How the government banker bailout screwed me
V do you always have to stir the pot? Its really not productive.
BMT. I had the exact same experience in the school of architecture. In fact the banks were adding to the interest on my loans before it was owed. I’ve made agreements with 3 different lenders to consolidate my loans only to get a notice a few months later that my loan was sold to another lender who in turn bumped the price up.
So to all the posters out the that say “own up to your obligations” I say “If they own up to theirs”. Did the bankers own up to their obligations? Do they have morals, ethics? Wake up. Thats not the way the world works.
I had $120.000 of student loans when I graduated. Took about 8 yrs to pay off. However the current non dischargable student loans truely are debt slavery. They are marketed to the youth who are told get an education to get a good job, but what happens when their promised job is not there? Debt slavery.
I am very sorry to tell you:
A college or graduate degree is no longer the virtual-guarantee of a future career that it used to be.
Sadly, we need to face reality, that those days will not come back for some time, and begin to think differently about the value of academic credentials
I couldn’t agree more.
If I had it to do over again I would have put my money into electrician school. Then I’d have a skill that helped people directly and relative job security. I hope the economic changes that are coming increase the intrest and validity of trade schools. There is way too much fluff and nonsense in academia currently. Which is great if you have time and money to burn but if you are like most of us it just gives an academic a job and empties your wallet.
Wow I love all the talk about moral responsibility about paying off my debt. First things first, its only moral when there is a fair playing field. Im talking about all the SPECIAL ASSISTANCE the lenders recieved. What special assistance will i recieve? NONE. If i dont pay or am late a few months my credit gets destroyed. It doesnt matter that jobs are scarce i STILL have to pay the loan to the feds.
I love the way these older bitter folk say how i took a bet and lost. Its 2005 and i get accepted to law school. Im 23 yrs old at the time. I hear the tuition cost and i freaked out. Thankfully my family paid the first 3 semesters of my tuition then business went to hell so i had to borrow the last 3 semesters. The point being that I NEVER WOULD HAVCE GONE TO LAW SCHOOL WERE I TO HAVE KNOWN THAT POPS COULDNT PAY FOR IT. However, i was half way done when the family support stopped. And that point i had no choice but to continue.
I remember looking around at my fellow classmates, as there student loan debt was as high as $180,000. Freaking ridiculous. Thats a mortgage. The really sad part is that in 2000 my school cost 19,000 a year. It doubled in 10 yrs as its now 37,000. In 1990 it cost 12,000. So basically my generation of law school grads are equivalent to people who bought homes at the peak of the market. Except we are alot younger than those who bought homes. And also, since i had a general understanding of the demographic issue, i figured that attorneys would begin to retire, thereby opening the job market even more. Unfortunately, i failed to see all the other problems such as SS, household debt numbers, etc.
I dont even have a credit card thats how much i HATE debt, i utterly despise it. It doesnt make me a scam attorney cus i got a crappy bargain. But of course some of you here are so used to taking orders you just say “this is life”. If i was born 10 yrs earlier my debt burden would be HALF of what it is today! But im being a whiner. Open your eyes haters.
And with regards to being a “scam” lawyer, ive done so much pro bono work and continue to do it and will always do it. This week i filed a child support petition on a debt beat dad, where many LAWYERS today would bring out the retainer i said “dont worry about it, im here to help you get the support you need”. Being rich isnt my foremost goal. Nonetheless, i hate paying this money to the crooks.
In the event my 80k loan was sold off for .30 on the dollar the new owner would own the note for 24k. 80k X .30=24K. I owe 120k on the existing note. So, if some one would have bought my note for 24k and still demanded the 120k, the interest rate would be 50%.
|Adjusted Loan Balance:||$24,000.00|
|Loan Interest Rate:||50.00%|
|Loan Term:||10 years|
|Monthly Loan Payment:||$1,007.51|
|Number of Payments:||121|
|Total Interest Paid:||$96,910.33|
A 50% interest rate is USURIOUS and would get destroyed in a courtroom.
All of that is irrelevant. If someone lends you money and thern sells the paper at a loss, that’s their problem. The loan is for the amount and the terms under which you borrowed the money and is enforceable by law. It makes no difference whether the new owner of that paper is making 50% or 500%.
Obviously the paper was sold at a loss because the seller had a very low opinion of the loan ever being repaid, and the buyer demanded a discount for the same reason. You as the borrower wouldn’t even be aware of the paper being sold. If judges forgave debt in the manner you are suggesting, the economy would grind to a hault. There needs to be liquidity in the markets so that bad assets (in this case your loan) can be sold at a discount to competent buyers. Otherwise, you can kiss whatever is left of the economy good bye.
This happens all the time and is happening right now. TSW, one of the biggest (and certainly the most succesful) mortgage-debt buyers, buys mortgages for 40-60% of their value all the time. The sellers benefit by obtaining much needed cash, and assuming TSW does their homework and does not overpay, their investors make a good return too. The mortgage holders, by the way, continue paying under the same terms and conditions as before, and in most cases do not even know someone else owns the paper. Even if they did, no judge would throw the loan out for “usury” as you suggest. Under your system, TSW would not exist, and the current sellers of those mortgages wouldn’t just be in bad shape, they’d be history.
I feel your pain, but not your logic. I hate the financial system as it is rigged right now, but the underlying principles behind the situation you find yourself in would be the same even in a non-oligarchical system.
The attitude of bearmarkettrader “Heres how the banker bailout screwed me” just irritates me. You were the one attempting to scam the system. You took advantege of the system hoping to get a free or cut rate education. Well it did not work. You screwed yourself. Too bad!! You got benefit from your loans and should pay them. You had prior knowledge of the system and sacrificed your honesty and ethics hoping not to pay legitimate loans. Would you go out and buy a house or car that you knew you could not afford and try to work the system to not pay for it? People like you are part of the problem, not part in the solution. That is the type of ethics too often practiced by big business, insurance, politicians and others. That type of attitude has to STOP!! And it needs to stop everywhere! It is quite interesting that you were going to law school. Well, I guess that is one stereotype that is true…at least in your case. For your information, the feds took over student loans because banks were dropping out of the student loan business and because of their shoddy business practices had great difficulty in honoring the loans that they had commited to. The feds took over to prevent the student loan system from total collapse. They did not take the system over to control or nationalize it. By the way, loans are frequently sold to other financial entities and the borrower still owes the whole amount.
“Wow I love all the talk about moral responsibility about paying off my debt. First things first, its only moral when there is a fair playing field. Im talking about all the SPECIAL ASSISTANCE the lenders recieved. What special assistance will i recieve? NONE”
Well all I can say is this:
It is a pleasure not knowing you in day-to-day life.
I choose my friends carefully, and people with that sort of attitude are not amongst them.
I paid for my own education, every penny of it, and it took many years to pay it off. I wanted to go to law school, and decided to go out in the world and get some real experience, and also build a bit of savings before I did so. I’m glad I made that choice. The real life experience convinced me that a law degree was not the right thing for me.
Another reason was this:
I spoke to my cousin. He was older that I. And a terribly brilliant guy, who went to Harvard Law school and graduated near the top of the class. He went on to become one of the senior lawyers of the the (then) largest law firm in the US, starting several of their overseas offices. He made tons of money, and later ran for Congress- losing narrowly. And we hoping he will run again. He is a man-of-integrity (a “Mr.Clean” type) who would make a good legislator. Anyway, when I was still thinking about going to law school, he told me that he did not like being a lawyer. The nature of the work was boring, and he did not feel that most of the work was fulfilling. I expect he found many of his clients “too greedy.”
It is your life, and I cannot tell you how to live it. But someday you will be older, and looking back at your life, considering what you have achieved. At that point, you will feel better about what you have done and achieved, if you can say that you helped many people, and that you acted with integrity. If you are lucky, you will be surrounded by decent friends of good character.
I sincerely wish you good luck in finding a fulfilling path, and I hope you will set a good example for friends and family.