“Mass default on student loan debt would be a really effective message and f*** you to this country from the folks most impacted by our constant slide backwards.”
Sliding backwards as in we never had to pay our debts before? These people are insane.
Yeah...and what do they think the IRS will do with any refund check they might be eligible for in the future? Oh yeah, they’ll take it until you’re paid off.
If they default, put them in prison for a period of time equal to how long it would take to get the loans back into good standing if paying the minimal amount due.
Bring back prison camps. Put these lackeys to work sweeping the streets, clean up the garbage heaps our cities and highways have become. Let’s see how they like working a chain gang.
The interest is the problem, not the loan debt. It’s compounded and I’m not sure if that’s daily or monthly. If it were simple interest, the entire balance could be paid back relatively quickly and reasonably.
And then there were schools who skimmed a percentage off the top od the loan, leaving the student to be charged with interest, compounded, that he/she never received. The result was having to borrow a larger amount to cover the need, which means bigger interest.
I think the issue of schools skimming off the top like they were was addressed. I’m not sure if it was stopped entirely or reduced.
Another problem was/is selling the loan when the balance was significantly reduced. This drove the balance back up in the form of interest and fees.
My family ended up in deep sneakers when the breadwinner became disabled. So did I from an entirely different issue. My loan went to collections, my husband died, and I received a small something from Supplemantal Income. But when spouse died, I was forced onto death benefits. I was under 62.
When the death benefits kicked in, they took 15% of my small, unlivable income. I only owed 1900 by this point. Then after 5 years of paying this, I thought it would be done, they sold the loan! And suddenly I owe $7,000!!! WTF!
and the balance with dept. Of education? $190!!!!
So this is why I state that the interest needs to be addressed as does the selling of the loans.
The interest NEVER stops. You have to pay a huge amount
Tò keep up with it. If your education didn’t land you a great paying job, you are f#[%ed
I’m not against paying the loan, but I am against making it nearly impossible to do so. I paid back thousands more than I borrowed which in a reasonable world eould have covered both the principle and the interest.
I borrowed a very small amount for equipment I needed for a class and thought that I could reasonàbly pay back but sometimes life throws in a boomerange and a few cannons.
I propose a compromise. Each student loan that is forgiven, the corresponding school must reimburse the bank. The degree must then be rescinded. The degree is obviously of such low value that the recipient can’t earn enough to pay it back. This addresses the issue no one is talking about, why are these schools charging such insane tuition when they have millions, if not billions in endowments.
My kids paid off their student loans.
And my grandkids have paid off their student loans.
None of us fell for this 'free ride crap'...
Let's hope the young aren't going to fall for President Sniffer's lies again. Democrats want to make this a 'get out the youth vote' scam. But it'll backfire. Lots more citizens planed by the rules than those who wanted a free ride.
The Biden “plan” was only a $10,000 bribe ($20,000 for receivers of Pell grants). The problem is much bigger than that.
Education Loans Can Be Discharged in Bankruptcy
What is behind the perception that student loans cannot be discharged in bankruptcy? It is true that it can be more difficult to discharge many student loans than other types of unsecured debt; the Bankruptcy Code provides a more difficult test for relief (a showing of “undue hardship”) and an extra step in the process (an “adversary proceeding,” essentially a lawsuit within the bankruptcy). However, some borrowers may not realize that discharge is still possible even under that standard and extra step.
Importantly, some loans that borrowers may think of as “private student loans” are not subject to that standard and extra step. Instead, some private loans for educational purposes can be discharged in a normal bankruptcy proceeding, just like most other consumer debts.
For example, several types of loans associated with education expenses are dischargeable in bankruptcy, like most other types of unsecured consumer debt. These types of loans for education expenses are not subject to the more difficult standard and extra step. These loans could include, for example:
Loans where the loan amount was higher than the cost of attendance (such as tuition, books, room, and board), which can occur when a loan is paid directly to a consumer.
Loans to pay for education at places that are not eligible for Title IV funding such as unaccredited colleges, a school in a foreign country, or unaccredited training and trade certificate programs.
Loans made to cover fees and living expenses incurred while studying for the bar exam or other professional exams.
Loans made to cover fees, living expenses, and moving costs associated with medical or dental residency.
Loans to a student attending school less than half-time.
Yes. And stop paying mortgages and taxes. This could work!
Well, they should be LOCKED UP “EN MASSE!”
A lot of these deadbeats are working for the US Government, and, AFAIK, have not been punished for not paying back their student loans.
Why, some of them work for the IRS! Imagine that!