They are really out to get your every penny

Student loans suck.

  • (2 Pages)
  • +
  • 1
  • 2

22 Replies - 1619 Views - Last Post: 02 October 2009 - 10:16 AM

#1 NickDMax  Icon User is offline

  • Can grep dead trees!
  • member icon

Reputation: 2250
  • View blog
  • Posts: 9,245
  • Joined: 18-February 07

They are really out to get your every penny

Posted 08 July 2009 - 06:55 AM

Not only do they charge you interest -- but they charge you to pay your bill... there is a fee to pay. You have to pay to pay. (The fee I am referring to is a 15$ charge for online payment - AFAIK if I were to mail a check there would be no fee).

Remember when the fees were just if you were late?

See banks make it seem like they like it when you pay on time, but in reality they don't -- because when you don't pay on time they get all kinds of extra money. They get to charge you late fees, they get the extra interest (which adds up) they may get to increase your interest rate.

When you have a nice system that keeps you paying on time -- well this just can't be! They have to find a way to recoup so of their losses. If I were to pay the minimum payment for the remainder of my student loans (which is not much thank goodness) I would be paying an extra 600$ (which I will not since I don't make the minimum payment).

What really aggravates me is that the fee is total BS -- there is no way that the average cost of processing an online bill pay is 15$. I pay most of my bills online and NONE of them charge me anything like that (some do have fees but these are usually like a 1$).

Anyway... I do this once a month or so.

To all students -- brace yourselves. Student loans suck (even if you never miss a payment).

Is This A Good Question/Topic? 0
  • +

Replies To: They are really out to get your every penny

#2 kmangold  Icon User is offline

  • D.I.C Head
  • member icon

Reputation: 11
  • View blog
  • Posts: 167
  • Joined: 24-June 09

Re: They are really out to get your every penny

Posted 08 July 2009 - 07:01 AM

It is going to take me MANY MANY years to pay off my loans. In the end I will pay more than twice as much as I originally borrowed.
Was This Post Helpful? 0
  • +
  • -

#3 William_Wilson  Icon User is offline

  • lost in compilation
  • member icon

Reputation: 205
  • View blog
  • Posts: 4,807
  • Joined: 23-December 05

Re: They are really out to get your every penny

Posted 08 July 2009 - 07:03 AM

that does sound like a load of bull.
We don't get charged a fee for payment online, but we get charged a stupid fee for student loans while attending school.

The average person uses them to pay for school. It's a fact, it's just too expensive for the average Joe to slap down multi-thousands of dollars each year. The catch is, the fee deadline to not be charged a "late fee" is always 3-5 days before the first day to pick up your student loan money. It definitely isn't fair and if all universities weren't doing it, it seems like it would be illegal.

As for repayment, from all I've read you work out a plan. If you want to apply more money than your plan layout was (to heaven forbid, save you some money on interest) there's a fee. It's like the banks want to penalize you for being good with your money and paying off your debts. Our global money system is just way out of whack.

I feel your pain.
Was This Post Helpful? 0
  • +
  • -

#4 cmwise  Icon User is offline

  • D.I.C Head

Reputation: 5
  • View blog
  • Posts: 169
  • Joined: 14-February 09

Re: They are really out to get your every penny

Posted 08 July 2009 - 08:12 AM

Luckily, I probably will not have to take out any student loans for my undergrad, however I'm not looking forward to graduate school loans from RPI! -_-

But that sounds like a load of bullshit to me, any way to switch who you pay your bill to that might not include ridiculous fees?

This post has been edited by cmwise: 08 July 2009 - 08:13 AM

Was This Post Helpful? 0
  • +
  • -

#5 macosxnerd101  Icon User is offline

  • Self-Trained Economist
  • member icon




Reputation: 10662
  • View blog
  • Posts: 39,590
  • Joined: 27-December 08

Re: They are really out to get your every penny

Posted 18 July 2009 - 07:29 PM

Paying for College 101:

1) Merit Scholarships (if you're a good student)
2) Need-Based scholarships (if you're not rich, which you're most likely not)
3) Employer aid
4) In-state tuition rates
5) Go to community college for a year or two & transfer
6) AP Classes in HS
7) Work-Study
8) Save beforehand & make smart investments. A hold-and-grow method is stupid. Look at all the $$ people lost in the stock market, the commodities market is too volatile & CDs && bonds won't get you much.

Under no conditions should you take out loans. You will get crucified.
Was This Post Helpful? 0
  • +
  • -

#6 KYA  Icon User is offline

  • g++ jameson.cpp -o beverage
  • member icon

Reputation: 3106
  • View blog
  • Posts: 19,145
  • Joined: 14-September 07

Re: They are really out to get your every penny

Posted 18 July 2009 - 08:15 PM

Quote

A hold-and-grow method is stupid



What?

Long term dollar cost averaging investment in an index fund or similar is one of the best core investments a 20-something can make.

If you're referring to a good investment for college $$, look at 529 plans.

This post has been edited by KYA: 18 July 2009 - 08:15 PM

Was This Post Helpful? 0
  • +
  • -

#7 red_4900  Icon User is offline

  • Code T(h)inkers
  • member icon

Reputation: 21
  • View blog
  • Posts: 1,120
  • Joined: 22-February 08

Re: They are really out to get your every penny

Posted 18 July 2009 - 11:14 PM

View Postmacosxnerd101, on 18 Jul, 2009 - 06:29 PM, said:

7) Work-Study

I've seen a lot of students doing part time to cover their university expenses. They work so hard till late at night, and they're too tired for lecture the next day. They either not come to class, or they come and just sleep at class. Which kind of defeat the purpose of doing part time, isn't it?
Was This Post Helpful? 0
  • +
  • -

#8 macosxnerd101  Icon User is offline

  • Self-Trained Economist
  • member icon




Reputation: 10662
  • View blog
  • Posts: 39,590
  • Joined: 27-December 08

Re: They are really out to get your every penny

Posted 19 July 2009 - 02:07 PM

View PostKYA, on 18 Jul, 2009 - 09:15 PM, said:

Quote

A hold-and-grow method is stupid


What?

Long term dollar cost averaging investment in an index fund or similar is one of the best core investments a 20-something can make.

If you're referring to a good investment for college $$, look at 529 plans.


Not right now it isn't. And what about all those people 20 years ago who decided to invest in the stock market for college? Talk to them. Plus, this is an average person's investment technique. Anyone who understands the markets & patterns can use professional investing methods to buy & sell commodities & stock to make the most out of their money. Honestly, this past year, I could have made 5 or 6 digits investing starting out w/$3k-4k. Though I know my parents would never have gone for it, so that's why it never happened.

@Red_4900: I think w/work-study there is a balance to be found. While it is a good method to consider, it should not be the only way you put yourself through college unless you alternate semesters working & going to school.

Plus, remember that you can withdraw money from tax-sheltered IRA's to pay for college w/o paying taxes on the withdrawl.
Was This Post Helpful? 0
  • +
  • -

#9 capty99  Icon User is offline

  • i am colt mccoy
  • member icon

Reputation: 98
  • View blog
  • Posts: 10,081
  • Joined: 26-April 01

Re: They are really out to get your every penny

Posted 20 July 2009 - 04:52 PM

you COULD have made 5 digits (i'm doubting 25x returns on your money for 6 in a year) but your talking some heavy risk there.

what kya is talking about is actually being smart with your money.
Was This Post Helpful? 0
  • +
  • -

#10 xclite  Icon User is offline

  • LIKE A BOSS
  • member icon


Reputation: 911
  • View blog
  • Posts: 3,180
  • Joined: 12-May 09

Re: They are really out to get your every penny

Posted 20 July 2009 - 05:42 PM

View Postmacosxnerd101, on 18 Jul, 2009 - 10:29 PM, said:

Paying for College 101:

1) Merit Scholarships (if you're a good student)
2) Need-Based scholarships (if you're not rich, which you're most likely not)
3) Employer aid
4) In-state tuition rates
5) Go to community college for a year or two & transfer
6) AP Classes in HS
7) Work-Study
8) Save beforehand & make smart investments. A hold-and-grow method is stupid. Look at all the $$ people lost in the stock market, the commodities market is too volatile & CDs && bonds won't get you much.

Under no conditions should you take out loans. You will get crucified.


1) Hard as hell to get (I have a few, but there's a lot of competition)
2) You don't have to be rich to be ineligible. I'd call myself lower middle class and we don't get a dime.
3) If you have a job where you get employer aid, you're a very lucky individual. Even more so if it's not just some company-wide $1000 scholarship that one person per year gets, but every dime helps!
4) In-state is nice. However, it is cheaper in some places to go to your neighboring state if they have such programs in place (look at Oklahoma with Texas).
5) Definitely recommend - get some liberal arts classes out of the way, especially ones you won't be needing.
6) And dual-enrollment. Not only can these save money, but if they aren't critical, they can prevent you from having to deal with classes you'd rather not take in college.
7) These often go hand-in-hand with however much money the government decides to give you. I don't get financial aid, and I don't get a work-study.
EDIT: You may have meant something like a Co-op here. I thought you meant federal work study. I definitely recommend a co-op. It's experience, pay, and sometimes counts for college credit.
8) It's only a loss if you sell now, but this isn't about financial advice. Definitely sock away the money, it sucks having to work while going to school.

This post has been edited by xclite: 20 July 2009 - 05:43 PM

Was This Post Helpful? 0
  • +
  • -

#11 NeoTifa  Icon User is offline

  • Whorediot
  • member icon





Reputation: 2735
  • View blog
  • Posts: 15,812
  • Joined: 24-September 08

Re: They are really out to get your every penny

Posted 21 July 2009 - 06:22 AM

I go to school for free. Huzzah! I'm poor!
Was This Post Helpful? 0
  • +
  • -

#12 macosxnerd101  Icon User is offline

  • Self-Trained Economist
  • member icon




Reputation: 10662
  • View blog
  • Posts: 39,590
  • Joined: 27-December 08

Re: They are really out to get your every penny

Posted 21 July 2009 - 12:25 PM

View Postcapty99, on 20 Jul, 2009 - 05:52 PM, said:

you COULD have made 5 digits (i'm doubting 25x returns on your money for 6 in a year) but your talking some heavy risk there.

what kya is talking about is actually being smart with your money.


Depending on what I would've invested in. For example, I could have invested in oil at $35/barrel & doubled my profits. If I bought Bank of America when it was $3/share & sold now I would've quadrupled my profits. It's all about knowing what you're investing in, then buying, holding for a few months, then selling. In AP Euro this past year, we went off topic on current politics & economics. My teacher would always ask me for the economic report & my predictions, which were accurate (pattern wise, I'm not good enough yet to predict more than direction) 98% of the time.
Was This Post Helpful? 0
  • +
  • -

#13 c0mrade  Icon User is offline

  • D.I.C Regular

Reputation: 20
  • View blog
  • Posts: 412
  • Joined: 16-November 07

Re: They are really out to get your every penny

Posted 06 August 2009 - 08:00 PM

View Postmacosxnerd101, on 18 Jul, 2009 - 06:29 PM, said:

Paying for College 101:

1) Merit Scholarships (if you're a good student)
2) Need-Based scholarships (if you're not rich, which you're most likely not)
3) Employer aid
4) In-state tuition rates
5) Go to community college for a year or two & transfer
6) AP Classes in HS
7) Work-Study
8) Save beforehand & make smart investments. A hold-and-grow method is stupid. Look at all the $$ people lost in the stock market, the commodities market is too volatile & CDs && bonds won't get you much.

Under no conditions should you take out loans. You will get crucified.


I call bullshit on account of no first hand experience. (pardon the language)

1) You think you can get much just for being a 'good student'? Try it.
2) I wish
3) If your lucky
4) Nice, but still looking at well over 10k/y
5) Practical yes, but really not that appealing to most people
6) May help, but it's rare to eliminate a whole year, and tuition fees are quite small compared to everything else
7) Yup, that's what should pull me through
8) Are you kidding? Now is the time to buy into the stock market. Our generation is lucky.

Quote

Honestly, this past year, I could have made 5 or 6 digits investing starting out w/$3k-4k. Though I know my parents would never have gone for it, so that's why it never happened.

haha yeah you really haven't figured out what real life is like yet have you?


Quote

Depending on what I would've invested in. For example, I could have invested in oil at $35/barrel & doubled my profits. If I bought Bank of America when it was $3/share & sold now I would've quadrupled my profits. It's all about knowing what you're investing in, then buying, holding for a few months, then selling.

Haha no shit depending in what you invested in. Real investing is not about gambling all you money on a hunch.
Was This Post Helpful? 0
  • +
  • -

#14 sparkart  Icon User is offline

  • D.I.C Addict
  • member icon

Reputation: 113
  • View blog
  • Posts: 688
  • Joined: 16-February 09

Re: They are really out to get your every penny

Posted 07 August 2009 - 10:42 AM

View PostNeoTifa, on 21 Jul, 2009 - 05:22 AM, said:

I go to school for free. Huzzah! I'm poor!


I'm going to school Fall Quarter for free, too. Honestly, I don't see why you would need loans. If you do not qualify for financial aid that means your parents have enough money to send you to school. If they don't, that's just wrong.
Was This Post Helpful? 0
  • +
  • -

#15 NeoTifa  Icon User is offline

  • Whorediot
  • member icon





Reputation: 2735
  • View blog
  • Posts: 15,812
  • Joined: 24-September 08

Re: They are really out to get your every penny

Posted 07 August 2009 - 11:09 AM

They don't account for bills other than water, gas, and electricity. Maybe they owe credit cards, cellphones, internet, car payments, etc. ? Idk. I just know that I'm super freaking poor enough to go for free.
Was This Post Helpful? 0
  • +
  • -

  • (2 Pages)
  • +
  • 1
  • 2