Floating Doc said:In reply to The0retical :
Agree 100%
I'm trying to be careful about the flounder rule, but you nailed it. Thank you for your post.
(Also trying to skirt the flounder rules)
Speaking as the spouse of a public sector school employee, Theoretical nailed it.. :)
Floating Doc said:It's the interest rate that kills us. I'm paying over 6%. Even during the recession it never dropped.
What would the recession have had to do with the rate? Were the loans taken on a variable rate?
z31maniac said:Floating Doc said:It's the interest rate that kills us. I'm paying over 6%. Even during the recession it never dropped.
What would the recession have had to do with the rate? Were the loans taken on a variable rate?
Student loans are variable rate. We saw ours go from around 4% to nearly 6 before we finally made the last payment on them.
volvoclearinghouse said:z31maniac said:Floating Doc said:It's the interest rate that kills us. I'm paying over 6%. Even during the recession it never dropped.
What would the recession have had to do with the rate? Were the loans taken on a variable rate?
Student loans are variable rate. We saw ours go from around 4% to nearly 6 before we finally made the last payment on them.
Weird. I consolidated all my loans when I graduated, it is absolutely not variable rate.
I've had the exact same payment for 13 years. But the interest rate is something ridiculous like 1.49%, so I don't bother trying to pay it off early. My interest on it has been so low for years now I don't even get to write off the yearly interest anymore (pre-new tax law this year).
When I was in college (2000-2005) the only "variable" rate loans I ever heard of were private loans at typically much higher interest rates.
In reply to volvoclearinghouse :
Some student loans are variable rate. Depends on the type of loan
Yeah, we'd looked at consolidation, but for whatever reason (despite having 750+ credit scores and no dings whatsoever) could never qualify for one of those low low rates. So we just buckled down and paid them off ASAP.
Bak to the OP, it sucks, and sucks doubly that someone makes a major life decision based on certain parameters that are then changed partway (or most of the way) through the game. Unfortunately, this explains my general feelings about "trusting" any government program.
To the OP. Your daughter may already know about this.
"The American Federation of Teachers filed the lawsuit Thursday in federal court. In the complaint obtained by NPR, the union is asking the court to order the department to fix the Public Service Loan Forgiveness program so that it meets legal standards. It's also asking the department to come up with an appeals process for people who believe they have been treated unfairly."
Floating Doc said:BoxheadTim said:From what I understand it's a new-ish DoE policy that leads to this. IIRC there are already a bunch of class action lawsuits pending...
Yes, just to clarify, this is all due to changes in policy by the Department of Education. It's not a private employer issue.
Elections have consequences.
If the contract is with the actual employer and is not just a recruiting tool the employer uses based upon current policy of others then you have something.
Otherwise you are at the whim of politicians. My wife briefly looked at one of these loan forgiveness programs for her medical school loans. It made no sense on several levels. Compensation was poor for the actual job and, as noted, lots of hoops to clear to get the final payout. Not to mention you had to live someplace 100 miles from anywhere.
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