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Author Topic: Black borrowers default at higher rates despite heavy use of...  (Read 164 times)

Offline klg14

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Offline soflorattler

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #1 on: December 03, 2019, 09:04:02 AM »
But they're still tooling around in those BMWs, Benz, Lexus', and other high end automobiles.

Offline Capler

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #2 on: December 03, 2019, 01:31:52 PM »
But they're still tooling around in those BMWs, Benz, Lexus', and other high end automobiles.

 :tiptoe: :tiptoe: :tiptoe:

Offline WileECoyote06

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #3 on: December 03, 2019, 07:19:31 PM »
Before we go throwing stones at ourselves, look at the chart.  The biggest group of defaulters is from people dropping out of school or who don't finish.  Also notice that the highest default rates are from students who've attended for-profit schools, and the two-year publics (probably community colleges).

Ironically, the top reason for African-Americans to leave school without a credential is financial struggles or an inability to balance work and school.  To reduce the number of defaulters, we need to figure out how to get these students to finish. 

Offline Cats4ever

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #4 on: December 03, 2019, 08:16:31 PM »
Before we jump to a conclusion about people, let us do some research on the issues because I understand why some people default on their student loans.  Yes, they promise people income-driven programs and loan forgiveness for public service workers.  I have found that all these programs might be bait and switch because it offers nothing to the borrower. 

Under the income-driven program, they will take 20% of your gross which income before taxes, SS, insurance, etc. Some the loan payments can be extremely high, and in some cases can satisfy the loan within a 10-year period, so there isn’t much loan forgiveness.   What you have to understand that is the company could be taking half or more of a person's net pay?  Most people are in the income-driven program because they are looking for help to make ends meet which is difficult to do if the company is taken half of their paychecks.

Let say a person's net monthly take-home pay is $3,000 a month and the company took $1,000.  The person will have to pay rent, utilities, car note, car insurance, and eat, etc.  Now, you can see why some people are having issues with loan payments and will that go into default. 

I spoke to some people who have defaulted and could not understand why they would do that.  The primary issue is they do not like the way they were treated.  What a smart lawyer type would investigate is,  are these companies using discriminatory practices based on race?
Your treatment of others give them control of your soul
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Offline Cats4ever

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #5 on: December 03, 2019, 08:42:22 PM »
Quote
The lawsuit alleges that Navient systematically misdirected borrowers into student loan repayment programs and types of forbearance, which do not qualify for Public Service Loan Forgiveness, which enables public servants to have their federal student loans forgiven after meeting certain requirements.

The lawsuit also alleges Navient ignored borrowers’ best interests — in violation of its government contract — to prevent borrowers from moving to FedLoan (the student loan servicer that administers the Public Service Loan Forgiveness program), so that Navient could continue to earn fees.

As a result, the plaintiffs claim that teachers, nurses, first responders, social workers and other public servants are paying millions of dollars more than they otherwise should in student loan payments. :read: :o

https://www.forbes.com/sites/zackfriedman/2018/10/08/navient-lawsuit-student-loan-forgiveness/#6c0ed49243bd
Your treatment of others give them control of your soul
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Offline Cats4ever

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #6 on: December 03, 2019, 08:46:06 PM »
Also, I know this professor at a PWI who has his own business, and he refuses to pay his loans back because of the way he was treated. :read:  He is a man that is making money because cannot forgive them for how he was treated and did I mention that he was a vet as well.   :o
Your treatment of others give them control of your soul
Matthew 5:25-26

Offline Capler

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #7 on: December 04, 2019, 01:04:46 AM »
We also can not discount the fact that many black students are still first generation graduates coming from poverty. Many are not accustom to having money and  making sound financial decisions. These are the folk who spend a large part of their earnings on luxury items because they never had those things. You will likely see more students driving fancy cars around A&T than you will see at UNCG. Spending on cars, clothes, trips, and eating out is not building wealth. Step one is to pay off debt, namely student loans.

Offline JAG89

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #8 on: December 04, 2019, 10:48:48 AM »
We also can not discount the fact that many black students are still first generation graduates coming from poverty. Many are not accustom to having money and  making sound financial decisions. These are the folk who spend a large part of their earnings on luxury items because they never had those things. You will likely see more students driving fancy cars around A&T than you will see at UNCG. Spending on cars, clothes, trips, and eating out is not building wealth. Step one is to pay off debt, namely student loans.

The Black code of success.  Also, Black graduates are not using their education as a means of being more self-sufficient.  They rather pay others outrageous fees to do work for them instead of doing it themselves.

Offline soflorattler

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #9 on: December 04, 2019, 12:50:52 PM »
But they're still tooling around in those BMWs, Benz, Lexus', and other high end automobiles.

 :tiptoe: :tiptoe: :tiptoe:

A friend of mine here whose wife's nephew is in this predicament. Mercedes SUV, mortgage, kid in private school 40 miles away, and a kid on the way.

Offline Capler

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #10 on: December 04, 2019, 04:07:07 PM »
But they're still tooling around in those BMWs, Benz, Lexus', and other high end automobiles.

 :tiptoe: :tiptoe: :tiptoe:

A friend of mine here whose wife's nephew is in this predicament. Mercedes SUV, mortgage, kid in private school 40 miles away, and a kid on the way.

There was a young school teacher here in North Carolina standing in his front yard filming a tornado. The most striking thing about the video was his trailer home and the BMW and Mercedes parked in the drive.  :brickwall:

Offline Cats4ever

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #11 on: December 05, 2019, 07:58:13 AM »
We also can not discount the fact that many black students are still first generation graduates coming from poverty. Many are not accustom to having money and  making sound financial decisions. These are the folk who spend a large part of their earnings on luxury items because they never had those things. You will likely see more students driving fancy cars around A&T than you will see at UNCG. Spending on cars, clothes, trips, and eating out is not building wealth. Step one is to pay off debt, namely student loans.
I see you are drinking that kool-aid which is not true at all. In fact,
9 Famous People That Went Bankrupt Before They Were Rich
1. Abraham Lincoln
4. Walt Disney
9. Elton John
https://www.forbes.com/sites/jrose/2019/02/19/9-famous-people-that-went-bankrupt-before-they-were-rich/#283c8dd241cf

16 famous people who bounced back after being broke or bankrupt
Donald Trump's companies have gone bankrupt six times. Nuff Said
https://www.businessinsider.com/famous-people-who-bounced-back-after-being-broke-or-bankrupt-2017-7#george-foreman-was-on-the-verge-of-bankruptcy-before-he-went-back-into-boxing-16
Your treatment of others give them control of your soul
Matthew 5:25-26

Offline Maroon and Gray

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #12 on: December 05, 2019, 08:13:00 AM »
We also can not discount the fact that many black students are still first generation graduates coming from poverty. Many are not accustom to having money and  making sound financial decisions. These are the folk who spend a large part of their earnings on luxury items because they never had those things. You will likely see more students driving fancy cars around A&T than you will see at UNCG. Spending on cars, clothes, trips, and eating out is not building wealth. Step one is to pay off debt, namely student loans.
I see you are drinking that kool-aid which is not true at all. In fact,
9 Famous People That Went Bankrupt Before They Were Rich
1. Abraham Lincoln
4. Walt Disney
9. Elton John
https://www.forbes.com/sites/jrose/2019/02/19/9-famous-people-that-went-bankrupt-before-they-were-rich/#283c8dd241cf

16 famous people who bounced back after being broke or bankrupt
Donald Trump's companies have gone bankrupt six times. Nuff Said
https://www.businessinsider.com/famous-people-who-bounced-back-after-being-broke-or-bankrupt-2017-7#george-foreman-was-on-the-verge-of-bankruptcy-before-he-went-back-into-boxing-16

Would you agree that going bankrupt because of a bad business decision is different from doing so because you're overspending on luxury items and just aren't good handling money?

Offline Capler

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #13 on: December 05, 2019, 12:21:04 PM »
We also can not discount the fact that many black students are still first generation graduates coming from poverty. Many are not accustom to having money and  making sound financial decisions. These are the folk who spend a large part of their earnings on luxury items because they never had those things. You will likely see more students driving fancy cars around A&T than you will see at UNCG. Spending on cars, clothes, trips, and eating out is not building wealth. Step one is to pay off debt, namely student loans.
I see you are drinking that kool-aid which is not true at all. In fact,
9 Famous People That Went Bankrupt Before They Were Rich
1. Abraham Lincoln
4. Walt Disney
9. Elton John
https://www.forbes.com/sites/jrose/2019/02/19/9-famous-people-that-went-bankrupt-before-they-were-rich/#283c8dd241cf

16 famous people who bounced back after being broke or bankrupt
Donald Trump's companies have gone bankrupt six times. Nuff Said
https://www.businessinsider.com/famous-people-who-bounced-back-after-being-broke-or-bankrupt-2017-7#george-foreman-was-on-the-verge-of-bankruptcy-before-he-went-back-into-boxing-16

So you are making the argument black folk have the same historical wealth as that of white folk? Also, a person who never had money has the same financial savvy as one who always had it? Lastly, are you suggesting that a hungry person who has never been to an all you can eat buffet will not go in and try to eat a little bit of everything because they never had it like that before?  :shrug:

I don't know anything about the finances of Walt. Lincoln or Elton, but I do know  white folk file bankruptcy at a much higher rate than black people.  But guess what, bankruptcy is not designed for poor people; black, white, brown or whatever color.  so to make that sort of a comparison is rather nonsensical.
« Last Edit: December 05, 2019, 12:22:53 PM by Capler »

Offline westcoastaggie

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Re: Black borrowers default at higher rates despite heavy use of...
« Reply #14 on: December 05, 2019, 12:53:14 PM »
We also can not discount the fact that many black students are still first generation graduates coming from poverty. Many are not accustom to having money and  making sound financial decisions. These are the folk who spend a large part of their earnings on luxury items because they never had those things. You will likely see more students driving fancy cars around A&T than you will see at UNCG. Spending on cars, clothes, trips, and eating out is not building wealth. Step one is to pay off debt, namely student loans.

Aggies aren't defaulting in the droves as you're making it out to be.

 

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