student loans...what will happen when payments start

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So no one has been paying student loans back at all for several years? I had no idea. Jesus, no wonder inflation has been crazy.

You think the student loan pause is the cause for inflation?.....oh my.

np. It's definitely a contributor.

It’s definitely not. Lordy. It’s a drop in the bucket compared to the trillions printed and pumped into the economy and helicopter money given to companies who didn’t need it and didn’t have to pay it back. My DCs private school that didn’t even refund tuition still received over a million in PPP payment scot free.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not a political discussion. We are discussing the ramifications of a restart on the economy if a whole bunch of people decide to not pay and go into default. Does anyone know the magnitude of student loans vs that of the housing crisis from 2008? Is it even close or not? We keep hearing the consumer is strong blah blah and I just don’t see it, who is sitting around on all this stimulus money? Is the consumer strong because they are paying their student loans? Will all this change when the pause ends? Will the economy go to shit since the consumer is not “strong” anymore?

I would have also thought that there is no way the consumer is strong, but I can go to a casual restaurant last night, and it is absolutely packed on a Tuesday. I can order a new car and hope that it gets here in three months and I get the opportunity to pay full price.

So please, please bring back student loan repayments, because the Fed’s hikes don’t seem to be doing anything.

These are not the same people with the loans. They are the folks who got PPP loans forgiven, and who have under 3% mortgages, which loan holders don’t have, because they have been paying their loans.

I have a federally backed student loan I've been paying since 2001/2ish (well, except for the past 3 years) and a mortgage under 3%. It is possible to have both.

Our student loans are only from 2012 but yes we also have both. We both made minimum loan payments so we could afford to buy. Our home has more than doubled in value since we bought it in 2015. We also saved/invested the loan pause money and now are way ahead financially.

DCUM has a lot of wildly over conservative financial advice which I have done well to ignore.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So no one has been paying student loans back at all for several years? I had no idea. Jesus, no wonder inflation has been crazy.

You think the student loan pause is the cause for inflation?.....oh my.

np. It's definitely a contributor.

It’s definitely not. Lordy. It’s a drop in the bucket compared to the trillions printed and pumped into the economy and helicopter money given to companies who didn’t need it and didn’t have to pay it back. My DCs private school that didn’t even refund tuition still received over a million in PPP payment scot free.

The most inflationary money is the money that went into the lowest income hands because they spent it immediately. As distasteful as we both find it to make the rich richer through PPP loans, they contributed more to asset inflation (for example it became incredibly expensive to buy a medium sized business) not inflation in the grocery store.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not a political discussion. We are discussing the ramifications of a restart on the economy if a whole bunch of people decide to not pay and go into default. Does anyone know the magnitude of student loans vs that of the housing crisis from 2008? Is it even close or not? We keep hearing the consumer is strong blah blah and I just don’t see it, who is sitting around on all this stimulus money? Is the consumer strong because they are paying their student loans? Will all this change when the pause ends? Will the economy go to shit since the consumer is not “strong” anymore?

I would have also thought that there is no way the consumer is strong, but I can go to a casual restaurant last night, and it is absolutely packed on a Tuesday. I can order a new car and hope that it gets here in three months and I get the opportunity to pay full price.

So please, please bring back student loan repayments, because the Fed’s hikes don’t seem to be doing anything.

These are not the same people with the loans. They are the folks who got PPP loans forgiven, and who have under 3% mortgages, which loan holders don’t have, because they have been paying their loans.

Why would the loan payers have been paying their loans for the last three years?

Lady it’s not the folks who still owe tons in student loans or who are crippled by a $20K debt who have been eating out and buying up houses the last few years.

Why do you assume that all of these borrowers are "crippled" by their debts?

[Anonymous]

I worked at McDonald’s doing the summer and it helped pay at least 50% of my bill, why don’t kids work at McDonald’s doing the summer to help pay for college? McDonald’s is a great place to work when you’re young, it’s also fun.

[Anonymous]

Anonymous wrote:I worked at McDonald’s doing the summer and it helped pay at least 50% of my bill, why don’t kids work at McDonald’s doing the summer to help pay for college? McDonald’s is a great place to work when you’re young, it’s also fun.

How old are you? Medicare eligible? A kid working a minimum wage job isn’t going to put a dent into college costs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I worked at McDonald’s doing the summer and it helped pay at least 50% of my bill, why don’t kids work at McDonald’s doing the summer to help pay for college? McDonald’s is a great place to work when you’re young, it’s also fun.

How old are you? Medicare eligible? A kid working a minimum wage job isn’t going to put a dent into college costs.

74

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So no one has been paying student loans back at all for several years? I had no idea. Jesus, no wonder inflation has been crazy.

No, I've been paying. I've paid a lot down and never inflated my life really. So, if it starts up again I'm not worried. I also was paying like $900 over my original payment. But my income also more than doubled since March 2020. I could have bought a house like everyone else, but I figured this was more important. I'll finish paying next year or if I have a good bonus this year then maybe even earlier!

Wow you made a huge mistake.

Why do you say that?

[Anonymous]

Anonymous wrote:I worked at McDonald’s doing the summer and it helped pay at least 50% of my bill, why don’t kids work at McDonald’s doing the summer to help pay for college? McDonald’s is a great place to work when you’re young, it’s also fun.

HAHA you’re so clueless.

So many of the kids my kid goes to college with work 30+ hours a week YEAR-ROUND. And they’re still on federal loans. This is at UMD.

99.9% kids work “during the summer” and then a lot more than that. It’s adorable that you think the way you do.

Being a boomer must be heavenly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So no one has been paying student loans back at all for several years? I had no idea. Jesus, no wonder inflation has been crazy.

No, I've been paying. I've paid a lot down and never inflated my life really. So, if it starts up again I'm not worried. I also was paying like $900 over my original payment. But my income also more than doubled since March 2020. I could have bought a house like everyone else, but I figured this was more important. I'll finish paying next year or if I have a good bonus this year then maybe even earlier!

Wow you made a huge mistake.

Why do you say that?

You should have prioritized buying a house over loans from the beginning.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not a political discussion. We are discussing the ramifications of a restart on the economy if a whole bunch of people decide to not pay and go into default. Does anyone know the magnitude of student loans vs that of the housing crisis from 2008? Is it even close or not? We keep hearing the consumer is strong blah blah and I just don’t see it, who is sitting around on all this stimulus money? Is the consumer strong because they are paying their student loans? Will all this change when the pause ends? Will the economy go to shit since the consumer is not “strong” anymore?

I would have also thought that there is no way the consumer is strong, but I can go to a casual restaurant last night, and it is absolutely packed on a Tuesday. I can order a new car and hope that it gets here in three months and I get the opportunity to pay full price.

So please, please bring back student loan repayments, because the Fed’s hikes don’t seem to be doing anything.

These are not the same people with the loans. They are the folks who got PPP loans forgiven, and who have under 3% mortgages, which loan holders don’t have, because they have been paying their loans.

Why would the loan payers have been paying their loans for the last three years?

Lady it’s not the folks who still owe tons in student loans or who are crippled by a $20K debt who have been eating out and buying up houses the last few years.

Why do you assume that all of these borrowers are "crippled" by their debts?

Bc it makes nonsense to let high interest compound on a 10K debt if you possess the money to pay it off.

[Anonymous]

Anonymous wrote:For those who don’t understand why student loans are different: 1) they loaned to risky candidates who had low chances of being able to repay 2) they charged extremely high interest rates 3) the interest compounds (unlike a mortgage) 4) they are not dischargeable by bankruptcy or even at death.

So quit comparing to a mortgage.

You do realize that #1 and #2 are directly related, right? This is a basic concept of finance, as is #3. #4 is something that everyone knows when they sign the papers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So no one has been paying student loans back at all for several years? I had no idea. Jesus, no wonder inflation has been crazy.

No, I've been paying. I've paid a lot down and never inflated my life really. So, if it starts up again I'm not worried. I also was paying like $900 over my original payment. But my income also more than doubled since March 2020. I could have bought a house like everyone else, but I figured this was more important. I'll finish paying next year or if I have a good bonus this year then maybe even earlier!

Wow you made a huge mistake.

Why do you say that?

You should have prioritized buying a house over loans from the beginning.

But why? I already save $2000 a month for a house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not a political discussion. We are discussing the ramifications of a restart on the economy if a whole bunch of people decide to not pay and go into default. Does anyone know the magnitude of student loans vs that of the housing crisis from 2008? Is it even close or not? We keep hearing the consumer is strong blah blah and I just don’t see it, who is sitting around on all this stimulus money? Is the consumer strong because they are paying their student loans? Will all this change when the pause ends? Will the economy go to shit since the consumer is not “strong” anymore?

I would have also thought that there is no way the consumer is strong, but I can go to a casual restaurant last night, and it is absolutely packed on a Tuesday. I can order a new car and hope that it gets here in three months and I get the opportunity to pay full price.

So please, please bring back student loan repayments, because the Fed’s hikes don’t seem to be doing anything.

These are not the same people with the loans. They are the folks who got PPP loans forgiven, and who have under 3% mortgages, which loan holders don’t have, because they have been paying their loans.

Why would the loan payers have been paying their loans for the last three years?

Lady it’s not the folks who still owe tons in student loans or who are crippled by a $20K debt who have been eating out and buying up houses the last few years.

Why do you assume that all of these borrowers are "crippled" by their debts?

Bc it makes nonsense to let high interest compound on a 10K debt if you possess the money to pay it off.

If you have a federal student loan (not private) your interest shouldn't be very high. I can't remember what my interest rate is (since I haven't paid a payment since early 2020) but it is low enough that even our financial planner told us just to pay the minimum.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So no one has been paying student loans back at all for several years? I had no idea. Jesus, no wonder inflation has been crazy.

No, I've been paying. I've paid a lot down and never inflated my life really. So, if it starts up again I'm not worried. I also was paying like $900 over my original payment. But my income also more than doubled since March 2020. I could have bought a house like everyone else, but I figured this was more important. I'll finish paying next year or if I have a good bonus this year then maybe even earlier!

Wow you made a huge mistake.

Why do you say that?

You should have prioritized buying a house over loans from the beginning.

But why? I already save $2000 a month for a house.

Duh, because a stranger on the internet said so.