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the fact that they actually hit the restart button was so insanely unnecessary and cruel. 60% seems high really
The cruelty is the point. You gotta use the whip to motivate your ‘workers’ right.
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Not sure what proportion of loans it accounts for, but the 60% figure probably also includes people like me who currently have $0 monthly payments. Hilariously every month it takes 3 days to "process" my "auto-debit payment" of $0 but I imagine those are all being marked as "paid" in the system.
Be careful. Mine has $0 monthly payments for some years but is still accruing interest.
If it's income driven it doesn't really matter when it all gets forgiven
Downvotes with no reply. Brilliant. Explain how I'm wrong....if you're in ibr for 20 years it all gets forgiven.
I don't know what you mean by "it doesn't really matter", but I'm assuming because it got forgiven, you don't have to pay it. However, the forgiven amount is seen as income by the IRS and subsequently taxed. The higher the amount due to interest accrual, the higher the tax.
This is correct. While someone's $50k of student loans could be "forgiven", it means that year they will have an additional $50k worth of "income" on their taxes and will be taxed like any regular income would.
Also! You do need to make payments, and $0 is not considered a payment. You need to set up $1/mo payments on all your outstanding loans for them to count. Not that you go 10 years making $0 only to be told nothing counted.
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The whole ordeal is/was a colossal screw up.
The student loan company I had to deal with lied to me and made no apologies about it. When I submitted an official complaint through the Federal Student Aid site, it wasn't handled by some government agent or a 3rd party supervisor, it was handled by a customer service rep working for the student loan company. It was literally "we investigated ourselves and found we did nothing wrong" kind of thing.
Having said that, you may still want to file a complaint if you have had issues with the USA's loan servicing - https://studentaid.gov/feedback-center/. It's probably delusional, but I feel like at least having an official record of the report could be helpful down the line at some point. Maybe one day the Federal government will seriously investigate, or maybe one day there will be a lawsuit and at least an official complaint could serve as evidence you were impacted.
Wait don’t do that. They garnish wages for student debt. They’re happy to do it, too, as they get to keep a big chunk of extra fees that way.
While agree that not paying you are just sinking youself deeper especially since you can’t declare bankruptcy and get rid of the debt. The Biden administration put an on-ramp period in place so that it would reduce any penalties for not paying. Repayments start
Time to start working under the table.
This is what happens when the social contract unravels.
Just wait until they bring back debtors prisons to fix the labor shortage
How would removing people from the labor force fix the shortage? Did debtors prisons have you work for companies or something?
The 13th amendment outlaws the practice of slavery, except for prisoners. A possible (legally questionable and morally objectionable) solution is to throw those who can’t pay in prison, then force them into labor as prisoners, and use that labor to pay their debts, after they pay room/board of course, thus ensuring they never escape their bonds
The answer to your questions is slavery with extra steps.
That takes a lot of work and a court order. You can avoid that by making a token payment say of five dollars once a month.
We don’t have to pay for the first year, interest accrues, but you don’t become delinquent. Either I completely misread the agreement I signed, and so did many others including journalists.
More likely, this particular article is garbage.
Well that's even harsher. They'll let you build up some principal before garnishment.
The interest doesn’t capitalize at least.
Good. I recall deferring a few payments over a decade ago and they were pretty adamant about telling me the deferred interest would be added to the principal/capital(?). Definitely not my field of expertise.
It's all such a shit show. I live near a state university town and I have a hard time arguing for student loan relief. They paid theirs off... I feel like it's not about us or any individual. At some level, a large part of our tax base is being bled dry.
Argh. Cheers, yo
You can be marked as delinquent between 30 to 90 days (and this will negatively affect your credit) depending on the servicer. The direct loans default after 360 days which is what you are thinking of.
No, this is specifically with regard to the un-pause of student loan payments. During the first year after payments started again, if you miss 2? payments you are automatically put on a short term deferment and you will not be considered delinquent. It’s referred to as a grace period / on-ramp.
https://fortune.com/2023/08/11/when-do-student-loan-payments-resume-grace-period-biden/
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Millions of borrowers have probably gotten themselves into situations where they can't make their payments.
Honestly, why the fuck should they? Mohela is a perfect example of how impressively bad the restart of payments went. Absolutely bottled it. People paid, didn't register, they reported late payments then magically everything was ok... until the next payment.
The entire restart was an absolute shit show. Fuck em.
This could be good. If students default en mass congress might be forced to enact debt forgiveness
You got some wishful thinking there buddy.
No, they'll just garnish your wages
Unfortunately student loans are one of the few types of loans you cannot default on or get relief through bankruptcy. From what I understand, anyway.
You can thank Biden for that one.
Uh. Pretty sure that student loan legislation far predates Biden's presidency. Unless you're referring to his time as senator and have a particular bill in mind?
Yes he is the one that wrote the bill that makes it so you can't discharge student loan debt during bankruptcy. He is directly responsible for that.
Tired of being downvoted for stating facts. We should be able to hold him responsible for bad legislation that he as not even try to correct.
You mean he amended the bill that was going to be passed by the Republicans anyway after being successfully shelved by the Democrats for six years.
"I had a choice, it was going to pass — Republican president, Republican Congress, and I offered two amendments to make sure that people under $50,000 would not be affected and women and children would go to the front of the line on alimony and support payments," Biden said in March 2020. "I did not like the rest of the bill, but I improved it, number one."
I’m sorry you’re tired of being downvoted for misrepresenting and distorting facts, but maybe you should get your facts straight and it wouldn’t happen anymore.
HE WROTE THE FUCKING PART THAT DIDN'T ALLOW STUDENT LOAN DEBT TO BE DISCHARGE DURING BANKRUPTCY. No misrepresented of that he wrote it period.
I don't care that you were lied to so he could get your vote. I voted for him anyway just like we all will again now. Not because he good ( he fucking horrible on the scale with Regan) but we must keep Trump out.
Only reason he gets to stay president is because of Trump. If the GOP puts up a reasonable candidate like Christy (that makes me sick to even write) then Biden loses.
You know people like my boss voted for Biden and my boss is a Republican but hated Trump. Lots of independent and Republicans who on normal circumstances vote Republican voted Democrat (and just on the president) but my boss said he vote for Christy or Niki anybody but Trump.
Biden is a horrible person and mediocre president. Fucker champion on cutting of social security and medicare his whole career. Yet bootlickers don't like us bringing up his voting record.
You’re going to have to provide some proof. I literally cannot find any source that backs up your claim.
Also, it is still possible to discharge student loans during bankruptcy under certain circumstances. Biden’s Justice Department actually just made it easier in 2022.
There are two laws that made it more difficult, and not automatic like other loans, one in 1976 for federal loans, and one in 2005 for private loans. Biden had been a senator for 3 years when the first one passed and he didn’t sponsor the bill. I can’t find a voting record to see if he even voted for it. The one in 2005 he did vote for after amending it twice to make it less dogshit. That’s the one where he said it was going to pass anyway, so he thought he would at least try to improve it.
There are plenty of reasons to not like Biden, but I would absolutely vote for him over Christy, and lying about his record on student loans isn’t a good reason to vote for a Republican.
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Hold the line until every single executive at Bear, Goldman, and AIG pays back their bonuses.
YOU ARE FREE!!!
This article is way back in 2020. Two douchebags went to the Supreme Court to stop the White House from forgiving debt.
Fucking usurer scum. The real cancer of our planet. How is this bs fair?
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Maybe don't go into debt to begin with? And yes, I did go into student debt, but I paid it off. How? Shit wage at a few horrible jobs. It can be done.
can I borrow your bootstraps?
"Just don't go into debt," they say while talking about a system designed to put people in debt.
What year did you graduate?
How much was your debt?
What were those ‘shit wages’?
What were your other expenses? How much of those ‘shit wages’ were you able to put towards the loan vs. your cost of living?
What year did you pay it off?
I’m quite curious.
I graduated in 2011 from a state school in Minnesota. $90k in student loans. Private, parent plus, the works...first job out of school I averaged $50k on an hourly job, and only got up to about $65k by 2017. Got married with that debt, my wife had none. We both worked, my job and hers gave us combined income ~$75k. One bed apartment rent was $950 back then, we owned 2 cars, both beaters, no debt. Paid it all off in late 2019. No debt since then except a mortgage.
$50K is not shit wages. Minimum wage is, for example, $13.25 in MD. That is shit wages. And lucky you to find such a cheap apartment, and be able to share it. Nowadays, using MD again for consistency, you’ll be paying $1450-$1600 a month for a studio, if you’re lucky. And what if you don’t have someone to share that with?
And don’t get me started on the mercurial rise of food products. The luck you have to roll to have a beater not die on you with no way to revive it (mine just did; I can revive it, to the tune of $4,000).
You didn’t have it trust-fund-easy, but you still didn’t have it all that bad.
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Or maybe it would be better for society, that bases its economy on highly educated people mind you, to not force people to go into debt if they want an education?
Like, sure great, your solution is "don't take the debt so that you can get educated, work instead", and then where would that leave society in 10 years?
Or we could do what a MAJORITY of the developed world does, and make college a public good (assuming your grades in HS are good enough), or heavily subsidize it like a lot of the EU does. France, for instance - someone on another thread informed me that for an entire 4-year degree, you pay roughly about 1500 euros in loans. Monthly wages in France hover around 13-1400 euros. So assuming you plan well, you could very easily pay off a 4-year degree with less than a year of minimum-wage work after you graduate.
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