Posted on 07/10/2025 4:12:07 AM PDT by dennisw
Mike Pierce, the executive director of the Student Borrower Protection Center, called the policy pivot by the Trump administration a 'betrayal'
'Instead of fixing the broken student loan system, Secretary McMahon is choosing to drown millions of people in unnecessary interest charges and blaming unrelated court cases for her own mismanagement,'
The Student Borrower Protection Center's mission is to reduce the federal student debt burden on Americans, which has swelled to over $1.6 trillion.
Student debt is more difficult to get rid of than other types of debt, as it cannot be discharged in bankruptcy.
The student loan balances for roughly eight million Americans are about to balloon now that the Department of Education plans to restart interest charges by August 1.
This action affects the 7.7 million borrowers who are enrolled in the Biden-era Saving on a Valuable Education (SAVE) Plan, a program that shrunk payments to $0 a month for people under a certain income threshold.
The interest charges for SAVE borrowers will kick in at the start of next month, though they won't have to resume making payments.
The Education Department said the primary reason it restarted interest was because it sought to comply with a federal court injunction from July 2024 that blocked the full implementation of the SAVE plan.
The injunction from the Eighth Circuit Court of Appeals is what placed borrowers in an indefinite period of forbearance, which postpones their payments.
That was done so the federal government could figure out how to transition millions of people out of the program, later ruled to be illegal by the same court in February 2024.
'For years, the Biden Administration used so-called "loan forgiveness" promises to win votes, but federal courts repeatedly ruled that those actions were unlawful,' Education Secretary Linda McMahon said in a statement.
(Excerpt) Read more at dailymail.co.uk ...
The system isn't broken. If you take out a loan, you pay it back.
You want to buy a Ford, they will loan you the money. GM also finances if you want to buy from them. How about getting a student loan from the college? Maybe there wouldn’t be so many worthless degrees. Maybe tuition prices would be reasonable.
First, as a minor, a 17-year-old cannot legally sign documents for loans without a co-signer.
Second, they got suckered into thinking they had to go to college to get ahead in life.
Beyond that, where were their parents when these kids were thinking about applying for the loan?
That would have been the wise thing to do.
Apparently, Joe Biden (or his autopen) was a king.
Back in the day my degree got me about 5 years or so in my chosen field. Fortunately for me I was able to adapt quickly to another technology when I was laid off.
“unnecessary interest charges”
Tell that to the retiree, annuity holder, or a family saving for their kids education.
“I had to work to pay as you go through college”
The problem is now the tuition has risen much faster than inflation and income making that more difficult.
The problem is rarely analyzed by sex. Women have a disproportionate share of the loans and are slower to pay. Many of them graduate and expect to marry a man with as much education as she does “a plumber no way” and make more money. There are more women than men in this market.
The women who make a good income after college many times go out and buy a condo or a house. They want to marry someone with even more income.
A young man looking at the options asks himself, why do I want to take on unnecessary debt? Many of the good looking men with high income just shoot the fish in the barrel. The others say bye.
True. And now they are complaining that they have to pay it. I don’t have sympathy for them because they signed the contracts and they have had 4 years to start saving up for this day.
Hoping the Feds would wipeout ones student loan debt wasn’t a very good financial plan..
Rescind the compound interest on student loans and replace it with simple interest. The loans will be quickly repaid. This will add millions of Trump supporters.
YOU took out the loan, YOU pay it back - and I should not be expected to.
Just as I did not - ever - expect anyone but ME to pay off MY loans.
I worked damned hard to pay off student loans, my home, cars and all credit cards and am debt free.
I refuse to take on YOUR debt.
They were sold a pig in a poke. A worthless degree, and usually at a young age. Make the college they went to pay it off
You all signed for the loans.
Pay your bills.
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