Student loan payments suspension extended until May 1, 2022.
Merry Christmas ! Happy holidays !
A nice New Years gift indeed. My kid is paying on loansâŠbut itâs nice that the payments are all going to principal!
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Very smart & mature strategy !
When will the mortgage and car payments be paused? Funny how student debt is the only kind meriting special treatment.
"Some Democrats are pushing for mass forgiveness of debt. But Biden has questioned whether he has the authority for that kind of mass cancellation, and legal scholars differ on that. Earlier this year, Biden asked the Education and Justice departments to study the issue. Officials have said that work is still underway.
Biden has previously said he supports canceling up to $10,000 in student debt, but he has argued it should be done by Congress."
I am convinced they will forgive some (not all) of student loans. $10k per student would go a long way to helping most student borrowers. I think the âexpertsâ will decide Biden can do it by presidential order (heâs not lending any additional money, just agreeing not to collect), and heâll do the $10k. If congress wanted to do it, it would have put in in the Build Back bill, and it wasnât included.
The fed govt doesnât control most car payments or mortgage loans, so canât forgive them. Only fed student loans are up for forgiveness, not private loans.
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The fed isnât writing checks to pay loans owed to the government, just foregoing collecting the amounts it loaned. It is money already âspentâ by the government, just funds that wonât be repaid to the government. If the government âforgaveâ loans owed to Bank of America or SoFi, it would have to write a check to those private banks and that is more money going out the door. Something like half of student loans arenât going to be repaid anyway, even in the best of times.
There are a lot of benefits for direct student loans that arenât available to private loans, parent PLUS loans, and even other federal student loan programs. My daughter had a Perkins loan and it wasnât deferred and interest continued on it during the pandemic. It is a federal loan program but the loans are through the colleges, and my daughter still had to pay every month.
There was not a rent moratorium. The rent was always owed and late charges could be added every month. What was suspended/delayed was evictions. It wasnât fair that private landlords had to âeatâ those amounts but in most states evictions couldnât happen anyway because courts were closed to most everything but criminal cases. Those amounts are still owed, but the landlords have very little hope of getting repaid for rent that wasnât paid in Nov 2020 or April 2021.
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Unfortunately, many in the federal government view student loans as a money making program and, therefore, demand corresponding budget cuts for every dollar forgiven.
Might be easier to forgive all interest and to recalculate / reset all future interest on existing student loans at the prime rate. But, this might necessitate implementing creditworthiness standards for future Parent Plus loans and graduate loans while also requiring private lenders to abide by similar rulesâat least with respect to the interest rates.
All of this can be taken care of by permitting student loans to be discharged in bankruptcy. But that would raise other issues.
Another option would be to double credit all payments attributable to payments on interest every time a borrower pays each month for a certain number of consecutive months.
Letâs keep the discussion within the bounds of ToS and on topic please. Avoid OT discussion of, as a not-all-encompassing example, home and car loans. Avoid discussion of what POTUS and / or Congress should do as it will only lead to acrimonious debate
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Consumers need to become more savvy with respect to higher education costs and benefits.
True to a point.âŠbut plenty of young people take on non-student debt. I think the issue is that itâs harder to qualify for those types of loans. The government gives out student loans too easily and in ridiculously large amounts (at least as far as grad school is concerned).
As far as the payment pause, I donât really care. Itâs typical flip flopping and ultimately itâs simply extends the overall payment period for the debtors by years. In addition, given that there are millions of unfilled jobs, there seems to be a disconnect between the status of the labor market and the claimed necessity of relieving debtors from paying student loan payments because of the pandemic.
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I honestly donât think this has anything to do with helping borrowers pay less. My understanding is that with servicers pulling out, getting loans moved to new servicers is a huge task thatâs not done yet. I think it buys much needed time for the conversion. The fact that borrowers benefit by owing less is a nice perk.
I posted another thread that has been closed. The Washington Post article I posted wasnât about the extension.
It was an article based on âresearchâ asking student loan recipients whatâs wrong with the system.
Their comments indicated a lack of understanding of how loans work, the purpose of interest, etc.
Typically, they wished they knew more before taking the loans and they feel that interest is âunfairâ.
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Has anyone read what the plan is for current or future students if these loans are forgiven? How would student loan forgiveness be fair if current students or seniors in high school who have to take out a loan next year still are responsible for theirs? I have never heard a single politician mention this.
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Before taking out loans, the student has to go through an online course explaining the loan, the interest rate and the obligation. It should be longer and more detailed, but if a student doesnât know the purpose of interest heâs not ready for college.
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Sorry. Itâs nonsense. You borrow, you pay.
Itâs like Puerto Rico borrowed and decided not to pay causing millions like me a loss.
This is costing the taxpayers.
The economy is hot. Markets are high. Jobs are a plenty.
This totally doesnât jive with that.
Call me a grinch. If you didnât expect to pay, you shouldnât have taken the loan and you should have gone to a community or affordable to you college.
Live within your means.
I get we were within a pandemic. But the world has figured it out economically. This is unfair to full pay people.
Period.
Iâm tired of people (borrowers) making a business commitment and not having to follow through.
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Please tell me a medical school that is living within a studentâs means (thatâs no income because med school students canât work while attending med school) that guarantees acceptance to all who apply?
Sorry but for some professions, loans are a necessary thing.
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There are reasons for this. Loans try to level out the opportunity playing field (allowing less than wealthy students the opportunity to become doctors or engineers, etc). By doing this we actually can âfixâ poverty for the student and turn someone who would qualify for various subsidies into a full fledged taxpayer. Itâs a win-win for the student and government - a great investment.
A free education would be better, but too many people balk at that.
Not everyone can afford college. Not everyone gets the tippy top grades to have free ride or affordable options. Does their birth lottery doom them to low pay jobs (with subsidies) for life or can they do better if theyâre academically capable? The govât is gambling on the latter.
The fact that a few misuse the system will always happen with anything. The vast majority find an education improves their economic lives and it becomes a financial win for the US.
I see any student loan forgiveness (if it happens) as a positive TBH, but Iâm also in the âprovide free higher education to those who qualifyâ camp. I prefer growing taxpayers to subsidizing low wage jobs.
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I did not say loans are not a good or necessary thing.
I said you know what you signed up for, committed for.
I appreciate your child continues to pay. They didnât expect but are getting a nice benefit.
I appreciate income based or other forgiveness systems which doctors, since you mentioned, have access to. I have zero issue with these. They are pre-designed safety nets which are understood going in.
I donât appreciate (and itâs the govt, not the kids)âŠthese âgiftsâ that are unfair to the rest.
Itâs not about a profession one chooses although thatâs their choice and it comes with benefits but also costs. Itâs about making a decision and following through on the contract you agreed toâŠas your child is doing btwâŠ.and thatâs what all should do.
Myself and millions of others lent money to Puerto Rico. They decided not to pay. So I should be penalized? Similar concept. And yes, I believe itâs 100% wrong.
btw - I have no problem with states that say (like Michigan or my home state Tennessee), if your parents make under x $, tuition is free or reduced. Or plans to make a community college free. These are known up front - and a student is free to choose to attendâŠor not attend.
I just have issue with signed contracts not being enforced. Or the feds stepping in to âwaiveâ or in this case as of now âdelayâ enforcement. This is especially bothersome when the politicians are out saying how great the economy is, we canât find workers because the markets are so hot that older people are choosing not to go back, and frankly, society is doing quite well (not all individually, but an overall). Itâs talking out of both sidesâŠ
If one day $10K or all federal debt is rescinded, then we all should have taken it - and thatâs not fair.
Itâs about fairnessâŠto me.
We can disagree - I personally just donât like it.
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Michigan the state does not provide free tuition. Michigan the university, which has a huge endowment, provides free tuition to those who qualify. But itâs not easy to get in as an in state student. I just want to clarify, lest anyone might think my state is providing free college when they are actually constantly cutting back on funding higher education.
UnderstoodâŠI guess what Iâm saying is if itâs known to you front, Iâm good. I know itâs just the three UM campuses.
Mainly Iâm just saying honor your contracts.
Iâm not against up front, known in advance discounts or programs.
I simply believe in fulfilling commitments instead of seeking escapes. Again, itâs the govt who is allowing the delays and not the kids (who yes, Iâm sure are appreciativeâŠat least Pete Buttigehâs husband is). But I hope all do like @thumper1 kid and continue to pay.
Thx