Dont Get Screwed – How and Why to Use a Loan Calculator for Student Loans

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Figure out what your student loan payments will be before you agree how to use a loan calculator brought to you by your legal icom your advantage if you’re being sued by debt collectors are you considering getting a student loan do you have one already and happen to be considering your alternatives you will be well advised to use a loan calculator we have a link

To one in the about this video section a loan calculator will help you to determine the size of the payment you can live with it won’t really give you a sense of how hateful every cent of repayment can be but it can at least make the numbers seem a little more real we think the schools and lenders do their best to get you not to think this way we believe schools

Use deceptive pricing methods we’re talking about the standard method of pricing employed by almost all colleges are fraud the federal trade commission will sue businesses it advertise their products with a regularly offered but now only scheme where the regularly offered price is not in fact what most people pay that’s because it’s misleading as to the actual

Prices suggest a real meaningful price and a real discount of some sort how is that different from a typical university which offers a year of tuition for forty five thousand dollars say but assures you that you will pay less because of their fabulous grants and how is a university that offers easy loans and easy to further any different than a used car sales when

Trying to talk you into a junker we suggest that there’s no difference in real life terms they’re both trying to fool you about the real cost of their prey product and they’re both doing it for exactly the same reason to they’re doing it to try to get you to pay more we suggest that you look at all of their promises explicit and suggested with the same skepticism

They’re selling your product and you should negotiate the best way you know how and that includes being willing to walk away by the way you do that by strengthening your negotiating position in every way possible and by fully understanding the price of their offer we know they’ve rigged the game so that it’s almost impossible to discuss price easy loans are the

Easy answer to every financial difficulty that might stand in the way of paying what they demand and who considers filthy dollars when considering the marvels and benefits of education it’s your future we offer we feel almost dirty just suggesting that you should think of lenny but it’s different when it comes to paying the loan then you might as well a little

Money to the mafia no offense to the mafia intended if you can look at the education one school is trying to sell you versus a similar product from another school you can start to protect yourself look hard at the price ask if it’s worth in dollars we want you to examine the impact of every dollar of payment or borrowing bearing in mind that it will be extremely

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Difficult under almost any set of circumstances for you to get out of paying at once you’re on the hook and the universities will fight unbelievably hard to keep you on the hook we highly recommend that you try not to underestimate how much misery loan payments can bring you this is going to be impossible for most students sorry but there’s this statistics show

That younger people tend to be extremely optimistic and that’s cool if you’re careful lawyers on the other hand are probably just the opposite it comes from spending a lot of time seeing what happens when things go wrong but listen on a national scale student loans have gone wrong terribly wrong they’ve gone wrong for millions of people who are faced with 10 20

30 or more years of barely scraping by because they’ve made the mistake of taking on too many student loans and remember for every student so hanging on for a student loan that would eventually ruin him or there was a school that profited from that loan an administrator or two or two gotta raise a student aid department this solemnly told the student it was a good

Idea and a serious and possibly well-meaning person or two who felt good about it then probably have never even had a second thought about putting the person in the poorhouse how to use the calculator here’s why the calculator loads you can start with either the size of the loan or the size of the payment you can i stand okay so that’s the find the payment amount

And that little and beside that error gives you the other options as a sales technique the schools will want you to start with a total loan amount they’ll usually present you with a loan and grant package when cops do it it’s called good cop bad cop that’s because it assumes that you will take out a loan it creates ownership in you then you’re just haggling over

The amount or trying to reduce the payments and they can suggest longer repayment as even as the easy solution for anything that you may come up with we suggest a different way choose the total amount you think you could stand to pay per month over time think of it as an anchor normally we would suggest that you start with the total because monthly amounts are

Often use to hide the total or to soften the blow in this case the amount will be so astronomical that you wouldn’t feel it but you should definitely look at that too for purposes of the calculator we suggest you start with the pain of repayment first though we somewhat arbitrarily took two hundred dollars it’s the maximum monthly payment that would be tolerable

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This number is based on our own experience and what we’ve observed please believe us when we say that you will often feel a two-hundred-dollar payment very keenly even when things are going well and much more so when they’re not of course we wanted to find the loan amount that would result in $200 monthly payments note that we chose to make those payments over

10 years it seems like a long time to us but considering what we said about leverage if you have a good job this can make sense but we hated every minute of hours in the world is unpredictable so the longer period exposes you to more to the risks of losing jobs or other changes things come up and a payment anchor can stop you from taking advantage of some great

Opportunities we also set the interest rate at nine percent it’s possible to get lower and sometimes it’s higher pay attention and shop when the time comes in any event in the example bull above we chose two hundred dollars is the monthly payment a nine percent interest rate and a ten-year period 120 payments and clicked on calculate to see how much we could borrow

The calculator returns the loan amount equals fifteen thousand seven hundred eighty eight bucks there it is note too that ten years of repayments of two hundred dollars is going to come out to twenty four thousand dollars and so we know that we could not get a loan larger than that on those terms without exceeding the two hundred dollar per month payment not too

Exciting what if we could get better interest rate the suppose we got an interest rate of five percent that seems almost free by comparison how big a student alone could we get then without going over two hundred dollar payment ceiling up to eighteen thousand eight hundred fifty-six dollars now remember still 120 times 200 is 24,000 so you paying over five thousand

Dollars of interest still i’m for that loan as you can say that yielded eighteen thousand dollars as we point out in our student loan report that’s about a fourth of the cost of one year at harvard or yale so what if you ignored our warnings about length of payment schedule and went with a repayment period of twenty years how much difference would that make brings

Up to thirty thousand three hundred that would be for half of your entire worklife so we always hate to mention it but we know that the schools will certainly want to gloss right over the fact that these loans take up so much of your time so we’re pointing it out how much could you borrow then 30,000 300 dots we made that change by changing the number of payments

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To 240 now we’re talking 48 thousand dollars in total payments right 240 x 200 get this that means that you make payments of two hundred dollars per month for 20 long years and the school gets 30 thousand three hundred bucks oh that’s still less than half a year’s cost of ivy league schools in under a year’s out-of-state cost for most universities although to be

Fair you could probably spend the whole year in-state tuition you know with in-state tuition so let’s flex one more time let’s consider doubling our acceptable payment amounts to four hundred dollars per month for for for 20 years that’s way too much in our opinion but here the calculations with a simple rate of interest doubling the payments allows you to borrow

Twice as much and so for the price of four hundred dollars per month for 20 years you can afford almost a year at an ivy league school and now we’re talking 96 thousand dollars in total if you could just do it for that one you know for that one loan sixty thousand dollars but now remember that student loans student rate tuition rates are going up every year so if

You needed 60 thousand dollars for the first couple of years let’s say you might need more than 60 for the next couple we deliberately presented the information this way so that you would feel every cent and every minute it’s our belief that there are almost no circumstances where agreeing to anything like this makes sense to see how it plays out in real life for

One person see our video on hickson’s figs we offer help for people who are in court worried about going to court or wonder if they should go to korban we offer this video as a warning people considering student loans if you’re on the wrong side of that decision facing trouble visit our site to find out about our report on student loans it talks about some of the

Options you might have and our site offers help if you choose to exercise them debt collection is a social justice issue take action to protect yourself from the debt collectors and help others do the same please like this video share it with anybody you think could use it subscribe and comment as all these things help others find our materials your legal laga calm

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Don't Get Screwed – How and Why to Use a Loan Calculator for Student Loans By Fightdebt