That's not what he'll pay here. That's how much he was looking to pay in the Philippines for rent for his fiancee in another thread. It seems to me he's making more bills when he's already unable to pay the ones he has.

Capitalized Interest is interest that is not immediately expensed, but instead is treated as an asset and amortized over time in the income statement.

It's a process that was used in old 'rule of 78's' style lending that has been pretty much outlawed in most states.

*edited to add that upon googling *capitalized interest* I see the same definition Jenn gave*

I guess that's part of the entitlement to a good life. All current concerns take priority over old bills.

Or what happens when you finally locate a woman who buys into your bull$hit.

I have to disagree. Here's a quick example of the use of capitalized interest in an educational loan nowadays: http://www.cfnc.org/paying/pubs/pdf/EXTRAr...22%20illegal%22

The definition that you gave of capitalized interest would be applicable to the lender, and not the borrower. From the borrower's eyes, loan principal is not an asset.

I quote from my Interest Theory textbook:

"It is possible that when a loan is amortized with varying payments, the interest due in a payment is larger than the total payment. In this case, the principal repaid would be negative and the outstanding loan balance would increase instead of decrease. The increase in the outstanding loan balance arises from interest deficiencies being capitalized and added to the amount of the loan."

Yes and if you see my edited post I researched it a bit further as well and saw my initial response to you was wrong.

Back in the old days (about 20 years ago) we had capitalized loans in banking. We collected the interest for the month, no matter when the payment was made. And if payoff was made, we collected the full months interest - even if payoff was made on - say August 1.

Sorry for being trigger happy.

However, to me I don't see that as 'capitalized interest'. You effectively cannot increase the balance on a simple interest loan. If you don't pay towards the principal, then it simply doesn't go down. You can, however, still owe interest that you have not paid when it was due. In my mind that's not the same as what banks used to practice when they capitalized. Old style capitalization was pure financial rape in that you charged the borrower interest for a time period when they didn't owe the money. Capitalization, as I just read it on Google and as your textbook defines it, seems to me like just a overgrandized term for paying back what is rightly due to the lender.

No argument there. It's standard practice.

Just thought I'd mention that my own student loans did not capitalize my interest while I was in forbearance, which is why I got slammed with a $2,000 interest bill.

If the OP is so concerned about the way he has been treated by this institution he should make a formal complaint to the SEC which regulates financial institutions, the NASD and the Attorney General's Office. All credit companies have strict regulations by which they are governed and if he can prove that his account has been mismanaged in contravention to these then he can present his case.

Let the Sallie Mae institution and the so-called education institution know that you will be doing this and you may be surprised at their response!

I won a case in a similar manner and now have manageable monthly payments.

I have also heard (though not verified that the following links may be useful):

http://www.insidehighered.com/news/2006/05/08/salliemae

http://www.studentloanjustice.org/

1998 Amendments to the Higher Education Act of 1965 (section a: applicable Interest Rates) found on ED.gov. Carl D. Perkins Vocational and Applied Technology Education Act section 14101.

Secondary Education act of 1965. National and Community Act of 1990. There might be other sections which may pertain to your situation if you choose to read further in the Higher Education Act of 1965, as amended (you can find the amended section at ed.gov)

You may also want to read about the FFElp_Inducements (CBA and EFC Issue Joint Statement on Private Education Credit and FFELP (Federal Family Education Loan Program) Inducements.

I'm thinking this is a much better plan than making a video for youtube.

It's a shame that you are in hot water with your student loans, because you are so obviously in need of an education!

Or whining on VJ.

I just spent some time reading about SallieMae. For a few years now, they have been a private entity rather than a government entity. From what I read some of their tactics, when default begins to occur, sometimes take the bounds of usury to the limits.

That being said, there is still no reason for attacking people who have the means to educate their children, nor those students who have made it on their own by working or through scholarship, or belittling those who attended 'credientialed' universities.

Not to mention the temper. IMBRA, I hear your roots calling.

This is beyond annoying. I was hanging out yesterday, watched the video and was one of the first to reply. My follow up response was going to be a gentle 'honey, you screwed up, now try to fix it' but (ha ha ha) I thought it might be too harsh on z, who was obviously upset at the time.

Timing, people. A rant has turned into a Fight Club party.

OK, some folk don't know stuff. So they ask for help. Here comes the annoying part: I gave z a link to a great website on consumer affairs. I didn't look first, I already knew the answers would be there. There are no less than 6 links for solution-oriented sites and explanations for his situation.

But it's more fun to pick fights than go get your solution? Z, go check it out and start seeing what you can do to fix the situation. You got into it, you have to get out of it.

April 2003:
Student loan payers owe more money
Would it be a bargain if you owed a student loan and the company made a math error and started collecting less money from you? It might be fun when you got to what you thought was the end and you’d paid off the loan. But it would be quite a let down when the company discovered its mistake and presented you with a huge bill thousands more dollars. Well, it happened to Sallie Mae, one of the largest student loan providers in the country. It happened because of a computer programming error and is now affecting more than 1 million people. If you have a 10-year variable rate, federally guaranteed loans, including Stafford and Plus loans. If you haven’t started a repayment plan, you are not affected. But those who have started a plan will owe money. It took Sallie Mae six months to find out what was going on, so it will take a while to get the error corrected. The good news is that Sallie Mae is waiving the additional interest on the loans. You still owe the balance, but they will not charge you interest. So, essentially you’re getting the remainder of your loan interest free. Clark thinks this is a smart, fair move on Sallie Mae’s part. You need to remember that the student loan system is extremely inaccurate, so it’s important for you to run your own amortization schedule. And be sure to keep your student loan records forever!

To the OP:
Thank you for clarifying things for me. I have (mistakenly, as I know understand it thanks to you) been grateful to my mother for doing many things in order to pay for most of my college education including but not limited to: working 2 jobs, wearing the same suits to work for the last 15 years instead of buying new, and taking a loan against her retirement plan. I now realize that I should think of her as 'disgusting and rich' since she has been able to be so good to me. And I must be 'privileged and rich' after having so much done for me, despite the fact that I too have worked since I was 14 years old, mostly at 2 jobs at the same time, taken out my own loans and paid for everything I could. Glad I read this post and was set straight.
Originally I felt sorry for you. Loans are tricky and I could see where one could get lulled into a false sense of security when signing on for a school loan. However since then I have read a lot that makes me think that you got yourself into this situation in some ways. If you truly feel cheated - find out what happened to all that extra money the loan is for. You as the borrower need to be checking up on these things and making sure that you are getting a fair deal. If a mistake was made somewhere you should have the paperwork to back up your story, go to the proper authorities and get it corrected. Whatever situation you are in and even if you were completely cheated, that in no way, shape or form gives you the right to beat up on people who are able to provide for their children. Whether they inherited money, worked hard and saved for every dime, have a cushy job or won the lottery it doesn't make a difference. Other things one might do with their money might give you cause to call them names, but sending their kids to college? I think that is an amazing sacrifice that many parents choose to make and it should be applauded.

so he had this link to the answer all along..... wow

so what was all that about if he knew what he had to do....

What am I missing here???

Kezzie

Cheese.

I like cheese with my whine.

This thread is another example why posting personal information for public consumption isn't always a good idea. Sad but true.

Aye...I agree with ya.

Um, hi. I too have student loans (lots of student loans) with Sallie Mae and I HAVE consolidated them. I will be paying for them until I'm quite old, but the monthly payment is pretty reasonable. I realize that you ultimately payback more money the longer you stretch the loan out for, but it would be impossible for my fiance' and me to live if I try to pay it at the rate they originally wanted; as it is, we have to live with my parents and we have to budget very carefully. He just got a job (thank God! -- he has a valid EAD issued at JFK and a SS# so it's all nice and legal ), but it's still tight, mostly because of all the loans. THE LOANS!!! AHHHH!!! Good God, the loans...

I musta missed the bit Karen L quoted, because I would have clarified that loans ARE bought and sold all the time....student loans, mortgages, etc....never said Sallie Mae sells them, but smaller companies frequently sell loans to free up capital to loan to someone else

Funny you've sure done a TON of research since all this happened....


if only you had done this amount of research BEFORE taking out the loan.

I have a huge amount of loans from two masters programs. I took them both out with Citibank and have had ZERO problems. I did tons of research before hand and did LOTS of homework to make sure I knew what I was getting into.

[attachmentid=2107]

This is what I thought at first too, but tried to be a bit sympathetic. You ALWAYS ALWAYS research anything like this before you sign your name! Oy Vey!


Oh I LOVE this picture!!!!!

Wow...some real horror stories. Only thing salie mae did to me was up my student loans from 2.5% to 7.14% Lucky me i only took out 1 loan (although it got put into 2 loans) for 3800 and only did that to finance my trip to europe the next summer Still have about 2500 left to pay. I dont know how you get big late fees...my late fees are only 5.49 per month.

My husband has two student loans with SallieMae, for two different courses. Bearing in mind that he is 36 years old, he still owes over $25K on his Batchelors (we had did as a traditional student). However, during the time he was unemployed and when he has chosen to put the loan into forbearance, SallieMae were more than fair and have been nothing but helpful. However, it gets paid every month on time without fail at our end. Late fees really are nobodys responsibility but your own.

Since your immediate concern seems to be your interest rate, a refi seems to be in order. Meauxna seems to have given you some valuable information. She is a wise woman, and you would do well to use it!

Personal assaults on people are uncalled for, regardless of how upset you are at the time. You may not like what people are saying to you, but it does not give you the right to make assumptions or sweeping generalisations that serve only to offend others. I understand that it's frustrating for you, but please learn to behave like an adult.

Well said Christina.

Sounds like you went to a pretty crappy school with no Financial Aid advice.

Unfortunately if you signed the papers then you have to fulfill the contract.

It's wrong of you to suggest that taking out student loans is a bad idea - for the most part it is a great idea - the value of the education you get is well worth the loan and the initial inconvenience of taking it out.

My husband has sallie mae and never had any problems with them. I have NorthStar and thus far they have been very helpful.

I think e-courses and non accredited or probation schools are wholeheartedly a waste of money. Name recognition is very important and you should go to a Tier One school if you can, and believe me, the Tier One schools will help advise you on your Financial Aid situation far more than the lower level schools.

It's also incorrect to say that there isn't other money out there for schools - if you apply to a range of schools as myself and most of my friends did I can tell you that a good number will offer some amount of money to you right up to a full ride. State schools have excellent in state tuition rates, you can also take out private loans if you are that worried about the Federal level.

A lot of people made the mistake of not paying attention to consolidation rates, but a good school would keep you informed of that.

If you believe that the company you took the loan out with did not fulfill its contractual obligations then you may have a case and should get some legal advice - go a long to a local law school and see if anyone there (students or professors) would be willing to help you. A good many have pro bono programs and clinics.

As for anyone else, I strongly recommend going to a Tier One school of any kind, even if it costs more. It will get you a lot further in the long run and the student support will be much much better.
These cheap online courses are a waste of time and money.

My position still stands, and so does my opinion of those people.

It is not wrong of me to warn people about the truth of the student loan industry. Just because it hasn't happened to you doesn't mean it isn't happening.

I went to a tier 1 school. One that was the top culinary school in America and had direct association with the top culinary school in europe.

Still, you are unfortunatly one of many who find their ignorance is bliss. So be it.

Also, you all have no right to try to rebuke me when you would do exactly the same thing if put in an impossible situation and had total a-holes do nothing but try to make it worse.

Stop the madness, end this thread already. The information that is important has already been said, and I am sure it will help raise exactly the ammount of awareness as I had hoped it would. Both about what Sallie Mae is doing, and the arrogance of the people here at VJ when something isn't happening directly to them.

Sure, you gain sympathy for the Visa process, it's happening to you too, so that automatically makes it real. But the moment someone who foolishly thinks they have friends here shares something else, well all bets are off.

disghusting.

All bets were off when YOU started making sweeping generalisations about people and levelling unnecessary personal insults.

That is the disgusting thing about this thread - your behaviour.

Christina you are spot on......

Kezzie

Zethris, all you need to do is take responsibility and accountability for your situation. That's all.

I agree....and GROW UP!

So you went to the Culinary Institute of America - the number one culinary school in the United States (if you haven't been to their California student restaurant you really should, it is amazing) http://www.ciachef.edu/admissions/finaid/

Sallie Mae is one of a number of their preferred lenders. Note, you have to sign a promissory note to get those, and that locks you in to paying it back. They had a financial aid office there for you to talk to and who could have helped you out - did they help you out? Have you gotten any legal advice if you were misinformed about the loan or if the actions of the lender did not follow the loan contract you signed?
Note how many of their students get financial aid of a grant based nature - a lot of people get a lot of assistance with school - there are many ways of paying for school and many people who want to help.
Check it all out!!! http://www.ciachef.edu/admissions/finaid/need.asp

Seems to me you did a poor job of reading the fine print, and unfortunately the 'i didn't know' defense is no defense at all.

Funny thing is, the very people who have no lives are the ones STILL dwelling on this issue! How sad are you people, how pitiful your relationships must truely be! I checked back to feed a hunch that you people would still be posting here and sure enough it was #2 on the list! How sick is that?

I was past my initial shock and reaction way back on Monday. So I have speant my time working to fix this problem as it is truely a breach of law and contract with how they have leveraged this loan. I have submitted my story to multiple news outlets who will be carying my story and others becase I am not alone in this experience. I happen to be one of many apparently.

I haven't wasted my time here tearing someone down and talking about them behind their backs like you trash have been doing. I pressed forward and focused on the issue at hand. While I had a moment of panic and you jerks took advantage of that, it was done a week ago. Yet you are STILL posting on this thread!

----------------------------------

The CIA was NOT the top culinary school in America. The CCA was the top school in America when I enrolled and before it was bought out by the Career Education Corporation and turned into a certification/degree farm. When I signed up, everything worked well. But the contract, unbeknownst to ANYONE left open gaping holes for changes such as these to be made.

You only prove my point the more you blather on trying to provoke more response out of me. You only prove how much more childish you try to accuse me of being by exacerbating this situation even further. All you are doing is trying to make yourself feel better at anothers expense. I have tons of PM's concurring this so I know others agree with what I have said about you people.

Long story short, get a damn life, move on.

That is the final word, period. (unless of course, you must get the last word in, as I am sure you have to knowing how your type is, you can't resist)

*covers eyes - runs and hides*

I really really wanted to NOT post but I just couldn't resist!!!!! The urge to pull your chain was just too strong.

Zethris, I don't know why you have to be so p*ssed about this. You probably could have gotten a more positive response if you just hadn't gotten so darned inflammatory with people. This really is a pretty nice place.

Oh...there's nothing wrong with my relationship. But I am kinda depressed lately and spending a tad too much time here. Immigration, starting a new life with a new marriage and all that jazz is not a breeze. I have a feeling it'll be worth it, but it's not easy right now.

Got that? In other words you aren't the only one with problems.

So can we agree to get over ourselves then and just move on? I am willing to. Truce?

Works for me.

Why'd you have to go and get all civilized before I could ask: Don't we have a rule that you have to expose those support PMs now? Simply claiming you have them isn't enough.

Glad to see there's peace in the garden now.

Oh how I love the 'I got PMs who agree with me' argument!

I got 1000's of PMs telling me that they all disagree with you....

Send me yours and I will send you mine......

Kezzie

Proof number 1:

"Way to go, LisaD IS a miserable wretch. You've got more balls then me. biggrin.gif"

nuff said

...but probably not from you two loudmouths. Always need the last word.

Seriously seek medical attention, your addiction is probably hurting whatever form of discombobulated relationship/life you think you have.

I have a very good and happy life.... thank you

I learnt a long time ago that yes you can make mistakes with money but you accept you have made an error of judgement and you learn from it....

Take your head out of your butt, get off your soapbox and get on with your life.... you fucked up so what....

"Hi Kettle, this is Pot. Just wanted to tell you, you're BLACK!!!!"

LMAO Christina...... you made my laugh so loud people at work are looking in my direction.....




Kezzie


You call that proof..... I dont think so... it has no name or date... so it could have been written by anyone including you 2 days ago or 2 mins ago....

You gonna have to try harder than that.... sorry

You really are nothing more than a sociopath. Good luck to any relationship you might have.

Seriously, people, get a life. Try working maybe. Or play a sport.. Something!

It seems you can't even go minutes without coming here. It is an addiction.

Human bodies need exercise, not sitting in front of a computer all day searching for some form of fulfillment that you can't get from your life away from the computer.

You are wasting away and you know you are and that is the only reason why you pick and pick and pick and pick like you do. It is your only way to feel good about yourself.

I merely speak what others think. Yes, I fell for your stupid games earlier on. Shame on me. I was in a very bad place, and you took advantage of that. Shame on you.

Now, do you seriously have such an insatiable need to keep proving me right? or can this be done yet?

I don't really care to waste any more time on this. So keep hijaking this thread. Most people by the first few important pages will stop reading. The rest is just your pointless blathering and my reaction to your obvious troll/flame baiting you did.

zethris.... send me one more piece of hate mail and not only will I report you to the forum staff I will also report you to your ISP.... Just remember your were the one who started with the insults... so if you cant take it dont give it...

Kezzie