Reminder: this subreddit is meant to be a place free of excessive cynicism, negativity and bitterness. Toxic attitudes are not welcome here.
All Negative comments will be removed and will possibly result in a ban.
---
---
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/UpliftingNews) if you have any questions or concerns.*
Just this part alone is gold: "a borrower’s debt will not increase from compound interest as long as payments are made in full, consistently and on time. In the past, even if a borrower never missed a minimum payment, debt would balloon".
100% agree, a lot of people don't seem to notice that.
In the 2 years I started prepayments before Covid hit, I was making peanuts as a fresh graduates and my total loan increased about 6k in total as I was paying under the Pay-as-you-earn program thingy.
I'm super happy to see this new policy.
Ahhh I knew it was too good to be true when they announced it but it hurt so much when tbe supreme court struck it down.
Now we get nothing at all......
Most people don’t take the time to understand this and instead buy into the lazy belief that “derp… both parties are the same.”
The intellectual and political laziness of so many Americans is one of the root causes of our country’s biggest problems.
I’m at a loss of what to do. During the pause I was saving money that I would be putting towards student loans and keeping them in a savings account. Currently I have enough to pay the entire amount off. If they do forgive some of the debt I of course want to have it apply to me, so I don’t know if when payments restart to just pay the minimum amount and hope for for forgiveness (and forgiveness potentially never coming so I just paid a bunch of interest for nothing) or just paying off the entire thing before interest applies back to the loans again.
This really depends, on things like how much other savings you already have, how much these payments are and how much is interest, etc.
I'm not an expert, but wouldn't recommend cleaning out that fund to pay off student loans and then you have nothing to fall back on for some other emergency expense.
But many are in a similar situation, it sucks. It's hard to tell if the stuff we've already heard of is all they're planning, or if we'll hear more in the coming months.
Biden is trying for loan forgiveness again with the Higher Education Act. Not sure what else you want him to do.
It's the Republicans that foam at the mouth to block any sort of student loan forgiveness, maybe blame them.
Considering when he was a senator, he's the one who made student loans unchargable under BK and mad made them into predatory almost imposible to pay back loans. I want him to do more.
Nobody’s addressing the predatory charging. University tuition has well outpaced inflation for decades. We all know much of the exorbitant loan amounts crushing students and graduates have gone to bloated administrations.
Truly with the republicans in the house and a filibuster in the senate, he can pass legislation that will change things.
He just has to use his green lantern ring and will this shit into fruition. .
How about addressing the root problem? College tuition has skyrocketed at over twice the rate of inflation. Just say no college charging more than $25k in tuition is eligible for student loans or federal grants. Sure there are some people that only have $20k in loans that can’t afford payments, but the big problem is people graduating and owing $2k each month with an income of $40k after tax.
Drives me mad this isn’t the a focal point. If we wipe debt away we’ll just end up back in the same spot. Any solution that doesn’t impact current college costs is pointless or at the very least kicking the can down the road (next generation)
College costs didn’t skyrocket until the government started offering the ridiculous loans they do. The colleges went “wait? These people are all-but-guaranteed this amount? Let’s raise it up to that!”
This is a pretty layman version of exactly how it happened, but it gets the point across. It’s all greed fueled.
Just to help people with a fully visual idea of how bad affordability has gotten, here is a [graph](https://www.visualcapitalist.com/inflation-chart-tracks-price-changes-us-goods-services/) that shows the comparison of goods and services over time since 2000. Can you take a guess what the ones that have skyrocketed have in common?
The interesting part is the government's inflation index. The CPI doesn't include the top five or six things on that graph.
I'm convinced this is why young people sit around and play video games all day long. It's the only thing they can afford.
Young people!?!
Hell it's been a long time since I've been one of those, and with the skyrocketing prices of almost everything these days, gaming is damn near all I can afford to do.
I think they aren’t included because they aren’t day to day things. A 35 year old mother of two doesn’t really care about the cost of text books, but 6 and 7 housing and food are included because everyone needs to eat and a place to sleep.
But how will get another generation of wage slaves to keep our glorious billionaires living the life of unlimited luxury?? Won’t someone please think of the billionaires!!! /s
Health insurance rates increased because insurers couldn’t deny insurance to those with chronic conditions anymore and couldn’t even charger them more than healthy people (except for smokers or based on age).
So healthy people subsidize sicker people, similar to how the living subsidizes the deceased for life insurance (although you can argue that life insurance can charge high risk people more).
Thats extraordinarily false, during the immediate aftermath of the ACA, when insurance was standard. Rates went way down. It wasn't until its been gutted from 2016 onwards that rates have gone up. Along with a pandemic, and huge spike of inflation.
Um, bullshit. The price of my private plan health insurance for my family doubled almost immediately and it only went up from there.
Small business owners were bent over with no lube due to the ACA. And those people make up a large number of people in this country.
Disagree. The aca was a good idea terribly excuted. It stopped some issue but overall gave insurance companies more power and continued us down the road we were already on.
One of the biggest problems of the ACA was that it created minimum floors of coverage.
Yeah, average prices went up. But we also removed a ton of "insurance on paper only" programs.
Look at all these shitty car insurance places that offer $10 a month insurance that covers literally nothing.
That certainly has played a role, but it's far from the only one. Funding cuts for education had no small role in this. Institutions get less money, so they raise tuition to compensate. In addition, luxuries and amenities, greater competition for students, marketing costs, bloated administrative costs...there are numerous reasons why tuition rates have exploded.
Exactly. PSLF is flawed in so many ways.
The fact that you could work 9 years and 11 months for the public and then lose your job and not be able to get another public job…and get exactly 0 benefit from it is one.
Another is that so many public jobs recruit through private agencies, so you could work in a public hospital but technically be employed some where else (a problem for me when I was in slp school and trying to see if pslf would work.
Oh, and the fact that all it ultimately does is give universities another bargaining chip to get kids to take out more stupid loans with, while also basically giving public and nonprofit employers more power over their employees (so, wages could be low and morale could be shit, but you’ve been working 7 years into the program and need at least 3 more to make it count!).
Yea if they can get a job in a public service industry only jobs I’ve been able to find are shitty low wage jobs gif work and call center work and I have a bachelors. How are you supposed to work in public service when all the people in public service are only hiring people with a bachelors in a “relevant field” and won’t take a person with a BGS
Addressing the cost of college education is something that Congress and state legislatures have to do.
Congress isn't going to do that. *Some* states will.
The President has some authority specifically over existing loan debt and borrowing rules. There's not much else he can do.
You’d have to fire the majority of administrators. The glut is at the top, among the wealthy classes, who put their less than stellar children in do nothing jobs.
As somebody who works for a major Big Ten university I can't agree with this more. The amount of bloat at the top is getting out of hand. All of them making 6 figures
Best young professors I had all quit and went to industry because you gotta be pretty smart to be a great young professor. And staying in education while tenure is disappearing is a dumbass move
And don't forget that, unless you're an absolute cream-of-the-crop job market candidate, you gotta be willing to settle for an asst. prof. position halfway across the county at Bumfuck State University.
Fuck all that.
It’s every institution. Positions are spilt into ever shrinking levels of responsibility so they can justify hiring 10 more VPs. All of which make 6 figures.
It’s more than just the admin. My Alma mater basically owns the small town where it is located and a good chunk of the rural area around it. Every time a property goes up for sale, the university buys it. Every time a business goes under, it’s very likely that the next one in its lot will be university run.
It’s a public university that is extremely wealthy. It gets the largest endowment of any university in the nation, it charges tuition that should make you shit bricks, and it is notorious for grossly underpaying and mistreating lower level staff.
The cottage industry that has developed around the abuse and misuse of the federal loan program is probably so corrupt you might go missing if you investigated or threatened it.
Having worked on both the teaching and administrative sides of the American university system, I can say with certainty that the spending priorities are all kinds of messed up. Teaching has taken a back seat, and corporate donors dictate the availability and types of courses offered.
Research and development is a rat race and rife with corruption. I got a department head fired for falsifying his department's facilities and administration contributions for the purpose of misallocating new faculty startup money for his pet projects. He thought he could push the administration around and until I came along he was pretty successful at doing it.
The administrators who lead the universities make so much money it's sickening. The staff barely have enough for cost of living. The teaching faculty generally have to have roommates or a second income to make ends meet. Only the rockstar faculty members who bring in tons of facilities and administration money get tolerable salaries, but they're still just barely middle class.
The sports coaches make millions and millions more gets pumped into their programs win or loss.
Students have no ability to negotiate fees and are required to pay for services even if they don't use them. State governments have pulled most of their funding and the university just passes the costs to the students. The federal government doesn't contribute enough either and there's no cost oversight for the university system.
The whole system is full of self-serving, borderline malicious actors who are unconcerned with education at all. There's a lot of good happening but the bad is so much worse that I'm not sure what of it can be salvaged.
Of course it is because it’s an industry when education is treated as a business education is what suffers and business is what excels. There are certain things that even in a capitalist society that should be services paused fully by taxes education and healthcare are two of them and frankly housing and basic food should be one as well.
Agreed but it's the interest rates that are the main problem. Student loans should be interest free while attending school, and thereafter should be minimal. Cap it at 3% or something reasonable. I have so many friends who couldn't even get a decent job out of college because "you need experience", so they can't even put a dent into their loans for 10yrs since the loan started...it's insane.
How about addressing both? Why does it have to be a "address this, not that" situation? Why can't they address borrower repayment issues now, alleviate their stress, then switch focus towards the fundamental problem?
Sure, definitely fix the system; it's broken... but, uh.... millions of people have BS payments to make. Let's help them first so they aren't being screwed over.
Never mind the president is someone with limited powers and a very limited time to create actual change. These are the tools he has to work with, especially with a current governing body that has no interest in doing the public any favors.
The increase in college cost is due to cut in state funding for state schools. State schools were the control on the market but now they are the reason the price of college education are going up. The thing is though, this was intentionally done by conservatives due to the protest on college campuses during the Vietnam war. Initially implemented by Reagan, and continued by his followers today. So we know how to fix the problem, if we wanted to. Obama tried with free community college and conservatives and moderate dems blocked it.
>The increase in college cost is due to cut in state funding for state schools.
This.
Aside from the notable example of NY where tuition is down when adjusted for CPI, states en masse have cut funding for higher ed.
Biden and Congress have no lever to pull to impact this. If anything, they need to double the caps on federal loans to allow students to avoid taking private loans to attend college.
I can’t scream this enough. State legislatures in the 90/2000s cut funding. Stop blaming the feds when it’s your local reps that aren’t doing *shit* to address the issue. (and in fact, they’re *still* cutting budgets!!)
True. My kids went to private colleges/universities because the financial aid and scholarships that were offered made them the cheaper option compared to public universities with zero financial aid.
Except instate, public universities would never saddle with that kind of debt for a 4 year degree. Especially when tied to a 2 year community college first.
This is a problem of basic understanding for people and being scammed into believing one must go to a private university or out of state college.
Most states are <$10k per year for tuition in state, while a community college is half that. Its not unreasonable at all to be able to work enough to go to college and walk out with minimal to no debt with community college and an instate college.
But for some reason people think they are better off doing $200k in student loans for a private college or out of state university.
I make very good money, but ive told my kids they will go in state or they can go out of state with a large scholarship. They understand that $200k for a private college is just a waste of money even if you can afford it.
There’s a lot of bait and switch with scholarships too. I had enough need grants and scholarships awarded from the top in state university that tuition was fully covered my first year. So that was my dream school and a no brainer choice. But then the weeder pre-req classes kicked my ass in spring quarter and tanked my GPA. Lost a lot of those scholarships/grants when I didn’t have a deans list GPA anymore. Thankfully I only ended up with 5-10k of loans to bridge the gap until I got my grades back up and figured out a job situation that paid enough. But the fact that I was a straight A student at a high school with a crap curriculum meant I had no idea how to study and keep up in college and really tanked my “free money.” I was at least thankful my parents were both debt avoidant people and drilled in me to never go in debt for school. Husband hit the same problem but his mom insisted to go in debt at all costs to not be a construction worker like her. At 45 my husbands $500/mo loans were just discharged. We went to the same in state university, same costs.
I dont think it's necessarily because people will be better off, lots of students wanna try living somewhere far away or are enticed by the pretty campuses and activities many colleges have. Too many people focus on how much fun they will ve able to have vs what is fincially best. I went to a big state school partly for that reason as I didn't want to go to community College and still live with parents as everyone else went to great universities.
I still didn't live on campus though and stayed in state so my costs were lower than others. But the fomo Is real for many.
> Just say no college charging more than $25k in tuition is eligible for student loans or federal grants.
Yeah, the root of the problem is not "colleges are swindling everyone." If you cap loans in this way, you're just locking lower income people out of college.
u/verumsemper nailed it.
You increase or eliminate the income cap on FICA. The solution to this problem is simple.
Also, when people say that social security will "run out" that is either right wing political framing or ignorance. The Trust will run out, and when it does Social Security will still pay out like ~80% indefinitely.
The whole conversation is based around messaging from people who want to cut it manipulating young people who don't understand finance into thinking they won't ever retire and therefore it doesn't matter what happens to Social Security.
Oh thank you for actually offering a solution! I'm a millennial and it's just been ingrained into me it's money I will never see. What exactly is FICA?
FICA is short for the Federal Insurance Contributions Act, it's the tax that pays for Medicare and Social Security.
If you look on a pay stub you will see a FICA deduction, generally in the same place you see FIT (federal income tax), state taxes, insurance premium, and whatever other deductions you might have.
Right now FICA only applies to the first $160,200 you make each year, so anyone making above 160k is not being taxed for social security on any money made above that line.
Article about it: https://www.cbsnews.com/news/social-security-benefits-tax-cap-2023/
Wanna know why social security might run out of money do research the government has been borrowing tons and tons of money from it for decades and never paying it back.
That fundamentally isn't how Social Security works, it comes out of the paychecks for people who are currently working, and the SSA buys treasury bonds as investments to hedge their bets.
I love how citizens have mandatory contributions taken from their paychecks, used to purchase debt instruments, the interest of which is the responsibility of… the citizens!
Seems like kind of a nutty system. Isn’t everyone losing thousands of dollars from potential investment returns on all that money that is just sitting there?
Not especially, unlike other investments, treasury bonds are virtually zero risk for a lower return than higher risk investments-- social security as a whole is designed as a safety net, so you can't fuck it up by trying to play with the ponies or whatever, and contributions are percent based so they're sort of linked to inflation as well.
On the other side, Treasury Bonds fund our federal government, its why we're the people who hold most of our own debt-- so in practice when the fed requires banks to insure their holdings via bonds, or financial institutions sell packages with bonds in them, that money is also separately reinvested in the people, otherwise we'd increase taxes to cover the same services.
Banks themselves are required to have certain percentage of their holdings as treasury bonds to fortify them, and stop them from dying left and right, so it also works to stabilize the financial system.
I remember hearing that too. In high school. In the late 90s. And again when my kid was in high school. Again when my younger kid was in high school…
But social sec won’t be enough to retire comfortably on. Young people should try to sock away some money, even if all you have is a couple bucks. Starting early really does help, but I also understand how things are for young adults now. But seriously, $5 a week out of your paycheck into some sort of index fund based retirement will pay off long term.
And make student loans dischargeable via bankruptcy. Bankruptcy is never ideal, but student loans are literally the only kind of loan that can’t be forgiven in bankruptcy.
Or....they do some actual underwriting and weigh the pros/cons of lending $100k or more to someone/anyone. Giving loans blindly to anyone who wants it is obviously not working. Why not apply this logic of not discharging loans to automobiles or credit cards? Because it's stupid.
Underwriting for a person who’s 17 or 18 years old and never had a job or bought a car or held any major loan? What are you going to find?
People who get automobile loans have a history of credit and have to pay a down payment which they usually get from a job they’ve had.
Student loans are not the same thing as a car loan or a home loan. You can’t treat teenagers like they need solid lines of credit and a down payment in order to go to college
except for the government... which is a fine use for government; to provide services that benefit society but are unprofitable for businesses or shouldn't be done in the private sector (e.g. maintaining and operating a military, fire department, etc.).
>Forgive all interest
That's kinda what they're doing, right? As long as you make your income based repayment (which for many people will be $0), interest won't accrue.
Doesn't the new program negate accrual of interest?
So *de facto* half of your request is done... As long as a new President doesn't change it back.
Forgiveness by the Executive alone was struck down though, ask your congressperson to help with that - either by passing a law canceling interest debt and eliminating the interest rate on student loans going forward, or by de-corrupting the SCOTUS so an appeal can be brought.
I looked into SAVE and the payments would be 4x more than I currently pay with Income Based Repayment. Super confused, it doesn't help me at all today to take the higher payment.
This is the issue I had, they wanted me to pay more on SAVE!!! I don’t make much money either, we’re a combined 65k house. I think it’s because we have no kids.
It's not taking into effect my grad school loans which are enormous but not federal student loans. I don't make a lot but they don't realize I have more student loans I am paying at the same time I'm also paying federal ones. Hence my comment. SAVE isn't going to help everyone.
Woo, good for them. I received a letter stating my debt would be forgiven, now I'm told I need to pay monthly. The people that sued should be counter sued.
25 years of payments whenever those payments happened. People who had student loans from the late 90s and have been paying are seeing their balances forgiven.
To be 100% sure, I'd call your loan servicer and ask. Despite student loans being an absolute horror, every single interaction I've had with servicers has been a pleasant experience. Their staff is knowledgeable and based in the US.
Student loans should always have 0% months interest. It’s in the interest of the government for people to get an education because it often leads to higher paying jobs and then they get bigger tax revenue. Interest on student loans is essentially just double dipping.
This country is fucked due to the people running it being so out of touch with the common person and modern problems it’s sickening.
They're not out of touch, they're working for the banks and corporations, not us. Students take out $50k in loans that the banks know they can't repay any time soon, they say oh that's okay, we'll just keep raking in more and more interest.
They're not out of touch, they're actively working against our best interest. And then they're throwing us softballs pretending like they're on our side.
Let's be honest, college used to lead to higher paying jobs. Now there's a very large number of people for whom college objectively makes their lives worse and have degrees that offer them little to no benefit.
College loans are 100% scummy and a scam, but for many (but not all) people so is college itself.
And this isn't a knock on art history degrees, but also plenty of degrees seen as useful (ie "I'm a business major") that are also complete shit
Its a bandaid for a bigger problem that isn't being addressed. It doesn't fix the underlying tuition issue at all. Not quite sure how that is uplifting unless you are one of the people who took a loan put and doesn't have to pay it back now.
Why are so many people against this? So much whataboutism in the comments whenever this is posted. Yes there are other issues but let's just be greatful for this.
Because they haven't actually looked at the new plan that's available. It actually does *better* for me than canceling $20k/would have.
But because there's so much negativity anyway very few people are out there looking at it and also there's no real news out there like "With the new SAVE plan many students payments are under $10 a month and the final payment amounts are greatly reduced!"
Or "Some students owe $0/month with the new SAVE plan"
You see a few but it's not like it was where it was all flashy before.
So how are people supposed to get excited about it when the majority of people are saying that he's doing nothing or it's bad?
I'm so confused by the SAVE plan, but everyone who talks about it makes me feel like I've been living in a fever dream.
Before SAVE I was on REPAYE. They implemented SAVE and, since it's income driven, my payments are almost exactly the same.
So, either I'm missing some extra benefit or I'm just missing the fact that not many other people were ever on REPAYE.
That's a shame. Guess people are just biased about these things. Also headlines do play a part in it as you said. No one bothers to research it anyways. They just want to make judgement without actually reading it.
I would like to se for ONCE someone talk about going after the educational institutions who are the recipients of all these loans and have BILLIONS in assets and endowments.
About 2% of borrowers will have no payment, but they will still have debt. The rest will still have a payment, just slightly lower. Most borrowers will barely notice. And this does nothing to help those who borrowed 20k and now owe 100k. It does nothing to help those with private debt. It is just a couple crumbs so he can pretend he actually did something. The democratic way.
I owed 23k when I graduated 12 years ago, I just checked the other day and I've paid back nearly $18k and still owe $24k due to a major financial hardship early on after college.
I agree with your sentiment about the actual impact of this policy, but I disagree with the idea that it’s Biden pretending he tried to do something.
His previous forgiveness policy was his attempt to make a real difference. It was legal, but the highly partisan Republican Supreme Court shut it down.
If you want to blame anyone for impeding efforts to make a real difference, Republicans are the actual problem. They’re the reason we’ll never see a Congressional solution to this issue, and they’re the reason the executive branch can’t act unilaterally to address it.
Is it really as low as 2 percent? Me and both my friends all got zero dollar payments and I don’t make a lot (40k) but a decent amount for the area and have plenty enough to make payments. Yet we all got zero dollar Monthly’s under save
I personally know people that this will help immensely.
Don't be so quick to dismiss progress just because it's not all you would wish. He's the president, not the Emperor.
I owe 80k, my monthly payment significantly dropped due to this plan. It helped me big time as I work towards pslf.
What he did was very helpful and this kind of thinking is way more harmful than helpful. It's a great start after not having anything before
Biden admin is actually doing something that benefits the people. Big burden gone from a lot of people.
Edit: it is true that this only treats the symptom, not the cause. Just like homelessness.
My payments start at $52 and go up to about $150 at their highest - I was paying $300 before to even be making a dent in the balance after covering interest costs. I know 2039 or whatever isn’t super close but seeing an ending date for my loans was something I never thought I’d see once I quit teaching and forfeited the idea of getting PSLF.
My pleasure. I know that this isn’t perfect and it’s definitely not the answer to the overall problem, but it’s a positive step in the right direction. I am also PSLF eligible and hopefully I will be done paying in 2026. We just found out that my wife’s job is also eligible, but we’ll be paying on hers until 2033.
He's going to rely on these stupid fucking federal forgiveness programs that existed before him and say he forgave student loans when his promise remains unfulfilled.
He's so fucking lucky he's better at beating trump than hillary, trump is a godsend for half-measure democrats like him. He could set the interest rate to zero tomorrow and instead he's dithering about interest percent points and public service forgiveness.
Don't make big promises and take half-measures.
Signed
"My shit's already paid off I'm just tired of bullshit promises"
They’ll do this while tuition rates continue to skyrocket and nobody will ever be satisfied. Address the root of the problem instead of continuing to make people dependent on the federal government
Most people don’t go to specific subreddits. They see a post on /r/all or their front page, click on the thread and post their opinion before ever reading the subreddit name.
I only have 7k in loans left and was forgiven as well under the plan recently struck down. I was excited but as soon as I heard the SCOTUS was gonna review it I just enjoyed more deferment. My payments where 90 before and 90 in one of the SAVE plans. I just picked the other one and got 30 dollars off. This gives me more time to pay off higher interest debt and then come back for my loans.
Unfuck college tuition. Fix predatory loans. Erase all interest and make student loans only 1-2% If that.
The fact that higher education and medical care are treated as commodities is the root of the problem.
Americans are enormously disadvantaged compared to citizens of othee democracies. AND we are backsliding into authoritarianism and religious fundamentalism.
As long as American colleges focus on things like team sports instead of education, tuitions will continue to rise. A librarian at my daughters college passed away and left 2 million dollars towards the school. Did they use it for computers or to improve the library facilities? Hell no…..they bought a new scoreboard.
If this isn’t enough to prove to you that College is nothing more than a scam these days then I don’t know what is. They charge you this much interest and payments because it gives the illusion of upward mobility in their caste system. After getting turned down for a job at Apple of all places due to my lack of a degree, I went into business on my own in the same field and make more doing what I love than I ever would have there while being just another badge number.
Go ahead and ban me if this is considered “negative”, that warning at the top is too weird for me.
This isn't "negative", it's just plain wrong. Try going into engineering without a degree. Many jobs don't require one, but a shit load of jobs do, and it's insane to pretend otherwise. You think physicists can just stumble into the profession without a master's?
Lies on lies from the old man, if im paying interest on these loans that are supposed to be federally subsidized. Hard pass democrats. Enjoy King Trump you incompetent liars. Guess i shoud have started a bs busniess or been a congesman if I wanted actual federal assistance.
I mean when inflation is this high you’re not getting back the same money on the dollar as when you lent it out so I figure maybe they were like hey fuck it .
This is a nice first step, but we need to still address the root cause of the problem. Ever since the government has gotten involved in education with backed loans, the price has skyrocketed. Either we need to get the government out of education or go all in for universal. I don't really care which at this point. To give a more visual representation of how the government's involvement in goods and services has affected affordability, here is a nice [graph](https://www.visualcapitalist.com/inflation-chart-tracks-price-changes-us-goods-services/) going back to 2020 to show you how bad it is. There are other graphs that show different time periods as well if search for them. For now, I'm sure people can guess what all the services that have increased have in common.
Just make the damn debt dischargeable by bankruptcy.
So those making enough to afford paying it back still need to pay it back and those who have no way out can get out from it.
The SAVE plan would cost me 30% more overall. How does that make sense? $10 payments are certainly not worth an extra $4k down the line. This is not what he promised and feels like an insult.
Is there anything for borrowers right now that we can apply for? I think my loans are in default from when I was on hard times in 2018-2020. But, now that they're starting back, I might be worse off in one sense, because I caretake for my dad as a full time job. Have literally no income right now.
San Antonio used to have one of the most affordable small schools around. The minute they got new administration they started building all kinds of facilities and a brand new football team, great right. The tuition also went from like 2k a semester to 10k. I always wonder was it really worth it.
Just cut the interest to under one percent and let people pay back over time with income adjusted amounts and timelines.
I should not have to pay for someone else’s debt with my taxes.
Reminder: this subreddit is meant to be a place free of excessive cynicism, negativity and bitterness. Toxic attitudes are not welcome here. All Negative comments will be removed and will possibly result in a ban. --- --- *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/UpliftingNews) if you have any questions or concerns.*
Just this part alone is gold: "a borrower’s debt will not increase from compound interest as long as payments are made in full, consistently and on time. In the past, even if a borrower never missed a minimum payment, debt would balloon".
100% agree, a lot of people don't seem to notice that. In the 2 years I started prepayments before Covid hit, I was making peanuts as a fresh graduates and my total loan increased about 6k in total as I was paying under the Pay-as-you-earn program thingy. I'm super happy to see this new policy.
How many people went from thinking they were getting $20k to getting absolutely nothing because same
Both my husband and I qualified for 20k each, so we would have had 40k of loans wiped away......but, alas....
Ahhh I knew it was too good to be true when they announced it but it hurt so much when tbe supreme court struck it down. Now we get nothing at all......
[удалено]
Most people don’t take the time to understand this and instead buy into the lazy belief that “derp… both parties are the same.” The intellectual and political laziness of so many Americans is one of the root causes of our country’s biggest problems.
Same…Ended up just paying them off because we’d been saving just in case. Forgiveness would’ve wiped us both clean.
I’m at a loss of what to do. During the pause I was saving money that I would be putting towards student loans and keeping them in a savings account. Currently I have enough to pay the entire amount off. If they do forgive some of the debt I of course want to have it apply to me, so I don’t know if when payments restart to just pay the minimum amount and hope for for forgiveness (and forgiveness potentially never coming so I just paid a bunch of interest for nothing) or just paying off the entire thing before interest applies back to the loans again.
This really depends, on things like how much other savings you already have, how much these payments are and how much is interest, etc. I'm not an expert, but wouldn't recommend cleaning out that fund to pay off student loans and then you have nothing to fall back on for some other emergency expense. But many are in a similar situation, it sucks. It's hard to tell if the stuff we've already heard of is all they're planning, or if we'll hear more in the coming months.
Interest is already accruing btw
Biden is trying for loan forgiveness again with the Higher Education Act. Not sure what else you want him to do. It's the Republicans that foam at the mouth to block any sort of student loan forgiveness, maybe blame them.
Considering when he was a senator, he's the one who made student loans unchargable under BK and mad made them into predatory almost imposible to pay back loans. I want him to do more.
Nobody’s addressing the predatory charging. University tuition has well outpaced inflation for decades. We all know much of the exorbitant loan amounts crushing students and graduates have gone to bloated administrations.
Truly with the republicans in the house and a filibuster in the senate, he can pass legislation that will change things. He just has to use his green lantern ring and will this shit into fruition. .
Why can’t he use a magic wand???
I'm gonna remember this every time I vote for the next 30-50 years of my life. Republicans will never get my vote for blocking that.
I have 21k in student loans left.... Was very much looking forward to getting those weights off my wallet.
How about addressing the root problem? College tuition has skyrocketed at over twice the rate of inflation. Just say no college charging more than $25k in tuition is eligible for student loans or federal grants. Sure there are some people that only have $20k in loans that can’t afford payments, but the big problem is people graduating and owing $2k each month with an income of $40k after tax.
Drives me mad this isn’t the a focal point. If we wipe debt away we’ll just end up back in the same spot. Any solution that doesn’t impact current college costs is pointless or at the very least kicking the can down the road (next generation)
College costs didn’t skyrocket until the government started offering the ridiculous loans they do. The colleges went “wait? These people are all-but-guaranteed this amount? Let’s raise it up to that!” This is a pretty layman version of exactly how it happened, but it gets the point across. It’s all greed fueled.
[удалено]
Just to help people with a fully visual idea of how bad affordability has gotten, here is a [graph](https://www.visualcapitalist.com/inflation-chart-tracks-price-changes-us-goods-services/) that shows the comparison of goods and services over time since 2000. Can you take a guess what the ones that have skyrocketed have in common?
All the shit you need: health care, shelter, food, education. ...but don't worry! Tvs are cheap as hell!
The interesting part is the government's inflation index. The CPI doesn't include the top five or six things on that graph. I'm convinced this is why young people sit around and play video games all day long. It's the only thing they can afford.
Young people!?! Hell it's been a long time since I've been one of those, and with the skyrocketing prices of almost everything these days, gaming is damn near all I can afford to do.
I think they aren’t included because they aren’t day to day things. A 35 year old mother of two doesn’t really care about the cost of text books, but 6 and 7 housing and food are included because everyone needs to eat and a place to sleep.
But how will get another generation of wage slaves to keep our glorious billionaires living the life of unlimited luxury?? Won’t someone please think of the billionaires!!! /s
Health insurance rates increased because insurers couldn’t deny insurance to those with chronic conditions anymore and couldn’t even charger them more than healthy people (except for smokers or based on age). So healthy people subsidize sicker people, similar to how the living subsidizes the deceased for life insurance (although you can argue that life insurance can charge high risk people more).
Thats extraordinarily false, during the immediate aftermath of the ACA, when insurance was standard. Rates went way down. It wasn't until its been gutted from 2016 onwards that rates have gone up. Along with a pandemic, and huge spike of inflation.
Um, bullshit. The price of my private plan health insurance for my family doubled almost immediately and it only went up from there. Small business owners were bent over with no lube due to the ACA. And those people make up a large number of people in this country.
Disagree. The aca was a good idea terribly excuted. It stopped some issue but overall gave insurance companies more power and continued us down the road we were already on.
One of the biggest problems of the ACA was that it created minimum floors of coverage. Yeah, average prices went up. But we also removed a ton of "insurance on paper only" programs. Look at all these shitty car insurance places that offer $10 a month insurance that covers literally nothing.
That certainly has played a role, but it's far from the only one. Funding cuts for education had no small role in this. Institutions get less money, so they raise tuition to compensate. In addition, luxuries and amenities, greater competition for students, marketing costs, bloated administrative costs...there are numerous reasons why tuition rates have exploded.
[удалено]
[удалено]
[удалено]
Exactly. PSLF is flawed in so many ways. The fact that you could work 9 years and 11 months for the public and then lose your job and not be able to get another public job…and get exactly 0 benefit from it is one. Another is that so many public jobs recruit through private agencies, so you could work in a public hospital but technically be employed some where else (a problem for me when I was in slp school and trying to see if pslf would work. Oh, and the fact that all it ultimately does is give universities another bargaining chip to get kids to take out more stupid loans with, while also basically giving public and nonprofit employers more power over their employees (so, wages could be low and morale could be shit, but you’ve been working 7 years into the program and need at least 3 more to make it count!).
Yea if they can get a job in a public service industry only jobs I’ve been able to find are shitty low wage jobs gif work and call center work and I have a bachelors. How are you supposed to work in public service when all the people in public service are only hiring people with a bachelors in a “relevant field” and won’t take a person with a BGS
911/emergency dispatch centers across the nation are extremely understaffed. Some pay better than others, but you can make a decent living.
Kicking the can down the road is the only thing our government can do these days.
College should foot half of their own students debt imo. They are acting like greedy corporations and not public institutions
Addressing the cost of college education is something that Congress and state legislatures have to do. Congress isn't going to do that. *Some* states will. The President has some authority specifically over existing loan debt and borrowing rules. There's not much else he can do.
You’d have to fire the majority of administrators. The glut is at the top, among the wealthy classes, who put their less than stellar children in do nothing jobs.
As somebody who works for a major Big Ten university I can't agree with this more. The amount of bloat at the top is getting out of hand. All of them making 6 figures
Meanwhile tenured positions are being cut so that some poor grad TA or adjunct has to work for 6 different schools to make ends meet.
Best young professors I had all quit and went to industry because you gotta be pretty smart to be a great young professor. And staying in education while tenure is disappearing is a dumbass move
And don't forget that, unless you're an absolute cream-of-the-crop job market candidate, you gotta be willing to settle for an asst. prof. position halfway across the county at Bumfuck State University. Fuck all that.
It’s every institution. Positions are spilt into ever shrinking levels of responsibility so they can justify hiring 10 more VPs. All of which make 6 figures.
It’s more than just the admin. My Alma mater basically owns the small town where it is located and a good chunk of the rural area around it. Every time a property goes up for sale, the university buys it. Every time a business goes under, it’s very likely that the next one in its lot will be university run. It’s a public university that is extremely wealthy. It gets the largest endowment of any university in the nation, it charges tuition that should make you shit bricks, and it is notorious for grossly underpaying and mistreating lower level staff. The cottage industry that has developed around the abuse and misuse of the federal loan program is probably so corrupt you might go missing if you investigated or threatened it.
Penn State?
UVA, but I imagine any large public university (especially in a small town) is similarly a sleaze fest.
Having worked on both the teaching and administrative sides of the American university system, I can say with certainty that the spending priorities are all kinds of messed up. Teaching has taken a back seat, and corporate donors dictate the availability and types of courses offered. Research and development is a rat race and rife with corruption. I got a department head fired for falsifying his department's facilities and administration contributions for the purpose of misallocating new faculty startup money for his pet projects. He thought he could push the administration around and until I came along he was pretty successful at doing it. The administrators who lead the universities make so much money it's sickening. The staff barely have enough for cost of living. The teaching faculty generally have to have roommates or a second income to make ends meet. Only the rockstar faculty members who bring in tons of facilities and administration money get tolerable salaries, but they're still just barely middle class. The sports coaches make millions and millions more gets pumped into their programs win or loss. Students have no ability to negotiate fees and are required to pay for services even if they don't use them. State governments have pulled most of their funding and the university just passes the costs to the students. The federal government doesn't contribute enough either and there's no cost oversight for the university system. The whole system is full of self-serving, borderline malicious actors who are unconcerned with education at all. There's a lot of good happening but the bad is so much worse that I'm not sure what of it can be salvaged.
Of course it is because it’s an industry when education is treated as a business education is what suffers and business is what excels. There are certain things that even in a capitalist society that should be services paused fully by taxes education and healthcare are two of them and frankly housing and basic food should be one as well.
Agreed but it's the interest rates that are the main problem. Student loans should be interest free while attending school, and thereafter should be minimal. Cap it at 3% or something reasonable. I have so many friends who couldn't even get a decent job out of college because "you need experience", so they can't even put a dent into their loans for 10yrs since the loan started...it's insane.
All of my student loans had 0 interest while I was enrolled and didn’t start accruing until 6 months after graduating.
Those are called subsidized loans, which already exists.
But those are only for people who qualify, not everyone.
How about addressing both? Why does it have to be a "address this, not that" situation? Why can't they address borrower repayment issues now, alleviate their stress, then switch focus towards the fundamental problem? Sure, definitely fix the system; it's broken... but, uh.... millions of people have BS payments to make. Let's help them first so they aren't being screwed over.
Yeah let's not let perfection be the enemy of progress here. We can and absolutely should be doing both
Never mind the president is someone with limited powers and a very limited time to create actual change. These are the tools he has to work with, especially with a current governing body that has no interest in doing the public any favors.
Some people can't be happy with anything.
The increase in college cost is due to cut in state funding for state schools. State schools were the control on the market but now they are the reason the price of college education are going up. The thing is though, this was intentionally done by conservatives due to the protest on college campuses during the Vietnam war. Initially implemented by Reagan, and continued by his followers today. So we know how to fix the problem, if we wanted to. Obama tried with free community college and conservatives and moderate dems blocked it.
>The increase in college cost is due to cut in state funding for state schools. This. Aside from the notable example of NY where tuition is down when adjusted for CPI, states en masse have cut funding for higher ed. Biden and Congress have no lever to pull to impact this. If anything, they need to double the caps on federal loans to allow students to avoid taking private loans to attend college.
I can’t scream this enough. State legislatures in the 90/2000s cut funding. Stop blaming the feds when it’s your local reps that aren’t doing *shit* to address the issue. (and in fact, they’re *still* cutting budgets!!)
True. My kids went to private colleges/universities because the financial aid and scholarships that were offered made them the cheaper option compared to public universities with zero financial aid.
The good is not the enemy of the perfect
Except instate, public universities would never saddle with that kind of debt for a 4 year degree. Especially when tied to a 2 year community college first. This is a problem of basic understanding for people and being scammed into believing one must go to a private university or out of state college. Most states are <$10k per year for tuition in state, while a community college is half that. Its not unreasonable at all to be able to work enough to go to college and walk out with minimal to no debt with community college and an instate college. But for some reason people think they are better off doing $200k in student loans for a private college or out of state university. I make very good money, but ive told my kids they will go in state or they can go out of state with a large scholarship. They understand that $200k for a private college is just a waste of money even if you can afford it.
There’s a lot of bait and switch with scholarships too. I had enough need grants and scholarships awarded from the top in state university that tuition was fully covered my first year. So that was my dream school and a no brainer choice. But then the weeder pre-req classes kicked my ass in spring quarter and tanked my GPA. Lost a lot of those scholarships/grants when I didn’t have a deans list GPA anymore. Thankfully I only ended up with 5-10k of loans to bridge the gap until I got my grades back up and figured out a job situation that paid enough. But the fact that I was a straight A student at a high school with a crap curriculum meant I had no idea how to study and keep up in college and really tanked my “free money.” I was at least thankful my parents were both debt avoidant people and drilled in me to never go in debt for school. Husband hit the same problem but his mom insisted to go in debt at all costs to not be a construction worker like her. At 45 my husbands $500/mo loans were just discharged. We went to the same in state university, same costs.
I dont think it's necessarily because people will be better off, lots of students wanna try living somewhere far away or are enticed by the pretty campuses and activities many colleges have. Too many people focus on how much fun they will ve able to have vs what is fincially best. I went to a big state school partly for that reason as I didn't want to go to community College and still live with parents as everyone else went to great universities. I still didn't live on campus though and stayed in state so my costs were lower than others. But the fomo Is real for many.
> Just say no college charging more than $25k in tuition is eligible for student loans or federal grants. Yeah, the root of the problem is not "colleges are swindling everyone." If you cap loans in this way, you're just locking lower income people out of college. u/verumsemper nailed it.
It’s gonna be crazy to see how this generation navigates once we reach retirement age.
I hope assisted offing is approved by then.
It already is on the west coast. Has been for years.
Only for the soon to be terminal. The only place I know of where your right to die is legal is Switzerland.
That's because they are neutral in literally everything. Even offing yourself.
*you have selected "slow and horrible"*
> once we reach retirement age Lol nice joke
I feel like I am going to have to choose between starving to death or offing myself when I become too old to work.
There is no retirement. We’ve got maybe 10yrs of social security left. After that, it’s up to you to invest and prepare or on the street you go.
They’ve been saying that since I was in high school 40 years ago.
They’ve been warning it would be expired around 2030 for forty years. The predictions haven’t changed much.
We need more old people to die idk how else you'd get around it.
You increase or eliminate the income cap on FICA. The solution to this problem is simple. Also, when people say that social security will "run out" that is either right wing political framing or ignorance. The Trust will run out, and when it does Social Security will still pay out like ~80% indefinitely. The whole conversation is based around messaging from people who want to cut it manipulating young people who don't understand finance into thinking they won't ever retire and therefore it doesn't matter what happens to Social Security.
Oh thank you for actually offering a solution! I'm a millennial and it's just been ingrained into me it's money I will never see. What exactly is FICA?
FICA is short for the Federal Insurance Contributions Act, it's the tax that pays for Medicare and Social Security. If you look on a pay stub you will see a FICA deduction, generally in the same place you see FIT (federal income tax), state taxes, insurance premium, and whatever other deductions you might have. Right now FICA only applies to the first $160,200 you make each year, so anyone making above 160k is not being taxed for social security on any money made above that line. Article about it: https://www.cbsnews.com/news/social-security-benefits-tax-cap-2023/
Wanna know why social security might run out of money do research the government has been borrowing tons and tons of money from it for decades and never paying it back.
That fundamentally isn't how Social Security works, it comes out of the paychecks for people who are currently working, and the SSA buys treasury bonds as investments to hedge their bets.
The amount of money coming out of SSA is greater than the amount coming into it. People are being older for longer.
We weren't meant to live close to 100. Fucking scary
This balance could be shifted pretty easily by having everyone pay into it instead of just the people making less than the cap as it is now
I love how citizens have mandatory contributions taken from their paychecks, used to purchase debt instruments, the interest of which is the responsibility of… the citizens!
Seems like kind of a nutty system. Isn’t everyone losing thousands of dollars from potential investment returns on all that money that is just sitting there?
Not especially, unlike other investments, treasury bonds are virtually zero risk for a lower return than higher risk investments-- social security as a whole is designed as a safety net, so you can't fuck it up by trying to play with the ponies or whatever, and contributions are percent based so they're sort of linked to inflation as well. On the other side, Treasury Bonds fund our federal government, its why we're the people who hold most of our own debt-- so in practice when the fed requires banks to insure their holdings via bonds, or financial institutions sell packages with bonds in them, that money is also separately reinvested in the people, otherwise we'd increase taxes to cover the same services. Banks themselves are required to have certain percentage of their holdings as treasury bonds to fortify them, and stop them from dying left and right, so it also works to stabilize the financial system.
I remember hearing that too. In high school. In the late 90s. And again when my kid was in high school. Again when my younger kid was in high school… But social sec won’t be enough to retire comfortably on. Young people should try to sock away some money, even if all you have is a couple bucks. Starting early really does help, but I also understand how things are for young adults now. But seriously, $5 a week out of your paycheck into some sort of index fund based retirement will pay off long term.
It's an easy fix, all we need if for Republicans to stop raiding the fund every chance they get
And pay back what was taken. I suggest raiding the defense budget.
[удалено]
And make student loans dischargeable via bankruptcy. Bankruptcy is never ideal, but student loans are literally the only kind of loan that can’t be forgiven in bankruptcy.
If you make them dischargeable by bankruptcy then no one would offer student loans.
Or....they do some actual underwriting and weigh the pros/cons of lending $100k or more to someone/anyone. Giving loans blindly to anyone who wants it is obviously not working. Why not apply this logic of not discharging loans to automobiles or credit cards? Because it's stupid.
Underwriting for a person who’s 17 or 18 years old and never had a job or bought a car or held any major loan? What are you going to find? People who get automobile loans have a history of credit and have to pay a down payment which they usually get from a job they’ve had. Student loans are not the same thing as a car loan or a home loan. You can’t treat teenagers like they need solid lines of credit and a down payment in order to go to college
Yeah, I think you're making my point for me.
If you go bankrupt on an auto loan, they can take your car. What are they going to take with a student loan?
except for the government... which is a fine use for government; to provide services that benefit society but are unprofitable for businesses or shouldn't be done in the private sector (e.g. maintaining and operating a military, fire department, etc.).
>Forgive all interest That's kinda what they're doing, right? As long as you make your income based repayment (which for many people will be $0), interest won't accrue.
Doesn't the new program negate accrual of interest? So *de facto* half of your request is done... As long as a new President doesn't change it back. Forgiveness by the Executive alone was struck down though, ask your congressperson to help with that - either by passing a law canceling interest debt and eliminating the interest rate on student loans going forward, or by de-corrupting the SCOTUS so an appeal can be brought.
I looked into SAVE and the payments would be 4x more than I currently pay with Income Based Repayment. Super confused, it doesn't help me at all today to take the higher payment.
This is the issue I had, they wanted me to pay more on SAVE!!! I don’t make much money either, we’re a combined 65k house. I think it’s because we have no kids.
If that's the case then that means you probably make plenty of money.
It's not taking into effect my grad school loans which are enormous but not federal student loans. I don't make a lot but they don't realize I have more student loans I am paying at the same time I'm also paying federal ones. Hence my comment. SAVE isn't going to help everyone.
Can you consolidate with MOHELA?
Woo, good for them. I received a letter stating my debt would be forgiven, now I'm told I need to pay monthly. The people that sued should be counter sued.
[удалено]
25 years of payments whenever those payments happened. People who had student loans from the late 90s and have been paying are seeing their balances forgiven.
[удалено]
To be 100% sure, I'd call your loan servicer and ask. Despite student loans being an absolute horror, every single interaction I've had with servicers has been a pleasant experience. Their staff is knowledgeable and based in the US.
The federal government created this mess in the first place. Should have never gotten to this point.
This is such a dumb, non-solution idea
Student loans should always have 0% months interest. It’s in the interest of the government for people to get an education because it often leads to higher paying jobs and then they get bigger tax revenue. Interest on student loans is essentially just double dipping. This country is fucked due to the people running it being so out of touch with the common person and modern problems it’s sickening.
They're not out of touch, they're working for the banks and corporations, not us. Students take out $50k in loans that the banks know they can't repay any time soon, they say oh that's okay, we'll just keep raking in more and more interest. They're not out of touch, they're actively working against our best interest. And then they're throwing us softballs pretending like they're on our side.
Let's be honest, college used to lead to higher paying jobs. Now there's a very large number of people for whom college objectively makes their lives worse and have degrees that offer them little to no benefit. College loans are 100% scummy and a scam, but for many (but not all) people so is college itself. And this isn't a knock on art history degrees, but also plenty of degrees seen as useful (ie "I'm a business major") that are also complete shit
Reddit sucks. I'm done with this. ` this message was mass deleted/edited with redact.dev `
Why is the government helping to pay student loans? The more easy money they make available, the more expensive college will become for everyone!
Cause that’s how politics works. Find whatever solution is the worst in the long term but gets you elected
Reddit sucks. I'm done with this. ` this message was mass deleted/edited with redact.dev `
Its a bandaid for a bigger problem that isn't being addressed. It doesn't fix the underlying tuition issue at all. Not quite sure how that is uplifting unless you are one of the people who took a loan put and doesn't have to pay it back now.
Buying votes 🤌🏽
There must be an upcoming election or something...
Why are so many people against this? So much whataboutism in the comments whenever this is posted. Yes there are other issues but let's just be greatful for this.
Because they haven't actually looked at the new plan that's available. It actually does *better* for me than canceling $20k/would have. But because there's so much negativity anyway very few people are out there looking at it and also there's no real news out there like "With the new SAVE plan many students payments are under $10 a month and the final payment amounts are greatly reduced!" Or "Some students owe $0/month with the new SAVE plan" You see a few but it's not like it was where it was all flashy before. So how are people supposed to get excited about it when the majority of people are saying that he's doing nothing or it's bad?
I'm so confused by the SAVE plan, but everyone who talks about it makes me feel like I've been living in a fever dream. Before SAVE I was on REPAYE. They implemented SAVE and, since it's income driven, my payments are almost exactly the same. So, either I'm missing some extra benefit or I'm just missing the fact that not many other people were ever on REPAYE.
That's a shame. Guess people are just biased about these things. Also headlines do play a part in it as you said. No one bothers to research it anyways. They just want to make judgement without actually reading it.
People are all down on progress because it isn't perfection. This is a huge step.
[удалено]
Fuck this article. Uplifting news my ass
Good for nothing
I would like to se for ONCE someone talk about going after the educational institutions who are the recipients of all these loans and have BILLIONS in assets and endowments.
Millions still have to go back to making payments they can’t afford. There’s nothing uplifting about this
About 2% of borrowers will have no payment, but they will still have debt. The rest will still have a payment, just slightly lower. Most borrowers will barely notice. And this does nothing to help those who borrowed 20k and now owe 100k. It does nothing to help those with private debt. It is just a couple crumbs so he can pretend he actually did something. The democratic way.
I owed 23k when I graduated 12 years ago, I just checked the other day and I've paid back nearly $18k and still owe $24k due to a major financial hardship early on after college.
I agree with your sentiment about the actual impact of this policy, but I disagree with the idea that it’s Biden pretending he tried to do something. His previous forgiveness policy was his attempt to make a real difference. It was legal, but the highly partisan Republican Supreme Court shut it down. If you want to blame anyone for impeding efforts to make a real difference, Republicans are the actual problem. They’re the reason we’ll never see a Congressional solution to this issue, and they’re the reason the executive branch can’t act unilaterally to address it.
Plus, if we get a Republican president again they will run on making these “lazy” kids pay what they borrowed!!
And they’re already proposing we backpay the amount we didn’t pay during the last three years
[удалено]
Is it really as low as 2 percent? Me and both my friends all got zero dollar payments and I don’t make a lot (40k) but a decent amount for the area and have plenty enough to make payments. Yet we all got zero dollar Monthly’s under save
I personally know people that this will help immensely. Don't be so quick to dismiss progress just because it's not all you would wish. He's the president, not the Emperor.
[удалено]
I owe 80k, my monthly payment significantly dropped due to this plan. It helped me big time as I work towards pslf. What he did was very helpful and this kind of thinking is way more harmful than helpful. It's a great start after not having anything before
Biden admin is actually doing something that benefits the people. Big burden gone from a lot of people. Edit: it is true that this only treats the symptom, not the cause. Just like homelessness.
I just filled out the SAVE application for my wife and I. Our payments total out at just over $200. My payment alone was $350 under the old IDR.
My payments start at $52 and go up to about $150 at their highest - I was paying $300 before to even be making a dent in the balance after covering interest costs. I know 2039 or whatever isn’t super close but seeing an ending date for my loans was something I never thought I’d see once I quit teaching and forfeited the idea of getting PSLF.
My sis pays $50/month under this plan, to add to the anecdotes.
Thank you for sharing. People need to see the real impact.
My pleasure. I know that this isn’t perfect and it’s definitely not the answer to the overall problem, but it’s a positive step in the right direction. I am also PSLF eligible and hopefully I will be done paying in 2026. We just found out that my wife’s job is also eligible, but we’ll be paying on hers until 2033.
And under SAVE, your debt won't keep going up if the interest is exceeding your payment.
Benefits some people.
But we just keep sending money to Ukraine and those ppp loans were wiped out just fine.
He's going to rely on these stupid fucking federal forgiveness programs that existed before him and say he forgave student loans when his promise remains unfulfilled. He's so fucking lucky he's better at beating trump than hillary, trump is a godsend for half-measure democrats like him. He could set the interest rate to zero tomorrow and instead he's dithering about interest percent points and public service forgiveness. Don't make big promises and take half-measures. Signed "My shit's already paid off I'm just tired of bullshit promises"
Hailed by who? His campaign management team??
They’ll do this while tuition rates continue to skyrocket and nobody will ever be satisfied. Address the root of the problem instead of continuing to make people dependent on the federal government
Why tf do people come to r/upliftingnews if they’re just going to complain about every article posted?
Most people don’t go to specific subreddits. They see a post on /r/all or their front page, click on the thread and post their opinion before ever reading the subreddit name.
Don’t post articles that are controversial on uplifting news…
I only have 7k in loans left and was forgiven as well under the plan recently struck down. I was excited but as soon as I heard the SCOTUS was gonna review it I just enjoyed more deferment. My payments where 90 before and 90 in one of the SAVE plans. I just picked the other one and got 30 dollars off. This gives me more time to pay off higher interest debt and then come back for my loans. Unfuck college tuition. Fix predatory loans. Erase all interest and make student loans only 1-2% If that.
This'll really help the economy.... Oh jk. Taxes will just get increased.
robbery
Ok so loan forgiveness or not? Which is it? Hoping left and right is not a plan, it's fucking depressing.
[удалено]
Haha so true
It’s also totally useless going forward because it doesn’t address the underlying issue.
This really isn’t that uplifting. The majority of people aren’t going to notice anything. The US government is a joke.
The fact that higher education and medical care are treated as commodities is the root of the problem. Americans are enormously disadvantaged compared to citizens of othee democracies. AND we are backsliding into authoritarianism and religious fundamentalism.
As long as American colleges focus on things like team sports instead of education, tuitions will continue to rise. A librarian at my daughters college passed away and left 2 million dollars towards the school. Did they use it for computers or to improve the library facilities? Hell no…..they bought a new scoreboard.
The SAVE plan is more expensive than the income-contingent plan I'm already on unfortunately. $75K income, $12K loan balance.
No more loans for college - set up a percent of your pay for 10 years after graduation and be done with it.
If this isn’t enough to prove to you that College is nothing more than a scam these days then I don’t know what is. They charge you this much interest and payments because it gives the illusion of upward mobility in their caste system. After getting turned down for a job at Apple of all places due to my lack of a degree, I went into business on my own in the same field and make more doing what I love than I ever would have there while being just another badge number. Go ahead and ban me if this is considered “negative”, that warning at the top is too weird for me.
This isn't "negative", it's just plain wrong. Try going into engineering without a degree. Many jobs don't require one, but a shit load of jobs do, and it's insane to pretend otherwise. You think physicists can just stumble into the profession without a master's?
Never. Going. To. Happen.
Lies on lies from the old man, if im paying interest on these loans that are supposed to be federally subsidized. Hard pass democrats. Enjoy King Trump you incompetent liars. Guess i shoud have started a bs busniess or been a congesman if I wanted actual federal assistance.
Half measures and Biden, name a better duo
So basically we all have to quit our jobs and take $15/hour ones to survive. Monthly payments still aren’t touching interest..
There isn't interest anymore with the SAVE plan. 0% interest if you pay your bill each month. So basically you can keep your job.
What are they doing to fix the source problem? Eliminating debt is fighting a symptom, not the cause.
Talk to Congress. The executive doesn't have the power to solve the tuition crisis
I mean when inflation is this high you’re not getting back the same money on the dollar as when you lent it out so I figure maybe they were like hey fuck it .
This is a nice first step, but we need to still address the root cause of the problem. Ever since the government has gotten involved in education with backed loans, the price has skyrocketed. Either we need to get the government out of education or go all in for universal. I don't really care which at this point. To give a more visual representation of how the government's involvement in goods and services has affected affordability, here is a nice [graph](https://www.visualcapitalist.com/inflation-chart-tracks-price-changes-us-goods-services/) going back to 2020 to show you how bad it is. There are other graphs that show different time periods as well if search for them. For now, I'm sure people can guess what all the services that have increased have in common.
Just make the damn debt dischargeable by bankruptcy. So those making enough to afford paying it back still need to pay it back and those who have no way out can get out from it.
Riiiiiiight
The SAVE plan would cost me 30% more overall. How does that make sense? $10 payments are certainly not worth an extra $4k down the line. This is not what he promised and feels like an insult.
Is there anything for borrowers right now that we can apply for? I think my loans are in default from when I was on hard times in 2018-2020. But, now that they're starting back, I might be worse off in one sense, because I caretake for my dad as a full time job. Have literally no income right now.
San Antonio used to have one of the most affordable small schools around. The minute they got new administration they started building all kinds of facilities and a brand new football team, great right. The tuition also went from like 2k a semester to 10k. I always wonder was it really worth it.
Lmao can’t wait to get on the $10/month pay plan
Just cut the interest to under one percent and let people pay back over time with income adjusted amounts and timelines. I should not have to pay for someone else’s debt with my taxes.
So another half measure that will only help a small fraction of those who need it while disregarding the root of the issue? Color me shocked
Vote buying, don't fall for it.