involuntary collections of student loans

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why wont they set rates for student loans to 2% instead of 14% with daily compounding interest. God forbid.

There has been a bill floating around to do this.

this would be a tremendous help.

I did college the poor way that is always suggested here: I went to NVCC for 2 years and then transferred to an in-state school. I borrowed a pretty modest amount compared to my peers - only $16k. I thought that amount would be very easy to pay off. I was a fool! Yes, they tell you that you'll have to pay that amount back. No one is disputing that. What we didn't get a firm grasp of was the interest and how much and how crippling that would be.

I am now 35 and have paid $33,419.65 and still owe $11,890.02.

Imagine buying a crappy $16,000 car at age 20 and you're still paying it off at age 35. No one finances a car that long. No bank would finance a car that long!

I've almost paid back what I borrowed x2. That's what upsets me. That's what upsets most of my peers who have loans, too.

How long did you extend the loan for and what were the rates? What was your monthly payment? How many times did you stop payment during that time. You seem to lack any personal responsibility for this. Of course you have to pay back more than you borrowed and of course that number goes up the longer you keep the loan outstanding.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are headed back to debtors prison when they deduct it from your pay and people end up on the street.

Income based repayment plans are universally available and have been common for years in the student loan world. If a young professional makes 40k annually and therefore the $1,500 monthly installment payment on their 200k student loan balance isn't affordable, all they have to do is contact the loan servicer and document the need for a modified income based minimum payment.

Canceling debt is never a wise long term solution. Ii

Unless you are a bank, airline, small business, farmer, automaker…

We did that and the only thing they would offer was paying just the interest which was almost the same amount. Even the standard 1500 monthly payment pays like $8 towards principal. Student loans are a total racket and they've been structured in a way to never pay them off.

Exactly. I borrowed about $100k for law school at a well ranked state university. I sought (and landed!) a prestigious job with the federal government. I requested and was placed on an income based repayment plan. My monthly payments ranged from about $900 to about $1400 a month, as my income increased, over the 10 years I made regular monthly payments. My payments were primarily interest, a small amount of principal, and the interest was compounded annually. By the time the balance of my loan was forgiven under the public service loan forgiveness program, I’d repaid about $15k more than the amount I borrowed initially. The principal debt that was forgiven was almost twice the amount I borrowed initially, and there was close to another $100k in interest still owed. If I didn’t have PSLF forgiveness I would never have been able to get out from under that debt. I knew when I started there income based plan it was a racket, but without it I would have defaulted immediately because the standard monthly payments were astronomical. Students loans are basically predatory lending.

[Anonymous]

Anonymous wrote:The most diabolical thing is that they are resuming payments while ALSO suspending the income-based repayment plan options.

So they are turning on payments at the full "standard" 10-year repayment amount without any regards as to whether someone can afford that payment based on their income.

Really diabolical. It's going to crush credit scores for Millennials and elder Gen Z.

Who have already been paying student loans for over a decade!

[Anonymous]

Anonymous wrote:Biden was such an imbecile. He could have focused on systemic fixes like tying loan rates to majors or making loans subject to the same bankruptcy process as other debt but of course he chose the idiotic band aid approach to pathetically buy votes. All theatrics, never substance. Senile old fool

Oh yes, b/c all those useless majors...I did TWO of them in undergrad and make $175K a year after years of busting my a**.

So get out of here with that BS.

[Anonymous]

Anonymous wrote:Just a reminder that all of you complaining about the interest rate of student loans have Obama to thank for that.

Prior to the government taking over the student loans, the interest rate was much lower.

The government needs to get out of the student loan business.

The government was involved in student loans well before Obama. I had subsidized student loans in the 90s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are headed back to debtors prison when they deduct it from your pay and people end up on the street.

And so your solution is for the taxpayers to pick up the tab for other people's degrees? Sorry, no.

Have the banks we bailed out pay US back or the auto industry. Please “pick up tab” for 19 year olds who will go buy a house not crash the economy.

Yes, with profit.

https://projects.propublica.org/bailout/

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just a reminder that all of you complaining about the interest rate of student loans have Obama to thank for that.

Prior to the government taking over the student loans, the interest rate was much lower.

The government needs to get out of the student loan business.

The government was involved in student loans well before Obama. I had subsidized student loans in the 90s.

It’s complicated, and not wholly the same:

“The switch to direct lending did create access to more favorable terms for borrowers and expanded loan forgiveness and repayment programs, which may have incentivized individuals to borrow, or to borrow more, than they otherwise would have.
…
While the borrower experience improved, some argue that loan counseling provided by the Department of Education has been less effective than the counseling provided by private lenders and may result in some borrowers misunderstanding the financial obligation they are assuming.”

https://www.pgpf.org/article/why-did-the-federal-government-get-involved-in-student-loans/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are headed back to debtors prison when they deduct it from your pay and people end up on the street.

And so your solution is for the taxpayers to pick up the tab for other people's degrees? Sorry, no.

But big auto, banks, businesses under PPP, farmers affected by tariffs— these all deserve buyouts more than kids getting a college degree. We worked hard to get our kids through without loans, and I’m not saying I agree with college loan forgiveness— especially without strings attached. But, the hypocrisy of bailing out businesses and not student loans is gross.

+1

-1 so much fraud in the ppp loans, bank loans, farmer subsidies

So much that wasn't fraud too and kept people afloat during covid. There is also fraud in student loans or misuse of funds. The number of people I know who used their loans to go on spring break is staggering. There is fraud everywhere - doesn't mean we need to forgive all student loans. Forgive interest but not the actual principle.

[Anonymous]

Anonymous wrote:Education Department’s will resume “involuntary collections” of federal student loans that are in default.

https://www.cnbc.com/2025/04/22/what-student-loan-borrowers-need-to-know-about-involuntary-collections.html

This is pretty funny coming from Trump who couldn't seem to pay contractors and his workers for work they completed-look it up MAGA he often decided not to pay just because he could ignore the peasants like a to of you. Oh the irony of it all as his deranged zombie-like supporters sway and cheer. Must be some good kkkool-aid

[Anonymous]

Anonymous wrote:

Anonymous wrote:Education Department’s will resume “involuntary collections” of federal student loans that are in default.

https://www.cnbc.com/2025/04/22/what-student-loan-borrowers-need-to-know-about-involuntary-collections.html

This is pretty funny coming from Trump who couldn't seem to pay contractors and his workers for work they completed-look it up MAGA he often decided not to pay just because he could ignore the peasants like a to of you. Oh the irony of it all as his deranged zombie-like supporters sway and cheer. Must be some good kkkool-aid

yup millionaires don't have to pay their debts or fair taxes.

[Anonymous]

You take a loan, you pay it back. Stop whining.

[Anonymous]

Anonymous wrote:You take a loan, you pay it back. Stop whining.

Yup I did but your boy trump doesn't pay his loans. I'm sure reading is difficult but google all the people he didn't;t pay after they completed the work. You MAGAs are the biggest whiners around so kindly shove your nonsense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You take a loan, you pay it back. Stop whining.

Yup I did but your boy trump doesn't pay his loans. I'm sure reading is difficult but google all the people he didn't;t pay after they completed the work. You MAGAs are the biggest whiners around so kindly shove your nonsense.

+ a million

[Anonymous]

Anonymous wrote:

Anonymous wrote:Biden was such an imbecile. He could have focused on systemic fixes like tying loan rates to majors or making loans subject to the same bankruptcy process as other debt but of course he chose the idiotic band aid approach to pathetically buy votes. All theatrics, never substance. Senile old fool

Trump could also focus on these systemic fixes. He could have from 2017-2020. He could now. And yet, he isn’t. Senile old fool.

We all know Trump and Biden are senile old fools. That's a settled argument. Slow clap for the American Voters.

I am also a huge proponent of legislative efforts towards long term fixes as opposed to band aid bills and vote buys. The thing is; long term fixes aren't politically rewarding to politicians in the short term and in most cases it takes some short term candy thrown at the American people to make it possible for the sponsors of the bill to be politically rewarded via support from the American people who received the candy. FDR's New Deal is an example of successful legislation that addressed both short and long term problems.

Debt cancellation on a massive scale is a terrible idea generally speaking and especially when there have been no systematic changes to prevent the continuing cycle of need for debt cancellation. Even the "senile old fools" are smart enough to know this. Appropriate legislation would offer short term help to current student loan borrowers in the form of zero percent interest rates or partial balance forgiveness tied to legislation geared towards reducing the amount of upfront investment the average 18 year old has to make when seeking at least four years of higher education.

[Anonymous]

I really think that the people on this forum dislike Trump so much that they automatically come out against whatever he does. If he went the other way on student loans and said that we will have lax or non-existent requirements to pay back, everyone on DCUM would flip out over that and say it was terrible.