Fortunately? My kid is pursuing a doctorate degree and then plans on medical school so loans have not capitalized . My backup plan is to switch loans to private with lower rates after its obvious government benefits are not likely.
My daughters parents plus loan was not our first student loan by a long shot. Both Mrs fatboy and me had student loans from back in the day, my wife is a degree collector resulting in a few more student loans including a degree in accounting from Rutgers and a BA and MA in teacher education.
So having paid back a few of these puppies I was still personally unaware of capitalization which I think we have the bamster to thank for and something like 8% interest on top of that.
But even if the dems get some kind of loan forgiveness through it would have a 50k cap. Given that you are a well educated financial individual is good for you but most of us mere mortals when we think student loan we think low interest, make some kind of payment every month and live a good life but some of your kids classmates, including future brain surgeons will have student loans in the 200 to 400+ thousand dollar range.
A guy I work with has parent plus loans for both of his kinds combined payment is over $3000/month. These are just BA degrees at least both of them are employed.
I think, but do not know for sure, but I think the way to avoid capitalization is to start making payments as soon as the loan is dispersed. If true, please explain to me how someone can say with a straight face that it is smart to not make some kind of payments on a capitalized loan with an 8-9% interest during an almost 2 year period of no interest forbearance?
You, not your kid will be paying this back and I predict the day will come when you are pining for theses days of forbearance. Your kid having a nice college education like my daughter who is a scientist and makes decent bux is nice, still, it’s a bitch paying back 1.5 times the amount you borrowed, even if it is only $20k.
I know, I know, many today feel that they will always be in some sort of debt and that is just the way it is. I disagree. My co-worker that has $3000/moth PPL payments is an expert on finding the best price on a new car or appliance but pays 10 times the amount of savings he gets on interest. Having been both heavy in debt and totally debt free I can say with no hesitation it is better for your mental health being debt free and putting your money into a 401B/401K or Roth IRA than than sending it to FedLoan Servicing or Visa. But hey not my problem.
Not sure where I read it but the percentage of student loan borrowers (including parents plus loan borrowers) not making payments since march 2020 is something like 90% I think combined the country has 1.5 trillion student loan debt, does anyone really think the democrats will simply write off all that debt? If they did it would put the economy into a tailspin and start riots.