Anonymous wrote:Someone said it earlier, the loans are government and if they default it’s just paper money and no major ramifications to the economy in regards to being delinquent…here is the catch though, even if they are federal loans keep in mind they were packaged and sold to navient and a bunch of other private companies hence the government is being sued because the pause is affecting their business. I would think this will impact economy if a bunch of people are delinquent etc etc.

This issue may be the thing that puts us over the top, in major downturns it’s always something unexpected that brings the cards down.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

There’s lots of misinformation on this thread. Federal student loans are absolutely dischargeable upon not only death but also permanent disability. The interest rates have been variable for a few years and are similar to what you’d find for a private student loan, often better unless you are super well qualified. You can pay your loan back based on your income—something that you could never do with your mortgage. So if you make no money, you pay $0 and those payments count towards 20-25 year forgiveness. The Biden admin is implementing a new Income driven plan this summer which is extremely generous, ensuring median income families pay extremely small or no monthly payments and and the debt won’t amortize if your payment doesn’t cover interest. Debt pause is tied to HEROES act authority which is expiring but Biden could do some last ditch vague extension but that’ll be it. Pausing the loans each month is super expensive and is causing us to approach the debt ceiling faster which is angering Republicans and some Democrats.

As for what will happen, unfortunately it will be messy. There will be a grace period once loans restart and borrowers who may struggle to repay will hopefully sign up for income driven repayment or secure economic hardship deferments or other forbearances. It’s tough.

Are student loans dischargeable upon death ? If one owes $150,000 on student loan debt at the time of death, but has an estate worth $300,000, is the loan forgiven or must the estate be without adequate funds to repay the student loan in order to be "discharged" ?

If you see permanent disability as an out for student loan debt, I would like to know who or which entity determines what qualifies as "permanent disability".

Suggesting that borrowers can seek relief through forgiveness has been shown to be unrealistic up to this point in time.

Yes. All federal (including parent plus) ones are, and most if not all private ones are.

I have private. They are not.

Which company?

I paid my private loan off in the last year. It was with Firstmark. Payments were not paused at any point due to the pandemic.

Anonymous wrote:

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

How much of this is the actual federal student loans vs. Parent Plus and private loans that are getting people into trouble? Because the 4-year limits on the federal loan amounts a student can take out are pretty reasonable provided you actually graduate with a degree. The problem is that that amount is not enough to cover what many need and they keep borrowing. I had private loans for undergrad and honestly that was what really stressed me out- thankfully my parents were able to help me out with the payments when I was in grad school (which thankfully was feee because I had an assistantship).

Anonymous wrote:

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

How much of this is the actual federal student loans vs. Parent Plus and private loans that are getting people into trouble? Because the 4-year limits on the federal loan amounts a student can take out are pretty reasonable provided you actually graduate with a degree. The problem is that that amount is not enough to cover what many need and they keep borrowing. I had private loans for undergrad and honestly that was what really stressed me out- thankfully my parents were able to help me out with the payments when I was in grad school (which thankfully was feee because I had an assistantship).

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

There’s lots of misinformation on this thread. Federal student loans are absolutely dischargeable upon not only death but also permanent disability. The interest rates have been variable for a few years and are similar to what you’d find for a private student loan, often better unless you are super well qualified. You can pay your loan back based on your income—something that you could never do with your mortgage. So if you make no money, you pay $0 and those payments count towards 20-25 year forgiveness. The Biden admin is implementing a new Income driven plan this summer which is extremely generous, ensuring median income families pay extremely small or no monthly payments and and the debt won’t amortize if your payment doesn’t cover interest. Debt pause is tied to HEROES act authority which is expiring but Biden could do some last ditch vague extension but that’ll be it. Pausing the loans each month is super expensive and is causing us to approach the debt ceiling faster which is angering Republicans and some Democrats.

As for what will happen, unfortunately it will be messy. There will be a grace period once loans restart and borrowers who may struggle to repay will hopefully sign up for income driven repayment or secure economic hardship deferments or other forbearances. It’s tough.

Are student loans dischargeable upon death ? If one owes $150,000 on student loan debt at the time of death, but has an estate worth $300,000, is the loan forgiven or must the estate be without adequate funds to repay the student loan in order to be "discharged" ?

If you see permanent disability as an out for student loan debt, I would like to know who or which entity determines what qualifies as "permanent disability".

Suggesting that borrowers can seek relief through forgiveness has been shown to be unrealistic up to this point in time.

Yes. All federal (including parent plus) ones are, and most if not all private ones are.

I have private. They are not.

Which company?

I paid my private loan off in the last year. It was with Firstmark. Payments were not paused at any point due to the pandemic.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

There’s lots of misinformation on this thread. Federal student loans are absolutely dischargeable upon not only death but also permanent disability. The interest rates have been variable for a few years and are similar to what you’d find for a private student loan, often better unless you are super well qualified. You can pay your loan back based on your income—something that you could never do with your mortgage. So if you make no money, you pay $0 and those payments count towards 20-25 year forgiveness. The Biden admin is implementing a new Income driven plan this summer which is extremely generous, ensuring median income families pay extremely small or no monthly payments and and the debt won’t amortize if your payment doesn’t cover interest. Debt pause is tied to HEROES act authority which is expiring but Biden could do some last ditch vague extension but that’ll be it. Pausing the loans each month is super expensive and is causing us to approach the debt ceiling faster which is angering Republicans and some Democrats.

As for what will happen, unfortunately it will be messy. There will be a grace period once loans restart and borrowers who may struggle to repay will hopefully sign up for income driven repayment or secure economic hardship deferments or other forbearances. It’s tough.

Are student loans dischargeable upon death ? If one owes $150,000 on student loan debt at the time of death, but has an estate worth $300,000, is the loan forgiven or must the estate be without adequate funds to repay the student loan in order to be "discharged" ?

If you see permanent disability as an out for student loan debt, I would like to know who or which entity determines what qualifies as "permanent disability".

Suggesting that borrowers can seek relief through forgiveness has been shown to be unrealistic up to this point in time.

Yes. All federal (including parent plus) ones are, and most if not all private ones are.

I have private. They are not.

Which company?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Important to understand that one's student loan debt may not be discharged upon death of the borrower in various circumstances. Depending upon when the loans were taken out, the loan may be viewed as community property in the 12 community property states and be inherited by the surviving spouse.

Also, if one is behind on payments, the overdue amount may remain after the borrower's death.

Private student loans may or may not be forgiven / discharged upon the death of the borrower.

Nope.

What happens to my loans if I die? If you die, then your federal student loans will be discharged after the required proof of death is submitted.

Are you sure ? I have read the same blanket statement that you regurgitated, but upon further investigation found the above noted exceptions.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

There’s lots of misinformation on this thread. Federal student loans are absolutely dischargeable upon not only death but also permanent disability. The interest rates have been variable for a few years and are similar to what you’d find for a private student loan, often better unless you are super well qualified. You can pay your loan back based on your income—something that you could never do with your mortgage. So if you make no money, you pay $0 and those payments count towards 20-25 year forgiveness. The Biden admin is implementing a new Income driven plan this summer which is extremely generous, ensuring median income families pay extremely small or no monthly payments and and the debt won’t amortize if your payment doesn’t cover interest. Debt pause is tied to HEROES act authority which is expiring but Biden could do some last ditch vague extension but that’ll be it. Pausing the loans each month is super expensive and is causing us to approach the debt ceiling faster which is angering Republicans and some Democrats.

As for what will happen, unfortunately it will be messy. There will be a grace period once loans restart and borrowers who may struggle to repay will hopefully sign up for income driven repayment or secure economic hardship deferments or other forbearances. It’s tough.

Are student loans dischargeable upon death ? If one owes $150,000 on student loan debt at the time of death, but has an estate worth $300,000, is the loan forgiven or must the estate be without adequate funds to repay the student loan in order to be "discharged" ?

If you see permanent disability as an out for student loan debt, I would like to know who or which entity determines what qualifies as "permanent disability".

Suggesting that borrowers can seek relief through forgiveness has been shown to be unrealistic up to this point in time.

Yes. All federal (including parent plus) ones are, and most if not all private ones are.

I have private. They are not.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

+1

Absolutely correct.

On top of soaring costs for college, the federal government further fueled higher education costs by handing out money to any college student without qualification at continuously compounding interest rates which were unjustified for the minor level of risk. What the federal student loan program did to graduate and professional students was far worse due to the amounts involved.

The US government federal student loan program placed many into debt for life.

There’s lots of misinformation on this thread. Federal student loans are absolutely dischargeable upon not only death but also permanent disability. The interest rates have been variable for a few years and are similar to what you’d find for a private student loan, often better unless you are super well qualified. You can pay your loan back based on your income—something that you could never do with your mortgage. So if you make no money, you pay $0 and those payments count towards 20-25 year forgiveness. The Biden admin is implementing a new Income driven plan this summer which is extremely generous, ensuring median income families pay extremely small or no monthly payments and and the debt won’t amortize if your payment doesn’t cover interest. Debt pause is tied to HEROES act authority which is expiring but Biden could do some last ditch vague extension but that’ll be it. Pausing the loans each month is super expensive and is causing us to approach the debt ceiling faster which is angering Republicans and some Democrats.

As for what will happen, unfortunately it will be messy. There will be a grace period once loans restart and borrowers who may struggle to repay will hopefully sign up for income driven repayment or secure economic hardship deferments or other forbearances. It’s tough.

Are student loans dischargeable upon death ? If one owes $150,000 on student loan debt at the time of death, but has an estate worth $300,000, is the loan forgiven or must the estate be without adequate funds to repay the student loan in order to be "discharged" ?

If you see permanent disability as an out for student loan debt, I would like to know who or which entity determines what qualifies as "permanent disability".

Suggesting that borrowers can seek relief through forgiveness has been shown to be unrealistic up to this point in time.

Yes. All federal (including parent plus) ones are, and most if not all private ones are.

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.

Anonymous wrote:

Anonymous wrote:Important to understand that one's student loan debt may not be discharged upon death of the borrower in various circumstances. Depending upon when the loans were taken out, the loan may be viewed as community property in the 12 community property states and be inherited by the surviving spouse.

Also, if one is behind on payments, the overdue amount may remain after the borrower's death.

Private student loans may or may not be forgiven / discharged upon the death of the borrower.

Nope.

What happens to my loans if I die? If you die, then your federal student loans will be discharged after the required proof of death is submitted.

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.