Comments on: Student Loan Debt

By: Frank Bauer

Frank Bauer — Wed, 29 Jul 2009 01:03:09 +0000

I think that we need to move past just dealing with these large numbers as monolithic figures. I am writing a series of columns breaking down medical school debt into different parts. I aim to move beyond griping to real education. I invite you to read, share, and comment.

http://garbageplatemd.blogspot.com/2009/07/anatomy-of-debt-part-i.html

http://garbageplatemd.blogspot.com/2009/07/anatomy-of-debt-part-ii.html

http://garbageplatemd.blogspot.com/2009/07/my-idyllic-home.html

By: Kay Em

Kay Em — Mon, 13 Jul 2009 17:59:54 +0000

Any student loan over 50K – might has well be considered an unsecured mortgage.
Anyone who has/had a mtg. knows that the total payout can triple the original cost in 3 decades of amortization with even a reasonable interest rate.
What also needs to happen is to prohibit the transfer or sale of student loans without the consent of the borrower. Make all these lenders accountable for the servicing of their own loans.
I know what I got myself into but I never signed on to double billing – by a lender who claimed to have purchased one of my loans from the original lender.
Mind you I had a good chunk of loans – none ever defaulted – so it was no surprise that my original lender had no record of selling any of my loans. I got stuck paying my legit loans as well as paying a single 10k note to the claim lender – which went to 18K by the time they threatened to garnich wages – never mind I am always on time paying my student loan and had a letter from my legit lender! – So I paid the crooks! As long as we give these student lenders free reign to do as they please, they will continue to fleece the borrowers as well as the tax-paying public.

By: Paula McKibbin

Paula McKibbin — Sun, 28 Jun 2009 17:24:15 +0000

Peter O’Lalor and I just wrote a comprehensive bill for student loan debt relief and we want everyone to obtain it (cedresq@gmail.com), share it with others in the U.S. and ask legislators to support it. We need to work together and advocate for its passage. It asks for consumer protection, bankruptcy relief, a fixed 10-year term on student loans or discharged, a low fixed rate of interest, constitutional protections, etc. It is great. Student loan creditors are making huge profits every year. We need to work together. I am 53, a divorced parent of 3 teens. My home in California just went into foreclosure because mortgage co refused to work with me – negative equity in home – my employer never did the loan forgiveness plan as promised and the student loan creditors are garnishing wages. My children and I are temporarily separated because of financial crisis. My debt is allegedly now at $160,000 and increasing as we speak. It went up $60,000 in 2 years and I’ve been out of law school for 18 years. There is so much corruption. Please get the bill and share it. Thank you!

By: J

Thu, 07 May 2009 18:35:22 +0000

I went to an inexpensive state (5tht cheapest in nation at the time) med school and took military money (which covered tuition even when it increased by 15% every year). My debt was less than 16K upon exiting med school. I owe 3 years of military service with pay about 100k a year. I have no debt now, 1 year out from residency. I think more should think about military service, IF you have certain specialties. Gen surgeon, ER, internists, etc. will get deployed. If you can live with that for 3-4 years to have much less debt, THEN it is a good choice. You also will serve your country and the people protecting our freedoms. If you are a doctor in the US, then it is YOUR country. Otherwise, you will need to choose certain specialties that will pay well enough to live comfortably and reduce your debt.

By: NP

NP — Tue, 05 May 2009 21:06:55 +0000

Well, I just couldnt resist posting on here to give some hope.

I am an anesthesiologist working in private practice. 1st yr out of residency. Making 300K. what a relief? I can finally start paying back my student loans. I had 136K in loans that capitalized to 170k at the end of residency. My monthly student loan payments are 900/month. I get 15.5K for my 401K. Free health, dental, etc. Malpractice insurance is paid for by the group. After taxes, I end up with roughly 60%. It feels great to make extra payments towards my student loan payments. I also bought a new car, got some expensive dental work done. And now I have some extra cash to play around in the stock market. I plan to pay off my loans slowly over 10 yrs (4% interest rate). In the meantime, I am accumulating real wealth so that I can live comfortably later.

Moral of this story: Don’t let financial issues ruin your nights. Be an anesthesiologist.

By: Karen

Karen — Fri, 27 Mar 2009 15:51:56 +0000

Marie, contact the Clarke Howard show: http://clarkhoward.com/ . Click the “Consumer Action Link” – it might be the door in to asking the questions you’ve asked on this forum. Best wishes, Karen

By: Eric

Eric — Thu, 19 Mar 2009 15:17:06 +0000

This avg of 130K for med student is very very underestimation. I know at least dozen and many more residents with excess of 400K . I remember talking to banking instution regarding residency loan they said its very common for graduating residents with 400K + debt. 100K is nothing in Med graduates. and there is no guarantee that you will finish to pay off that debt. 100K is for undergraduate education.

By: marie

marie — Sat, 07 Mar 2009 05:16:56 +0000

are we going to see serior citizens paying student loans????
My son aquired a student loan when he was 18. He wasn’t able to finish the classes due to the fact that he just could not do the work (it was a trade school). He paid the payments for a while working minimum wage jobs. Had a son to support, you know the story. He made payments when he could. Then his dad got sick (stroke)and he had to help support us. Shortly before his father died, he got a call that he was in danger of having his wages garnished. They told his he had to make paymeents of $476.00 a month for a year before they would consider reducing the payment. He had heart problems & was in the hospital 5 or 6 times in one year & wound up having surgery. He missed a month of work & 1 payment. Now he’s told he has to make payments for a year from the month he missed before they will consider lowering the payment. Last year (2008) he made just under $30,000.00 and paid $8239.00 in student loan interest. So, somebody tell me how is he ever to get anything paid towards the principal paying that kind of interest on his salary. That’s almost 33%. And he can’t even take all of it off his income tax return. He has 2 children & is doomed to a life of poverty because of one mistake. Trying something he couldn’t handle. In this country you can swindle people out of hundreds of thousands of dollars, start businesses & fail, charge thousands up on thousands of dollars on credit cards, then file bank ruptuptcy. But the student loans will be with you to your grave. That’s the only “sin” thats unforgivable. I’m not saying that he shouldn’t pay, just let him live while he repays it. This I’m sure will be taken out of his old age social security well into his 70’s at this rate. Just like a lot of people in their 30s & 40s. Here’s a thought, let them serve 6 months to 1 year in a posh federal prison & then forgive the debt. Isn’t that what the goverment does to white collar criminals that take millions & don’t pay it back? Welcome to the new crisis for the eldery……student loans.

By: steve

steve — Wed, 04 Mar 2009 02:50:16 +0000

The laws in this country have to change in regards to student loans. The biggest disservice we are doing is letting interest accrue on any loans during residencey. My monthly loan amount is 1300 per month for the next 30 years. It would be half that if interest wasnt tacking on at 700 bucks per month during my five year residency. THat means my loan increased by about 35K just for sitting in residency. Un believable. Not to mention my interest rate is much higher than my mortgage on my house. unbelievable. student loans is the biggest sham that is being perpetrated. anyway the lenders are reaping what they sowed. **** them i should have been a garbage man

By: Cambo21

Cambo21 — Mon, 02 Mar 2009 18:50:32 +0000

Take a military scholarship, get your school completely paid for with a 30,000+ salary while in med or dental school and only owe 3 or 4 years active duty at somewhere between 60-80k while in. I know its not over 100k but that is what you will be making when you get out after four years with no debt. This is a much better deal I think for dental school, but still worth it for medical school. plus good clinical experience while you are in (patients, ie soldiers, don’t refuse treatment, its all paid for by the military for them). But obviously the military is not for everyone.