The easiest way to make anything ridiculously expensive is to tell Congress to make it "affordable".
Posted on 12/28/2023 5:17:02 AM PST by BradtotheBone
Nearly a year before federal student loan payments restarted, the U.S. Department of Education warned that many borrowers could struggle to pay their bills again.
“Unless the [Education] Department is allowed to provide debt relief, we anticipate there could be an historically large increase in the amount of federal student loan delinquency and defaults as a result of the COVID-19 pandemic,” Education Department Undersecretary James Kvaal said in a court filing.
The Supreme Court in June blocked President Joe Biden’s plan to cancel up to $20,000 in student debt per borrower — and those warnings are now becoming real. To that point: just 60% of people with federal education loans, with payments due in October, paid their bill by mid-November, U.S. Department of Education data published this month shows.
Outstanding student loan debt in the U.S. now exceeds $1.7 trillion, burdening Americans more than credit card or auto loan debt.
The average loan balance at graduation has tripled since the 1990s to $30,000 from $10,000. Additionally, some 7% of student loan borrowers are now more than $100,000 in debt.
The fact that up to 40% of borrowers didn’t make a payment “reflects exactly what we’ve been warning would happen should Biden turn the debt collection apparatus back on,” said Astra Taylor, co-founder of the Debt Collective, a union for debtors.
(Excerpt) Read more at cnbc.com ...
Wanna bet the democrap see to it that student loans are no longer on credit reports? It’s coming.
And bankruptcy doesn’t erase a student loan.
You can’t get a government job if you’re not paying your student loan.
Bidenomics at work.
Don’t wanna pay for the dance? Kill the piper.
Yet another sign civilization is crumbling.
There is a 1 year moratorium on reporting late payments for federal student loans. In other words only interest is added.
Bad personal decisions usually have consequences.
New regulations make it easier to get bankruptcy relief. Essentially the government is instructed not to fight a petition if claim of hardship.
The easiest way to make anything ridiculously expensive is to tell Congress to make it "affordable".
I made a lot of bad life decisions and financial decisions when I was young. These bad decisions made my life much more difficult. I didn’t really work beyond them until I had the right partner and was approaching middle age.
Today there are also those that have the wrong partner, path and financial decisions. The road to correcting these missteps is tough.
Universities used to be backwaters of commerce with professors and staff living somewhat austere lives. Now they are glamorous centers with people with big incomes and institutions of fabulous wealth.
The government added easy entrapping debt tools to how these places were financed for political gain — first for the universities and their staff and then for users. People used these loans to live a more affluent life while young.
When I was in school I worked as a custodian at a retail store for over 32 hours a week. My dad paid my state school tuition but I paid everything else.
Where is the culprit? Government.
Obviously, the retarded “younger” generations don’t think the time spent getting a “college diploma” wasn’t worth the time and money. Now they want somebody else pay for the money wasted on their little “spring break” journey. I guess they didn’t buy the crap their “perfesers” were selling. They’re dumber now than when they started.
Forgiveness is just another attempt to buy an election.
I guess those fancy overpriced college degrees are not worth the paper they are printed on if the recipients of them don't have the skills to land a decent enough job to pay off the loans to get them.
Starbucks can only pay so much for making frothy, sugared beverages.
Guess the non-college attending blue-collar workers and other tradesmen are going to have to cover them with their high wages, just like they are forced to cover everything else.
“Universities used to be backwaters of commerce with professors and staff living somewhat austere lives. Now they are glamorous centers with people with big incomes and institutions of fabulous wealth.”
Exactly right.
A few years back it was discovered that the university of Wisconsin had a slush fund of over a BILLION dollars. At the time they were raising tuition. I bet other schools are doing the same. This is crazy!
You sound like me. I worked at night in a bank processing center. My folks paid my tuition because I lived at home and did not play beer pong!
The government must stop backing Student loans. That’s the only solution.
The solution is right in front of our faces.
Universities and colleges got all the money the students borrowed in student loans. The schools sit on BILLIONS of dollars in endowments.
Seize the endowments and pay off the student loans. It can be done as restitution on the basis of fraud in massive federal, civil, class-action lawsuits.
The students received worthless degrees they cannot use to improve their income needed to pay back their student loans.
Yup,
Evidently these former students haven’t been reading the glowing reports on the Biden economy and don’t understand that they should be celebrating how great the economy is.
Notwithstanding the fact that they can’t make enough money to support themselves and pay off their debts.
“Say goodbye to your credit rating and any hope of financing purchases like a car or house.”
The weaponized DOJ and SEC will persuade banks it is in their best interest to simply Ignore student loan defaults and not report the defaulters to the credit agencies.
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