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In the case of Perkins loans these amount to an additional 30% of the principal, increasing to 40% on a second collection attempt and another 40% on top of that if they sue.

That basically doubles the amount you owe.

I understand that one should read and understand the entire document prior to signing, but those lawyers and colleges are real pricks.

Holy ****! Found this: http://ifap.ed.gov/fsahandbook/attachmen....

Which on p20, under "Costs of first and second collection efforts." says colleges may charge collection costs up to 30% & 40% fees "to the fund" - which I assume is government insurance of the loans. I suppose that theoretically those collection costs should be bona fide. I can imagine that the full 30% or even 40% would be a bonafide cost if the loan balance were $1,000 - $2,000. So it sounds like the main issue (on this minor issue) is whether colleges overcharge for the cost of their collection attempts.

Of course the BIG issue is that wildly overgrown student loans are unjustly enriching colleges and everyone who sucks off the college teat - like construction companies.

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statutory

That brings the possibility of prison into play, I think...

Why can't students sue the colleges for false claims if they are unable to get a decent paying job in their field after they graduate? Seems like they should be able to since colleges are pimping the idea that your life will be swell and your earning potential limitless if you graduate from college.

I was making the argument recently that since my child will be a dual citizen (US and Spain), I would encourage him to go where ever he can get a Grade A education for the cheapest he can find it. Given the ENORMOUS disparity in cost between US colleges and universities in Spain, I suggested that going to school in Spain might be an option (assuming it is still cheaper by then). You would have thought I was abusing the child. Amazing how brainwashed and conditioned the sheep are.

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The University of Pennsylvania filed at least a dozen Perkins lawsuits last year, according to court records. Penn, based in Philadelphia, gave out more than $8 million in Perkins loans in the year ending June 2012, according to the school.

The university is seeking to recoup $22,607 from Kyle P. Lopinto, including $7,000 in Perkins loans and $15,039 in unpaid tuition charges, plus attorneys’ fees of $3,027 and additional interest and anticipated court costs of $387, according to a suit filed on Nov. 15 in the Philadelphia County Court of Common Pleas. An arbitration hearing is scheduled for July.

Promissory Note
Lopinto, who signed a promissory note in June 2008 to study at Penn’s School of Design, according to the university’s court filing, didn’t return messages left with his father or by e- mail. According to his website, he earned a master’s degree in sculpture from the school in 2010.

dude...

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Lopinto, who signed a promissory note in June 2008 to study at Penn’s School of Design

AND

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he earned a master’s degree in sculpture from the school in 2010.

And why was this money lent to him in the first place? BTW, that is my alma mater and I got a full ride from them in my time. So I have no complaints. Now grad-school on the other hand....

This is from that rancid vermin Jim Moran:

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The cost of higher education is rising at a time when a globally competitive economy will depend on jobs requiring a college degree or more advanced training.

To help parents and students navigate the maze of financial aid opportunities, I wanted to invite you to attend one of my workshops entitled “Making College Affordable: Financing Your Education.”

The workshops will feature representatives from the Department of Education, Sallie Mae, and the Federal Trade Commission who can answer questions, help complete FAFSA forms, and discuss options to finance higher education. Representatives from educational institutions and scholarship programs will also be available to answer questions about the FAFSA, scholarship requirements, and deadlines.

Oh I have an idea.

We feed all those people doing the presenting into a wood chipper.

Feet first.

Outside of sciences and engineering?

Scam up and down.

By and large to get kids into "mortgages" without the hassle of having to sell them a home first.

Just another example of the poor losing out to the rich. Got money, sure go to college. Don't have ****..you're ****ed.

Jonx, a big part of the problem is that the kids are getting loans to cover not only tuition and books, but also lodging, food and spending money.

I don't know that I can completely blame the college system. Its the parents that need to be looking into this before they let their kids sign on the dotted line & before they put their own homes and financial futures at stake.

This is a discussion that should be happening around the time that the kids hit about 9th grade. They need to sit down & come up with a plan & not wait until senior year & go to the first university that accepts them & sign any forms put in front of them.

If your child can't afford to go to college and pay cash, then they need to go to a local university & live and eat at home. They need to get the first 50-60 credits out of the way through either AP courses in high school, or at cheaper 2 year colleges. They need to work on weekends and during the summer, saving for when they go to regular university the last couple of years.

Yeah, its alot more expensive than when we went to college; but it is definitely doable.

Or maybe they need to bypass college to begin with. A masters degree in sculpture from YALE? I'm having a problem sympathizing here.

Parents really need to step up to the plate here. Its almost like they can't wait til their kids are 18 & shove them out the door & will not counsel them as to the repercussions of going to college. I don't say getting a degree, because, what, 40% take out student loans & never even finish their degrees? Its sickening. And if their own parents aren't looking out for them? What a mess.

My wife and I are near divorce (not an exaggeration), over her insistance on having us pay the entire bill for our two daughters college education.

We have moved out of our (2006) $300k house into a (2013) $70k dump, renting out the $300k house for the cost of our mortgage payment, sans taxes, insurance, maintenance, Obama rental tax, etc.

We did this because I lost my job in 2007 making $120k, to accept a job 200 miles away making $70k...just to keep all the balls in the air.

First daughter entered college in fall of 2007, graduated in May of 2012 with a teaching degree and immediately moved to Florida because she can't stand Wisconsin winters. She still doesn't have a full time job. Her fiance followed her to Florida, with no degree, and a mountain of debt (had to have iphone, ipad, 2 cars with payments, credit cards, etc). 6 months ago, the fiance lost both cars to the bank, and couldn't pay his iphone bill. They announced they are getting married in June. My wife and I argued for months about paying for this wedding. The groom and his family insist it must be 300 guests. For the last 15 years I have preached to my daughters and wife about small, intimate weddings, maybe 20-30 people tops. Yeah, this is looking REAL promising....****!

Second daughter started college Fall 2010 at a 2 year college, afterwards to transfer to 4 year college. That had been the plan all along for both daughters for the past 15 years, but the months after graduating High School were more arguements and my first daughter said she "just had to get out of the house", so she had room and board, in addition to tuition, books, fees, fees, fees, etc, at a 4 year college. My youngest daughter changed her major after 3 semesters, without consulting me. I didnt find out until semester 5 that she had changed majors...wife knew.

The past 6 years have been an immense strain on everyone involved. Neither of my daughters will ever fully appreciate what we have done for them. It is probably going to cost me my marriage and untold more money. The resentment I feel right now toward my wife, my daughters, the college system, and "the system" is unspeakable.

I put myself through a 2 year college, while working a full time job, with a wife and kid to support.

Both daughters were average students. They applied for 1 or 2 scholarships each, not winning anything. I found various scholarships they could apply for. The youngest put off applying for a credit union scholarship until the day before it was due and we ended up overnighting the damn thing in...for nothing. That was another huge argument.

In college, they both put "average effort" into their education. The youngest currently works a retail job averaging 4 hours/week. GPA has been falling every semester, never working a job except on weekends and the summer. In fact, that was the case for my oldest daughter too, never worked during the week.





I could go on and on. I thought I had a decent plan, but the best laid schemes...


My advice: Do Not pay a dime of your kids college. Let them work for a few years and save. 2 year community college then transfer to 4 year if desired. Counsel on saving and foregoing the ipods, iphones, ipads, car, partying, but don't be surprised when the marketing geniuses suck them in.



I can't believe I am where I am.

Andy, does your wife work? Are you still paying your daughters student loans or are they paying the loans themselves?

From the cited article
"When students don’t repay, colleges say they are obliged to recover the money on behalf of taxpayers. Schools including George Washington say they first try to work with delinquent students to repay the loans, then warn them they may be sued, and only then turn to debt collectors and the courts.

Meanwhile programs run by the government just promise to forgive student debt at the expense of taxpayers if the student signs up to take a "service" job and keep it for ten years.

Andyk, I am so, so sorry to hear this. That is truly a heartbreaking story. The thing that gets me is that your wife has quietly been subverting you, instead of being a good partner. Your daughters also seem incredibly impractical and irresponsible. Sorry to hear man.

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My advice: Do Not pay a dime of your kids college. Let them work for a few years and save. 2 year community college then transfer to 4 year if desired. Counsel on saving and foregoing the ipods, iphones, ipads, car, partying, but don't be surprised when the marketing geniuses suck them in.

Yep.

My kid has been told since she was a little one that there is $X available to here in a trust account that becomes hers to do with as she wishes when she turns 21. Prior to that time it can be spent on any college related expenses she wishes but remains in my custody (that's the law and I'm sticking with it.)

That's all there is -- period. It also is not enough. That was known up front and has never changed.

That which is given to you is never fully appreciated. That which you earn for yourself is another matter.

The question is as much as public education costs us, why do most kids even need to go to college? I would think you could be a pharmacy tech or one of those type jobs if high schools just had a decent cirriculum. Outside of math and a few sciences, most of the other stuff taught in high school is nonsense. In fact, the students that are having trouble grasping basic math by the 5th grade shouldn't have to take any more math.

In general, what the government is promoting is more debt. That is what the bankers need to keep going. It is what the funds managers that run the public pensions need to keep going. It is what the politicians need to get more money to keep spending. It is akin to getting raped while you are asleep. You wake up knowing something happened, but what or who?

"This is from that rancid vermin Jim Moran"
That's classic.

No easy answer but Andy maybe you can talk to the kids involved. Not to split people in half, but to let them know that you don't wish to become a burden on anyone and you need your own $$. If they are deserving at all--they wouldn't bleed you dry.

Fraudster wrote..

And why was this money lent to him in the first place?

Mann wrote..

as much as public education costs us, why do most kids even need to go to college?

I know that you know this.. but...

TO FEED THE PONZI!

It's a giant freakin bubble that feeds the ENTIRE college town ecosystem... At the expense of our kids.

Smart man KD. If the kid wants to go to an expensive college then she will have to work hard and get a scholarship. This was true of me and my wife, otherwise I would have had to opt for something a lot cheaper.

My grandson wasn't sure which big bucks college to go to. Lotsa student debts lurked in his future. We checked classified ads for who was hiring and doing what. We saw that IT jobs were there but they paid slightly over minimum wage for Engineers "H-1 visa preferred" The other that paid really good, at least around here is WELDER. He went to community college for 2 years, came out as a Certified Welder and an Associates degree in Supervision which will hopefully make him promotable when he gets a few years on him. He is currently working six days a week and everything over 40 hours is time and a half. Downside is he comes home at night dirty and smelling awful. Shower fixes that.

Andy, you are NOT alone. There are MILLIONS of people trying to keep up with the college game and spouses not on the same page. I just wrapped up my divorce for largely the EXACT same reasons I came out smelling like roses due to the ex wife thinking she was super smart by hiring a $450 per hour ball buster female attorney who didn't exactly have her best interests in mind.. End result was she spent $100k with her attorney/ therapist and got her principal she brought into the marriage back and $100k from my retirement to hers. Net cash on cash gain minus $50k for her. So Mr. Stepchild has to go to the most expensive school overlooking the ocean in CA gets a 2 year "scholarship" on the BACK end of 4 years but only if xyz terms are met and only if you are starting xyz position in this sport. She will end up nuking her retirement paying for all four years @$50k per year.

Thank goodness the wife and I are in sync on this issue.