Posted on 03/18/2022 8:03:26 AM PDT by fatboy
Sen. Patty Murray, D-Wash., is urging President Joe Biden to extend the student loan payment pause to give the administration time to fix broken student loan programs and help student loan borrowers better prepare to make payments.
Who broke the student loan system. Obamacare broke the student loan system.
“Actually the perfect time to have been paying would have been over the past 2 years. No interest accrual! A great time to pay down that principal.”
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My wife and I had a parents plus loan for our daughter which was $21,000.00 and we started payments after the grace period ended, April 2018. In March 2020 all fed loans went into forbearance which as mentioned froze interest and the addition of interest and you didn’t have to make payments.
Again we were 2 years into repayment. The Obama administration changed the rules that imposed “capitalization” an principal after the grace period so that added about $9k to the principle. Capitalization is what makes student loans so hard to pay off.
In our case we made regular payments then after March 2020 kicked it up and made double and triple payments completing our obligation in November 2021. All together we paid back 33K on a 21K loan and 2 almost 2 years it was in interest free forbearance.
The easiest way a kid can ruin their lives is to take out big student loans for a stupid arts degree, become a slave to the fed loan.
It is said that 90% of student loan borrowers have made no payments during the forbearance, meaning only 10% have taken advantage of no additional principal only terms. People at my work told me I was crazy for making payments and paying it all off.
I agree with your approach. The past two years were the perfect time to pay down student loan balances. No interest is like a miracle. And congrats 🎈🎊
“Student loan programs are not “broken” any more than mortgage loans or car loans are. Loans are loans and student loans are not “special.” They are just loans.”
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Yes correct. If the government wanted to reform federal student loans they could offer them at very low interest and stop capitalization adding to the principle. This would be actual reform and not be a huge cost to the taxpayers. But no one is talking about this.
At the heart of the conversation is the hope that student loans will be forgiven or that non-payment will not have any negative effect on the borrower. This will never happen, it cannot happen. Students take them out thinking they will never have to pay them so they don’t really think having a useless degree with work against them.
For example I have a sister who has a 4 year degree in Speech and Drama. She talks through her nose and has no acting ability so her return on investment is way off as even someone with real talent will struggle to find employment where this degree is necessary.
The dept of education has 1000s of employees involved in the student loan industry and simple forgiveness makes that need go away, which is never going to happen. I personally think the government uses student loans as a method of gaining control over peoples lives...slaves to the fed loan.
The biggest problem is a total lack of truth on who's not paying back their loans. How they're getting those loans and why this information is being hidden from the American people and the corrupt butt kissers in the press.
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