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 ...
A new R Congress/Senate/Trump47 need to legislate existing student debt-holders are free to sue those colleges where they graduated in federal court. If their degrees aren’t marketable after school, the product offered was intentionally deficient, and the schools is responsible for continued cost-free retraining or refund of fees paid, with interest. State colleges will not be immune from these actions.
lol! Schools is = school is
And bankruptcy doesn’t erase a student loan.
Guess who put that in the fine print when the government decided to start student loan program.
Ding,ding, ding, that’s right FJB
Just echoing what others are saying. If they are not getting jobs to pay the loans on these degrees, then clearly the degree was not worth it. Get the message America! College is not what it used to be.
Hang the “BANKRUPT” albatross around their neck and make them unemployable.
Hmm, and that is a bad thing?
We really want a pack of losers who cannot plan or manage debt working in gov’mt?
Mr. b and I paid our tuition each semester on time and in full. We scrimped and saved for our kids’ tuition. I’ll be if we have to scrimp and save for everyone else and their illegal cousin’s tuition, room and board, expense account and every whim.
It should. Debts which cannot be paid will not be paid. Bankruptcy laws were established to deal with this in an orderly fashion.
And the student loan programs should all be ended. They are a massively unsound investment in worthless credentials and the only beneficiaries are academic administrators. This grifting system must be shut down.
Most of our institutions of "Higher Education" should be permanently closed. At best they are useless, at worst, some are actively harmful.
“Seize the endowments and pay off the student loans.”
I would be more targeted—claw back from each school every penny on unpaid student loans.
Make it the school’s liability.
If some schools go bankrupt as a result...good!
They got one job, and that ain't it.
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