Description: This article is about nelnet login, in which you will learn why Student Loan Refund Checks are designed to keep you in debt. A student loan refund is the portion of the loan remaining after total costs have been deducted.
It’s Calvin Russell here, today we’re going to talk about student loan refund checks exposed, let’s go straight into it, I went to college back in 2006, some of you are trying to see how old I am, when I was in school, my student loans got approved.
The problem was that it wasn’t down the line, I started going back and doing the numbers, I started looking at certain things, something doesn’t make sense, let me break that down and show you what I’m talking about, the reason why I’m able to show you these numbers is mainly that I’ve seen it on different perspectives.
Let’s break it down, we’re going to take an example of car because most of you have finance the car or understand how car financing works, then you have a home, then you have refund checks, now you probably want to ask how they are similar to each other, I’m going to break it down for you.
If you buy a car with the taxes and everything, you end up financing about ten thousand dollars, if you finance in ten thousand dollars, this means that you’re out the door, I’m going to put this OTD, what does the bank give you?
I have six years of automotive experience, I sold over five hundred fifty cars in less than four years, I’ve helped in finance, I’ve also been in management as well while I was working for the dealership, I don’t know everything about car sales, but I’m telling you my experience, these are numbers that I saw all the time.
Out the door means this includes everything, if you’re financing, the bank is going to give you a loan, I forget how much, let’s say 10,000 because that’s the price of the car, the bank is going to give you a loan for this amount, then you buy a home, let’s say simple numbers, the numbers don’t necessarily matter.
The home is a hundred thousand, you want to finance it, the bank is going to give you a loan a hundred thousand, let’s keep the numbers simple, you’re out the door, you need to finance the house a mortgage, so the bank is going to give you a loan for that amount of money about a hundred thousand dollars.
Now let’s talk about student loan refund checks, if you go to college, the college cost for a semester is twelve thousand dollars, you get your books about five hundred, I’m going to keep this simple, then you get a meal plan about a grand.
You get your room and board about four grand, I’m going to add all this up, if you’re late on your car payment a certain amount of times and you’re missing payments, they’re going to come and get the car because it’s their car, if you’re late with your mortgage a certain amount of times, they’re going to come and take the house because that’s their collateral.
You need this amount of money, the bank’s going to give it to you, they’re going to give you exactly what you need, but with student loans in a refund check you need a certain amount of money, that’s 22,000, my numbers can probably already include books, room and all that stuff.
You get the concept, you would think that the bank or Sallie Mae or the US Department of Education USDOE are going to be watching this, either way you need that amount of money, they not only give you what you need but they give you what they call a refund check.
If they give you a refund check of $3,000, now you’re at $25,000, you’re thinking that great, you get a refund check, an actual question is where that refund is from and how it is a refund, a refund is when you buy a pair of shoes, you don’t like them and take the shoes back, you get some money back, which is called a refund.
How is that money leftover? Where does the money come from? When you’re trying to buy a car and you get denied for the auto loan, if you buy an auto loan, in general what do you need to buy a car? First you need a job, in most cases you need a job, in this case we’ll say income.
Because that one has their income from different ways, you need income, if the income is not there, you need a cosigner, you also need a credit score, you need all that for a car, you need the exact same thing to buy a home, now you go to store.
I’m not knocking the fact that they gave us the money for school, I’m very appreciative with that, the problem is the math that we don’t do, that’s a refund check, in most case people go to college when they’re about 18 years old, how much financial education does the average 18 year-old have?
If they’re going to get $3,000 check back per semester, do you think they’re going to deny that? Not at all. It is safe to say that 3,000 is an average amount of money that you got back as a refund check, there’s going to be some dislike.
The average person get this back as a refund check, when they get this back as a refund check, I will say naturally that’s $3,000, if that’s 3k per semester, if you graduate on time, that’s four years, that’s going to be eight semesters, that’s going to be three k times eight semesters, that number comes out to $24,000 in refund checks.
Half the money you owe is in refund checks, what if you have given that money back? They give you $3,000 without a job income, cosigner or credit score, you have no history on paying anybody back yet, I’m not talking about the money to go to school, I am talking about the money left over from imaginary refund money.
Don’t get me wrong, most people I knew had never got any functions, I did the same thing, we blew the money, that’s what everybody did, you always hear that I need the money to live while I am at school, that sounds great, but it’s not your money, you have to pay all this back.
If you try to go to the bank and get a three thousand dollar loan, a business loan, it could be a personal loan, they’re going to want to see what your business plan is, you’re going to need credit, maybe a cosigner, I’m not saying that they’re setting up people for failure.
I know there are a lot of people that work at financial institutions, I’m not against college, this is nobody’s fault but ours, what about the parents? We’re not the parents that are getting a certain amount of money, they cannot afford to pay their children’s student loans while they’re in school.
That’s $24,000 in refund check, my suggestion is to give the money back, it’s not yours, it’s almost like a setup, because this sets you back, the average person has 50 to 60 thousand dollars students loans, it comes from money, that is left over from nothing at all.
If you plan on sending your kids to school, when they get that refund check, make sure that they send it back, it is not free money, they’re going to blow it, I have a family member of mine, he says that he needs a new laptop, he is going to use his refund check.
This is not our money, majority of this money came from money which didn’t exist from a refund.