student loans...what will happen when payments start

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

I think the break was put in place for a reason- but why in earth wouldn’t borrowers have at least been putting some money aside during this time? Like not the equivalent of the entire payment ($700 in PP’s case) but something g to lessen the blow when payments resumed? Did everyone just think they never would?

I think the political blowback of restart/don’t restart is tough either way, and it’s not like the current administration initiated the freeze. I think the most likely case is sone middle ground- lower interest payments and/or a phase in of payment amounts.

The number of people who treated this as a windfall is really staggering. It was instituted because of Covid, but people who quickly regained their income, or who never had a interruption in the first place, just never thought it through. If it were me, I wouldn't have paid down the principal - interest wasn't accumulating, and there was no amount due, but I would have continued to make payments into a separate account (to the extent I didn't have any income interruption) and earned interest on it (and that interest is increasing now). That way, I'd be in a position to make a lump sum payment if need be, and would be used to making the payments once they resumed. Plus, I wouldn't have wasted the money in the event loan forgiveness came through.

The people who are really, really short-sighted, are those like this PP: "If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke." There wasn't a pause because of inflation, and using the payment amount for regular expenses is just moronic. If inflation goes up, you have to economize and adjust your budget. Assuming payments will never resume is just . . . very Gen Z, I guess. Not a compliment.

[Anonymous]

People should have been paying this down or setting it aside. I don't feel bad for anyone. It's been 3 years.

[Anonymous]

The fed bailing out SVB depositors has put Biden in an even worse position if he restarts payments. There is nothing he can do either way that doesn’t have political blowback. My bet is that regardless of what the Supreme Court does, he finds a way to delay until at least after 2024

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

So they only have to subsidized the gyms/snack bars/bands... for two year (probably 3 given the difficulty of getting transfer credits that perfectly align with major requirements). CC to UVA/VT is a great way to get into a flagship, but it's not necessarily saving much money of you end up having to spend an extra year in school.

VT is nowhere near as hard as W&M or UVA to get into, nor is it a flagship any more than George Mason is. But other points taken.

[Anonymous]

Anonymous wrote:I haven’t paid attention because my loans are paid off but wholly crap 3 years without payments? I consolidated my loans with Navient and had a7% rate in 1999! That was a good rate back then. Having loans set me so far behind my peers without loans. I needed them for school though so I guess it worked out? I’m in public service and by the time loan forgiveness was enacted it was too late for me. Bums me out but life isn’t fair- really isn’t. I’d support wiping out loans if itcould reset the cost of education— I’m all for it…. But it won’t…

Ha same, I was just a couple years behind you (2001 grad). I'm just annoyed that this will seemingly do nothing to help future college goers. Saving what we can so my kids don't have the type of debt I did but if this becomes a cycle of take-out-loans-that-will-just-be-forgiven-later I'll be even more annoyed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

I think the break was put in place for a reason- but why in earth wouldn’t borrowers have at least been putting some money aside during this time? Like not the equivalent of the entire payment ($700 in PP’s case) but something g to lessen the blow when payments resumed? Did everyone just think they never would?

I think the political blowback of restart/don’t restart is tough either way, and it’s not like the current administration initiated the freeze. I think the most likely case is sone middle ground- lower interest payments and/or a phase in of payment amounts.

The number of people who treated this as a windfall is really staggering. It was instituted because of Covid, but people who quickly regained their income, or who never had a interruption in the first place, just never thought it through. If it were me, I wouldn't have paid down the principal - interest wasn't accumulating, and there was no amount due, but I would have continued to make payments into a separate account (to the extent I didn't have any income interruption) and earned interest on it (and that interest is increasing now). That way, I'd be in a position to make a lump sum payment if need be, and would be used to making the payments once they resumed. Plus, I wouldn't have wasted the money in the event loan forgiveness came through.

The people who are really, really short-sighted, are those like this PP: "If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke." There wasn't a pause because of inflation, and using the payment amount for regular expenses is just moronic. If inflation goes up, you have to economize and adjust your budget. Assuming payments will never resume is just . . . very Gen Z, I guess. Not a compliment.

Yup, this is what my sister has been doing (she's a millennial though). So the money is there is needed, but can be used elsewhere if it all gets forgiven.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

I think the break was put in place for a reason- but why in earth wouldn’t borrowers have at least been putting some money aside during this time? Like not the equivalent of the entire payment ($700 in PP’s case) but something g to lessen the blow when payments resumed? Did everyone just think they never would?

I think the political blowback of restart/don’t restart is tough either way, and it’s not like the current administration initiated the freeze. I think the most likely case is sone middle ground- lower interest payments and/or a phase in of payment amounts.

Trump wins next election in a landslide if Biden resumes payments right before this recession. He will be viewed as the Democrat GWB especially after bailing out Silicon Valley tech and NYC crypto.

Also if the Supreme Court rescinds his formal student loan forgiveness program, this is a back door to give borrowers even more…i agree the longer this goes on the less likely it will be that payments ever resume. Republicans will be mad but they weren’t voting for Biden anyway.

Correct. It's pretty apparent Biden was hoping to wipe out student loan balances for the most low-income and at risk of default debtors. Then he could start repayment on the "rich doctors and lawyers" to be done with it. That lawsuit really put Biden in a bind where he could make a catastrophically bad decision.

[Anonymous]

Anonymous wrote:People should have been paying this down or setting it aside. I don't feel bad for anyone. It's been 3 years.

Oh yeah just like how you all should have had reserve savings before the PPP bailout or saved the extra from your early ARM in 2008 before being allowed to just hand your poor decision back to the bank. Right, young adults are so sophisticated with money

[Anonymous]

Anonymous wrote:

Anonymous wrote:People should have been paying this down or setting it aside. I don't feel bad for anyone. It's been 3 years.

Oh yeah just like how you all should have had reserve savings before the PPP bailout or saved the extra from your early ARM in 2008 before being allowed to just hand your poor decision back to the bank. Right, young adults are so sophisticated with money

If you e graduated college most people are under the assumption that you have 2 brain cells to rub together. Apparently not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

I think the break was put in place for a reason- but why in earth wouldn’t borrowers have at least been putting some money aside during this time? Like not the equivalent of the entire payment ($700 in PP’s case) but something g to lessen the blow when payments resumed? Did everyone just think they never would?

I think the political blowback of restart/don’t restart is tough either way, and it’s not like the current administration initiated the freeze. I think the most likely case is sone middle ground- lower interest payments and/or a phase in of payment amounts.

Trump wins next election in a landslide if Biden resumes payments right before this recession. He will be viewed as the Democrat GWB especially after bailing out Silicon Valley tech and NYC crypto.

Also if the Supreme Court rescinds his formal student loan forgiveness program, this is a back door to give borrowers even more…i agree the longer this goes on the less likely it will be that payments ever resume. Republicans will be mad but they weren’t voting for Biden anyway.

Correct. It's pretty apparent Biden was hoping to wipe out student loan balances for the most low-income and at risk of default debtors. Then he could start repayment on the "rich doctors and lawyers" to be done with it. That lawsuit really put Biden in a bind where he could make a catastrophically bad decision.

I'm pretty perplexed by the assumption that borrowers are going to blame Biden for any of this. It's going to be very easy for him to point to the GOP controlled court, the GOP state plaintiffs, and the GOP legislators cheerleading for it. Biden will be able to say he tried his best to get the loans forgiven, and now the only way to get it done is to elect more Democrats.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

I think the break was put in place for a reason- but why in earth wouldn’t borrowers have at least been putting some money aside during this time? Like not the equivalent of the entire payment ($700 in PP’s case) but something g to lessen the blow when payments resumed? Did everyone just think they never would?

I think the political blowback of restart/don’t restart is tough either way, and it’s not like the current administration initiated the freeze. I think the most likely case is sone middle ground- lower interest payments and/or a phase in of payment amounts.

Trump wins next election in a landslide if Biden resumes payments right before this recession. He will be viewed as the Democrat GWB especially after bailing out Silicon Valley tech and NYC crypto.

Also if the Supreme Court rescinds his formal student loan forgiveness program, this is a back door to give borrowers even more…i agree the longer this goes on the less likely it will be that payments ever resume. Republicans will be mad but they weren’t voting for Biden anyway.

Correct. It's pretty apparent Biden was hoping to wipe out student loan balances for the most low-income and at risk of default debtors. Then he could start repayment on the "rich doctors and lawyers" to be done with it. That lawsuit really put Biden in a bind where he could make a catastrophically bad decision.

I'm pretty perplexed by the assumption that borrowers are going to blame Biden for any of this. It's going to be very easy for him to point to the GOP controlled court, the GOP state plaintiffs, and the GOP legislators cheerleading for it. Biden will be able to say he tried his best to get the loans forgiven, and now the only way to get it done is to elect more Democrats.

+1 Because fortunately the college-educated (those that have student loans) kind of get this and pay attention to the news.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

Yes I’m getting a second job. But, it doesn’t make sense for me to pay off if I don’t have to bc the less I pay off the more will be forgiven under PSLF once I have put in my time.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

I think the break was put in place for a reason- but why in earth wouldn’t borrowers have at least been putting some money aside during this time? Like not the equivalent of the entire payment ($700 in PP’s case) but something g to lessen the blow when payments resumed? Did everyone just think they never would?

I think the political blowback of restart/don’t restart is tough either way, and it’s not like the current administration initiated the freeze. I think the most likely case is sone middle ground- lower interest payments and/or a phase in of payment amounts.

Trump wins next election in a landslide if Biden resumes payments right before this recession. He will be viewed as the Democrat GWB especially after bailing out Silicon Valley tech and NYC crypto.

Also if the Supreme Court rescinds his formal student loan forgiveness program, this is a back door to give borrowers even more…i agree the longer this goes on the less likely it will be that payments ever resume. Republicans will be mad but they weren’t voting for Biden anyway.

Correct. It's pretty apparent Biden was hoping to wipe out student loan balances for the most low-income and at risk of default debtors. Then he could start repayment on the "rich doctors and lawyers" to be done with it. That lawsuit really put Biden in a bind where he could make a catastrophically bad decision.

Pay attn to the IDR account adjustment: https://studentaid.gov/announcements-events/idr-account-adjustment

IDR enrollment has been broken for years and the administration will forgive many loans under this adjustment. PSA to borrowers: if you have an older FFEL, consolidate it into direct to get the IDR adjustment benefit. Seek other counsel if your servicer discourages you from consolidating (they lie).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

Yes I’m getting a second job. But, it doesn’t make sense for me to pay off if I don’t have to bc the less I pay off the more will be forgiven under PSLF once I have put in my time.

You’re still getting a very good deal- 3 years of deferred payments means more will be forgiven under PSLF. You’ve saved $25k! Maybe be thankful rather than complaining…without the pandemic you would have been paying all along.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They will never restart payments. The wait has been too long. Once people are used to something (in this case not paying) they will never be able to resume it. It’s a political nightmare. Look at all the Central Americans who have had their TPS renewed every two years for more than 25 years based on a hurricane that occurred in the last 90s. And these are actual citizens. Payment resumption will never happen.

From your mouth to Gods ears. If I have to restart the $700/m payment with the inflation that has occurred in the interim I will be flat broke. If I can eke out another 3 years I can make it to PSLF

You should have been paying on them all along. Time for a second job.

I think the break was put in place for a reason- but why in earth wouldn’t borrowers have at least been putting some money aside during this time? Like not the equivalent of the entire payment ($700 in PP’s case) but something g to lessen the blow when payments resumed? Did everyone just think they never would?

I think the political blowback of restart/don’t restart is tough either way, and it’s not like the current administration initiated the freeze. I think the most likely case is sone middle ground- lower interest payments and/or a phase in of payment amounts.

Trump wins next election in a landslide if Biden resumes payments right before this recession. He will be viewed as the Democrat GWB especially after bailing out Silicon Valley tech and NYC crypto.

Also if the Supreme Court rescinds his formal student loan forgiveness program, this is a back door to give borrowers even more…i agree the longer this goes on the less likely it will be that payments ever resume. Republicans will be mad but they weren’t voting for Biden anyway.

Correct. It's pretty apparent Biden was hoping to wipe out student loan balances for the most low-income and at risk of default debtors. Then he could start repayment on the "rich doctors and lawyers" to be done with it. That lawsuit really put Biden in a bind where he could make a catastrophically bad decision.

I'm pretty perplexed by the assumption that borrowers are going to blame Biden for any of this. It's going to be very easy for him to point to the GOP controlled court, the GOP state plaintiffs, and the GOP legislators cheerleading for it. Biden will be able to say he tried his best to get the loans forgiven, and now the only way to get it done is to elect more Democrats.

You are making a huge assumption that borrowers entering repayment will not blame Biden for their monthly bills. Repayment is totally separate from forgiveness and everyone knows it's completely optional for Biden to restart student loan payments. Of course he will get the blame for student loan defaults as well as millions of Millennials and GenZ once again having their income constrained.