can someone explain to me why the interest rates on these are fixed so high???
Re: education loans
On ko lagta hai ke wapis kerna hi parey ga loan students ko tu khub kamao:D
Re: education loans
So you can remain a slave to the system even when you're so-called educated. ;)
Re: education loans
as oppose to...living like a renegade jungli rebel plotting to destroy Western civilization?
blegh
as oppose to...living like a renegade jungli rebel plotting to destroy Western civilization?
blegh
awww such narrow thinking. i don't blame you, i blame the rat race, a.k.a illusion.
Re: education loans
Cricketplaya... That's the plan!
Re: education loans
@PCG- I do not recommend taking out student loans, they are the easiest loans to take out and the hardest to pay back. I would suggest you stick to State/Federal schools because you can get grants that can help you pay for school. Private schools are way too expensive.
Re: education loans
This is not meant to be a philosophical debate, but rather a practical debate.
Prior to 2006’s summer, the interest rate on the education loans was variable, and was quite low…somewhere like 2-3 percent. Then why did they suddenly jack it up to 6.8 percent and keep it there, fixed?
@PCG- I do not recommend taking out student loans, they are the easiest loans to take out and the hardest to pay back. I would suggest you stick to State/Federal schools because you can get grants that can help you pay for school. Private schools are way too expensive.
Thanks, but all that is not practical in my situation, nor does it address my question of why the interest rates suddenly were jacked up in the summer of 06.
Re: education loans
Mat kerna wapis na achi job mili tu:chai:
Re: education loans
So, are Islamic loans all that much better. I know there is no "interest", but including all the hidden fees and bells and whistles, do you honestly pay less back than you would with a interest-based loan?
Thanks, but all that is not practical in my situation, nor does it address my question of why the interest rates suddenly were jacked up in the summer of 06.
The U.S. Economy plummetted....DUH' When you have sudden inflation, you get higher interest rates. The Federal law sets the maximum interest rate, and banks charge customer accordingly. Students are the largest market so who are they gonna make money off of? More and more students are having to borrow money for education, and as the students increase in number so will the interest rates.
can someone explain to me why the interest rates on these are fixed so high???
Banks face higher risks here and thus demand a higher return. The situation would be different if they are lending to someone who already has a stable income and hence lower risk.
That blows my mind too. 
Banks face higher risks here and thus demand a higher return. The situation would be different if they are lending to someone who already has a stable income and hence lower risk.
ahhh..someone to share facts rather than opinionated theories
thanks dude.
Re: education loans
But if the people are going into professions where they are pretty much guaranteed a minimal income (doctor, lawyer, engineer vs arts students), then doesn't that lower the risk?
Re: education loans
Actually, getting any type of unsecured loan at 6.8 percent is still pretty low. The rate increase is due to the bad economy and worse job market. Grads are finding it very tough to land a job these days and this makes it much more likely that they wont repay the loan.
But if the people are going into professions where they are pretty much guaranteed a minimal income (doctor, lawyer, engineer vs arts students), then doesn't that lower the risk?
It is not the absolute risk. You are just much more comfortable with lending to someone who ALREADY has a stable income and some assets v/s someone who might or might not start repaying as promised.
Students also start repaying after a few years and any loan that has a longer repayment horizon is more risky. You never know whats gonna to happen in future and that uncertainty increases as we talk about further down the future.
In Pakistan---during ZIA era they introduced QARZ-e-HASNA (loans for students desiring to study abroad) with conditionality that when the student returns--gets a job---he/she will repay with a marginal profit.
Banks were "instructed" to consider this big way and go for it. Almost all the Bank's in Pakistan were Govt. owned (Nationalized) and NBP went foremost---that it's SPECIAL ASSETs now include a staggering amount of Rs.1.2 Billion as stuck up in QARZ-e-HASNA !
Now---on a lighter note, the QARZ-e-HASNA in our local dialect or terminology, deciphered as;
WOH QARZA JO AAP BANK SE LEIN AUR JUB BANK WALAY AAP SE QARZA WAPIS KARNE K LIYE KAHEIN TOU AAP HANS DEIN....hence QARZ-e-HASNA!
waisay arjay bhai, are’nt all loans in Pakistan qarz e hasna, I mean politically connected people use banks as their personal piggy banks from what I can tell.
I wont put you on the spot here though since you have to deal with this stuff personally.
I am just amazed at the names of loan defaulters and amounts and then see the same ass clowns sitting in our ass-emblies.