Posted on 11/19/2022 9:36:54 PM PST by SeekAndFind
Stick a fiscal fork in ’em: These student loan debtors are done.
As they contend with a second legal setback to President Biden’s estimated $430 billion student debt cancellation plan, some exasperated borrowers told The Post they won’t ever pay another penny toward their massive tabs — regardless of how it might impact their future finances.
Rather than having up to $20,000 forgiven as Biden vowed in August, the fed-up debtors remain among the more than 45 million borrowers who owe a total of $1.6 trillion in federal student loans. The average undergraduate borrower leaves college with nearly $25,000 in debt, according to a Department of Education review, and payments often start six months out of school when cash can be especially tight. As a result, roughly 16% of all borrowers are currently in default, federal data shows.
Halted at the beginning of the pandemic, monthly loan bills are set to resume in January unless the pause is extended for a ninth time. But current and former students, including one who owes a staggering $118,000, said the looming payments are simply above their pay grades, especially in post-pandemic America.
Some 26 million people applied for the loan relief plan that critics claim could intensify inflation and 16 million had already been approved as of last week, White House press secretary Karine Jean-Pierre told reporters.
(Excerpt) Read more at nypost.com ...
Linkey predicts many other borrowers will go on a “mass strike” like himself while sending Washington a clear message.
State legislatures need to drastically cut the budget of state colleges\universities. Draft funding bills that stipulate how much state money should go to administration, O&M, tuition, and research. If necessary and it probably, will be they may need to have a very direct say in the day-to-day college\university administration. Also, draft a bill that stipulates how the college\university divides up the overhead from outside funding like research and sets the overhead rates so more goes to the research and its direct support, e.g., lab equipment O&M then into the general university operating fund.
Private schools since private can waste their money any way they please. The alumni associations, etc. have the responsibility to police it or not.
Repo their smart phones and power scooters.
I work in the student loan industry and have for decades.
After the borrowers default on their loans and continue to refuse to pay, the Department of Education will garnish 10% of their wages (without needing a court order—it can be done administratively) and also apply any federal payments (tax refunds, 10% of Social Security payments) toward the debt. These collection efforts and federal payment offsets continue until the borrower’s death, at which time any remaining balance will be discharged.
The Department of Education has collection tools just as the IRS does. And it’s very patient and can and does still collect on old loans from the 1980s and even 1970s.
Who should pay the debt back if bailed out?
Xxxxxxx
I agree with everything you say. The only solution as I see it is what kids are doing. Refuse to pay. Banks can initiate what all creditors can, but ultimately the Government has to pay banks and bowerer has crappy credit score because you are correct. One cannot use bankruptcy to get rid of student loan debt.
Nobody in power thought this through.
I went to law school and we were not supposed to work. I sold commercial printing, worked in law library and clerked for best and busiest professor in state.
Grades may have suffered, but cofeve.
The Biden administration just last week just made student loans a bit easier to discharge in bankruptcy. (Students can file an adversary and claim financial hardship, and Biden just lowered the standards to qualify for that including “trying” to repay the loan.)
Yes the switch to 100% direct lending of federal student aid happened in 2010 as a part of the Affordable Care Act. It was the way Obamacare was “funded.” So yes Congress agreed to our present student loan problems as Congress passed the ACA.
The bulk of student loans (and now all of the federal ones) are not issued by “big bank central bankers.” No one cares if the small amount of private loans are repaid or not—note that 80% of students primarily take out federal (not private) loans now. Those are issued by the government, and when they aren’t repaid, the taxpayer is not repaid. That $$ needs to be returned to the Federal Treasury.
At the very least they won’t qualify for so much as an Old Navy credit card, let alone a mortgage or car loan. Of course next they’ll want credit checks ended. And since now NYC has ended landlord’s right to a felony search for prospective tenants, they may get their way. What a world we live in.
Banks aren’t the issue anymore. Private student loans are a small part, just a sliver, of this problem. The bulk of student loans is federal and issued by the government (the taxpayer). 80% of current college students take out federal student loans.
The schools have no skin in the game and I agree with you that this needs to change. The more student loans, the more tuition rises (and the more college-town housing rents rise too by the way).
Good idea, but also remove the restrictions on discharge in bankruptcy on student loans. Also remove FedGov underwriting all student loans. If a student loan lender didn’t have the guarantees the loan wouldn’t be discharged in bankruptcy you would have the lenders actually looking at whether the loan could be repaid. So you would generally have loans for degrees that would actually make money, instead of stuff like gender studies.
Have the university endowments seized to repay the previous student loans that were defaulted.
I really do not understand how these children have no clue how much an hour they are paying per hour to sit in a classroom. If they are in a lecture with 100 other customers, know how much you are paying for 1/100 of the service providers time.
I have no sympathy for those who borrow money to pay for something they have no idea of the charges.
Nice try but subsidized federal Stafford loans won’t even cover cost of tuition.
Full coverage requires a mix which usually involves a regional bank which borrows from a big bank. The key fact is the loan and all its interest are allocated upfront with banks or their financial affiliates taking their full cut on day one (including universities). The rest is left between the borrower and Treasury, which indeed is put on backs of taxpayers.
Borrowers may move to rural areas, join the military, or available government programs to work off the loan at a reduced rate.
Universities like Harvard act more like hedge funds than educational institutions, with $40 billion riding on student loan portfolios. Charlie Kirk pegged them for the scam they are.
Lefty criminals look at it with an eye to grab cash. Forgiving student debt makes a $0 line item suddenly appear as a $100 billion line item in Treasury which they quickly allocate to themselves and their power infrastructure.
None of this would be scandalous if the dollar was backed by gold as it was for most of the Republic’s history.
Welcome to the real world, kiddos.
therefore: Congress
What if they change the law back to allow bankruptcy and then if not end severely limit the program?
Someday the landlord will be you and I because the earlier property owner finally threw up his hands and walked away, leaving Gummint (You and I) to maintain the property.
Where's the fun in that?
Entitled, socialist, snotty little punks.
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