ACS, should have this information.

Plans for my kid: IF you want to go to college, here's the deal. I'll put SOME (not all) money down for you. Rest is up to you. First two years, community college (I'll pay 100%), then transfer to a real university for 2 years - I'll pay about half of that. And if you so choose, you can take the next 2-3 years for masters, same or different university - you work it out, on your dime. Now you've got your 'college' experience of living alone for 4-5 years, and a degree that should hopefully earn you money.

Be very careful about who you cosign your loan to.

But he's going to need a loan at some point, and they're not going to give him one unless you co-sign. So your plan will fail to get him into anything beyond community college.

Federal student loans don't require a cosigner, just private ones. With any luck, they'll still be around. :) And the kid should be earning money his two years in CC/university on the side, so he can afford tuition/room and board later.


You may want to take a look at the cost of college...before you have children.
The sort of temp job someone can get while going to cc/2 year school is going to hover in the min wage category.
 
2012-06-14 08:36:36 PM  
This story makes absolutely no sense.

If it's entirely true, he has a really bad lawyer.
 
2012-06-14 08:37:57 PM  
Because he co-signed on his son's loan, he is now fully liable for the total loan amount.
Contracts are not nice. You should carefully consider all possibilities before signing one. I wonder, was the extra $8 a month for life insurance too cover the loan just too damn much?
 
2012-06-14 08:39:24 PM  
There seems to be some sort of argument going on here that I don't feel like wading through, but I'll add that I was able to get a private loan to pay for my entire final year of college without a co-signer, and I would have been 21 at the time. And this is was a big ten university, so we're talking about $12,000 for that loan.

And before you ask what the hell I was thinking, it was the only way I could afford to finish. A lot of other resources that were previously available to someone who came from a low-income family but had high grades, dried up due to this little recession thing that happened around that same time in 2008. Kinda shiatty timing, really. You start getting ready for your final year of college, then the economy tanks, suddenly you're responsible for 100% of tuition, so you put yourself into debt, and graduate into a world with no farking jobs. Thanks a lot, America.
 
2012-06-14 08:39:28 PM  
All this nonsense about who owns the loan must be annoying, and the behaviour of the collection agency is (duh) disgusting.. but the basic fact he owes it.. well what did he think 'co-signer' meant?

Probably get it canned though if his lawyer is any good.
 
2012-06-14 08:41:48 PM  
I went old school- saved money over summer vacation, applied for $1K low gov loan (seemed like a lot at the time) with mom's co-signature, then applied for all the work study money i could get. Once school started I tossed pizzas and assembled subs when i wasn't engaged in one of 3 work study programs I signed up for. Free movies (projectionist), free music and concerts (90.1 WMPG FM, broadcasting in 10 mono-fkng watts of alternative music pumping power), and a short lived stint in graphic arts laying out upcoming events about campus. When i needed beer money, I collected bottles and cans (college dorm rat- not too difficult here) throughout the week or hung out at frats playing foosball for beer on the weekends. Summer was spent working full time plus with two jobs. worked hard, played cheap.

Ran up an incredible tab of a little more than $3k over 2.5 years of school. Military helped me fill in the gaps for an electronics degree 10 years later.

Ya just gotta be determined, self-disciplined and a little creative.
 
2012-06-14 08:42:03 PM  

Moodybastard: bdub77: downstairs: bdub77: Maybe you shouldn't have cosigned the loan.

Yes, it's this guy's fault for cosigning. Still, the loan servicer, ACS, should have this information.

Plans for my kid: IF you want to go to college, here's the deal. I'll put SOME (not all) money down for you. Rest is up to you. First two years, community college (I'll pay 100%), then transfer to a real university for 2 years - I'll pay about half of that. And if you so choose, you can take the next 2-3 years for masters, same or different university - you work it out, on your dime. Now you've got your 'college' experience of living alone for 4-5 years, and a degree that should hopefully earn you money.

Be very careful about who you cosign your loan to.

But he's going to need a loan at some point, and they're not going to give him one unless you co-sign. So your plan will fail to get him into anything beyond community college.

Federal student loans don't require a cosigner, just private ones. With any luck, they'll still be around. :) And the kid should be earning money his two years in CC/university on the side, so he can afford tuition/room and board later.

You may want to take a look at the cost of college...before you have children.
The sort of temp job someone can get while going to cc/2 year school is going to hover in the min wage category.


Granted I had an $11/hr job with a good amount of overtime, but I paid my way through community college (after basically shiatting the bed after my first degree several years ago). I also had most of my basic credits (English/math/science) so I just had to work around my major classes which were almost all in the mornings. This was along with my apartment, food, bills, etc. Whenever I have kids, I'll probably have them pay their way through CC and see how that goes. If they make it through with solid grades, I'll help them continue. If not, well the world needs ditch diggers.
 
2012-06-14 08:42:38 PM  
Sorry- 1982-84
 
2012-06-14 08:42:46 PM  
Debt collectors have to obey the Fair Debt. Collection Protection Act
Link
 
2012-06-14 08:43:01 PM  

DamnYankees: I don't know about you, but where I come from there this thing called "family". It means you help each other out, inter-generationally. My grandparents did what they could to help my parents get a good education in life. My parents helped my brothers and I. And in return, I will help my children. And on the flip side, when needed, my parents help out my grandparents in their old age, I will help out my parents in their old age, and I hope my children will help me in mine.


This "family" sounds pretty socialistic to me.

/ I kid
 
2012-06-14 08:43:45 PM  
It should be illegal for a debtor to be required to pay more than the current owner of a loan paid to acquire it plus interest since. Selling a loan for less than the amount owed should be considered forgiveness of the difference. If the original lender wants to collect the full amount then they should have to hang onto the loan.
 
2012-06-14 08:44:33 PM  

GT_bike: The easiest thing to do.

Father: I don't dispute that I co-signed on a student loan but until you provide me with proper accounting of the balance owed and the current and correct holder of this note you will not be recieving any money nor any further communication from me. You may mail said full accounting of the charges to P.O. Box....

OR better yet. Father: I am invoking my rights under the FAIR DEBT COLLECTION ACT to refuse further telephone calls and wish to be contacted only by mail at P.O. Box....any further calls to me, my family members, employer etc...will be considered a violation of my rights and I will sue you for each count of violating my rights. I will be recording all my calls so you have been informed, please make a not of this in my file.

Then do it! How hard is this people? Collection companies are like 7th graders who can't shut up and have to have the last word. They will call.


This. Collection agencies act like thugs because they know they can get away with it. Some of the things they can't do are: Call you before 8 a.m or after 9 p.m. your time (NOT theirs); they can't tell you you will go to prison if you don't pay; they can't threaten to get a judgment against you--only a JUDGE can do that. They're not even supposed to be unpleasant on the phone (as in "Look, you borrowed our money, so you better pay us back! I know you have money, or have family, so if you don't pay us we'll go after them!") And unlike cops, they are not allowed to lie to you.

If you want a low-cost way to get them off your back, take the last bill they sent you and send it back to them with what GT_bike said, but be sure to add the words "cease and desist." You don't even have to threaten to sue them: "Cease and desist" is legal code for saying "I'm about to lawyer up." Make a copy for yourself, and then mail it straight to the collections agency. The mailing is enough for notice, although if they're being really awful, send it certified so they can't claim they never got it.

But be sure to follow through. If they call you again, make a recording of it, and the time and day they called, and then contact either an attorney or the Better Business Bureau. It usually works. I sent such a letter off to a bothersome creditor, and not only did they stop calling, I haven't heard from them since. Hell, I even threatened Sallie Mae with a cease and desist letter--the calls stopped within 24 hours.
 
2012-06-14 08:45:13 PM  

GT_bike: OR better yet. Father: I am invoking my rights under the FAIR DEBT COLLECTION ACT to refuse further telephone calls and wish to be contacted only by mail at P.O. Box....any further calls to me, my family members, employer etc...will be considered a violation of my rights and I will sue you for each count of violating my rights. I will be recording all my calls so you have been informed, please make a not of this in my file.


Just to clarify, under the Fair Debt Collections Act, requests to cease collection calls have to be submitted in writing. Just didn't want anyone reading this to think they were going to get the calls to stop just by reading this to an agent over the phone.
 
2012-06-14 08:45:45 PM  
What I've always read with regard to saving for your child's college expenses is as follows:

1) Don't save for their college.
2) Fund your own retirement as much as possible, maybe they won't go to college.
3) Pay down the mortgage as much as possible, maybe they won't go to college.
4) Take out a new loan on the house to cover that which grants, scholarships, etc don't cover, if they do chose to go to college and all the other various forms of non-private student aid/loans don't cover it all.

Retirement funds are NOT considered in the calculation of financial need. The poorer you look, the more "free" financial aid you get (grants, needs based scholarships, etc.). The parents are considered contributing to the offspring's education EVEN IF THEY ARE NOT, so you might as well make it easier for you to get some aid and then pick up the rest through other means.
 
2012-06-14 08:47:54 PM  

TheBeastOfYuccaFlats: bdub77: downstairs: bdub77:

Correct. Federal student loans, which are pretty easy to get, do not require a parental co-signer.

If you don't want to be on the hook for a loan if worse comes to worst, then don't co-sign.


I had loans in 1992. Parents not needed as a co-signer except for a private loan. What there was then and still is around are Federal DirectPLUS loans, where the parents get their own loan to apply towards tuition and whatnot.DirectPLUS definitions
 
2012-06-14 08:49:36 PM  

namatad: easy enough to fix
judge: how much is owed on the loan and who current owns the loan
lawyer tard: we dont know
judge: debt is decreased to amount paid - all loans are paid in full. come back to my court again and I will have you shot. in fact, you have to pay the defendants lawyer fees. treble. now go away before I have you publicly flogged.
ballif: mutter mutter mutter
judge: what do you mean I cant have him flogged???


Some years back a friend had taken out a large loan (not a student loan) and about a year later the industry (tech) went into the shiatter and he became unemployed. Eventually some shady collection company took him to court. Basically, the shyster loan-shark company tried to argue that my friend had taken out the loan for purposes of fraud. My friend produced the documents and correspondences showing him attempting to work out a payment plan that he could afford with his vastly reduced income and the loan-shark's response of "fark that, give us our money!" The judge chewed the shyster a new asshole. I don't remember the exact settlement, but it did involve much wailing and gnashing of teeth on the part of the loan-sharks. The shadier collection agencies do everything they can to avoid reasonable settlements in hopes of coming up with a big cash payoff. Judges frown on those shennanigans.
 
2012-06-14 08:51:02 PM  
There are still many unanswered questions in this story. Has the man EVER made a single payment? If he has he could see who cashed the check, and would know who holds the loan. But it sounds like the moment the bills came after his son died, he just told them over and over his son was dead and then hired an attorney. And while it *is* a hassle, anyone who co-signs a loan for *anyone* should assume right then that they will be responsible. They are relying heavily on the angle "he didn't get to use the education this money was used for" but.... if you buy a car and never drive it, are they going to care when they want their payment? No way... And why isn't the 18-year-old daughter working?
Just have a hard time sympathizing, guess I'm just heartless.
 
2012-06-14 08:52:38 PM  
i246.photobucket.com
No more freeloading dead kids!
/hot
 
2012-06-14 08:53:53 PM  
TheBeastOfYuccaFlats: I don't see how that's assholish.

Did you miss the part of TFA where the parent is trying to find out who actually holds the loans to see if the lenders are willing to forgive, but nobody can tell him? The part where even his lawyer can't figure it out? The part where the debt collectors who can't tell him these things keep harassing him directly in contravention of the law?

Attitudes like yours astonish and baffle me as a human being. The guy just wants to ask his lenders if they'll forgive the loans since his son died but can't because they've repackaged and resold them so often nobody seems to know anymore who actually has what parts of them, and you don't understand why only an asshole would blame him for co-signing a loan for his son to go to college? That's just... that's just horrifyingly telling about how dehumanized this entire country has become. Signing a simple lending contract means whatever crazy things happen without your knowledge behind the scenes are your own fault? Really?

And you know what? Call me up and start demanding money for a loan you bought when you can't tell me who the lender was? Go for it. I'm old and I don't have kids so I have lots of expendable income and I will bury your shiatty little fly-by-night debt collector operation in a flurry of $75-per-filing small court claims for every call I get. I will drag your ass into every proceeding. I will waste so much of your time and money on them that you lose money because of your arrogance and ignorance. I have no problem honoring my obligations, but call me up out of the blue and just start demanding money and I will go out of my way to utterly skullfark you and your little shakedown business just for the sake of it.
 
2012-06-14 08:54:24 PM  
My wife did an income based loan repayment plan with Sally Mae who owns the loan. Is it possible for him to do something similar? I feel bad for the guy, I can't imagine his loss.
 
2012-06-14 08:55:02 PM  

Nem Wan: It should be illegal for a debtor to be required to pay more than the current owner of a loan paid to acquire it plus interest since. Selling a loan for less than the amount owed should be considered forgiveness of the difference. If the original lender wants to collect the full amount then they should have to hang onto the loan.


clearly you've never fallen behind with your bookie.
 
2012-06-14 08:55:53 PM  

Moodybastard: You may want to take a look at the cost of college...before you have children.
The sort of temp job someone can get while going to cc/2 year school is going to hover in the min wage category.


Not to mention (at least here in WI) CC credits have an exchange rate to four year schools similar to our dollars to Zimbabwean dollars.
 
2012-06-14 08:56:00 PM  

bdub77: Maybe you shouldn't have cosigned the loan.

Yes, it's this guy's fault for cosigning. Still, the loan servicer, ACS, should have this information.

Plans for my kid: IF you want to go to college, here's the deal. I'll put SOME (not all) money down for you. Rest is up to you. First two years, community college (I'll pay 100%), then transfer to a real university for 2 years - I'll pay about half of that. And if you so choose, you can take the next 2-3 years for masters, same or different university - you work it out, on your dime. Now you've got your 'college' experience of living alone for 4-5 years, and a degree that should hopefully earn you money.

Be very careful about who you cosign your loan to.


I can't believe you're getting hate for this. It seems perfectly reasonable.

I *would* have a little extra socked away that I didn't tell the kid about. If he's making good progress in school and living cheaply there still might be a point where he needs a little extra to make ends meet. And if he doesn't, then you'll have a little extra for retirement.
 
2012-06-14 08:56:42 PM  

bdub77: And I don't consider myself an ass for wanting to make my kid responsible. Again, best laid plans. There's no saying what will happen in the future, but that's what I plan to do. I think college is worth it now, but in the future who knows?

Personally I think it's hilarious that everyone wants to entitle their kid to everything. Good luck with that.



You don't "make" your child responsible. Either you teach it or you don't. If that's your plan then you're basically forcing them into a situation where, to succeed, they must be responsible. Like "teaching" your child to swim by chucking them out of a boat and then telling them to swim to shore. It's not a great method and it's one with very little margin for error.

Then again you want your child to get a 4 year degree but you want them to spend half of it in a 3rd tier institution and spend half of their time at that institution working on the side. A poor plan since they'll need to work harder to do well at the community college level and instead of focusing on studying they'll be splitting time between studies and menial jobs. Reminds me of the saying "a jack of all trades but a master of none."
 
2012-06-14 08:56:45 PM  

rengav:
Retirement funds are NOT considered in the calculation of financial need. The poorer you look, the more "free" financial aid you get (grants, needs based scholarships, etc.). The parents are considered contributing to the offspring's education EVEN IF THEY ARE NOT, so you might as well make it easier for you to get some aid and then pick up the rest through other means.


Oddly though, they still consider EFC or Estimated Family Contributions when crunching all the numbers. Even if your parents are gone (mine aren't happily) or on any form of public or retirement assistance it's on the forms to get grant and scholarship money. It takes a little off the top even if contributions don't, or can't exist. Found that out about a year ago
 
2012-06-14 08:57:23 PM  
She said that don't confront me, long as I get my money next Friday
 
2012-06-14 08:57:54 PM  

Nem Wan: It should be illegal for a debtor to be required to pay more than the current owner of a loan paid to acquire it plus interest since. Selling a loan for less than the amount owed should be considered forgiveness of the difference. If the original lender wants to collect the full amount then they should have to hang onto the loan.


So you're not familiar with concepts like the time value of money, interest risk or duration risk I see...
 
2012-06-14 08:59:02 PM  

downstairs: what_now: Bullshiat. There are some servicers that are shady. This isn't one of them. The father probably doesn't have the students account number, SSN, ID number etc.

There's an awful lot missing out of this story.

Welcome to "The Consumerist!"


Pretty much. The National Enquirer of consumer websites.
 
2012-06-14 09:00:03 PM  
Subby: Cosigning on the loan means it is the father's loan, not just the kid's.

Why do some people think paying back debt is optional?
 
2012-06-14 09:01:36 PM  
It's different up here in Canada...CSB

If you are not a mature student, your parents' financial situation factors in to how much of a goverment loan you can get. Because my mom had some inheritance money (as well as money they saved) put away for retirement, they wouldn't even give me a loan to cover my tuition. Their attitude was, your parents have the money saved, they will have to cash in their retirement savings, pay all the penalties and pay for my tuition. Well, I was NOT going to let that happen. The only way I was able to go to school was get a private loan through my bank and they didn't ask me to co-sign because I already had some credit built up with them. Paid it all off myself

//rules recently changed, I hear. Hopefully this shiat doesn't happen anymore and government loans are more accessible to everyone
 
2012-06-14 09:04:09 PM  

bdub77: And the kid should be earning money his two years in CC/university on the side, so he can afford tuition/room and board later.


Uh, the kid's DEAD. Try and keep up...

// Where's the DUMB button when you need it?

/// And an UNFUNNY button?

//// One of these days I'm gonna add those buttons to my sucky blog
 
2012-06-14 09:04:59 PM  

ArkAngel: what_now: ArkAngel: 93% of all student loans are federal

Man, I wish I wasn't leaving my office right now.

That statistic is absurd. No offense man, but private student lending is a multi billion dollar industry.

And when there are a trillion dollars in loans, you can have the feds doling out 93% and still have a multi-billion dollar private industry.

Link
Link
Link


Dude, those links are nice and all but the big picture is much bigger and complicated, both in size and by year, and by degree. Stafford loans, subsidized & unsubsidized by the gov't have been around a long time for undergrad & grad, I don't believe there needed to be a co-signor, but the loans covered relatively little (like less than half) of most tuition fees, not including housing, food, books, insurance, etc.

All undergrad gov't PLUS loans (ie, the loans that paid for the other half of tuition plus housing etc etc) needed a parent co-signor. BUT, I think since they were gov't loans, they were terminated when/if the primary beneficiary died.

For Grad school, before July 2006, anything above stafford was PRIVATE ONLY, ie, super fark-job terms, like no co-signor = double the rate and no termination of loan upon primary beneficiaries death. Sometime in 2006 somebody in Congress smelled the next bubble bursting and somehow GradPLUS loans were made available to grad students without a co-signor.

So basically, as I understand it, no one should ever be taking out anything but Fed loans (Stafford/Perkins/PLUS/GradPlus) at this point, if for no other reason than dischargeability in death. But that option is only 6 years old. And if there is NO option of a co-signor, Privates may be someones only undergrad option, but then again, that means death means no possible recourse for the privates.

Also also, Stafford & PLUS loans now qualify for IBR (Income based repayment), so even if you make minimum wage, you pay off on a graduated scale that terminates after 25 years. That has only been available since 2008ish.

Basically, if you play your cards right, you currently can be saddled with a shiat load of gov't debt, but it is at least dischargeable in death or after 25 years of indentured servitude. Borrowers before 2006 are screwed with private debt terms, and no dischargeability in death.

So also also also, this crap is a maze, and if anyone in the middle is on the take, it is easy as hell to go down the 'wrong' path.

/I feel bad for this guy
//lost his son
///and likely didn't have the understanding or resources to navigate the BS loan system
 
2012-06-14 09:05:23 PM  
I gotta say, I don't understand the bdub77 hate. That's exactly how I got through school.

My folks helped out for two years, and then I was on my own. I worked, lived off campus and paid my own rent, bought my own food, and paid as much tuition as I could. I definitely needed loans to help me through it, but not a ridiculous amount, and they were all Federal. I even went abroad for a semester and took out a loan for my living expenses since I couldn't work there. Still graduated with less than 15k in loans. Now, this was a state college, so tuition wasn't outrageous, but still. It worked out fine for me. I even have a job in my field.
 
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