the fact that they actually hit the restart button was so insanely unnecessary and cruel. 60% seems high really
this post was submitted on 27 Dec 2023
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The cruelty is the point. You gotta use the whip to motivate your ‘workers’ right.
It's one of the classic conservative rules: "Rich people perform better for money and poor people perform better when starved."
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.
Thankfully, Biden's new IDR plan ("SAVE") waives any additional accrued interest for the month after you've made your minimum payment (even if it's $0.) This fixes the pretty massive flaw in the IDR plans that were allowing loans to grow out of control, despite payments made on them. As if people barely scraping by will not be unduly burdened by an even more massive debt if they ever manage to claw their way out of the low wage hole. Personally, after a long stretch of unemployment and low-wage jobs, I had like 5 years of payments under my belt and my loan had grown by 25%. Lol... Still hurts to think about even though I'm doing much better these days.
FYI, idk if anything will actually come of it, but Biden is now trying to do a more targeted loan forgiveness and one of the groups he is targeting are those who owe more than their initial loans. So, I guess we'll see what happens.
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.
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
Maybe one of the best examples of "the cruelty is the point." Jesus.
Do you have to pay a fee for each such processing?
No
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.
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.
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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.
Is it an intentional strike or simply not being able to pay?
Strikes are traditionally caused by situations that the striking persons have determined are untenable in one way or another.
I can make the payments, I choose not to. I’d be content with 0% interest options, but for now my payment is set so that i’ll either be broke monthly in order to beat the interest levels or more interest is added on, even though I made the regular payment.
College can be free, it shouldn’t be a burden to anyone.
Same. I refuse to give up what little extra income I have to a cause I don’t believe in.
Politics aside, as someone who defaulted on student loans years ago, don’t do that. It is a decision that will follow you for a ridiculously long time with little recourse.
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