Why is Biden extending the student loan repayment pause?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will say I believe the conundrum many of us are in, that we can't refinance at a lower rate because we don't want to lose potential forgiveness, but are stuck paying exceedingly high interest rates, could do for a fix.

I could see a policy that all holders of federal loans are brought down to an interest rate of something like 2%, but don't get forgiveness. That might be a decent compromise. I'm still sitting at almost 7% on my loans and just paying interest plus a small amount of principal.

It isnt just the rate, its daily compounding. For a 10k loan the daily compounding interest is 0.75 per day. And it compounds off the daily balance so it compounds on 10,000.75 the next day...etc so add 4 years of daily compounding interest plus 6 months after graduation. This is not how car loans and mortgages compound.
No one should be paying 1k per month on student loans on 80k they took out that turned into 100k+ total by graduation and etc etc. You can pay 80k after 10 years (1k x12 x 7 years), have paid the principal amount borrowed and then 80k still left- that keeps daily compounding.

Those are the terms you agreed to. And this is only true for the private loans btw. But if you didn’t like the terms, the time to say so was before you took and spent all the money, not after.

No..it's also for federal loans.

All of my loans are federal. I've been out of school for 13 years. I've made EVERY payment on-time. My balance has only gone down $552.00. I worked for a non-profit that offered a one-time $7,500 student loan repayment stipend. 5 months after that payment was applied, my balance was back to where it was before the payment. It's like that payment never happened.

I paid off my car loan 2 years early. 5 years into my mortgage and I've already paid off an extra 10 percent. but these student loans just won't disappear. At the end of the day, I'm not sweating forgiveness. If it happens, cool! My payment is $312 a month. I'll pay it until I'm 72, lol. $312 didn't prevent me from buying a house, putting away 10% of my annual income into my retirement account, or traveling. But for those that pay $700+ dollars a month, or low income, I want the forgiveness for them. This country waste spending on so many things that its ridiculous. A little student loan forgiveness won't bankrupt the country.

But you could be paying it down now. I have paid almost 25k since the pause. There is really no excuse at this point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will say I believe the conundrum many of us are in, that we can't refinance at a lower rate because we don't want to lose potential forgiveness, but are stuck paying exceedingly high interest rates, could do for a fix.

I could see a policy that all holders of federal loans are brought down to an interest rate of something like 2%, but don't get forgiveness. That might be a decent compromise. I'm still sitting at almost 7% on my loans and just paying interest plus a small amount of principal.

It isnt just the rate, its daily compounding. For a 10k loan the daily compounding interest is 0.75 per day. And it compounds off the daily balance so it compounds on 10,000.75 the next day...etc so add 4 years of daily compounding interest plus 6 months after graduation. This is not how car loans and mortgages compound.
No one should be paying 1k per month on student loans on 80k they took out that turned into 100k+ total by graduation and etc etc. You can pay 80k after 10 years (1k x12 x 7 years), have paid the principal amount borrowed and then 80k still left- that keeps daily compounding.

Those are the terms you agreed to. And this is only true for the private loans btw. But if you didn’t like the terms, the time to say so was before you took and spent all the money, not after.

No..it's also for federal loans.

All of my loans are federal. I've been out of school for 13 years. I've made EVERY payment on-time. My balance has only gone down $552.00. I worked for a non-profit that offered a one-time $7,500 student loan repayment stipend. 5 months after that payment was applied, my balance was back to where it was before the payment. It's like that payment never happened.

I paid off my car loan 2 years early. 5 years into my mortgage and I've already paid off an extra 10 percent. but these student loans just won't disappear. At the end of the day, I'm not sweating forgiveness. If it happens, cool! My payment is $312 a month. I'll pay it until I'm 72, lol. $312 didn't prevent me from buying a house, putting away 10% of my annual income into my retirement account, or traveling. But for those that pay $700+ dollars a month, or low income, I want the forgiveness for them. This country waste spending on so many things that its ridiculous. A little student loan forgiveness won't bankrupt the country.

Student loans to not function like other loans. Wall Street never would have been able to pay back those loans with daily compounding interest. Until the interest is resolved or eliminated it wont work. Why are people so against loans for the principal. It is some weird F you to poor and MC people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I agree with you, OP. My husband and I are both in PSLF, so this program has effectively meant $2,000 that we don’t pay each month times 2+ years and it’s still counting toward our PSLF. We are UMC and this program makes no sense to us. It absolutely drives inflation as well. At dinner today my husband and I were remarking how ridiculous it is that the child tax credit payments were allowed to expire but this program helping a family making $350k HHI is being lauded by progressives.

You are a minority in the PSLF program. My friend is making 70k as a teacher with a masters degree in HoCO, my DH is making 99k as a GS-12 at 35. 350K is a ridiculously high income for anyone much less for both of you to meet the requirements for PSLF. I do wish they would start- for any and all federal programs- have an income limit that is adjusted for COL. But you are an anomaly.

OMG!!!

You are basically a $170k household complaining about 'struggling' because you have to pay student loans. Good grief, could you possibly be any more tone deaf when the median HHI in the country is only like $60-70k? You are an entitled UMC household sucking off the teet of taxpayers.

No more forgiveness for people like you.

You have poor reading comprehension. PP is saying it's unlikely the poster with the $350k income is in the PSLF program. Her HUSBAND makes $99k. Her FRIEND makes $70k. No where did she add them together. No where did she complain about paying back loans or taxes. Word problems were probably tough for you.

Im the PP and thank you but I was stating that even if they are in the PSLF program, the 350k is not representative of the incomes of couples receiving PSLF. Incomes like 99k (DOD auditor) or 70k (teacher in HoCo with masters degree) are the typical enrollers in PSLF.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will say I believe the conundrum many of us are in, that we can't refinance at a lower rate because we don't want to lose potential forgiveness, but are stuck paying exceedingly high interest rates, could do for a fix.

I could see a policy that all holders of federal loans are brought down to an interest rate of something like 2%, but don't get forgiveness. That might be a decent compromise. I'm still sitting at almost 7% on my loans and just paying interest plus a small amount of principal.

It isnt just the rate, its daily compounding. For a 10k loan the daily compounding interest is 0.75 per day. And it compounds off the daily balance so it compounds on 10,000.75 the next day...etc so add 4 years of daily compounding interest plus 6 months after graduation. This is not how car loans and mortgages compound.
No one should be paying 1k per month on student loans on 80k they took out that turned into 100k+ total by graduation and etc etc. You can pay 80k after 10 years (1k x12 x 7 years), have paid the principal amount borrowed and then 80k still left- that keeps daily compounding.

Those are the terms you agreed to. And this is only true for the private loans btw. But if you didn’t like the terms, the time to say so was before you took and spent all the money, not after.

No..it's also for federal loans.

All of my loans are federal. I've been out of school for 13 years. I've made EVERY payment on-time. My balance has only gone down $552.00. I worked for a non-profit that offered a one-time $7,500 student loan repayment stipend. 5 months after that payment was applied, my balance was back to where it was before the payment. It's like that payment never happened.

I paid off my car loan 2 years early. 5 years into my mortgage and I've already paid off an extra 10 percent. but these student loans just won't disappear. At the end of the day, I'm not sweating forgiveness. If it happens, cool! My payment is $312 a month. I'll pay it until I'm 72, lol. $312 didn't prevent me from buying a house, putting away 10% of my annual income into my retirement account, or traveling. But for those that pay $700+ dollars a month, or low income, I want the forgiveness for them. This country waste spending on so many things that its ridiculous. A little student loan forgiveness won't bankrupt the country.

But you could be paying it down now. I have paid almost 25k since the pause. There is really no excuse at this point.

I have tried. In addition to the one time student loan gift I got from my non profit I spent two years paying $312 biweekly instead of monthly. I stopped because my payments got swallowed up and the balance wasn’t going down. Instead I put that money toward other things. Again, im not sweating this. $312 isn’t killing me. So I have a nonchalant attitude toward all this. But what I won’t do is apply all my money only to have it swallowed up with nothing to show. At least I have no car note. I’m on track to pay off mortgage 4 years early and I have nearly 500k in retirement. So I’ll ride these payments out until I retire (another 23 years).

[Anonymous]

Prelude to forgiving 10k. Sorry, up by yer bootstrappers.

[Anonymous]

This whole kicking down the can every couple months is such a farce. I think Biden doesnt believe in loan forgiveness from some of his comments but gets overruled by the real powers in the WH and the progressive gang squad in congress

[Anonymous]

Really pissed off that I refinanced my federal student loans to a lower rate. Thought I was doing the responsible thing but ended up being a chump.

[Anonymous]

Anyone that hasn't paid anything during this moratorium or is prepared to pay their loans will pretty much never pay their loans. They are just long term deadbeats.

[Anonymous]

I'm so glad Biden is giving my friends, who live in a $1.6M home in CA right outside San Fran, a pause on their student loans. They have no intention of paying them at all. Why would they? More money to spend in their fancy restaurants in San Fran. They also bought a brand new S class Mercedes.

[Anonymous]

Anonymous wrote:Prelude to forgiving 10k. Sorry, up by yer bootstrappers.

It will most likely be income-capped anyway. Not really going to help anyone here.

[Anonymous]

Anonymous wrote:Prelude to forgiving 10k. Sorry, up by yer bootstrappers.

Most experts think he needs congressional approval for this, and there are already a few D’s on record against it. Even in reconciliation they need every D.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I will say I believe the conundrum many of us are in, that we can't refinance at a lower rate because we don't want to lose potential forgiveness, but are stuck paying exceedingly high interest rates, could do for a fix.

I could see a policy that all holders of federal loans are brought down to an interest rate of something like 2%, but don't get forgiveness. That might be a decent compromise. I'm still sitting at almost 7% on my loans and just paying interest plus a small amount of principal.

It isnt just the rate, its daily compounding. For a 10k loan the daily compounding interest is 0.75 per day. And it compounds off the daily balance so it compounds on 10,000.75 the next day...etc so add 4 years of daily compounding interest plus 6 months after graduation. This is not how car loans and mortgages compound.
No one should be paying 1k per month on student loans on 80k they took out that turned into 100k+ total by graduation and etc etc. You can pay 80k after 10 years (1k x12 x 7 years), have paid the principal amount borrowed and then 80k still left- that keeps daily compounding.

Those are the terms you agreed to. And this is only true for the private loans btw. But if you didn’t like the terms, the time to say so was before you took and spent all the money, not after.

No..it's also for federal loans.

All of my loans are federal. I've been out of school for 13 years. I've made EVERY payment on-time. My balance has only gone down $552.00. I worked for a non-profit that offered a one-time $7,500 student loan repayment stipend. 5 months after that payment was applied, my balance was back to where it was before the payment. It's like that payment never happened.

I paid off my car loan 2 years early. 5 years into my mortgage and I've already paid off an extra 10 percent. but these student loans just won't disappear. At the end of the day, I'm not sweating forgiveness. If it happens, cool! My payment is $312 a month. I'll pay it until I'm 72, lol. $312 didn't prevent me from buying a house, putting away 10% of my annual income into my retirement account, or traveling. But for those that pay $700+ dollars a month, or low income, I want the forgiveness for them. This country waste spending on so many things that its ridiculous. A little student loan forgiveness won't bankrupt the country.

But you could be paying it down now. I have paid almost 25k since the pause. There is really no excuse at this point.

I have tried. In addition to the one time student loan gift I got from my non profit I spent two years paying $312 biweekly instead of monthly. I stopped because my payments got swallowed up and the balance wasn’t going down. Instead I put that money toward other things. Again, im not sweating this. $312 isn’t killing me. So I have a nonchalant attitude toward all this. But what I won’t do is apply all my money only to have it swallowed up with nothing to show. At least I have no car note. I’m on track to pay off mortgage 4 years early and I have nearly 500k in retirement. So I’ll ride these payments out until I retire (another 23 years).

Conservative here. I think this is a sound financial decision.

[Anonymous]

Anonymous wrote:Anyone that hasn't paid anything during this moratorium or is prepared to pay their loans will pretty much never pay their loans. They are just long term deadbeats.

Some of us have kids that are starting high school and are saving money to pay for college so kid won’t be stuck in a debt trap with SL. While also saving money for retirement. There is no help in retirement. I will like just write a check for the balance in the next two years. (I owe about $50k)

[Anonymous]

Anonymous wrote:I'm so glad Biden is giving my friends, who live in a $1.6M home in CA right outside San Fran, a pause on their student loans. They have no intention of paying them at all. Why would they? More money to spend in their fancy restaurants in San Fran. They also bought a brand new S class Mercedes.

If a doctor or surgeon is employed by a non-profit hospital, they qualify for PSLF so long as they make 120 on-time monthly payments. There are a number of doctors in the PSLF group who have had $300-400K of student loan debt wiped out.

They earned it, IMHO. They followed the rules. They could've set up more lucrative solo practices, but they stuck it out with a non-profit. I have no ill-will for these people - even if they are making $300K - when they clearly followed the letter and intent of the law.

[Anonymous]

Anonymous wrote:Really pissed off that I refinanced my federal student loans to a lower rate. Thought I was doing the responsible thing but ended up being a chump.

Actually you're a chump for working big law and whining about your financial decisions.