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Thread: ATTN: Student Loan-drones

  1. #1
    Senior Member Ultralight's Avatar
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    ATTN: Student Loan-drones

    I discovered something wonky that may prevent problems for other loan-drones.

    When I signed up for classes the university sent my student loan service provider a directive to put my loans into educational deferment. This means I am not required to pay but interest still accrues.

    This deferment was unbeknownst to me.

    So my auto-deduct payment should have gone out on the 28th. But it did not. So I looked into it and found out about this deferment.

    Then I had to call and request that they lift this deferment, which takes at least 24 hours.

    If all goes well I should have the deferment lifted tomorrow and be able to pay off this month's payment manually. Then next month's payment should go back to auto-deduction.

    This is one of the many, many reasons one must check with your student loan servicer several times a month.
    I came from a real tough neighborhood. I put my hand in some cement and felt another hand." -- Rodney Dangerfield

  2. #2
    Senior Member catherine's Avatar
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    Good catch, and good follow-up.

    I honestly was so inattentive when my DD and I filled out student loan applications that I was clueless about how they structured the debt. This is how stupid I was.

    About 2 YEARS after my DD graduated and I had been paying her loan (that was the deal I had with her) I realized that the principal had not dropped a penny. So I called them up and they explained that that was in line with the debt repayment--basically interest-only for years. I was appalled.

    So, you are absolutely right, UA. Lenders are banking on the expectation that many students will want to put off paying for as long as possible, even if it means they'll wind up paying thousands more. You need to read that fine print and stay on top of those "generous" deferments they give you!
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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  3. #3
    Senior Member Ultralight's Avatar
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    Well, I want to make all the payments I can toward my Public Service Loan Forgiveness plan. But the system is tricky.
    I came from a real tough neighborhood. I put my hand in some cement and felt another hand." -- Rodney Dangerfield

  4. #4
    Senior Member Ultralight's Avatar
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    The problem I outlined above is continuing. So keep this in mind, Loan Drones! You have to call weekly and make sure your payments go through or manually make your payments.
    I came from a real tough neighborhood. I put my hand in some cement and felt another hand." -- Rodney Dangerfield

  5. #5
    Moderator Float On's Avatar
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    Sorry that's an ongoing issue UA. My college loans in the late 80's were pretty easy to combine, not a bad interest rate, early pay off was easy and I didn't have any issues with lost payments or miss-applied even during the combining time period. I took out $7,000.00 in loans (that wouldn't even cover a semester any more) and had it paid off with-in 2 years. Really trying to instill in my kids to put off loans as long as possible for their education goals.
    Float On: My "Happy Place" is on my little kayak in the coves of Table Rock Lake.

  6. #6
    Senior Member JaneV2.0's Avatar
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    From here, student loans seem hopelessly predatory and unforgiving. I should think it would be just the opposite. Are all federal loans structured this way?

  7. #7
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    Quote Originally Posted by JaneV2.0 View Post
    From here, student loans seem hopelessly predatory and unforgiving. I should think it would be just the opposite. Are all federal loans structured this way?
    When the Federal government outsourced the lending basically privatizing it, then these issues started. Just focus on the fact that poor college students are considered something to profit from. Disgraceful.

  8. #8
    Simpleton Alan's Avatar
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    Quote Originally Posted by Lainey View Post
    When the Federal government outsourced the lending basically privatizing it, then these issues started. Just focus on the fact that poor college students are considered something to profit from. Disgraceful.
    The Federal Government sets the rates, which eliminates competition among lenders. Another reason we should resist allowing the feds to control every aspect of our lives.
    "Things should be made as simple as possible, but not one bit simpler." ~ Albert Einstein

  9. #9
    Senior Member bae's Avatar
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    Why did the students take out those loans in the first place?

  10. #10
    Senior Member JaneV2.0's Avatar
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    Quote Originally Posted by bae View Post
    Why did the students take out those loans in the first place?
    Because tuition wasn't readily affordable as it was when I was going to school? Because not all students have rich parents? Because they didn't think of working their way through school as pole dancers?

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