Methods in Student-Debt Slave Torture
I finally finished law school, and as a token of appreciation, I'm not allowed to graduate without spending 25 minutes taking this mandatory student loan exit interview, in which I am educated in all my obligations, tested on my knowledge of that information, and forced to provide my lenders with the names and addresses of at least four other people they can harass for the money I owe them, should I turn out to be a dead beat.
Excerpts from the interview:
Believe it or not, the emphasis in the first sentence is NOT mine. But, from here on all emphasis is mine.
You MUST repay your loan, even if you don't finish school, get a job after leaving school, or your education didn't meet your expectations. If you pay on time, you build a good credit history, which makes it easier for you to borrow money in the future. If you don't pay, however, you will face serious consequences. [emphasis mine]
Forbearance is a period of time during which your loan holder temporarily reduces or suspends your regular payments. You may request forbearance if you are willing but unable to make your full payment and are not eligible for a deferment. You are responsible for the interest that accrues during the forbearance period. You may pay the interest as it accrues. In the case of Stafford Loans, if you don't pay the interest, it is capitalized. Capitalized interest is applied to the principal balance and may result in a higher monthly payment upon conclusion of the forbearance period. In the case of Perkins Loans, if you don't pay the interest as it accrues, you will be responsible for paying it when the forbearance ends. Contact your school or loan holder for more information on applying for forbearance.Notice that they call it "forebearance" as if it's some noble process by which they allow you to push back your payments for as long as you can't afford to pay it. Meanwhile, CAPITALIZED interest accrues on Stafford loans (which is by far the bulk of student loans).
This means that any interest not paid during "forebearance" is added to your debt. From there on, you must pay interest on THAT too, and so on and so forth, for as long as you can't afford to pay your loans.
Cancellation/Discharge/Forgiveness: If you die, your loan obligation will be cancelled. Your loan also may be cancelled if you become totally and permanently disabled. Loan cancellation due to disability requires certification from a physician and is subject to a conditional period of three years.Notice that you may be forgiven if you are TOTALLY and PERMANENTLY disabled - but NOT necessarily.
Your loan may be cancelled in other instances including school closure, false certification, or failure of the school to pay a refund if you withdraw. Generally, federal student loans may not be cancelled or discharged due to bankruptcy.
And then the loan 'forgiveness' programs - amazing.
A loan forgiveness program for teachers serving in designated low-income elementary and secondary schools exists for new Stafford and Perkins Loan borrowers after October 1, 1998. The borrower must teach in a low-income school for five consecutive, complete school years to qualify for forgiveness of up to a maximum of $5,000 in Stafford Loans. You must teach in a low-income school or in a field of expertise where the state education agency determines there is a shortage of qualified teachers, or in a specific field (mathematics, science, foreign language, or bilingual education) for five complete school years to qualify for forgiveness of 100 percent of Perkins Loan principal.Congress pays the loans!!! Lenders NEVER forgive loans. In the end, taxpayers pay for EVERYTHING. No doubt, states appropriate funds for the school program as well and it's really nothing. Basically, they make you work twice as hard in a thankless job before they "forgive" PART of your loans.
A similar loan forgiveness program exists for Federal Stafford Loan borrowers who are child care providers. This is a demonstration program, and Congress appropriates funds for this program on an annual basis. Contact your lender or guarantor for more information.
And the grand finale, threats of financial death and dismemberment at the hands of moneylenders:
Defaulting on your student loan can result in:I love you too - a**hole.
In addition, default could lead to loss of cancellation entitlements for Perkins Loans.
- damage to your credit rating, which could impact your ability to borrow (for example, you may be denied a car loan);
- referral of your account to a collection agency;
- collection costs;
- garnishment of your wages;
- withholding of your state or federal Treasury payments (including federal tax refunds, Social Security benefits, etc.);
- civil lawsuit, including court costs and legal expenses;
- loss of deferment and forbearance entitlements and flexible repayment options;
- loss of eligibility for further financial aid; and
- suspension of your professional license.
When you fail to repay your student loan, the loan may be accelerated (total balance becomes due immediately). There is no statute of limitations for student loans, and your creditors will not cease in their efforts to collect this debt.
Establish yourself financially by building good credit and budgeting to keep your "wants" under controlDon't feel bad. I am free to do what ever I want with the rest of my life AFTER I finish living it for MONEYLENDERS.
- Open up checking and savings accounts. Don't overdraw these accounts.
- After shopping around for the best terms and conditions, apply for a major credit card.
- Use gas and retail cards responsibly and sparingly.
- Make your monthly payments for loans and services (like your phone bill) on time each month.
- Make a list of your values - the things that are really important to you - and set your goals to help you maintain those values.
- Create a spending plan that meets your "wants" as well as your "needs." Your total expenses should be less than or equal to your total income. If your income is not enough to cover your expenses, adjust your spending plan by deciding which expenses you can change.
- Periodically evaluate your spending plan to make sure it is still meeting your needs and achieve your goals. Update if necessary.
- Review your credit report once a year to make sure it is accurate.
- If things are getting out of control, contact your creditors, seek help from a reputable credit counseling service, or look into debt consolidation.
And NEVER forget - THAT is what I signed up for. That is the price I MUST pay to learn all about how badly moneylenders have been and continue to SCREW the world.
Nevermind that the Interest I "owe" is on fiat bills that under our Constitution are supposed to be issued by Congress on behalf of and for the benefit of THE PEOPLE - NOT "the Banks."
America has become the EVIL EMPIRE of MONEYLENDERS.