student loans...what will happen when payments start

[Anonymous]

I wonder if government can lower interest rates of student loans, particularly parent plus loans if payment resumes. This will at least help people who are willing and able to pay with some assistance

[Anonymous]

Anonymous wrote:I wonder if government can lower interest rates of student loans, particularly parent plus loans if payment resumes. This will at least help people who are willing and able to pay with some assistance

Bailouts are only for the rich

[Anonymous]

Anonymous wrote:

Anonymous wrote:I wonder if government can lower interest rates of student loans, particularly parent plus loans if payment resumes. This will at least help people who are willing and able to pay with some assistance

Bailouts are only for the rich

How? Pp is talking about people with loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Credit card debt is at record highs and millions are starting to fall behind. There's currently a run on a Silicon Valley bank which means all the kids' crypto investments are about to go kaput. If Biden resumes payments he will be Herbert Hoover and Democrats will lose next 2 presidential elections.

The GOP has made itself the face of the student loan slavemaster. If you think folks are going to blame Biden for anything bad with student loans, you better think again.

There is a huge difference between blaming Republicans for the loan forgiveness failure and restarting payments. Restarting payments will take away $300-$1000/month of income, throw millions into default on their student loans or other debt, and generally make a lot of people angry. I can't really see a valid argument for blaming Republicans for repayment unless they force the issue, which would be a gift to Democrats straight from God.

https://www.forbes.com/sites/adamminsky/2023/02/17/republican-senators-file-bill-to-end-student-loan-pause-stop-loan-forgiveness/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think we’ll need to start paying in August regardless of the outcome of the lawsuit. We’ve all been given an amazing truly once in a lifetime reprieve where we’ve been acne to save or pay down our loans with zero interest. It’s very positive for borrowers.

I totally agree. But I'm sure most people didn't save and didn't pay it down. Which is why I don't feel bad. It's been 3 years!!!

Unless you are PLSF it was a miss to save or not pay down loans unless you were unemployed or living paycheck to paycheck or I guess had an amazing investment opportunity that you couldn't pass up. If you took some of the money and used it to buy a house or to take an amazing vacation, that's fine - but if it's just enabled lifestyle creep then that's too bad. I say this as a borrower who graduated at 27 with $100K in debt after attending grad school at Columbia. My goal has always been to pay of my loans in 10 years and I have a little over two years and around $24K left. It's been a slog, but my graduate degree has allowed me to make way more money than I ever thought possible and in that sense it's been worth it.

This is not totally accurate. The Admin is implementing an adjustment for past problems with income-driven repayment plans: https://studentaid.gov/announcements-events/idr-account-adjustment

Like the PSLF waiver there are a lot of folks who struggled to repay their loans who got diverted away from IDR by their loan servicers. The admin is going to give IDR credit for a lot of past periods and so people with older loans might not have to make any more payments on their loans as they reach the thresholds for economic forgiveness.

[Anonymous]

Anonymous wrote:I wonder if government can lower interest rates of student loans, particularly parent plus loans if payment resumes. This will at least help people who are willing and able to pay with some assistance

They can and they probably will. The people who will be screwed by this, as always, are people holding older FFEL loans (held by banks, backed by the USG) that they have not consolidated to bring them under the federal Direct loan program, which the federal government directly controls.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I wonder if government can lower interest rates of student loans, particularly parent plus loans if payment resumes. This will at least help people who are willing and able to pay with some assistance

They can and they probably will. The people who will be screwed by this, as always, are people holding older FFEL loans (held by banks, backed by the USG) that they have not consolidated to bring them under the federal Direct loan program, which the federal government directly controls.

I had FFEL but consolidated back to direct under the PSLF waiver last summer.

[Anonymous]

As someone with a rising senior and just finished the frantic, competitive and absolutely bananas 2023 admissions process I see no point of any sort of bail out until the system is fixed. We bail people out now when all we have is wave after wave of people taking out huge loans? What’s the point?

I’m UMC and I constantly hear people talking about how their kids will need to share in the cost. I see people on here who say the same thing. This is not just a lower income issue for families, but MC and UMC people have kids who are and will be saddled with crushing debt. There is very little opportunities for state schools and people turn their nose up at the ones that are not top in state public rankings. As a Virginia resident I’m astounded by how many rejections JMU has sent out for incredibly qualified candidates. Very few families are full pay. We’ve done many college tours and these schools are all building amazing buildings that are architectural beauties, incredible dorms (some with roof top Vegas style party pools), resort like amenities. As a German who immigrated here decades ago and who has nieces and nephews back in Germany I can tell you that the American college experience is a flamboyant display of institutional wealth. If people were so worried about crippling debt then why are so many still lining up to take so much on? We need a more robust community college system and we need a massive national mindset shift of how this entire admission process is viewed. You can’t have it all. And before you start screeching about Germany, not everyone in Germany has a god given right to nearly free college. Spaces are limited. Areas of study are narrow. Your chances of going to college is largely determined in high school based on test scores and academic tracking.

[Anonymous]

I think the writing is on the wall. The bank bailout will worsen inflation, and student loan relief will make it worse so it's a no go. Hopefully the new repayment plan they're rolling out will help borrowers otherwise we're going to see a lot of defaults. 3 years of no payments and I can guarantee you the majority of people haven't used this time to pay down their debt.

[Anonymous]

Anonymous wrote:As someone with a rising senior and just finished the frantic, competitive and absolutely bananas 2023 admissions process I see no point of any sort of bail out until the system is fixed. We bail people out now when all we have is wave after wave of people taking out huge loans? What’s the point?

I’m UMC and I constantly hear people talking about how their kids will need to share in the cost. I see people on here who say the same thing. This is not just a lower income issue for families, but MC and UMC people have kids who are and will be saddled with crushing debt. There is very little opportunities for state schools and people turn their nose up at the ones that are not top in state public rankings. As a Virginia resident I’m astounded by how many rejections JMU has sent out for incredibly qualified candidates. Very few families are full pay. We’ve done many college tours and these schools are all building amazing buildings that are architectural beauties, incredible dorms (some with roof top Vegas style party pools), resort like amenities. As a German who immigrated here decades ago and who has nieces and nephews back in Germany I can tell you that the American college experience is a flamboyant display of institutional wealth. If people were so worried about crippling debt then why are so many still lining up to take so much on? We need a more robust community college system and we need a massive national mindset shift of how this entire admission process is viewed. You can’t have it all. And before you start screeching about Germany, not everyone in Germany has a god given right to nearly free college. Spaces are limited. Areas of study are narrow. Your chances of going to college is largely determined in high school based on test scores and academic tracking.

Preach. The gyms open for 18 hours a day, snack bars open until 2 am, bands coming to campus, etc. etc. Students are underwriting their own experiences and many of the things they are paying for are probably not benefitting them from a purely educational standpoint. Our admissions system is totally broken and our college systems are totally broken. I wouldn't count on it changing soon though. When I was applying to college in 2005 it seemed bananas and 18 years later it has only gotten worse.

[Anonymous]

Anonymous wrote:As someone with a rising senior and just finished the frantic, competitive and absolutely bananas 2023 admissions process I see no point of any sort of bail out until the system is fixed. We bail people out now when all we have is wave after wave of people taking out huge loans? What’s the point?

I’m UMC and I constantly hear people talking about how their kids will need to share in the cost. I see people on here who say the same thing. This is not just a lower income issue for families, but MC and UMC people have kids who are and will be saddled with crushing debt. There is very little opportunities for state schools and people turn their nose up at the ones that are not top in state public rankings. As a Virginia resident I’m astounded by how many rejections JMU has sent out for incredibly qualified candidates. Very few families are full pay. We’ve done many college tours and these schools are all building amazing buildings that are architectural beauties, incredible dorms (some with roof top Vegas style party pools), resort like amenities. As a German who immigrated here decades ago and who has nieces and nephews back in Germany I can tell you that the American college experience is a flamboyant display of institutional wealth. If people were so worried about crippling debt then why are so many still lining up to take so much on? We need a more robust community college system and we need a massive national mindset shift of how this entire admission process is viewed. You can’t have it all. And before you start screeching about Germany, not everyone in Germany has a god given right to nearly free college. Spaces are limited. Areas of study are narrow. Your chances of going to college is largely determined in high school based on test scores and academic tracking.

Well said. We are in MD but I'm worried about what in-state options my kids will get into when the time comes. They're good students but UMD CP in particular has gotten really competitive. Also, I just learned, that despite the 30k per year price tag to attend CP with room and board, some of the dorms DO NOT HAVE A/C. WTAF? What are they spending all this money on?

[Anonymous]

Anonymous wrote:I think the writing is on the wall. The bank bailout will worsen inflation, and student loan relief will make it worse so it's a no go. Hopefully the new repayment plan they're rolling out will help borrowers otherwise we're going to see a lot of defaults. 3 years of no payments and I can guarantee you the majority of people haven't used this time to pay down their debt.

Of course people have not been paying down debt that is not due.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As someone with a rising senior and just finished the frantic, competitive and absolutely bananas 2023 admissions process I see no point of any sort of bail out until the system is fixed. We bail people out now when all we have is wave after wave of people taking out huge loans? What’s the point?

I’m UMC and I constantly hear people talking about how their kids will need to share in the cost. I see people on here who say the same thing. This is not just a lower income issue for families, but MC and UMC people have kids who are and will be saddled with crushing debt. There is very little opportunities for state schools and people turn their nose up at the ones that are not top in state public rankings. As a Virginia resident I’m astounded by how many rejections JMU has sent out for incredibly qualified candidates. Very few families are full pay. We’ve done many college tours and these schools are all building amazing buildings that are architectural beauties, incredible dorms (some with roof top Vegas style party pools), resort like amenities. As a German who immigrated here decades ago and who has nieces and nephews back in Germany I can tell you that the American college experience is a flamboyant display of institutional wealth. If people were so worried about crippling debt then why are so many still lining up to take so much on? We need a more robust community college system and we need a massive national mindset shift of how this entire admission process is viewed. You can’t have it all. And before you start screeching about Germany, not everyone in Germany has a god given right to nearly free college. Spaces are limited. Areas of study are narrow. Your chances of going to college is largely determined in high school based on test scores and academic tracking.

Preach. The gyms open for 18 hours a day, snack bars open until 2 am, bands coming to campus, etc. etc. Students are underwriting their own experiences and many of the things they are paying for are probably not benefitting them from a purely educational standpoint. Our admissions system is totally broken and our college systems are totally broken. I wouldn't count on it changing soon though. When I was applying to college in 2005 it seemed bananas and 18 years later it has only gotten worse.

Where can a student get a comparable degree that opens comparable doors for both employment and grad school without those bells and whistles? I think most cost conscious families would be all over it, it just doesn't exist.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As someone with a rising senior and just finished the frantic, competitive and absolutely bananas 2023 admissions process I see no point of any sort of bail out until the system is fixed. We bail people out now when all we have is wave after wave of people taking out huge loans? What’s the point?

I’m UMC and I constantly hear people talking about how their kids will need to share in the cost. I see people on here who say the same thing. This is not just a lower income issue for families, but MC and UMC people have kids who are and will be saddled with crushing debt. There is very little opportunities for state schools and people turn their nose up at the ones that are not top in state public rankings. As a Virginia resident I’m astounded by how many rejections JMU has sent out for incredibly qualified candidates. Very few families are full pay. We’ve done many college tours and these schools are all building amazing buildings that are architectural beauties, incredible dorms (some with roof top Vegas style party pools), resort like amenities. As a German who immigrated here decades ago and who has nieces and nephews back in Germany I can tell you that the American college experience is a flamboyant display of institutional wealth. If people were so worried about crippling debt then why are so many still lining up to take so much on? We need a more robust community college system and we need a massive national mindset shift of how this entire admission process is viewed. You can’t have it all. And before you start screeching about Germany, not everyone in Germany has a god given right to nearly free college. Spaces are limited. Areas of study are narrow. Your chances of going to college is largely determined in high school based on test scores and academic tracking.

Preach. The gyms open for 18 hours a day, snack bars open until 2 am, bands coming to campus, etc. etc. Students are underwriting their own experiences and many of the things they are paying for are probably not benefitting them from a purely educational standpoint. Our admissions system is totally broken and our college systems are totally broken. I wouldn't count on it changing soon though. When I was applying to college in 2005 it seemed bananas and 18 years later it has only gotten worse.

This. It is ridiculous how fancy some of the college dorms are. When I went to college I chose the cheapest on campus option freshman year (on campus living was required for freshman) and got off campus ASAP. In some cities that would still be expensive. I think gyms being open for long hours makes sense, but bringing bands to campus? I sincerely hope tuition dollars aren't paying for that. I sometimes suspect colleges are trying to attract students with "bells and whistles" which makes zero sense since that isn't the point of college. I guess if people let their kids make decisions based on things like that maybe they deserve the loans? OTOH it seems many/most/all colleges do this to some extent so then there are no good educational options for people who are more budget minded/have financial constraints. So what do you do? Maybe parents can demand colleges share the amount of budget spent on faculty salaries, facilities, "experiences" like bands, and whatever else colleges spend tuition money on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone with a rising senior and just finished the frantic, competitive and absolutely bananas 2023 admissions process I see no point of any sort of bail out until the system is fixed. We bail people out now when all we have is wave after wave of people taking out huge loans? What’s the point?

I’m UMC and I constantly hear people talking about how their kids will need to share in the cost. I see people on here who say the same thing. This is not just a lower income issue for families, but MC and UMC people have kids who are and will be saddled with crushing debt. There is very little opportunities for state schools and people turn their nose up at the ones that are not top in state public rankings. As a Virginia resident I’m astounded by how many rejections JMU has sent out for incredibly qualified candidates. Very few families are full pay. We’ve done many college tours and these schools are all building amazing buildings that are architectural beauties, incredible dorms (some with roof top Vegas style party pools), resort like amenities. As a German who immigrated here decades ago and who has nieces and nephews back in Germany I can tell you that the American college experience is a flamboyant display of institutional wealth. If people were so worried about crippling debt then why are so many still lining up to take so much on? We need a more robust community college system and we need a massive national mindset shift of how this entire admission process is viewed. You can’t have it all. And before you start screeching about Germany, not everyone in Germany has a god given right to nearly free college. Spaces are limited. Areas of study are narrow. Your chances of going to college is largely determined in high school based on test scores and academic tracking.

Preach. The gyms open for 18 hours a day, snack bars open until 2 am, bands coming to campus, etc. etc. Students are underwriting their own experiences and many of the things they are paying for are probably not benefitting them from a purely educational standpoint. Our admissions system is totally broken and our college systems are totally broken. I wouldn't count on it changing soon though. When I was applying to college in 2005 it seemed bananas and 18 years later it has only gotten worse.

Where can a student get a comparable degree that opens comparable doors for both employment and grad school without those bells and whistles? I think most cost conscious families would be all over it, it just doesn't exist.

Community college -> UMD, VT, UVa or W&M opens the same doors. If your child is capable of getting into one of those as a freshman but only can’t afford it, they’d ace CC.