Student Loan Forgiveness is Set to Expire: This is Going to be Painful for Many!

[Mai72]

Student Loan Forviveness is set to expire soon. Many people have not been paying on their student loans since the start of Covid. About 2 years now. Can you imagine? 2 years without a payment, and now people are going to have to start repayment on their student loans. IMO, this is going to be a HUGE disaster. Thousands, if not tens of thousands of ex-students are going to ignore their payments, or they will out right refuse to make their payments because they don't have the money. I don't know what the answer will be. A $10k reductaion in student loans promised by Biden won't amount to much relief. A $50k reduction in personal student debt, or the govenrment wiping student debt clean would be better. But, I don't see that happening. And, it doesn't solve the problem. College is still super expensive.

A report from the Federal Reserve in May showed almost 60% of student borrowers made zero payments on their federal loans between August 2020 through December 2021. Some experts say the real number is even higher.

https://finance.yahoo.com/news/theres-going-real-trauma-days-211700121.html

 

[Mai72]

Yea, but will $10k be enough?

Lets also not forget that inflation is at its highest it has been for decades. This will cause harm for many people who will have another bill to worry about.

White House leaning toward canceling $10,000 in student loan debt for borrowers who make less than $125,000

White House officials have been weighing -- and leaning toward -- the cancellation of up to $10,000 in student loan debt per borrower tied to an income threshold, CNN has learned.

www.cnn.com

 

[brycejones]

Want to put money on it expiring at the end of the month?

I’ll take the not.

 

[Mai72]

Want to put money on it expiring at the end of the month?

I’ll take the not.

We will find out soon. IMO, Biden is going to end student loan forgiveness, and will cancel $10k of student loan debt.

Just my opinion, but that is what it looks like will happen.

 

[TheVrolok]

Want to put money on it expiring at the end of the month?

I’ll take the not.

I would be SHOCKED if payments resume next month as "planned."

Just as an example, my wife's loans are still being transitioned from Fedloan to MOHELA so I don't even know how they could possibly bill her in Sept when it's unlikely the transition will be completed before the month is half over. Same for many others "in transition" to MOHELA.

 

[TheVrolok]

We will find out soon. IMO, Biden is going to end student loan forgiveness, and will cancel $10k of student loan debt.

Just my opinion, but that is what it looks like will happen.

End forgiveness? You mean end the payment pause or cancel the PSLF program?

 

[Mai72]

End forgiveness? You mean end the payment pause or cancel the PSLF program?

End the payment pause.

 

[dainthomas]

I would be SHOCKED if payments resume next month as "planned."

Just as an example, my wife's loans are still being transitioned from Fedloan to MOHELA so I don't even know how they could possibly bill her in Sept when it's unlikely the transition will be completed before the month is half over. Same for many others "in transition" to MOHELA.

Mine are being transitioned to MOHELA and I just got an email that my next payment is the end of October.

Seems like at a minimum he should get rid of interest permanently and forgive some chunk of it. Would certainly benefit Dems right before the election.

 

[Captante]

The problem with folks saying "fvck it" and just refusing to pay a student-loan is that since this debt cannot be erased by bankruptcy and I believe has no statute of limitations on collection it will NEVER go away unlike most debt. (even debt consisting of billions of dollars)

The one way this might blow up would be if enough people just refused to pay completely bringing the student-loan system crashing down.

 

[Mai72]

The problem with folks saying "fvck it" and just refusing to pay a student-loan is that since this debt cannot be erased by bankruptcy and I believe has no statute of limitations on collection it will NEVER go away.

The one way this might blow up would be if enough people just refused to pay completely bringing the student-loan system down.

Whar is the possibility that people refuse to pay on their student loans? Do you think it will be a high percentage of people who won't pay, or just a few?

 

[Captante]

Whar is the possibility that people refuse to pay on their student loans? Do you think it will be a high percentage of people who won't pay, or just a few?

Most likely just a few..... remember sheep(le) vastly outnumber the dogs and pigs!

I'd L-O-V-E to see a national student-loan boycott though!

 

[K1052]

Indications are that the administration will extend the pause in addition to the forgiveness. I think it is very very very unlikely payments resume before the election. Like bet a kidney on it level unlikely.

 

[Greenman]

The problem with folks saying "fvck it" and just refusing to pay a student-loan is that since this debt cannot be erased by bankruptcy and I believe has no statute of limitations on collection it will NEVER go away unlike most debt. (even debt consisting of billions of dollars)

The one way this might blow up would be if enough people just refused to pay completely bringing the student-loan system crashing down.

Ending the student loan program is a no brainer. Clearly a large number of the borrowers don't understand the implications of amassing huge debt for a degree that has little market value. If those kids had learned carpentry, plumbing, or electrical they'd have been paid to learn it and made a good living after four years.

 

[vi edit]

I would be SHOCKED if payments resume next month as "planned."

Just as an example, my wife's loans are still being transitioned from Fedloan to MOHELA so I don't even know how they could possibly bill her in Sept when it's unlikely the transition will be completed before the month is half over. Same for many others "in transition" to MOHELA.

Same spot here. My wife is about halfway through her 30 year loan repayment. She submitted her public loan forgiveness paperwork and is in the process of getting her accounts moved to MOHELA. That's supposed to be complete this month.

 

[fskimospy]

Ending the student loan program is a no brainer. Clearly a large number of the borrowers don't understand the implications of amassing huge debt for a degree that has little market value. If those kids had learned carpentry, plumbing, or electrical they'd have been paid to learn it and made a good living after four years.

This is really not the case. Conservatives constantly bring up this whole ‘$100k in debt to be a barista’ thing but it’s mostly nonsense.

As I said before the median debt for all adults is $0. Median debt for those with loans is about $20k. For the most part the people who are really screwed are people who went to for profit colleges or went to school for a bit but then dropped out. Regardless of what your degree is in it’s a good investment unless you go somewhere insanely expensive.

 

[Captante]

Roughly half of the folks I know with 2 or 4-year degrees (with no advanced degree) are working in their field of study.

Most of the other 50% are doing better than Starbucks but are doing things the degree was not required for.

However for the folks I know with at least a Masters I would say 90% are working in a related field.

 

[JD50]

It's so funny to see boomers pretend like they had nothing to do with this. When I was growing up all of our boomer parents were adamant that we go to college, no matter what we wanted to do with our life. Getting a college degree was pushed by every boomer parent I know. Now they're flooding Facebook with memes about getting into the trades instead of going to college, lol.

 

[Greenman]

This is really not the case. Conservatives constantly bring up this whole ‘$100k in debt to be a barista’ thing but it’s mostly nonsense.

As I said before the median debt for all adults is $0. Median debt for those with loans is about $20k. For the most part the people who are really screwed are people who went to for profit colleges or went to school for a bit but then dropped out. Regardless of what your degree is in it’s a good investment unless you go somewhere insanely expensive.

Just did the math from the federal site. Average student loan debt is just over $38,500. Just over 4% is 90 days in arears. Quoting average American student loan debt is absurd. We don't discuss how many people don't have cancer, or how many don't get shot, the discussion is about those with student loan debt.

So why are we talking about loan forgiveness if it isn't a problem? Why is having to start paying again a big deal? Why is Biden making it an issue? If it's not a big deal I'm fine with that, keep the program going. Those that make it work are happy and the few that blow it suffer for their bad decisions. There is an issue or their isn't.

The one thing I see mentioned often is that the loans need to be made dischargeable. That's exactly the same as ending the program. Being non dischargeable is the one rule that makes the entire thing work. No one will hand a $100k unsecured loan to a kid.

So student loans aren't a problem that needs to be solved, or the system is working as designed and lets keep going. Which is it?

 

[Captante]

It's so funny to see boomers pretend like they had nothing to do with this. When I was growing up all of our boomer parents were adamant that we go to college, no matter what we wanted to do with our life. Getting a college degree was pushed by every boomer parent I know. Now they're flooding Facebook with memes about getting into the trades instead of going to college, lol.

I can recall my ex's entire family attacking me when I made the point that for MANY people traditional college was a complete waste of time and money.



It's your parents job to prepare you to function as an adult in the real world not college.... it shouldn't take $50k + in debt to figure out something you should already know how to do before you leave home and that's all many kids end up with after graduation.

 

[vi edit]

I'm more frustrated about boomers clinging onto positions because they themselves failed to plan for retirement and have made no effort to actually mentor and train younger generations to take over the helm. So they change corporate rules, close down FTE positions to save money and make their department budget look good. Hire people that should be retired on to do contract work and then scream at younger generations for being the problem for not wanting to work (there's not good positions), not being good at their job (they never had a successor program), and complain that productivity is low (see the last two points).

 

[fskimospy]

Just did the math from the federal site. Average student loan debt is just over $38,500. Just over 4% is 90 days in arears. Quoting average American student loan debt is absurd.

Correct. Average is a bad measure - you should be using the median.

We don't discuss how many people don't have cancer, or how many don't get shot, the discussion is about those with student loan debt.

Right, which is why my terms included those only with student loan debt. That was the ~$20k figure.

So why are we talking about loan forgiveness if it isn't a problem? Why is having to start paying again a big deal? Why is Biden making it an issue?

Biden hasn't made it much of an issue. During the campaign he promised to cancel $10k, which is probably a good idea as that will really help a lot of low income people without paying off loans for doctors or lawyers. It's activists that want him to cancel all debt that are trying to make it an issue and he's ignoring them.

If it's not a big deal I'm fine with that, keep the program going. Those that make it work are happy and the few that blow it suffer for their bad decisions. There is an issue or their isn't.

There most certainly is an issue! The current structure fuels college cost inflation and traps a small percentage of people who make mistakes with ruinous, lifetime debts they can never discharge. It's a very stupid system but that was the way boomers decided to loot their children after looting their parents.

To use your earlier analogy shootings are still a problem even if only a small percentage of people are shot.

The one thing I see mentioned often is that the loans need to be made dischargeable. That's exactly the same as ending the program. Being non dischargeable is the one rule that makes the entire thing work. No one will hand a $100k unsecured loan to a kid.

So student loans aren't a problem that needs to be solved, or the system is working as designed and lets keep going. Which is it?

In this very thread I had an alternative because you're saying the same thing I have many times, that you can't make them dischargeable.

So... student loans are a problem that needs to be solved. This small amount of forgiveness isn't that big a deal but anything resembling total forgiveness has to be coupled with the end of all student loans and a return to publicly financed education like the boomers had before they dismantled it to lower their own taxes.

 

[brycejones]

Ending the student loan program is a no brainer. Clearly a large number of the borrowers don't understand the implications of amassing huge debt for a degree that has little market value. If those kids had learned carpentry, plumbing, or electrical they'd have been paid to learn it and made a good living after four years.

Clearly we need people in those trades but your post is just the same old bull shit talking points that shits on people who don't learn what you think they should. Just fuck off with that shit. Fix how we pay for college not shit on people for what they learn.

 

[fskimospy]

Clearly we need people in those trades but your post is just the same old bull shit talking points that shits on people who don't learn what you think they should. Just fuck off with that shit. Fix how we pay for college not shit on people for what they learn.

Quite a few people with ruinous student loans got them by trying to pick up a trade.

 

[Captante]

Most trade-schools are shorter duration and far lower cost than traditional Universities plus PAID apprenticeship accounts for the bulk of the training and can often be expected in many trades.

 

[cytg111]

Right before midterms? Yea. Nah.
Maybe make it hurt one month? Then come to the rescue?