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Student Debt Giant Navient to Borrowers: You’re on Your Own

bloomberg.com

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Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#21

Post by wyldfire »

Arubis wrote: post #7

"[Navient pointed out]...more than 40 percent of loan balances it services for the Education Department are enrolled in income-based repayment plans." Over 40% of people with US Government-sponsored student loans--which were presumably taken out in order to advance the career prospects of the borrower--are not being paid sufficiently to repay their loans on the basis of their original issuance, _and this is presented…

I don't think you understood the article.

Navient is a debt collector. They were sold loans owned by the US Dept of Ed (or hired by the department of ed maybe?)

"more than 40 percent of loan balances it services...." means that out of the loans that the US Dept of Ed decided it can't collect on anymore -- many of those are using the option that would benefit them the most.

The article talks about Navient saying one thing: "we want to help all of the borrowers because they are actually not just borrowers but citizen/constituents"; while doing another: "thanks for calling Navient, having trouble paying your loan? Just hit the loan-pause-button and we will pause your loan for 24 months. No, we will not tell you this but you could have asked for the 'smaller loan payments because you're not earning much' button'."

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#22

Post by ChrisBland »

noonespecial wrote: post #9
techsupporter wrote: post #4

> There is no expectation that the servicer will act in the interest of the consumer... Navient says its public statements encouraging borrowers to contact the company didn’t mean it would act in their best interest. So, pardon in advance for the vulgar language, but why the fuck is this OK? From any company? I'm getting real damn sick and tired of "what the big print gives, the spidery print takes away" and how we'r…

>I'm getting real damn sick and tired of "what the big print gives, the spidery print takes away" I propose "the bigger the print, the stronger the statement". Therefore, if you make one claim in 24 point and then attempt to rescind or modify it in 8 point, the 24 is legally binding because it was larger and so nullified the smaller. This also means that if you want to place limitations (like 'one per customer' etc)…

Wow, that is one of the most simple, effective ideas I've ever heard -- kudos. Not joking or sarcasm, I would love for that to be the rule, it would make life so much simpler.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#23

Post by bradleyjg »

jordanmoconnor wrote: post #5

It's mind-blowing how the majority of high school students are lied to each year about the ROI of college. The internet has re-written the rules, and high school educators don't know how to teach that. I would have benefited so much more from a program that taught how to be self-sufficient and the major, major benefits of living debt free. Context: $150k in student loans - lucky enough to have an electrical engineeri…

Did you run the numbers? Look at the outcomes for those with just a high school diploma, they are very grim. If the internet has re-written the rules it sure hasn't shown up in the data yet.

https://nces.ed.gov/fastfacts/display.asp?id=77

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#24

Post by metaphorm »

techsupporter wrote: post #4

> There is no expectation that the servicer will act in the interest of the consumer... Navient says its public statements encouraging borrowers to contact the company didn’t mean it would act in their best interest. So, pardon in advance for the vulgar language, but why the fuck is this OK? From any company? I'm getting real damn sick and tired of "what the big print gives, the spidery print takes away" and how we'r…

> So, pardon in advance for the vulgar language, but why the fuck is this OK? From any company?

shareholder capitalism. they have zero accountability except to their shareholders.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#25

Post by hkmurakami »

paulpauper wrote: post #17
jordanmoconnor wrote: post #5

It's mind-blowing how the majority of high school students are lied to each year about the ROI of college. The internet has re-written the rules, and high school educators don't know how to teach that. I would have benefited so much more from a program that taught how to be self-sufficient and the major, major benefits of living debt free. Context: $150k in student loans - lucky enough to have an electrical engineeri…

IMHO, reality paints a sightly more optimistic picture...the average debt per graduate is $30,000--about the price of a new car, but as measured by wages, a degree gains value (this is because since 2009 wages for grads have seen much stronger growth than wages for non-grads) http://greyenlightenment.com/is-college-a-big-waste-of-time-... I read stories on Reddit about grads who have debt but are also making decent 5…

It would be helpful (though very difficult) if we could isolate the branding/signaling value of certain colleges from the education/training value of colleges, to ascertain the nature of the return on investment value that is being derived from colleges or varying statures, locations, etc.

"What we are buying" through 4 years of college seems to be getting less and less clear to me, and the administrators are very much involved in keeping things as difficult to measure as possible.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#27

Post by adventured »

paulpauper wrote: post #17
jordanmoconnor wrote: post #5

It's mind-blowing how the majority of high school students are lied to each year about the ROI of college. The internet has re-written the rules, and high school educators don't know how to teach that. I would have benefited so much more from a program that taught how to be self-sufficient and the major, major benefits of living debt free. Context: $150k in student loans - lucky enough to have an electrical engineeri…

IMHO, reality paints a sightly more optimistic picture...the average debt per graduate is $30,000--about the price of a new car, but as measured by wages, a degree gains value (this is because since 2009 wages for grads have seen much stronger growth than wages for non-grads) http://greyenlightenment.com/is-college-a-big-waste-of-time-... I read stories on Reddit about grads who have debt but are also making decent 5…

The median student debt is a lot more interesting, it's much lower than $30,000. The median of all outstanding student debt is around $14,000 today (for households that have any student debt). The median debt for individuals that went to public universities is closer to $10,000.

The average is massively skewed by the top few percentage of all borrowers that have taken on almost unfathomable loans.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#28

Post by jordanmoconnor »

bradleyjg wrote: post #23
jordanmoconnor wrote: post #5

It's mind-blowing how the majority of high school students are lied to each year about the ROI of college. The internet has re-written the rules, and high school educators don't know how to teach that. I would have benefited so much more from a program that taught how to be self-sufficient and the major, major benefits of living debt free. Context: $150k in student loans - lucky enough to have an electrical engineeri…

Did you run the numbers? Look at the outcomes for those with just a high school diploma, they are very grim. If the internet has re-written the rules it sure hasn't shown up in the data yet. https://nces.ed.gov/fastfacts/display.asp?id=77

Sure, those who clung to the system that taught them to be a good little employee.

The traditional education system has led many astray without providing successful alternatives.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#29

Post by heurist »

jordanmoconnor wrote: post #5

It's mind-blowing how the majority of high school students are lied to each year about the ROI of college. The internet has re-written the rules, and high school educators don't know how to teach that. I would have benefited so much more from a program that taught how to be self-sufficient and the major, major benefits of living debt free. Context: $150k in student loans - lucky enough to have an electrical engineeri…

High school should teach students how to get what they want from life and give them the rudimentary foundation they need to attain it. In retrospect my education was greatly lacking in certain aspects. High school should involve at least one course on directing your life - studying the benefits and downsides of trade school, college, university, proprietorship, basic business operations, political action, personal finance... give them a taste of the options at least. Seems like home economics was an attempt at this but grew outdated and became an elective. This education should be mandatory for all students regardless of what they want to do with their lives. They are the basics of earning a living in the US and even if the skills do not become necessary for an individual, they should know where to start looking when they need money. Without these skills people resort to shitty options like payday loans, student debt, etc...

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#30

Post by huebnerob »

techsupporter wrote: post #4

> There is no expectation that the servicer will act in the interest of the consumer... Navient says its public statements encouraging borrowers to contact the company didn’t mean it would act in their best interest. So, pardon in advance for the vulgar language, but why the fuck is this OK? From any company? I'm getting real damn sick and tired of "what the big print gives, the spidery print takes away" and how we'r…

Well, by my interpretation, this hasn't been validated as a successful evasion quite yet. This is their response to a complaint that one lawyer calls, "a sound legal argument," but sound argument != final verdict. They might still get their comeuppance as the whole situation plays out.
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