student loans

[pianistimo]

are they greedy or what?  i am trying to pay mine on time and have been imposed a higher finance charge by supposedly paying too early?  is this legal?  btw, my last check i mailed on the first so it can't be fourteen days too early if it's due on the 15th.  it wouldn't even get there for two days.  what is going on with these people?  don't they want to get paid?  why do they penalize people who pay?  they say i have to accept a higher interest rate because of paying 'too early.'  who can i talk to besides them again - to prove that my check would not have cleared before fourteen days?  the bank?  these people are GREEDY.

the first time this happened, i called them and got the interest rate reduced again.  but, it's only been one month and this is the SECOND time - and it certainly isn't true.  (so watch out of you have an american education services backed loan by wachovia.  they give you a promised good interest rate and then figure some way they can get around it to make more money.  be very careful).

[leahcim]

are they greedy or what?  i am trying to pay mine on time and have been imposed a higher finance charge by supposedly paying too early?  is this legal?

Yeah, some loans have penalties for paying back early.

The reason is that they loaned you the money, at the agreed rate and period, to make a profit with the risk that they might not get the money back. It's just as valid to ask why they should be penalised because someone changes their mind about the loan.

It doesn't sound like you are trying to do that though. Post date the cheques?

There is lots of legislation and rules here about what they can charge and whether the the contract you have is legal etc, no doubt where you are too.

[Tash]

how random. can't say i've ever experience getting a loan, and i'd like to avoid it as long as possible. what's great about going to uni in oz is that HECS is the greatest thing on the planet- i'll get out and have a debt of like $25 000 and won't have to think about paying it until i'm making like over $30 000, plus no interest or time limit to pay it, it's great

people are retarded, especially at the bank, i have absolutely no faith in bank people whatsoever

[rc]

Banking's a pretty mysterious institution to me. Unless I one day decide I want to learn for myself what goes on in there, I'll just have to trust the bankers won't screw me. So far so good.

I was of the opinion to avoid debt at all costs until I had to buy a piano. I could have afforded it in cash, then the salesman insisted that I get a loan or credit card to purchase the piano, to the end of building a credit rating. So I asked around and it seems that's the way to go, you need credit to get a loan to buy a house, and a piano was an excellent opprotunity to start.

So, there are good people out there. Even salesmen!

[pianistimo]

it's good you're careful, rc.  it's worth checking bank statements every month.  i used to have 'money counts' and now have 'quicken.'  these programs basically let you know where your money is going every month - and if you input most of your important transactions every day - you can double check the bank account - do taxes quickly - and have an approximation of the percentage of money you spend in each category.  i used to be really perfectionistic, then lost it somewhere along the line (i think it was having time to do everything), but what i gained when we were doing this together is a sense of control.  it's very easy to lose control - especially when you get married and you have two people spending money - and neither knows what the other spent.  if you go too many days like this - NOT good.  if you pool your finances - you do better to take 5 minutes every night and input your atm transactions, checks, and deposits.  then, it's no surprise and you don't get those dastardly $25. overdraft charges piling up.  that can really set a person back!  especially if you run out of money a week before payday - (as we did a few years back and it kept cycling). 

also, it's good to keep comparing interest rates on your credit cards and switch over if you need to (closing accounts that have too high of rate).  cut the cards and consider it a good move.  i'm finding with gas card accounts - to try to pay that right away.  i think the interest on almost all gas card accounts is pretty high (21%?). 

sorry to blab on - but when you are young is when you can get a handle on this.  esp. before you get married!  when you marry a person who is financially responsible you each take charge and you end up successfully sailing through life.  thankfully, we trade off (one spends, the other saves) and don't usually spend huge amounts at the same time. 

[brewtality]

how random. can't say i've ever experience getting a loan, and i'd like to avoid it as long as possible. what's great about going to uni in oz is that HECS is the greatest thing on the planet- i'll get out and have a debt of like $25 000 and won't have to think about paying it until i'm making like over $30 000, plus no interest or time limit to pay it, it's great

Yah but there was a time when students didn't have to pay a cent. My parents are paying my HECS up-front for me, aren't they nice. 

[contrapunctus]

Banking's a pretty mysterious institution to me. Unless I one day decide I want to learn for myself what goes on in there, I'll just have to trust the bankers won't screw me. So far so good.

I was of the opinion to avoid debt at all costs until I had to buy a piano. I could have afforded it in cash, then the salesman insisted that I get a loan or credit card to purchase the piano, to the end of building a credit rating. So I asked around and it seems that's the way to go, you need credit to get a loan to buy a house, and a piano was an excellent opprotunity to start.

So, there are good people out there. Even salesmen!

I would rather have no credit rating than a good credit rating. It shows that you have never been in defore, and I think debt is terrible.

[ted]

Pianistimo:

Yes, that would annoy me too, regardless of the terms of the loan. In other words, they want to keep people in debt - ridiculous. There is a sort of memetic imperative about lately that it is somehow all right to exist on money you do not possess. The banks seem quite ruthless in encouraging young people into habitual debt with credit cards. The government and the reserve bank here keep on moaning about too many people being in debt, yet at the same time they promote gambling and entice people to want things they cannot afford. It is a moral double standard and sooner or later a price will have to be paid. 

[pianistimo]

you're so right!  twice - we got into debt by eating out too much.  even in eating you can save money.  pack a lunch.  homemade dinner is always better anyway.  i think it's partly time factor.  my sis-in-law makes frozen meals on sunday and thaws them out for quick eating.  if i ever get organized that much, i might try it.

the first time we used a credit counseling service and they froze the interest rates at a low amount and we paid it off - over 3-4 years.  it took awhile, but much better than declaring bankruptcy.  its' easy to want what you don't really need.  now we wait, save up the money, and  try to make most of the purchase with funds already existing.

for instance, we both want a deck on our home - and a lot of people have gotten loans and stuff (and i'm not saying that's bad), but for us - we already have a car loan, and small student loan, so another loan would put us over the edge.  it's better to just wait - even though everyone else seems to have one.  keeping up with the neighbors is a sure way to lose your spot in the neighborhood. i've seen a lot of people move due to bankruptcy and divorce.

[Tash]

Yah but there was a time when students didn't have to pay a cent. My parents are paying my HECS up-front for me, aren't they nice. 

i know- lucky dad got that so he was off screwing around changing degrees like every year, and then didn't even get a degree cos he failed economics!

lucky you, my parents say they might pay mine in the end, but i'm not counting on it- so annoyed (but not really), with transferring this year, unsw has just put the 25% increase in fees in this year so i get stuck with it dammit!

[sonatainfsharp]

I would rather have no credit rating than a good credit rating. It shows that you have never been in defore, and I think debt is terrible.

You can't be serious?!?!?!?!?!?! I assume you are quite young, and you need to talk to someone about personal finances TODAY. This will help get you started:

First of all, **no credit is BAD credit.** Period. Good credit does NOT mean that you have debt!

When I was 24 years old, I had the best credit score possible, and I had NO debt. How was this possible? Well, I had a checking and savings account when I turned 16 (this raises your credit). I had my own car insurance since I was 17. Car insurance affects and is affected by your credit, so get off mommy and daddy's policy and get your own now. Sure, it is expensive at first, but I am now 28 and pay lower car insurance than people twice my age. Get a credit card--use it once a year for $30, pay it back $15 one month and $15 the next month. This makes credit card companies happy and they will report more often. Get a job--even if you work one day a month.

Why do you have to have good credit in today's socieity? Here are some very basic reasons:

You can't get car insurance without good credit. This is one of those "little known facts," but it's true. My parents never even had a speeding ticket in 40 years of driving, but they have always been on "high-risk" insurance because of bad credit, meaning they pay like three times as much as I pay, and they are over twice my age!

You can't get a white collar job if you have bad credit. More and more employers are using your credit score to decide if they should hire you. I know people personally who have been turned down for a good job because they have bad/no credit. Sounds immoral, but it's legal.

You can't get your own apartment unless you have good credit.

You can't afford emergencies without good credit. What if something happens down the line and you can't afford the bills? You can't get a load without credit.

I have a friend who is 27 and has NO credit. Something happened and he couldn't get a simple loan. Now his bills are in collections and his wages are garnished. This is certainly a far worse situation to be in than to have good credit.

[rc]

it's good you're careful, rc.  it's worth checking bank statements every month.  i used to have 'money counts' and now have 'quicken.'  these programs basically let you know where your money is going every month - and if you input most of your important transactions every day - you can double check the bank account - do taxes quickly - and have an approximation of the percentage of money you spend in each category.  i used to be really perfectionistic, then lost it somewhere along the line (i think it was having time to do everything), but what i gained when we were doing this together is a sense of control.  it's very easy to lose control - especially when you get married and you have two people spending money - and neither knows what the other spent.  if you go too many days like this - NOT good.  if you pool your finances - you do better to take 5 minutes every night and input your atm transactions, checks, and deposits.  then, it's no surprise and you don't get those dastardly $25. overdraft charges piling up.  that can really set a person back!  especially if you run out of money a week before payday - (as we did a few years back and it kept cycling). 

also, it's good to keep comparing interest rates on your credit cards and switch over if you need to (closing accounts that have too high of rate).  cut the cards and consider it a good move.  i'm finding with gas card accounts - to try to pay that right away.  i think the interest on almost all gas card accounts is pretty high (21%?). 

sorry to blab on - but when you are young is when you can get a handle on this.  esp. before you get married!  when you marry a person who is financially responsible you each take charge and you end up successfully sailing through life.  thankfully, we trade off (one spends, the other saves) and don't usually spend huge amounts at the same time. 

hahah, thanks Pianistimo. Though it could be some time before I have to worry 'bout shared money, I'll keep it in mind .

My basic strategy is to be a cheapass, and have any expense automatically withdrawn so all I have to do is make sure there's enough money in the account... I do other little things like pay my insurance for the year and take care of taxes early, so's I don't spend that money.

[pianistimo]

that's great that you're financially responsible.  having credit is always a risk if someone uses identity theft on you.  but, i kind of agree with contrapunctus about have a good credit rating - for car, insurance, house purchases.  one or two cards is different than 50.  i usually tear up the card applications so no one will randomly sign up for them without my knowing.  knowing and keeping tabs on the interest rates is paramount.  and, also, benefits.  i think my parents use alaska airlines credit card and have gotten quite a few free tickets after some major purchase.