Student Loans: A Long Journey Of Confusion That Ends In Owe, Owe, Owe

Forbes ^ | April 24, 2012 | Sheryl Nance-Nash

[Altariel]

Student loans are one of life’s biggest financial entanglements, yet they are sorely misunderstood. Many students couldn’t tell you if they have private or public loans. All they know is that they owe, owe, owe.

***

But not everyone will be effected by the increase. “Only undergraduate loans will go from 3.4 to 6.8 percent. Graduate loans stay at 6.8 percent,” says Mark Kantrowitz, publisher of FinAid.org. “There is a lot of confusion about student loans. I read in the paper where someone with $8,000 in student loans is saying that they won’t be able to afford the loans when they double. Only new loans will be 6.8 percent. Old loans will not change. And some students don’t realize that they will not feel the impact of the increase today, but when they graduate and start paying.”

However, when it comes to student loans, there’s little reason to celebrate. Students have long had the luxury of having a six month grace period right after graduation when the government paid their interest. Come 2013 and 2014, that perk disappears in one of many cost saving measures.

[TurboZamboni]

The majority of people I know, who have loans, don’t know the terms of their loans, don’t know how many they have, don’t know if they are public or private....some don’t know if they are eligible for consolidation, or if they even are consolidated or not. They stay in this state of denial - they don’t want to know.

sounds like most Occutards

[nascarnation]

The student loan deal is another liberal funding program.

Students borrow huge sums at subsidized rates, pay big $$ to colleges for overpriced education.

Schools pay big $$ in salaries to liberal profs and administrators.

Profs and admins contribute $$ to liberal candidates and causes.

And repeat.....