Paying interest while in school?

[LuciusVorenus]

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http://www.thedailybeast.com/articl...pens-as-eric-cantor-gop-propose-new-cuts.html

How would this even work for medical students?

 

[CodeBlu]

http://www.thedailybeast.com/articl...pens-as-eric-cantor-gop-propose-new-cuts.html

How would this even work for medical students?

It wouldn't! Plain and simple.

Med students would be so far in the hole, they'd be working forever to get out of the proverbial debt hole.

 

[NickNaylor]

http://www.thedailybeast.com/articl...pens-as-eric-cantor-gop-propose-new-cuts.html

How would this even work for medical students?

I imagine they would just bump up the cost of attendance to allow for enough money to pay the interest off of the loans, so that you can use loan money... to... pay the interest off your loans.

Either that or they'll make an exception for students that pursue advanced degrees. At the undergraduate level, though, it's a little more reasonable to expect students to pay the interest off since they actually have the time to work.

 

[calvnandhobbs68]

Eric Cantor is a *******. This is typical government accounting...move money forward so it looks like you "make money" right now. The interest gets paid either way, its just that if they start making people pay it in school the money starts flowing in 4 years earlier. This only "saves money" if you have no idea what you're talking about.

Not to mention if they did that there would be no such thing as student loans anymore. They'd just be...loans. I can see private companies being happy to step in with a pitch that basically says "Screw the government...we'll give you a loan that you can defer during school" because they know they get paid at the end of the day either way.

 

[Illinois2012]

Eric Cantor is a *******. This is typical government accounting...move money forward so it looks like you "make money" right now. The interest gets paid either way, its just that if they start making people pay it in school the money starts flowing in 4 years earlier. This only "saves money" if you have no idea what you're talking about.

Not to mention if they did that there would be no such thing as student loans anymore. They'd just be...loans. I can see private companies being happy to step in with a pitch that basically says "Screw the government...we'll give you a loan that you can defer during school" because they know they get paid at the end of the day either way.

Not necessarily. I definitely think the idea's stupid, but it would save money. The thing is, by allowing students to wait to pay off their loans, you allow them to pay after they are more settled and have a steadier flow of income. This allows them to be able to pay more than the minimum payments, which in time means the lender loses money they would typically make from interest.

Also, if the loan is stretched out over a longer period, which would probably be the case if students were forced to pay, then again there would be increased revenue due to interest.