Reply to Why is Biden extending the student loan repayment pause?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

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. [/quote]

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.[/quote]

No..it's also for federal loans. [/quote]

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. [/quote]

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

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). [/quote]

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