My girlfriend works at US Bank and told me that students must have gotten their financial aid for summer classes because she had 20 different students at her window throughout the day. I asked her how many of them put money in the bank and how many cashed the WHOLE thing. I couldn't believe it when she told me that 17 out of 20 cashed the WHOLE CHECK. Unbelievable , she gave out 80k cash total to reckless students eager to buy beer, weed, cigarettes, xbox, and a flatscreen. The whole college system is just like the housing market. Free money to everyone with a pulse to go to college drives college costs up 6% a year. 1 in 4 graduate. The first two years is basically an extension of highschool except you have to pay for it. They need more specialization and less "general" classes for the first two years. You and I are on the hook now that gov't owns the student loan market.
If the University uses BankA and the students use BankB, BankC, BankD and so on, they likely wanted to cash the check so they can make a cash deposit at thier bank to have access to the funds. It's very common. While student loans are guaranteed by the federal gov't, the primary "walkers" are those international students who choose not to stay here after school. They just leave and there is no recourse. They love the fact that our government is so stupid. As to anyone here who does not repay, they have no life. They'll garnish your pay, your tax account, your professional licenses, etc. American citizens don't get away with not paying back student loans. They can not be forgiven in a bankruptcy either.
Well still smarter than credit cards But yeah I have no sympathy for the idiots who took out 80k in loans for something like business. I escaped with a chemical engineering degree owing around 8k. And hard to beat the 2.48% interest i sort of lucked out into consolidating my loans in at. I couldnt have picked a more perfect time if i even knew what I was doing
They should force the student loan market to be open and transparent and not government subsidized. They should also make it possible to short these Markets so that a guy taking a science degree pays a different rate than a guy taking music studies. I would love to buy credit swaps on redundant education paths like womans studies and film theory.
This is another union racket. Student loans drive up costs. Unions teachers get raises every year. Government redistributes our wealth to the students. Student defaults, government writes off loan.
As a student I did cash money I needed both for school and personal matters. However, that does not make the whole student loan system terrible, nor it is a bubble. No matter what you do you will always have to pay your student loans. It is virtually impossible to default on them and you canât include them in bankruptcy.
In 1791 tuition at Georgetown was about $90 per year. In gold that was about 4.5 oz. (gold was $20 per oz) In 1982 tuition at Georgetown was $10,750 or about 25 oz of gold. (gold was about $400 per oz) For 2010 tuition at Georgetown is $56,660 or 45 oz of gold. (gold $1,250 per oz) As you can see...in real money terms tuition is getting more and more expensive thanks to easy money from student loans and countless grant programs out there.