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How the government banker bailout screwed me

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  • Fri, Jan 29, 2010 - 01:17pm

    #31
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: How the government banker bailout screwed me

It is really interesting if you think about. Because pretty much anybody has to take on debt to be able to better the income chances and I do mean chance. As there are no guaranteees when completed. My whole thing is that you cannot make distinctions the some get their debt forgiven and others do not.

  • Sat, Jan 30, 2010 - 12:26am

    #32
    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: How the government banker bailout screwed me

I feel your pain, but it’s hard to sympathize with you, sorry.

You took out loans betting that the banks would fail and you therefore wouldn’t have to pay the loans back.  The federal government bailing these banks out isn’t what screwed you. Your bad decision did. 

I’d wager that most, if not all, the loans you took out were government backed loans. Even if the banks failed, the government would have come after you for the money. The government backs most student loan debt, and collects is almost as aggressively as the IRS collects back taxes. They would do the same thing if you defaulted on the loans. Even if you took the loans out from a small bank, if that bank failed, the government would have taken over those loans and expect you to repay them in full. Even if CIti and Wachovia had not been bailed out, the government would have taken over those loans and expected you to repay them in full. In fact, every bank I’ve ever taken student loans from has sold them to a servicing agency immediately upon my graduation. 

I’m in a similar situation but went to medical school instead. I started training in one field and got burnt out, so I’m in the process of switching. Right now, not being board certified in any specialty, my job options are limited. I do work per diem. In 2008 I essentially got full time hours and was paying my loans just fine and doing well financially. In 2009, suddenly they limited my hours and I made about 35% of what I made in 2008. I had to sell my house and downsize my car, and put a bunch of loans in deferment. I’ve had a lot of emotions about what happened. But if I’m totally honest with myself, it was my decisions that put me in my current situation:

My decision to go back to medical school as a career change

My decision to take out as much student loan debt as I did (I could have lived cheaper, and saved 10-20K, doesn’t sound like much, but with compounding interest!)

My decision to not complete my first residency and work per diem assuming I’d always be able to get full time hours. 

My decision to postpone applying for residency in a different field. 

My decision to buy a house instead of apply that money towards debt repayment, or paying cash for a car. 

My decision to buy a new car instead of a cheap used one when my paid for car was totaled. 

 

What did I learn? 

Even if you think you are doing fine financially, things can change suddenly, unexpectedly and dramatically

Debt of any kind is a major hinderance especially when your finances take a downturn. 

 

As far as the silly cycle of tax money, I agree. In fact, in my case, a good number of patients are on medicare/medicaid. The government decides what they will pay for my services. I am being paid with tax money for services provided to those patients. And, then I use the money paid for my service from taxes to pay for my student loans which were paid for by taxes. It is a crazy system. 

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