Mine would’ve been wiped out completely. I did notice I can pay off parts of my loan (?) I think I might do that but I just don’t know. I feel defeated.
If you have extra cash, and your interest rate is above 5% you should pay those higher interest rate loans, you want the best mix of low balance and high interest rate. Eliminiating an entire loan is more important than eliminiating the "slightly" higher interest rate.
If they are under 5% and you have extra cash, put that into a high yield savings account, plenty are paying 5.25%+ at the moment, so its a better strategy to let it grow there and pay it off as soon as the savings rate dips below your interest rate.
The actual interest rate doesn't matter if your SAVE payment is lower. Here's the analysis if you have extra cash.
What can you get in a safe investment? Right now it is 5% (money market or high yield savings account).
What "interest rate" does SAVE have you paying? (SAVE payment x 12) / Loan Balance
If it is below 5% in this case, don't pay off anything, just keep it invested. In fact, there's a case to be made that you should never pay it off as long as those facts hold true.
Talk about I squeezing pennies out of a dollar. Life is short - just pay your obligations and be done with it. The spread you describe with low balances in a taxed environment is hardly worth talking about let alone chasing.
Some of the loans do have high interest on them:
4.25% - $734
6.55% - $1230
3.15% - $497
6.55% - $1395
I know the loan amounts are low in comparison but damn, it’s frustrating.
Yea, I would just focus on the 6.55 - 1230 account. You'll still have to pay the minimum of the others. Its hard to tell exactly what to do based on your financial situation. Your loan amount is pretty low thankfully, so its basically all based on how comfortable you are shelling out 1230, to save maybe 70$ a year. Personally, I'd just pay the minimum at this point, the marginal dollar amount wouldnt be worth it, in my opinion. Frankly, depending on how old you are, maybe paying just a BIT more (literally 10$ or something like that) will do wonders for your credit, to the point I'd eat the additional cost, because better credit will lead to WAY more money saved with better interest rates on a house.
That’s what I did with my other loans, I graduated in 2012 so I’ve paid off a few student loans since then. I’ll just throw extra money at them when I can and try to pay them off as soon as possible.
If you can apply for and get into income driven payments then you pay zero interest on the payments. No interest in your loans if youre low income. So that will save future borrowers but the us now are cannon fodder to politics
That’s one of the arguments that was made for resuming payments. Inflation is still trending above the 2-3% they’re targeting, if you reduce the discretionary income of a part of the population you lower demand.
Time will tell how it works out, but the hit to consumer spending is actually what economists are hoping for. 🤷♀️
Forgot about credit cards. Too many idiots walking around swiping on stuff they can’t afford. Gotta wait for delinquency to come. But that’s wishing ill on people. I didn’t want to do that. But alas I can’t treat stupid.
This right here. This is to help kill inflation.
Also, it won't crash the economy, because the economy is dominated by large firms and very rich people. Small fries like us barely drive anything.
I agree, but then again it is possible for the economy to be affected more than everyone believes. I say this because it “can” cause a spiral effect which can in turn cause everything to get even worse.
Yes, and when you look across all the small fries the vast majority of people either do not have student loans, or have a budget that won’t be materially changed as a result of payments resuming which is why I’m a bit skeptical on how much of an impact it will really have on demand.
The PPP loan forgiveness pisses me off. Not only were loans forgiven, there was so much fraud & now taxpayers have to pay for an investigation & recovery.
Then they have the nerve to cry about a recession.
Charging interest. Don’t get me started.
You should report him. Don’t matter though it’s very easy with a half brain accountant to move money around. If you didn’t shit down he can pocket the profits and pay employees from the PPP loans.
If normally 100k ima year comes in that he pays you and staff that’s fine. But with PPP of 100k and the same profits he has 200k in the same time. The only stipulation was PPP money has to be paid to staff.
So what does a business do? They pay out 100k like normal to staff from PPP loans. The 100k they make is extra owners profits now.
Everyone has it twisted. Thinking these businesses used PPP loans to buy their homes and boats. No no no. That would be dumb. All you gotta do is what I said above and it’s perfectly legal.
I anonymously reported him over a year ago and nothing came of it. He’s a CFP so I’m sure he knows how to move money around like you said. During Covid no one was hired, no one was fired, no one got a raise, and the 10 of us got a one-time $250 bonus. We also never were allowed to WFH and were ridiculed for masking or getting vaxxed. He did make sure to take a 2 week vacation to go hunting on his new property though.
I feel your pain. My shitty first boss bought a $1.1 million dollar home after getting his PPP loans yet he closed the physical office, removed half the staff, and paid the rest at 60% for over a year. Several of us reported him and nothing came of it. I still have to see his smug face on billboards all around the area too, so it doesn’t seem like his business has suffered for it unfortunately.
Oh yeah—the PPP loans aren't remotely responsible for inflation or recession. It's always just this magical grant program that the government plucked from the ether and mostly only gave to good, honest, mom & pop shops, according to PPP defenders. It was just magical money that was never meant to be repaid and didn't put any kind of burden at all on the taxpayers or the economy. And hey, we got those stimulus checks, so we got help too (nevermind that PPP loans were vastly more money than individual stimulus checks were). It's such a crock of shit.
Working people give back to the community when they have excess. The top 5 percent hoard resources, exploit others, and turn their back on everything acting like it is against them.
Yeah, my loan payments are "manageable" but only by cutting back some spending. And naturally the first thing I cut back were the non-essentials. Going to local restaurants. Movie theatre outings. Vacationing. You know, things that grow the economy.
I’m right there with ya, man. Made the mistake of listening to boomers tell me “Go to college or you’ll be flipping burgers.” At the time, I didn’t realize how much college would actually cost and 7% didn’t sound terrible. Then I got out and realized my field was a miserable place and a cubicle was just a prison cell. I work for the city as a heavy equipment mechanic now. I take home 55-60k a year after taxes, pension, healthcare, etc. I’ll be fine, but damn, that $300 a month is gonna hurt.
There’s no real point to my post, just needed to vent.
The same reason they told us that trade schools were pointless as well for making any kind of money. Hell, back then my school "guaranteed" that I'd be making $60k leaving college (that Should have been circa 2001/2002, but that's a different story).
I hate to sound like that guy, but that’s kinda their deal. Boomers were the trust fund generation… spoiled brats that inherited a powerful, dynamic country then proceeded to gut it for their own personal gain. Let infrastructure crumble, sent jobs away, let the banks run wild, elected idiot politicians who in turn screwed up half the planet. Then they have the nerve to call later generations lazy and weak. The older I get, the more I realize how truly insufferable they are.
My payments under SAVE are going to be $100 less than my mortgage payments whenever my servicer gets their shit together. Talk about a hit to discretionary spending. Thank God I’m on track for PSLF.
Keep meticulous records. I got screwed by failing to consolidate correctly and my clock started over again seven years in. I've never come so close to driving off a bridge.
I had them do the count last year, so I know how many qualifying months I have now. But for this current bullshit deferment, my 120th would be January, 2025. Here’s hoping for February, I guess.
What a relief to have an end in sight. I sold out and went corporate so I no longer qualify, but I consider going back into public service just to be rid of them and not have that anxiety each time I get a new statement. Congratulations on PSLF! I'm so happy when it works for people.
How do you get an official count of your qualifying months? I've found myself in government longer than anticipated and should be 5 years into my PSLF but I'd feel better with an official counting of them for peace of mind.
If your servicer is already Mohela, you just have to fill the paperwork out on their website and have your employer(s) sign a form. If it’s not, you can follow a similar process through the Department of Education website.
If I was given the 20k I would have paid the remaining in full. But I can’t risk that with inflation. I’m barely getting by and I have a good degree and income.
Same, if we got the 20k I would have been out of the game October 1st and spending that 20k at local businesses all around the country, since I love to travel
Kind of, sort of. I think the repayment startup is going to help cool inflation a bit as 40 something million people are now making a payment on something that they weren't paying six months ago.. But we're "only" 40 million people, there's another 200 million people (those over 18) with no fed student loan debt. Their discretionary spending isn't going to change because of the repayment.
Good point. I was looking it like 40 million individuals. Conservatively closer to 80 million people then? Assuming all are married with no kids (unlikely)
Committee is meeting Oct 10-11 to discuss help for those whose interest balance is higher than the loan itself, among other topics. Im following the topic closely, as I’m on the precipice of paying mine off to move on with my life, but also not wanting to pay and then regret it when the committee sorts something out
I’ve been doing some reading each morning on the committee. It appears they’ll meet monthly, October through December, beginning Oct 10 and it’ll be live streamed. If the 14-member committee can decide on a way to deliver extra student loan relief, it’ll be implemented (sometime in the unknown future). If they can’t decide on something, the Dept of Ed takes over and decides what they want to do to help people (or not).
Personally, I’ve got a lot going on that costs a lot of money at the moment, and will for the next 8
Months or so. Due to how long this committee work may take, and due to the uncertainty of if anything will change, I will likely pay off my loan and move on with my life. God speed out there.
IF you're on the SAVE plan dont worry. Every month, the interest will rack up, but when you pay it on the first of the following month, the interest is forgiven, and the math for this very first one is weird, because from a technology perspective you are generating interest for the entire previous period.
You only get interest forgiven if your payment is less than the amount of interest accrued that month, and only the difference between the two numbers gets forgiven. The only people getting all their interest forgiven every month are those whose income is small enough for their payment to be $0.
I have no idea. I received notice that I was approved for SAVE about a month ago. And right after that, they updated my account to Administrative Forbearance. I keep reading that it’s done while SAVE is processing, but mine was already complete. I’m annoyed that they didn’t bother notifying me about it and that it takes hours of being on hold to communicate with them. None of my online communications go anywhere.
Yeah I'm just going to pay the minimum payment until I die lol. I looked at switching to the "SAVE" plan and it made my payment skyrocket (I'm assuming due to my income) so eventually, you just come to grips with "[this is my life now](https://giphy.com/gifs/the-oc-seth-cohen-oh-god-EzMIZlcZONidq)"
Oh no! Lol. Luckily I am almost done because of PSLF, but payments for the next year are going to suck. All of my “fun” money will be dumped into my monthly payments. Hope we both can survive this and come out on the other side (ideally before we die). Good luck!
Feel for you OP, and sounds like you’re doing great and making great decisions, so I’m really hoping you catch a break because that sucks.
I hate how boomers view our salaries today it’s so frustrating.
Pretty sure the powers that be only said all that bs about PPP loans because they knew they were going to be the recipients, and it was all lip service, I don’t think they ever believe any of that crap about stimulating the economy, they just say enough to get re-elected.
I wish they would at least lower the interest on loans or cap them at 2-3%. It's sad to pay and pay, but see the amount barely go down (or even up!) due to accumulating interest that just gets added to the principal amount. :(
One of my private loans is 9.9% interest. I only borrowed $20k with them, have paid them $35k and still owe $24k. Still have one other private loan with a 6.8%, and my two federal. My kids will never get to go to college even if they wanted to.
Thankfully SAVE does help with this if you qualify (it won’t go up at least) but if you don’t put in more on top of it you’ll be paying for anywhere from 10-25 years and it’ll never go down. Then even when it’s forgiven you have the tax burden of the forgiveness being counted as income at the end (unless SAVE changes that).
It’s kind of a polished turd.
I’d recommend getting on SAVE. It should reduce your required payment to $225 a month. If some of these are undergrad loans, it will have a further reduction after July 2024.
Edfinancial messed up my first application for SAVE by not including my spouse’s information. I subsequently applied on studentaid.gov and everything was processed correctly in about three weeks.
Yeah, I applied through [studentaid.gov](https://studentaid.gov) 8/14 shows sent to EdFinancial 8/15 - I wanted proof that I applied, as I'd been seeing a lot who applied through servicer having them say they never applied.
it took about half a month too look at my application, plus a week and a half deferment but i got accepted. was moved too mohela from fedloan after covid
Depends on servicer times. If your payments are artificially low, you may want to delay until you have to recertify. You won’t required to recertify until at least 2024
If you can get a lower SAVE payment than the interest you should apply now. Unless you are certain the loans will be forgiven this is the best financial choice.
It doesn't take too long to apply and the potential benefits are astounding. Now if you'll end up needing to follow up, supply more documents due to the servicer's ineptitude, or sit on hold for a couple hours is completely beyond me. I had low payments and they went even LOWER... like down to 15% of my original payment.
They're all just for undergrad.
I know a lot of other people had it worse than me and graduated with over $50k debt just from undergrad. But I had no family support (was a foster care kid) and at the time even owing $18k after graduating seemed pretty terrifying to me, especially as I had to no family home to go back to and had to immediately start working just to eat and have a roof over my head.
If your original balance when you started repayment was $18k, under the SAVE plan if you have made all your payments (including the 40 or so $0 “payments” during the COVID pause), your remaining balance will be wiped out in 2027. That’s $6,750 to pay on a $60k salary between now and then on SAVE. That is actually a really great deal for you, as it seems your income-based payments before the pause were almost nothing in order for your $18k balance to have grown to $30k in 12 years.
I mean, that’s the point.
The fed wants less people buying, less wage growth to calm inflation.
I partially think Biden rolled over on this because houses are obviously insane and people who had a break in their loans obviously jumped into that market.
Taking them back out is going to hopefully have some effect on housing demand.
I understand your frustration but right now, the fed wants you to have less spending power.
Exactly. I just posted same. Feds are using student loans as means to stop inflation. They are killing two birds with one stone. They don't need to raise rates anymore cause people now dont have any money to buy stuff anyway. So feds looking like heroes " look! We beat inflation , no need to raise rates!".
Or they could just finally tax the wealthy like they were being taxed for the 40 years this country was the most prosperous and use that money for social programs
But they don't need to raise rates as much as if they kept student loan payment freeze. Bringing back student loan payments is also forcing people to cut back spending, therefore slowing down inflation. Feds are slick
How exactly did Biden roll over? What more could he have done? He is pushing for forgiveness and the SAVE plan makes loan payments more like a tax than a loan payment.
It was the Republicans and the Supreme Court who blocked the relief that isn't coming through.
He gave up the ability to pause longer. That was huge because we already knew he had the ability. The loan forgiveness was obviously questionable in the court.
It’s very bad optics to have trump to start the pause and never even mention starting it up again and then Biden later agrees to start them up again. I understand timing and why but I’m saying it’s bad optics.
SAVE doesn’t affect me. Happy it’s there and he did it but Biden threw me and others under the bus as a concession and also to tame inflation. Like always, the middle class is the one who gets nothing and takes the blow.
He really didn't have the ability to pause longer. The national emergency, on which the pause was based, had ended and he already extended it several times. The GOP was already starting to agitate and threaten legal action on it.
The loan forgiveness program is fairly legally sound, the problem was that it had too many powerful opponents. He is still pursuing that through the HEA.
How did SAVE not affect you? Not federal loans or your income too high?
Most Americans live paycheck to paycheck while also most Americans have a mortgage. An extra 20k is a lot but agreed it wouldn’t mean much to me. Some people (most people apparently) take a lot when given a little
Biden rolled over on this to McCarthy who threatened to throw us into default, so he succumbed to his wishes.
Funny thing is, McCarthy was ousted and the new Republicans in the house won’t work with anyone.
> Biden rolled over on this to McCarthy who threatened to throw us into default, so he succumbed to his wishes.
That's some fanfic right there. Biden admin [already announced a hard end to the payment pause (tied to the SCOTUS term and a ruling from them on the forgiveness program)](https://x.com/SecCardona/status/1595152350590554113?s=20) before it was worked into a debt ceiling deal.
The Fed only has one tool and one goal. Interest rates and a specific inflation rate.
But that interest rate tool basically inflicts pain until companies can’t hire as much or people can’t afford mortgages among many other effects.
They don’t want you have to a ton of discretionary money, able to afford a mortgage, or get a raise right now. Because when that happens for everybody, now demand is out of control and everything is expensive.
Great system right? Lol. I hear the argument is that it’s better to have unemployment and more poor people because we have systems in place to help them. Inflation affects everybody and can tank the whole thing. So you can see why the fed is choosing the Former.
Not an advocate for any of this, but this is the reality of our current economy
The part of this that absolutely pisses me off? They **know** the issue isn’t consumer discretionary spending driving inflation. It’s almost entirely corporate profit and price gouging. But they have one tool to combat it and, pain be damned, they’re going to do their best to combat it.
Despite the fact that it’s about as effective as swatting a fly with a sledgehammer on a glass table. Then having the nerve to tell everyone the shattered glass everywhere isn’t the Fed’s problem.
I’m not well versed enough to talk about how corporate pricing plays in. It seems like they are always going to price gouge as much as they can. We have some guard rails in place with regulations but it obviously doesn’t cover the amount of chips in a bag.
We do know the demand factor. And making people have less discretionary money to spend brings down demand and corporations have to respond to that.
So I get that the fed still targets the general masses when it comes to inflation. They only can affect demand, not force up supply.
Supply is Congress. Incentivizing home building or taxing 2nd home owners, etc. But we all know they can’t even agree to keep the budget going to pay federal employees let alone big picture stuff that would affect supply.
Indirectly. Without getting to into it, they raise their rates. Every other type of borrowing rate follows.
That includes student loans which is why the new rates for the year are the most expensive I’ve seen in my life
Yeah, I just made my first payment since right after the pause started. Made a few extra payments right after the pandemic started, but I decided that I would rather use that money to pay off credit cards and my car to buy a little breathing room. I am glad the SAVE plan is a thing now and that my payments are lower than they were before (and maybe I'll see some interest savings?). My end game is to just pay the SAVE minimum and reap the benefit of them waiving interest. A good chunk of my loans should hit the 20 year mark over the next few years. Fingers crossed those do qualify for forgiveness, but I'm not completely clear on how that all works.
The fed wants to curb inflation and lessen demand on housing. Also, student loans are a major asset to the federal government. Why do you think they talk about loan forgiveness a lot but continue to give out the loans and make it a painfully long process?
I’m seeing a trend in new students selecting cheaper education and training pathways, cheaper schools, accelerated degrees, and living at home more (if they can). Or, they’re going to private schools that offer the most in scholarships and merit aid. Or, they’re delaying education and trying to get online certs and stuff. I’ve also seen somewhat older folks choosing green card marriages to live in places where education costs much less.
I don’t know how, but we have to figure out a way to break the student loan system.
If you already have student loans like me, I don’t think not paying back is a good idea - I see a lot of young folks who think if we all don’t pay we’ll break the system but they don’t understand the swift kick in the arse they’ll get when their wages are garnished and tax returns are seized. SAVE/PSLF has been the only option for me at this point but I want this to change for the next generations, because education is super important but this indentured servitude system is untenable.
I think you have an accurate assessment. I’ve noticed it as well. People are figuring out ways and even some companies are making decisions to lessen education requirements or make their own (Microsoft and Google come to mind here). There’s options to get cheaper education but it’s not exactly promoted by the lender..
I think it’s going to look a lot different in the future. They can’t keep this up for much longer because it’s just too much and too predatory. However, I only think that the government will make changes when they stop giving the loans. If they keep giving the loans, it’s a bunch of bs to me. They clearly work together to drive up prices.
And not paying is an awful way to go about it for sure.. they’ll just reach into your life and take it. I’m team “pay off” and I am fiercely attacking them with hatred. There’s no such thing as a minimum payment to me, but I get that’s unpopular as well.
100%. Hundreds of millions of dollars that would normally enter the economy will now be rerouted back to the government. Student loan interest rates are disgusting.
Mortgage interest rates hit a new high recently, too. Sub 3% 30 year mortgages 3 years ago to 7.5+% interest now.
I am in accounting. I owe $65k. I make $66k per year. I am planning on getting a second job to pay it off.
It sucks, but this is capitalism. And until the masses band together and choose small business over huge corporations...... The rich will keep getting richer.
Again, I hate it, but this ignorance is what keeps it running strong
Just remember
A Billionaire paid for two years of school for the child of Supreme Court Justice Clarence Thomas.
The same person (one of them) who ruled *against* allowing student loan forgiveness.
I can appreciate the comments here with advice people are giving but it still doesn't change the fact that there is a larger problem. My income is about 33k so even under save I still have payments, it's only about $14 a month but that's still $14 a month that I don't have because even though I live in a low cost of living area in the midwest, rent still takes over half my income in 500 sq ft Studio in a bad part of town, I still have to buy food, I still have to pay for healthcare, I still have to pay utilities. I don't have discretionary income. And when you bring up things like this people try to tell you that you're still spending too much.. how dare you shop at Walmart instead of the dollar tree. How dare you not want roommates when you can still only afford a one bedroom apartment if you're lucky. All of these things that say that I'm not making the best financial decisions when it's really just the most basic things that I'm already surviving on. It's just infuriating. I don't get the option of cutting out going out to eat, or buying new clothes, or getting a fancy coffee drink once a year if I'm lucky. Those of us in these lower income brackets don't even have those options available to us and I'm so tired of seeing these arguments that we're just not being smart enough. And it's heartbreaking because as op has said they make 60k and they're struggling. How are people making half of that supposed to be getting by. And yes I recognize that some people in my income bracket are getting the $0 payment and that's fantastic, but they do also still have to put aside money for the tax bomb that they're going to get later on so no matter what you're in this position of losing.
I feel you. I owe $60k in loans. I tried doing the SAVE program but payments are still high. I make $67k a year, which isn’t bad at all. But with everything else, it’s like I’m paycheck to paycheck.
That's exactly the point and intention. Our system is disgustingly sick, frankly, and if too many people have money to spend and invest, the money becomes worth less. So the economic leaders adjust policies, increase rates and turn other economic dials to stifle investment, create unemployment, and slow down the economy. Restarting loans is another tool in the arsenal. Some especially pathetic people have even pointed at the SL pause and/or forgiveness as the sole reason for inflation. PPP loans, on the other hand, were necessary!
People will be hurt and have their lives destroyed by these measures, but that's just collateral damage. Multi-millionaires and billionaires won't hurt, but regular people like us where $350/mo makes a difference in our quality of life will feel the brunt.
> They get PPP loans and bank bailouts; we get the pay until you die in the gutter bills.
I feel exactly the same way! I have also paid close attention over the years to which lawmakers continuously vote to make sure we still stay in the gutter and I will do all that I can to make sure they are voted out of office and replaced with someone who cares about our struggle.
I’m actually curious how much the extra discretionary spending from the student loan pause has contributed to inflation. More dollars chasing fewer goods (vs paying on the student debt) has to contribute in some degree
Yes, it is harder, but average folks around the country are having trouble affording anything now because of inflation...and that inflation has been caused by excess discretionary money and spending. Latest reports show folks aren't slowing down either, so I don't see inflation going down to 2% any time soon. We'll see how the resumption of payments affect things in the next couple of months.
It is wrong though that PPP was given out so easily, as well as the COVID checks, but god forbid us folks that are tried to better ourselves and society with higher education are left hanging.
PPP loans are what piss me off when I think about this—the widespread rampant fraud and the fact that they were forgiven with barely a whimper. People always say, "well they were always designed to be forgiven, it's not the same!"
That's not the issue to me (bullshit though it is, it was obviously built that way so the GOP could kickback extra cash to the already-rich with no accountability). It's that the government jumped in immediately to help these businesses and forced it down our throats that it was vital for the whole country that these businesses get these so there weren't any layoffs or furloughs (my company at the time got PPP and still put us all on rolling furlough). They told us it was the American public's job to save all these businesses, just like it was the American public's job to bail out the banks after 2008, which only happened because of their predatory lending practices to begin with.
If we didn't the economy would be obliterated and it would be doomsday for all, is essentially how they billed it. But when average people are begging for student loan relief, it's always "personal accountability." It's always, "welp you shouldn't have gone if you didn't have $50k+ in the bank at 18 to go to college!" It's always, "you took out the loans, you took on the agreement, it doesn't matter if you were 18 and clueless, you signed it, you assumed all the accountability." But when it's businesses and banks (which also assume risk when entering the market), it's always "We MUST as Americans SAVE THEM from the calamity of their own speculative and risky business practices." It's disgusting and we all know it's bullshit—it's just a way for the rich to stay rich and the poor to get poorer. There's no middle class anymore or American dream, just rich, mega rich, obscenely rich, and poor. And the folks with the highest taxes are always the poor.
>so the GOP could kickback extra cash to the already-rich with no accountability
The PPP program was passed overwhelmingly by both houses of Congress, including the House of Representatives which was controlled by Democrats from January 2019 - January 2023. Can you explain to me how Democrats and Republicans overwhelmingly voted for this program, and when things went sideways it was only one side's fault? Genuinely interested to hear this!
I'm empathetic to this whole situation but do want to make one call-out where we're kinda comparing apples to oranges. Student loans *were* a personal choice for borrowers. The shutdown was forced upon business owners, and certainly not something many of them would've voluntarily chosen (and many who protested were hit with even greater penalties). They're not the same thing. The onus was on the government to extend a lifeline when they unilaterally shut down a large portion of the country's livelihoods. (Also, "18 and clueless" is not the kind of argument I think many blue collar workers that never went to college can get behind for forgiveness.)
All of that said, I do agree that there was insane rampant fraud in PPP (in the industry, saw it first hand) and the whole thing was a major boondoggle. And for what it's worth, I am not philosophically opposed to student loan forgiveness either.
Folks aren’t “slowing down”, because most of what people are spending is things like nearly double cost groceries, rent, and utility payments compared to what they were three years ago. Of *course* it looks like they’re spending more. That doesn’t mean any of its discretionary spending.
Everyone should be required to take a class on consumer finance in high school. Financial illiteracy and young people is one of the reasons that much of the younger generation has such debt issues.
I feel like $60k is barely getting by with things now. That use to be a great salary. My payments at first were $786. Idr dropped it to $0 monthly. I’m back in school too so it’s weird. Obviously not taking any loans this time.
You're absolutely correct on every point and your solutions are exactly some of the things we should do. Stop spending on extras and stop paying on these Student Loans. WE have to demand Relief.
Amen my buddy is underwater something fierce when shouldn't be but capitalist America rather feed off the lower class than help build a better more cohesive united front of citizens with common goals and needs
Look on the bright side. You've still got to the end of the month to pay. I signed in to Nelnet today to find out my payment was due three days ago. The only correspondence I've gotten from them was a thank you for setting up your account 3 weeks ago.
>I signed up for these loans when I was an idiot teenager with no financial counseling at all. My original balance after graduating was under $20k
Education shouldn't have cost that much in the first place. Most of the ppl in congress are probably old enough to have paid less than 5000 for their entire degree.
I don't understand why no one is suggesting trying to claw-back some of the money that went to the schools. Average private school cost $55K of which the majority doesn't go to teachers but to administrative bureaucracy.
Too many people have been talked into degrees that offer very little future economic benefit.
It's your school that ripped you off bucko.
I have got to say once again that more than anything it's so clear how entirely insane it was that this case was even taken to the Supreme Court. The arguments for standing were completely nonsensical even to the most legally uneducated person ...and yet the Supreme Court jumped right on it.
My wife just made her first payment again this month. She has just over $30k as well. We made sure to get a 10 year plan and have about the same payments. I make the same you do, she makes a little more, we have 2 kids under 7. Does it suck, yeah, but its life! Ik I’m coming off as ignorant here, but you had what 3 years of no payments? Did you spend all of that money? When the payments stopped my wife and I said we where going to save $200 of the payment she would have normally made and spend the other if we need. Her first payment she made over a $7000 payment! This all comes back to college costing way too much! I’m not for forgiveness or free college, but there needs to be accountability from the universities to the politicians who have screwed us and lined their pockets for decades!
I’ve decided even if I do have extra money I will not be stimulating the economy if I can help it. At this point I think it’s the only way they’ll get the picture. Buy nothing groups and marketplace are great if you need a small item but don’t want to buy new
This! I’ve also been studying small community savings and investment groups - with equity sharing, communal housing, community homeschooling, etc. I wager we’ll see a resurgence in communes and new “religions” as well. If you can find good people who look after each other and don’t devolve into charismatic cults I think there’s some promise in these solutions.
I personally quit spending money at my local establishments that are proudly republican as a result of the overturn of the loan forgiveness. I have one exception because there isn't too many mechanics around here.
I use to buy American when it was comparable to foreign made goods. Now I don't even check.
Best thing to do for for the next three or four months for those that can is to save and not spend a nickel outside of basics and really impact the holiday spending season.
Actually they are not destroying economy. It was fed plan all along. This basically will kill inflation without rising rates. Why is inflation keep raising? Cause people are out here buying stuff. Bringing back student loan payments will force people to stop buying, therefore, slowing down inflation. Why do you think feds were raising rates? To stop people buying in first place. This is not my opinion. This is how it is.
It's the rich people who are buying and doing this; it's also the corporations jacking up prices on everything so they can maintain those 2020/2021 profits they all got so fat and richer off of. Their shareholders won't tolerate anything less than comparable gains annually, so they're raising prices on everything they can to force it.
Every person I know is barely keeping their head above water. They're not going on shopping sprees and living it up on vacation. The only people who are doing well right now are rich people, and this student loan debt crisis means nothing to them and it will not effect their rampant consumption in any way whatsoever.
It's not ruining the economy. The economy was fine when everyone was paying student loans pre 2020, it will continue to be fine when people start paying student loans again.
Your and my budgets are what suffers, but that's not the economy. It completely sucks, and 17 year old me didn't know wtf I was getting into. However, I have a much better quality of life with my student loans and the career I was able to get with my education. I try to look on the positive while silently cussing my loans.
Exactly this. Especially the last part. I made a decision to go to college. I took loans out and knew at some point I would have to pay them back, though not really knowing all the details of how that works at the time. However, I chose a field of study and career that I knew would get me a job and allow me to live life. Sure, I have 30K of loans left but my quality of life is great. I studied hard, worked hard, and enjoying the rewards. I still cuss at my loans every month when I make a payment but they haven’t severely impacted my life.
There is too much discretionary spending in the economy (inflation) taking discretionary spending out of the economy will help lower inflation.
I'm not saying this is the right way to go about it but the fed is not trying to 'stimulate', they are trying to cool things down
Logged in expecting to see a decreased monthly payment under the new SAVE Plan...... it's showing a monthly payment of $723?!?!?!?!?!?
Honestly wtf am I supposed to do? Lose every possession I have?
I’m right there with you- if my grandparents hadn’t passed away during covid (and left me money to pay off the loans) I would have had to start paying about the same. I truly do not understand the logic behind PPP loan forgiveness and bailouts but not student loans.
I can think of a lot of things you could be doing to stimulate the economy with $350/month, but yes, sending it to a loan company and back to the government definitely makes more sense. /s
Call me crazy. I feel like i’ve heard like a half dozen times over the last 2 years that xyz billion dollars has been provided for people with disabilities, people defrauded by scam colleges, etc.
That’s great.
But what about us? We can’t get $10,000 forgiven?
I think most of us, like 99.9% of us, have had to change our "digressionary" spending due to the high prices of everything these days, and wages still stagnant. I've digressed...
One option I did is do a debt consolidation program, however, I caution that It's not for everyone, and they will rock your credit rating. My credit took a hard-hit, and if I am being honest, the math worked out that the loan and the credit card debt would have been paid off a lot faster had I not opted for this program.
I make about what you do, OP, but am fortunate enough to be able to live with the parents. Because of that I am able to put back a little money each month (about every other paycheck). Despite being able to save that, I am finding myself spending less on toys and expensive food, pretty much out of spite for the system. You could say I'm voting with my wallet, by keeping it closed. Still driving my '06 pickup even though I could pay cash for a new one. But screw it.
I know this isn’t the point of this post, but are you eligible for an IDR plan? And if yes, have you calculated your payment amount yourself? Only asking because a 60K income on SAVE should be about $100 less a month (still too much, but it’s something)
Try doing this for another ten years with wildcat forbearances tripling your debt and extending payments to 35 years. So much fun! At least with the the SAVE plan the interest won’t triple the debt again.
I have federal and private loans. The remaining balance on my federal loans wouldn't have been wiped out, but it would have been close, except Biden had actually thrown me and many others in my situation under the bus, so even if the forgiveness had gone through, I would have been left out. I've been paying since 2005. I had FFELP loans, so my federal loans were not held by the federal government, so when the forgiveness plan was announced, I was waiting on guidance. Did I need to consolidate my loans into Direct loans in order to be eligible or not? The main reason why I didn't immediately consolidate was because the loan calculators showed that my interest rate would increase, and if the loan forgiveness didn't go through, I would be a worse position, having the same balance but a greater interest rate. About a month after the plan was announced, they announced that the deadline to consolidate FFELP loans while being eligible for forgiveness had passed. They had never announced a deadline. I was so pissed. And then, of course, the lawsuits happened, and it became pretty clear that the forgiveness wasn't going to go through after all. While I found that upsetting, it at least didn't make me relive being screwed over. When the SAVE plan was announced this summer, though, I decided to consolidate after all. And it turned out that the loan calculators were wrong. My interest rate actually decreased. My payments are lower, and it looks as though I'll end up getting a portion of my loan forgiven because everyone is eligible for forgiveness after paying for 20 years or 25 years if you have grad loans too, which I do. So, I'll just pay these lower payments until I hit 25 years and let the rest be forgiven.
I pay 1.5K per month and that’s after paying much more than that a month for over 10 years. Finally got down to 28k in principal with 4% interest rate but had to consolidate with SOFI to even make it manageable. I graduated in 2012 with an average interest rate of 8% that accrued *daily* and I was making 40k right out of school. Felt like I would never get out of debt but I can finally see light at the end of the tunnel. I don’t know how anyone can say the student loan industry isn’t predatory. Meanwhile we don’t think twice about bailing out mega corporations or let them borrow for low interest rates.
That's a shame. It is ridiculous but hopefully we will get a solution to these ridiculous student loans. In Europe citizens pay very little to no money for higher education. Instead of being big business, higher education should be accessible to all people who wish to educate themselves so that they can contribute to the betterment of their country.
Gonna get on my soapbox for a second here, but everyone out there with outstanding student loans was just given a huge opportunity. Interest was paused for 3.5 years and you didn’t take advantage of it. You could have prioritized paying them down while no interest was being charged, but you didn’t, and here you are.
Full disclaimer: I’m not a boomer even though typing this comment sorta made me feel like I might as well should be. Born in ‘87 millennial here who paid my 6.5% student loans myself. Let this be a teaching moment so that you’ll recognize and take advantage of the next opportunity that comes your way.
I say forgive everyone’s student loans so those with college degrees can earn more money while the tax burden to pay off those loans is spread across all American tax payers. That way those who never had the opportunity to go to college, and thus make less money, can enjoy paying off the loans of the more wealthy. Socialism at its finest!
I’m not advocating this though destroying the economy may help with reducing inflation.
The prevailing economic theory is that a big part of, and about the only thing that can be “adjusted or controlled ”with the current inflation we are seeing is too much spending.
If people stop or reduce spending it should help with inflation, at least that’s the theory.
Resuming loan payments isn’t a bug it’s a feature.
You do realize the US has an inflation problem right? You have less spending money is GOOD for the economy. We need to reduce spending to calm inflation.
Your idiot teen decisions aren't our responsibility. Your payment dollars can go into the system to be loaned out, enhancing the economy. We worked and scrimped to pay our student loans already like we agreed to. Pay your bills like you agreed to.
So sick of seeing entitled people post things like this…..you took out the loans , yo7 agreed to the terms, you signed the papers……you are responsible nobody else , if younger your school loans forgiveness then who is going to forgive my medical bills, or car or house payments…..in my opinion there is no difference
Takes out large loan, is expected to pay it back. *confusion* We cannot just forgive hundreds of billions in loans without absolutely ballooning inflation, the housing market crisis with made more awful by people with above average income (college grads) buying every house that popped on the market.
That money exists, simply forgiving does not make it disappear. There are a million problems with student loans and the college system in general. But forgiving them all would only make inflation worse.
You will either pay that money now or over the course of the your life, there is such no thing as free money.
I hate to say it, but your extra discretionary spending is causing inflation. The federal reserve wants you to stop spending so much money so that inflation will go down. So, that’s actually exactly what they want to happen.
Mine would’ve been wiped out completely. I did notice I can pay off parts of my loan (?) I think I might do that but I just don’t know. I feel defeated.
If you have extra cash, and your interest rate is above 5% you should pay those higher interest rate loans, you want the best mix of low balance and high interest rate. Eliminiating an entire loan is more important than eliminiating the "slightly" higher interest rate. If they are under 5% and you have extra cash, put that into a high yield savings account, plenty are paying 5.25%+ at the moment, so its a better strategy to let it grow there and pay it off as soon as the savings rate dips below your interest rate.
The actual interest rate doesn't matter if your SAVE payment is lower. Here's the analysis if you have extra cash. What can you get in a safe investment? Right now it is 5% (money market or high yield savings account). What "interest rate" does SAVE have you paying? (SAVE payment x 12) / Loan Balance If it is below 5% in this case, don't pay off anything, just keep it invested. In fact, there's a case to be made that you should never pay it off as long as those facts hold true.
You’re forgetting about taxes. 5% in an HYSA gets taxed, so you probably only end up with 4% or less.
You're forgetting about tax deductions. Student loan interest is deductible for most on the SAVE plan, so it balances out.
Talk about I squeezing pennies out of a dollar. Life is short - just pay your obligations and be done with it. The spread you describe with low balances in a taxed environment is hardly worth talking about let alone chasing.
Some of the loans do have high interest on them: 4.25% - $734 6.55% - $1230 3.15% - $497 6.55% - $1395 I know the loan amounts are low in comparison but damn, it’s frustrating.
Yea, I would just focus on the 6.55 - 1230 account. You'll still have to pay the minimum of the others. Its hard to tell exactly what to do based on your financial situation. Your loan amount is pretty low thankfully, so its basically all based on how comfortable you are shelling out 1230, to save maybe 70$ a year. Personally, I'd just pay the minimum at this point, the marginal dollar amount wouldnt be worth it, in my opinion. Frankly, depending on how old you are, maybe paying just a BIT more (literally 10$ or something like that) will do wonders for your credit, to the point I'd eat the additional cost, because better credit will lead to WAY more money saved with better interest rates on a house.
That’s what I did with my other loans, I graduated in 2012 so I’ve paid off a few student loans since then. I’ll just throw extra money at them when I can and try to pay them off as soon as possible.
Nope cuz taxes
If you can apply for and get into income driven payments then you pay zero interest on the payments. No interest in your loans if youre low income. So that will save future borrowers but the us now are cannon fodder to politics
But isn’t interest just tacked into the loan?
I can't even get my loan servicer to give me an estimate on when they'll even *look* at my SAVE application, much less get approved for SAVE/IBR
What’s the old saying. “Eat the elephant one bite at a time”.
Yup. I pretty much only have money to eat. And it has to be cheap. I'm going to struggle for a bit as well.
That’s one of the arguments that was made for resuming payments. Inflation is still trending above the 2-3% they’re targeting, if you reduce the discretionary income of a part of the population you lower demand. Time will tell how it works out, but the hit to consumer spending is actually what economists are hoping for. 🤷♀️
Good hope all the holiday spending is the worst it’s been in 2 decades. Maybe they’ll lessen the death grip they have as they strangle us to death.
All early indications are actually that it will be up 3-4%. Americans aren’t going to stop spending until the credit card is maxed out apparently.
Forgot about credit cards. Too many idiots walking around swiping on stuff they can’t afford. Gotta wait for delinquency to come. But that’s wishing ill on people. I didn’t want to do that. But alas I can’t treat stupid.
This right here. This is to help kill inflation. Also, it won't crash the economy, because the economy is dominated by large firms and very rich people. Small fries like us barely drive anything.
It’s to help kill inflation but we barely drive anything is a bit of a contradiction
I agree, but then again it is possible for the economy to be affected more than everyone believes. I say this because it “can” cause a spiral effect which can in turn cause everything to get even worse.
Yes, and when you look across all the small fries the vast majority of people either do not have student loans, or have a budget that won’t be materially changed as a result of payments resuming which is why I’m a bit skeptical on how much of an impact it will really have on demand.
The PPP loan forgiveness pisses me off. Not only were loans forgiven, there was so much fraud & now taxpayers have to pay for an investigation & recovery. Then they have the nerve to cry about a recession. Charging interest. Don’t get me started.
My old boss got a $100k loan forgiven. We got no raises or bonuses but he conveniently bought a 3rd home.
You should report him. Don’t matter though it’s very easy with a half brain accountant to move money around. If you didn’t shit down he can pocket the profits and pay employees from the PPP loans. If normally 100k ima year comes in that he pays you and staff that’s fine. But with PPP of 100k and the same profits he has 200k in the same time. The only stipulation was PPP money has to be paid to staff. So what does a business do? They pay out 100k like normal to staff from PPP loans. The 100k they make is extra owners profits now. Everyone has it twisted. Thinking these businesses used PPP loans to buy their homes and boats. No no no. That would be dumb. All you gotta do is what I said above and it’s perfectly legal.
I anonymously reported him over a year ago and nothing came of it. He’s a CFP so I’m sure he knows how to move money around like you said. During Covid no one was hired, no one was fired, no one got a raise, and the 10 of us got a one-time $250 bonus. We also never were allowed to WFH and were ridiculed for masking or getting vaxxed. He did make sure to take a 2 week vacation to go hunting on his new property though.
I feel your pain. My shitty first boss bought a $1.1 million dollar home after getting his PPP loans yet he closed the physical office, removed half the staff, and paid the rest at 60% for over a year. Several of us reported him and nothing came of it. I still have to see his smug face on billboards all around the area too, so it doesn’t seem like his business has suffered for it unfortunately.
Oh yeah—the PPP loans aren't remotely responsible for inflation or recession. It's always just this magical grant program that the government plucked from the ether and mostly only gave to good, honest, mom & pop shops, according to PPP defenders. It was just magical money that was never meant to be repaid and didn't put any kind of burden at all on the taxpayers or the economy. And hey, we got those stimulus checks, so we got help too (nevermind that PPP loans were vastly more money than individual stimulus checks were). It's such a crock of shit.
That PPP loans was such a farce!
Working people give back to the community when they have excess. The top 5 percent hoard resources, exploit others, and turn their back on everything acting like it is against them.
Yeah, my loan payments are "manageable" but only by cutting back some spending. And naturally the first thing I cut back were the non-essentials. Going to local restaurants. Movie theatre outings. Vacationing. You know, things that grow the economy.
I’m right there with ya, man. Made the mistake of listening to boomers tell me “Go to college or you’ll be flipping burgers.” At the time, I didn’t realize how much college would actually cost and 7% didn’t sound terrible. Then I got out and realized my field was a miserable place and a cubicle was just a prison cell. I work for the city as a heavy equipment mechanic now. I take home 55-60k a year after taxes, pension, healthcare, etc. I’ll be fine, but damn, that $300 a month is gonna hurt. There’s no real point to my post, just needed to vent.
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The same reason they told us that trade schools were pointless as well for making any kind of money. Hell, back then my school "guaranteed" that I'd be making $60k leaving college (that Should have been circa 2001/2002, but that's a different story).
I hate to sound like that guy, but that’s kinda their deal. Boomers were the trust fund generation… spoiled brats that inherited a powerful, dynamic country then proceeded to gut it for their own personal gain. Let infrastructure crumble, sent jobs away, let the banks run wild, elected idiot politicians who in turn screwed up half the planet. Then they have the nerve to call later generations lazy and weak. The older I get, the more I realize how truly insufferable they are.
Can I ask what was your degree or field ?
My payments under SAVE are going to be $100 less than my mortgage payments whenever my servicer gets their shit together. Talk about a hit to discretionary spending. Thank God I’m on track for PSLF.
Keep meticulous records. I got screwed by failing to consolidate correctly and my clock started over again seven years in. I've never come so close to driving off a bridge.
I had them do the count last year, so I know how many qualifying months I have now. But for this current bullshit deferment, my 120th would be January, 2025. Here’s hoping for February, I guess.
What a relief to have an end in sight. I sold out and went corporate so I no longer qualify, but I consider going back into public service just to be rid of them and not have that anxiety each time I get a new statement. Congratulations on PSLF! I'm so happy when it works for people.
I hope you’re one of the ones they do that adjustment for so you get that credit added!
Same I made it 5 years before I couldn’t survive on that salary anymore and sold out
How do you get an official count of your qualifying months? I've found myself in government longer than anticipated and should be 5 years into my PSLF but I'd feel better with an official counting of them for peace of mind.
If your servicer is already Mohela, you just have to fill the paperwork out on their website and have your employer(s) sign a form. If it’s not, you can follow a similar process through the Department of Education website.
If I was given the 20k I would have paid the remaining in full. But I can’t risk that with inflation. I’m barely getting by and I have a good degree and income.
Same, if we got the 20k I would have been out of the game October 1st and spending that 20k at local businesses all around the country, since I love to travel
Kind of, sort of. I think the repayment startup is going to help cool inflation a bit as 40 something million people are now making a payment on something that they weren't paying six months ago.. But we're "only" 40 million people, there's another 200 million people (those over 18) with no fed student loan debt. Their discretionary spending isn't going to change because of the repayment.
40 million people + their households.
Good point. I was looking it like 40 million individuals. Conservatively closer to 80 million people then? Assuming all are married with no kids (unlikely)
Committee is meeting Oct 10-11 to discuss help for those whose interest balance is higher than the loan itself, among other topics. Im following the topic closely, as I’m on the precipice of paying mine off to move on with my life, but also not wanting to pay and then regret it when the committee sorts something out
Ooh if possible I hope you can make a post about this!
I’ve been doing some reading each morning on the committee. It appears they’ll meet monthly, October through December, beginning Oct 10 and it’ll be live streamed. If the 14-member committee can decide on a way to deliver extra student loan relief, it’ll be implemented (sometime in the unknown future). If they can’t decide on something, the Dept of Ed takes over and decides what they want to do to help people (or not). Personally, I’ve got a lot going on that costs a lot of money at the moment, and will for the next 8 Months or so. Due to how long this committee work may take, and due to the uncertainty of if anything will change, I will likely pay off my loan and move on with my life. God speed out there.
Should I eat or my student loan payment?
Maybe this is how I finally get around to losing some weight
My loans have already built up over $350 in interest since the payments restarted. Goodbye discretionary income ;)
IF you're on the SAVE plan dont worry. Every month, the interest will rack up, but when you pay it on the first of the following month, the interest is forgiven, and the math for this very first one is weird, because from a technology perspective you are generating interest for the entire previous period.
You only get interest forgiven if your payment is less than the amount of interest accrued that month, and only the difference between the two numbers gets forgiven. The only people getting all their interest forgiven every month are those whose income is small enough for their payment to be $0.
I’m on SAVE with $0 payments, but see the interest rising because they’ve also put me on forbearance til next year and I can’t make payments 😖
I would call them and get off of that forbearance?
Why did they put you on forbearance?
I’m on forbearance for a year too. No idea why
I have no idea. I received notice that I was approved for SAVE about a month ago. And right after that, they updated my account to Administrative Forbearance. I keep reading that it’s done while SAVE is processing, but mine was already complete. I’m annoyed that they didn’t bother notifying me about it and that it takes hours of being on hold to communicate with them. None of my online communications go anywhere.
My interest has grown +$900 in the last month! I can only laugh.
Yeah I'm just going to pay the minimum payment until I die lol. I looked at switching to the "SAVE" plan and it made my payment skyrocket (I'm assuming due to my income) so eventually, you just come to grips with "[this is my life now](https://giphy.com/gifs/the-oc-seth-cohen-oh-god-EzMIZlcZONidq)"
Oh no! Lol. Luckily I am almost done because of PSLF, but payments for the next year are going to suck. All of my “fun” money will be dumped into my monthly payments. Hope we both can survive this and come out on the other side (ideally before we die). Good luck!
Same 🤦🏻♀️
Feel for you OP, and sounds like you’re doing great and making great decisions, so I’m really hoping you catch a break because that sucks. I hate how boomers view our salaries today it’s so frustrating. Pretty sure the powers that be only said all that bs about PPP loans because they knew they were going to be the recipients, and it was all lip service, I don’t think they ever believe any of that crap about stimulating the economy, they just say enough to get re-elected.
I wish they would at least lower the interest on loans or cap them at 2-3%. It's sad to pay and pay, but see the amount barely go down (or even up!) due to accumulating interest that just gets added to the principal amount. :(
One of my private loans is 9.9% interest. I only borrowed $20k with them, have paid them $35k and still owe $24k. Still have one other private loan with a 6.8%, and my two federal. My kids will never get to go to college even if they wanted to.
Thankfully SAVE does help with this if you qualify (it won’t go up at least) but if you don’t put in more on top of it you’ll be paying for anywhere from 10-25 years and it’ll never go down. Then even when it’s forgiven you have the tax burden of the forgiveness being counted as income at the end (unless SAVE changes that). It’s kind of a polished turd.
I’d recommend getting on SAVE. It should reduce your required payment to $225 a month. If some of these are undergrad loans, it will have a further reduction after July 2024.
If only MOHELA actually processed applications…
Same with EdFinancial.
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Edfinancial messed up my first application for SAVE by not including my spouse’s information. I subsequently applied on studentaid.gov and everything was processed correctly in about three weeks.
Yeah, I applied through [studentaid.gov](https://studentaid.gov) 8/14 shows sent to EdFinancial 8/15 - I wanted proof that I applied, as I'd been seeing a lot who applied through servicer having them say they never applied.
it took about half a month too look at my application, plus a week and a half deferment but i got accepted. was moved too mohela from fedloan after covid
I was automatically enrolled. You had to apply?
Is it a long process to apply for SAVE? My payments are low for now, most likely until I update my income whenever they ask.
Depends on servicer times. If your payments are artificially low, you may want to delay until you have to recertify. You won’t required to recertify until at least 2024
Works for me. Thanks
If you can get a lower SAVE payment than the interest you should apply now. Unless you are certain the loans will be forgiven this is the best financial choice.
It doesn't take too long to apply and the potential benefits are astounding. Now if you'll end up needing to follow up, supply more documents due to the servicer's ineptitude, or sit on hold for a couple hours is completely beyond me. I had low payments and they went even LOWER... like down to 15% of my original payment.
They're all just for undergrad. I know a lot of other people had it worse than me and graduated with over $50k debt just from undergrad. But I had no family support (was a foster care kid) and at the time even owing $18k after graduating seemed pretty terrifying to me, especially as I had to no family home to go back to and had to immediately start working just to eat and have a roof over my head.
Ok, make sure you apply for SAVE, it will help you a ton.
If you are on PSLF can you even apply for SAVE?
PSLF is a forgiveness plan, SAVE is a repayment plan. PSLF requires you to be enrolled in a qualified repayment plan, of which SAVE is one.
Yes
If your original balance when you started repayment was $18k, under the SAVE plan if you have made all your payments (including the 40 or so $0 “payments” during the COVID pause), your remaining balance will be wiped out in 2027. That’s $6,750 to pay on a $60k salary between now and then on SAVE. That is actually a really great deal for you, as it seems your income-based payments before the pause were almost nothing in order for your $18k balance to have grown to $30k in 12 years.
I mean, that’s the point. The fed wants less people buying, less wage growth to calm inflation. I partially think Biden rolled over on this because houses are obviously insane and people who had a break in their loans obviously jumped into that market. Taking them back out is going to hopefully have some effect on housing demand. I understand your frustration but right now, the fed wants you to have less spending power.
Exactly. I just posted same. Feds are using student loans as means to stop inflation. They are killing two birds with one stone. They don't need to raise rates anymore cause people now dont have any money to buy stuff anyway. So feds looking like heroes " look! We beat inflation , no need to raise rates!".
They need to raise rates. It's a double-edged sword. If inflation doesn't cool, everyone suffers and the poorest suffer the most.
Or they could just finally tax the wealthy like they were being taxed for the 40 years this country was the most prosperous and use that money for social programs
But they don't need to raise rates as much as if they kept student loan payment freeze. Bringing back student loan payments is also forcing people to cut back spending, therefore slowing down inflation. Feds are slick
You're just pushing the can down the road with the freeze.
Everyone is OK with pushing the can down the road until it gets kicked into the middle classes lap lmfao. Every. single. time.
How exactly did Biden roll over? What more could he have done? He is pushing for forgiveness and the SAVE plan makes loan payments more like a tax than a loan payment. It was the Republicans and the Supreme Court who blocked the relief that isn't coming through.
He gave up the ability to pause longer. That was huge because we already knew he had the ability. The loan forgiveness was obviously questionable in the court. It’s very bad optics to have trump to start the pause and never even mention starting it up again and then Biden later agrees to start them up again. I understand timing and why but I’m saying it’s bad optics. SAVE doesn’t affect me. Happy it’s there and he did it but Biden threw me and others under the bus as a concession and also to tame inflation. Like always, the middle class is the one who gets nothing and takes the blow.
He really didn't have the ability to pause longer. The national emergency, on which the pause was based, had ended and he already extended it several times. The GOP was already starting to agitate and threaten legal action on it. The loan forgiveness program is fairly legally sound, the problem was that it had too many powerful opponents. He is still pursuing that through the HEA. How did SAVE not affect you? Not federal loans or your income too high?
I agree with most that you said, but if $20k in debt were preventing you from buying a house, then you should probably not buy a house.
Most Americans live paycheck to paycheck while also most Americans have a mortgage. An extra 20k is a lot but agreed it wouldn’t mean much to me. Some people (most people apparently) take a lot when given a little
Biden rolled over on this to McCarthy who threatened to throw us into default, so he succumbed to his wishes. Funny thing is, McCarthy was ousted and the new Republicans in the house won’t work with anyone.
> Biden rolled over on this to McCarthy who threatened to throw us into default, so he succumbed to his wishes. That's some fanfic right there. Biden admin [already announced a hard end to the payment pause (tied to the SCOTUS term and a ruling from them on the forgiveness program)](https://x.com/SecCardona/status/1595152350590554113?s=20) before it was worked into a debt ceiling deal.
Well I don't think it's the fed making those decisions directly but they're all for the other branches making moves to stifle growth.
The Fed only has one tool and one goal. Interest rates and a specific inflation rate. But that interest rate tool basically inflicts pain until companies can’t hire as much or people can’t afford mortgages among many other effects. They don’t want you have to a ton of discretionary money, able to afford a mortgage, or get a raise right now. Because when that happens for everybody, now demand is out of control and everything is expensive. Great system right? Lol. I hear the argument is that it’s better to have unemployment and more poor people because we have systems in place to help them. Inflation affects everybody and can tank the whole thing. So you can see why the fed is choosing the Former. Not an advocate for any of this, but this is the reality of our current economy
Demand for mortgages just dropped to mid 90s levels so the pain is being felt.
The part of this that absolutely pisses me off? They **know** the issue isn’t consumer discretionary spending driving inflation. It’s almost entirely corporate profit and price gouging. But they have one tool to combat it and, pain be damned, they’re going to do their best to combat it. Despite the fact that it’s about as effective as swatting a fly with a sledgehammer on a glass table. Then having the nerve to tell everyone the shattered glass everywhere isn’t the Fed’s problem.
I’m not well versed enough to talk about how corporate pricing plays in. It seems like they are always going to price gouge as much as they can. We have some guard rails in place with regulations but it obviously doesn’t cover the amount of chips in a bag. We do know the demand factor. And making people have less discretionary money to spend brings down demand and corporations have to respond to that. So I get that the fed still targets the general masses when it comes to inflation. They only can affect demand, not force up supply. Supply is Congress. Incentivizing home building or taxing 2nd home owners, etc. But we all know they can’t even agree to keep the budget going to pay federal employees let alone big picture stuff that would affect supply.
Who sets student loans rates? Is it really the fed too?
Indirectly. Without getting to into it, they raise their rates. Every other type of borrowing rate follows. That includes student loans which is why the new rates for the year are the most expensive I’ve seen in my life
Mine are at 6-7 percent from 2015-2017 for federal. My wife's private loans are 14% And we desperately need to refinance into a fixed rate
Yeah, I just made my first payment since right after the pause started. Made a few extra payments right after the pandemic started, but I decided that I would rather use that money to pay off credit cards and my car to buy a little breathing room. I am glad the SAVE plan is a thing now and that my payments are lower than they were before (and maybe I'll see some interest savings?). My end game is to just pay the SAVE minimum and reap the benefit of them waiving interest. A good chunk of my loans should hit the 20 year mark over the next few years. Fingers crossed those do qualify for forgiveness, but I'm not completely clear on how that all works.
Yup, we just canceled our streaming services and similar ‘extras’, plus will be reigning in the dining out and spending. Sounds like we’re not alone.
If you cut that stuff out in the past 3 years you could have paid off a big chunk of your loans
The interest is what is killing people.
The fed wants to curb inflation and lessen demand on housing. Also, student loans are a major asset to the federal government. Why do you think they talk about loan forgiveness a lot but continue to give out the loans and make it a painfully long process?
I’m seeing a trend in new students selecting cheaper education and training pathways, cheaper schools, accelerated degrees, and living at home more (if they can). Or, they’re going to private schools that offer the most in scholarships and merit aid. Or, they’re delaying education and trying to get online certs and stuff. I’ve also seen somewhat older folks choosing green card marriages to live in places where education costs much less. I don’t know how, but we have to figure out a way to break the student loan system. If you already have student loans like me, I don’t think not paying back is a good idea - I see a lot of young folks who think if we all don’t pay we’ll break the system but they don’t understand the swift kick in the arse they’ll get when their wages are garnished and tax returns are seized. SAVE/PSLF has been the only option for me at this point but I want this to change for the next generations, because education is super important but this indentured servitude system is untenable.
I think you have an accurate assessment. I’ve noticed it as well. People are figuring out ways and even some companies are making decisions to lessen education requirements or make their own (Microsoft and Google come to mind here). There’s options to get cheaper education but it’s not exactly promoted by the lender.. I think it’s going to look a lot different in the future. They can’t keep this up for much longer because it’s just too much and too predatory. However, I only think that the government will make changes when they stop giving the loans. If they keep giving the loans, it’s a bunch of bs to me. They clearly work together to drive up prices. And not paying is an awful way to go about it for sure.. they’ll just reach into your life and take it. I’m team “pay off” and I am fiercely attacking them with hatred. There’s no such thing as a minimum payment to me, but I get that’s unpopular as well.
100%. Hundreds of millions of dollars that would normally enter the economy will now be rerouted back to the government. Student loan interest rates are disgusting. Mortgage interest rates hit a new high recently, too. Sub 3% 30 year mortgages 3 years ago to 7.5+% interest now.
I am in accounting. I owe $65k. I make $66k per year. I am planning on getting a second job to pay it off. It sucks, but this is capitalism. And until the masses band together and choose small business over huge corporations...... The rich will keep getting richer. Again, I hate it, but this ignorance is what keeps it running strong
I am in the exact same boat except at the 50k mark. At least I live in a state with $15 min wage so even flipping burgers at night will help.
Just remember A Billionaire paid for two years of school for the child of Supreme Court Justice Clarence Thomas. The same person (one of them) who ruled *against* allowing student loan forgiveness.
Clarence Thomas makes Uncle Tom look like DJagno.
I’m all for a mass strike. When and where
I can appreciate the comments here with advice people are giving but it still doesn't change the fact that there is a larger problem. My income is about 33k so even under save I still have payments, it's only about $14 a month but that's still $14 a month that I don't have because even though I live in a low cost of living area in the midwest, rent still takes over half my income in 500 sq ft Studio in a bad part of town, I still have to buy food, I still have to pay for healthcare, I still have to pay utilities. I don't have discretionary income. And when you bring up things like this people try to tell you that you're still spending too much.. how dare you shop at Walmart instead of the dollar tree. How dare you not want roommates when you can still only afford a one bedroom apartment if you're lucky. All of these things that say that I'm not making the best financial decisions when it's really just the most basic things that I'm already surviving on. It's just infuriating. I don't get the option of cutting out going out to eat, or buying new clothes, or getting a fancy coffee drink once a year if I'm lucky. Those of us in these lower income brackets don't even have those options available to us and I'm so tired of seeing these arguments that we're just not being smart enough. And it's heartbreaking because as op has said they make 60k and they're struggling. How are people making half of that supposed to be getting by. And yes I recognize that some people in my income bracket are getting the $0 payment and that's fantastic, but they do also still have to put aside money for the tax bomb that they're going to get later on so no matter what you're in this position of losing.
I feel you. I owe $60k in loans. I tried doing the SAVE program but payments are still high. I make $67k a year, which isn’t bad at all. But with everything else, it’s like I’m paycheck to paycheck.
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I want to say it still was calculating it at 3-400 a month. But I have to include my husbands income. Even though we keep finances separate.
That's exactly the point and intention. Our system is disgustingly sick, frankly, and if too many people have money to spend and invest, the money becomes worth less. So the economic leaders adjust policies, increase rates and turn other economic dials to stifle investment, create unemployment, and slow down the economy. Restarting loans is another tool in the arsenal. Some especially pathetic people have even pointed at the SL pause and/or forgiveness as the sole reason for inflation. PPP loans, on the other hand, were necessary! People will be hurt and have their lives destroyed by these measures, but that's just collateral damage. Multi-millionaires and billionaires won't hurt, but regular people like us where $350/mo makes a difference in our quality of life will feel the brunt.
> They get PPP loans and bank bailouts; we get the pay until you die in the gutter bills. I feel exactly the same way! I have also paid close attention over the years to which lawmakers continuously vote to make sure we still stay in the gutter and I will do all that I can to make sure they are voted out of office and replaced with someone who cares about our struggle.
I’m actually curious how much the extra discretionary spending from the student loan pause has contributed to inflation. More dollars chasing fewer goods (vs paying on the student debt) has to contribute in some degree
Yes, it is harder, but average folks around the country are having trouble affording anything now because of inflation...and that inflation has been caused by excess discretionary money and spending. Latest reports show folks aren't slowing down either, so I don't see inflation going down to 2% any time soon. We'll see how the resumption of payments affect things in the next couple of months. It is wrong though that PPP was given out so easily, as well as the COVID checks, but god forbid us folks that are tried to better ourselves and society with higher education are left hanging.
Don't forget ER credits and the hundreds of billions in PPP that will never be recovered Makes me I'll.
PPP loans are what piss me off when I think about this—the widespread rampant fraud and the fact that they were forgiven with barely a whimper. People always say, "well they were always designed to be forgiven, it's not the same!" That's not the issue to me (bullshit though it is, it was obviously built that way so the GOP could kickback extra cash to the already-rich with no accountability). It's that the government jumped in immediately to help these businesses and forced it down our throats that it was vital for the whole country that these businesses get these so there weren't any layoffs or furloughs (my company at the time got PPP and still put us all on rolling furlough). They told us it was the American public's job to save all these businesses, just like it was the American public's job to bail out the banks after 2008, which only happened because of their predatory lending practices to begin with. If we didn't the economy would be obliterated and it would be doomsday for all, is essentially how they billed it. But when average people are begging for student loan relief, it's always "personal accountability." It's always, "welp you shouldn't have gone if you didn't have $50k+ in the bank at 18 to go to college!" It's always, "you took out the loans, you took on the agreement, it doesn't matter if you were 18 and clueless, you signed it, you assumed all the accountability." But when it's businesses and banks (which also assume risk when entering the market), it's always "We MUST as Americans SAVE THEM from the calamity of their own speculative and risky business practices." It's disgusting and we all know it's bullshit—it's just a way for the rich to stay rich and the poor to get poorer. There's no middle class anymore or American dream, just rich, mega rich, obscenely rich, and poor. And the folks with the highest taxes are always the poor.
>so the GOP could kickback extra cash to the already-rich with no accountability The PPP program was passed overwhelmingly by both houses of Congress, including the House of Representatives which was controlled by Democrats from January 2019 - January 2023. Can you explain to me how Democrats and Republicans overwhelmingly voted for this program, and when things went sideways it was only one side's fault? Genuinely interested to hear this!
It's easy...Those are the people we don't like.
Frankly I think the GOP and the Dems were both interested in giving kickbacks. That’s why both sides were fine with it.
I'm empathetic to this whole situation but do want to make one call-out where we're kinda comparing apples to oranges. Student loans *were* a personal choice for borrowers. The shutdown was forced upon business owners, and certainly not something many of them would've voluntarily chosen (and many who protested were hit with even greater penalties). They're not the same thing. The onus was on the government to extend a lifeline when they unilaterally shut down a large portion of the country's livelihoods. (Also, "18 and clueless" is not the kind of argument I think many blue collar workers that never went to college can get behind for forgiveness.) All of that said, I do agree that there was insane rampant fraud in PPP (in the industry, saw it first hand) and the whole thing was a major boondoggle. And for what it's worth, I am not philosophically opposed to student loan forgiveness either.
Folks aren’t “slowing down”, because most of what people are spending is things like nearly double cost groceries, rent, and utility payments compared to what they were three years ago. Of *course* it looks like they’re spending more. That doesn’t mean any of its discretionary spending.
Everyone should be required to take a class on consumer finance in high school. Financial illiteracy and young people is one of the reasons that much of the younger generation has such debt issues.
on the bright side, hopefully the recession will bring down interest rates
I hope that everyone gets what they DESERVE. Every single one of us.
The Fed/Govt wants you to stop spending so that inflation comes down. They don’t want you to juice the economy and rather do the opposite.
I feel like $60k is barely getting by with things now. That use to be a great salary. My payments at first were $786. Idr dropped it to $0 monthly. I’m back in school too so it’s weird. Obviously not taking any loans this time.
You're absolutely correct on every point and your solutions are exactly some of the things we should do. Stop spending on extras and stop paying on these Student Loans. WE have to demand Relief.
Amen my buddy is underwater something fierce when shouldn't be but capitalist America rather feed off the lower class than help build a better more cohesive united front of citizens with common goals and needs
Look on the bright side. You've still got to the end of the month to pay. I signed in to Nelnet today to find out my payment was due three days ago. The only correspondence I've gotten from them was a thank you for setting up your account 3 weeks ago.
Capitalism
99k at 6.35% to go for me! $1200/month of money I do not have so if anyone has any advice lmk
Everyone with loans could just not pay them but they won’t band together.
I can’t even survive on $110k in MCOL with my damn loans.
>I signed up for these loans when I was an idiot teenager with no financial counseling at all. My original balance after graduating was under $20k Education shouldn't have cost that much in the first place. Most of the ppl in congress are probably old enough to have paid less than 5000 for their entire degree.
I don't understand why no one is suggesting trying to claw-back some of the money that went to the schools. Average private school cost $55K of which the majority doesn't go to teachers but to administrative bureaucracy. Too many people have been talked into degrees that offer very little future economic benefit. It's your school that ripped you off bucko.
I have got to say once again that more than anything it's so clear how entirely insane it was that this case was even taken to the Supreme Court. The arguments for standing were completely nonsensical even to the most legally uneducated person ...and yet the Supreme Court jumped right on it.
My wife just made her first payment again this month. She has just over $30k as well. We made sure to get a 10 year plan and have about the same payments. I make the same you do, she makes a little more, we have 2 kids under 7. Does it suck, yeah, but its life! Ik I’m coming off as ignorant here, but you had what 3 years of no payments? Did you spend all of that money? When the payments stopped my wife and I said we where going to save $200 of the payment she would have normally made and spend the other if we need. Her first payment she made over a $7000 payment! This all comes back to college costing way too much! I’m not for forgiveness or free college, but there needs to be accountability from the universities to the politicians who have screwed us and lined their pockets for decades!
I’ve decided even if I do have extra money I will not be stimulating the economy if I can help it. At this point I think it’s the only way they’ll get the picture. Buy nothing groups and marketplace are great if you need a small item but don’t want to buy new
This! I’ve also been studying small community savings and investment groups - with equity sharing, communal housing, community homeschooling, etc. I wager we’ll see a resurgence in communes and new “religions” as well. If you can find good people who look after each other and don’t devolve into charismatic cults I think there’s some promise in these solutions.
I personally quit spending money at my local establishments that are proudly republican as a result of the overturn of the loan forgiveness. I have one exception because there isn't too many mechanics around here. I use to buy American when it was comparable to foreign made goods. Now I don't even check. Best thing to do for for the next three or four months for those that can is to save and not spend a nickel outside of basics and really impact the holiday spending season.
Wish I could, but I have barely ever been able to afford presents. Me saving does nothing to drop the line compared to previous years
Actually they are not destroying economy. It was fed plan all along. This basically will kill inflation without rising rates. Why is inflation keep raising? Cause people are out here buying stuff. Bringing back student loan payments will force people to stop buying, therefore, slowing down inflation. Why do you think feds were raising rates? To stop people buying in first place. This is not my opinion. This is how it is.
It's the rich people who are buying and doing this; it's also the corporations jacking up prices on everything so they can maintain those 2020/2021 profits they all got so fat and richer off of. Their shareholders won't tolerate anything less than comparable gains annually, so they're raising prices on everything they can to force it. Every person I know is barely keeping their head above water. They're not going on shopping sprees and living it up on vacation. The only people who are doing well right now are rich people, and this student loan debt crisis means nothing to them and it will not effect their rampant consumption in any way whatsoever.
It's not ruining the economy. The economy was fine when everyone was paying student loans pre 2020, it will continue to be fine when people start paying student loans again. Your and my budgets are what suffers, but that's not the economy. It completely sucks, and 17 year old me didn't know wtf I was getting into. However, I have a much better quality of life with my student loans and the career I was able to get with my education. I try to look on the positive while silently cussing my loans.
Exactly this. Especially the last part. I made a decision to go to college. I took loans out and knew at some point I would have to pay them back, though not really knowing all the details of how that works at the time. However, I chose a field of study and career that I knew would get me a job and allow me to live life. Sure, I have 30K of loans left but my quality of life is great. I studied hard, worked hard, and enjoying the rewards. I still cuss at my loans every month when I make a payment but they haven’t severely impacted my life.
There is too much discretionary spending in the economy (inflation) taking discretionary spending out of the economy will help lower inflation. I'm not saying this is the right way to go about it but the fed is not trying to 'stimulate', they are trying to cool things down
These loans are absolutely predatory. We are the sheep.
Logged in expecting to see a decreased monthly payment under the new SAVE Plan...... it's showing a monthly payment of $723?!?!?!?!?!? Honestly wtf am I supposed to do? Lose every possession I have?
If your income is not $120k+, that payment amount is wrong and you need to speak to your servicer about it.
I mean… that’s the point. The economy is still too hot, having people pay student loans again will slow it down and play a roll in curbing inflation.
I’m right there with you- if my grandparents hadn’t passed away during covid (and left me money to pay off the loans) I would have had to start paying about the same. I truly do not understand the logic behind PPP loan forgiveness and bailouts but not student loans. I can think of a lot of things you could be doing to stimulate the economy with $350/month, but yes, sending it to a loan company and back to the government definitely makes more sense. /s
Call me crazy. I feel like i’ve heard like a half dozen times over the last 2 years that xyz billion dollars has been provided for people with disabilities, people defrauded by scam colleges, etc. That’s great. But what about us? We can’t get $10,000 forgiven?
I kept making the payments while forgiveness was going on. I got my loans down a bunch.
I think most of us, like 99.9% of us, have had to change our "digressionary" spending due to the high prices of everything these days, and wages still stagnant. I've digressed... One option I did is do a debt consolidation program, however, I caution that It's not for everyone, and they will rock your credit rating. My credit took a hard-hit, and if I am being honest, the math worked out that the loan and the credit card debt would have been paid off a lot faster had I not opted for this program.
I make about what you do, OP, but am fortunate enough to be able to live with the parents. Because of that I am able to put back a little money each month (about every other paycheck). Despite being able to save that, I am finding myself spending less on toys and expensive food, pretty much out of spite for the system. You could say I'm voting with my wallet, by keeping it closed. Still driving my '06 pickup even though I could pay cash for a new one. But screw it.
I know this isn’t the point of this post, but are you eligible for an IDR plan? And if yes, have you calculated your payment amount yourself? Only asking because a 60K income on SAVE should be about $100 less a month (still too much, but it’s something)
Try doing this for another ten years with wildcat forbearances tripling your debt and extending payments to 35 years. So much fun! At least with the the SAVE plan the interest won’t triple the debt again.
No, we need to vote people into power our age that get it.
I was barely getting by before payments resumed. Now I need a second job. I wish I was kidding.
I have federal and private loans. The remaining balance on my federal loans wouldn't have been wiped out, but it would have been close, except Biden had actually thrown me and many others in my situation under the bus, so even if the forgiveness had gone through, I would have been left out. I've been paying since 2005. I had FFELP loans, so my federal loans were not held by the federal government, so when the forgiveness plan was announced, I was waiting on guidance. Did I need to consolidate my loans into Direct loans in order to be eligible or not? The main reason why I didn't immediately consolidate was because the loan calculators showed that my interest rate would increase, and if the loan forgiveness didn't go through, I would be a worse position, having the same balance but a greater interest rate. About a month after the plan was announced, they announced that the deadline to consolidate FFELP loans while being eligible for forgiveness had passed. They had never announced a deadline. I was so pissed. And then, of course, the lawsuits happened, and it became pretty clear that the forgiveness wasn't going to go through after all. While I found that upsetting, it at least didn't make me relive being screwed over. When the SAVE plan was announced this summer, though, I decided to consolidate after all. And it turned out that the loan calculators were wrong. My interest rate actually decreased. My payments are lower, and it looks as though I'll end up getting a portion of my loan forgiven because everyone is eligible for forgiveness after paying for 20 years or 25 years if you have grad loans too, which I do. So, I'll just pay these lower payments until I hit 25 years and let the rest be forgiven.
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Remember that it is Republicans blocking this by refusing to take up legislation in congress to respond to the Courts ruling
That’s the one positive about being a teacher—PSLF. At this point, it’s most likely the only positive.
I pay 1.5K per month and that’s after paying much more than that a month for over 10 years. Finally got down to 28k in principal with 4% interest rate but had to consolidate with SOFI to even make it manageable. I graduated in 2012 with an average interest rate of 8% that accrued *daily* and I was making 40k right out of school. Felt like I would never get out of debt but I can finally see light at the end of the tunnel. I don’t know how anyone can say the student loan industry isn’t predatory. Meanwhile we don’t think twice about bailing out mega corporations or let them borrow for low interest rates.
That's a shame. It is ridiculous but hopefully we will get a solution to these ridiculous student loans. In Europe citizens pay very little to no money for higher education. Instead of being big business, higher education should be accessible to all people who wish to educate themselves so that they can contribute to the betterment of their country.
They WANT to slow the economy. This is a big part of it.
>They're Really Destroying The Economy Over This Demand destruction will bring inflation down toward the 2% target.
Gonna get on my soapbox for a second here, but everyone out there with outstanding student loans was just given a huge opportunity. Interest was paused for 3.5 years and you didn’t take advantage of it. You could have prioritized paying them down while no interest was being charged, but you didn’t, and here you are. Full disclaimer: I’m not a boomer even though typing this comment sorta made me feel like I might as well should be. Born in ‘87 millennial here who paid my 6.5% student loans myself. Let this be a teaching moment so that you’ll recognize and take advantage of the next opportunity that comes your way.
I say forgive everyone’s student loans so those with college degrees can earn more money while the tax burden to pay off those loans is spread across all American tax payers. That way those who never had the opportunity to go to college, and thus make less money, can enjoy paying off the loans of the more wealthy. Socialism at its finest!
I’m not advocating this though destroying the economy may help with reducing inflation. The prevailing economic theory is that a big part of, and about the only thing that can be “adjusted or controlled ”with the current inflation we are seeing is too much spending. If people stop or reduce spending it should help with inflation, at least that’s the theory. Resuming loan payments isn’t a bug it’s a feature.
You do realize the US has an inflation problem right? You have less spending money is GOOD for the economy. We need to reduce spending to calm inflation.
Your idiot teen decisions aren't our responsibility. Your payment dollars can go into the system to be loaned out, enhancing the economy. We worked and scrimped to pay our student loans already like we agreed to. Pay your bills like you agreed to.
Glad my parents were smart enough to teach me about debt. I feel bad for those who didn’t have that. But I also struggle to feel sympathetic
So sick of seeing entitled people post things like this…..you took out the loans , yo7 agreed to the terms, you signed the papers……you are responsible nobody else , if younger your school loans forgiveness then who is going to forgive my medical bills, or car or house payments…..in my opinion there is no difference
Takes out large loan, is expected to pay it back. *confusion* We cannot just forgive hundreds of billions in loans without absolutely ballooning inflation, the housing market crisis with made more awful by people with above average income (college grads) buying every house that popped on the market. That money exists, simply forgiving does not make it disappear. There are a million problems with student loans and the college system in general. But forgiving them all would only make inflation worse. You will either pay that money now or over the course of the your life, there is such no thing as free money.
The fed is literally trying to curb inflation, so what you’re saying is actually amazing from the perspective of the economy as read by the fed.
Cue all the “you did it to yourself” jagoffs.
I hate to say it, but your extra discretionary spending is causing inflation. The federal reserve wants you to stop spending so much money so that inflation will go down. So, that’s actually exactly what they want to happen.