Millions Of Student Loan Borrowers Could Pay $3,500 More Per Year In Interest Starting This Week

[Woodznutz]

College grads will make a $million more than the rest of us over time. They can pay off their loans.

 

[Lisa558]

Lower fed rate would lower student loan rates.

It would also lower the rates of home equity lines of credit, credit cards, adjustable rate mortgages, and new mortgages.

But some of these leftists would rather 100 million hard-working Americans pay higher than needed rates if it means Trump would have to pay more too.

The lack of concern for average Americans by the Dem Party is more and more apparent every day.

 

[Natural Citizen]

Artificially lowering interest rates only encourages people to go deeper into debt.

And it punishes people who actualy save.

The market should decide interest rates.

Not bureaucrats.

Anyway. I paid every dime of my boy's college education, aside from his scholarships earned.

 

[justoffal]

MSN

The Trump administration will resume charging interest this week on student loans under the Biden-era SAVE plan, which have been on hold while the plan’s tied up in court—potentially costing nearly 8 million borrowers an extra $3,500 per year in interest.

The Trump administration will begin charging interest on the loans starting Aug. 1, following a July 9 announcement by the Education Department, though borrowers will not have to resume making payments until the forbearance period ends.

The SAVE plan was established by the Biden administration and offers borrowers a more flexible and affordable way to pay back their loans, but borrowers enrolled in the plan have had their loans in forbearance since last summer, after federal courts blocked loan forgiveness under the plan in response to a lawsuit from GOP state attorneys general.

Borrowers previously did not have any interest accrue on their loans while the legal case proceeds, and it’s unclear how much longer the litigation will take to play out, though the Education Department previously said borrowers should not expect to resume payments until December at the earliest.

The change will affect approximately 7.84 million borrowers with loans under the SAVE plan that are now in forbearance, according to the Education Department, with the Student Borrower Protection Center (SBPC) projecting in an analysis that resuming interest will result in an extra $27 million in combined accrued interest over a 12-month period.

The average borrower enrolled in the SAVE plan will be charged approximately $3,500 more in interest per year, or approximately $300 per month, versus if the interest accrual had remained on hold, the SBPC predicted.

Good! They borrowed it, then THEY need to pay it back! It was a LOAN, not a donation.

But here is an idea.....Let them be discharged in bankruptcy and get the .gov out of the student loan business.

As a result universities will have to drop prices down to levels that a degree can pay off otherwise nobody will loan money for it.

Excellent

 

[Jarlaxle]

Confiscating Trust Funds Will Pay Off the Entire Student Debt

These defaults are totally the responsibility of those whose Daddies not only paid their tuition, but also used their power over "education" to make the Unfortunate Sons take out loans to pay their own tuition.

Sober up.

 

[pknopp]

Lower fed rate would lower student loan rates.

When we had super low interest rates, student loan rates didnt fall.

 

[Woodznutz]

When we had super low interest rates, student loan rates didnt fall.

The students are being fleeced. Current rates are 6-8 percent. Of course, these loans are unsecured thus riskier for lenders.

 

[pknopp]

The students are being fleeced. Current rates are 6-8 percent. Of course, these loans are unsecured thus riskier for lenders.

No riskier than the banks themselves.

 

[Woodznutz]

No riskier than the banks themselves.

Most bank deposits and savings accounts are insured by FDIC.

 

[pknopp]

Most bank deposits and savings accounts are insured by FDIC.

Sure, because the banks arent trusted.

 

[Woodznutz]

Sure, because the banks arent trusted.

Well, online banks have cut into them pretty deeply.

 

[Unkotare]

College grads will make a $million more than the rest of us over time. They can pay off their loans.

"Us"?

 

[Care4all]

They cannot be discharged in bankruptcy. That is the one good aspect of the government involvement in student loans.

DISAGREE!

That's the secret loophole for Banks doing the loaning for the govt, to give loans in any amount to any student at any worthless college, for any worthless degree...and KNOW who they loan to, can never, ever, get any loan relief with bankruptcy!

 

[Woodznutz]

"Us"?

We with no college degree.

 

[Dekster]

Artificially lowering interest rates only encourages people to go deeper into debt.

And it punishes people who actualy save.

The market should decide interest rates.

Not bureaucrats.

Anyway. I paid every dime of my boy's college education, aside from his scholarships earned.

Thing is you don't really know the interest rate on the government loans until you re-enter payment. I think it wasn't until 2014 that they even started charging the same rate depending on whether your loan was subsidized (undergraduate) or subsidized (graduate school). It is a hot mess of a system that isn't even comparable to mortgages and car loans.


Anyway, I unloaded a lot of real estate a bought in the post great recession fire sales to make sure our three kids don't have to deal with that mess. My wife's consolidated loan had amassed huge balance when she was out of work baby having. I paid both of ours off as soon as I had a once in a lifetime real estate deal where I happened to have bought a shit piece of property, had a business build across the road and then had one of their rivals offer me a mint so they could build across the road from them.

 

[Moonglow]

Bad idea to discharge in bankruptcy.

Someone could graduate from college with $100,000 in loans, get a job paying $60,000 and a new car with a loan of $30.000, then charge $20,000 on credit cards.

A year later, and owning nothing, declares bankruptcy, and gets rid of the $100,000 in student loans.

But you don't mind big business doing it.

 

[Monk-Eye]

" American School Of Economics With Educated Public For Self Sufficiency "

* Lynch Pins For Fraudsters *

Most bank deposits and savings accounts are insured by FDIC.

. FDIC Continues To Be Fraudulent ! .

The consolidation of commercial and investment banking assets violates fdic underwriting , and ultimately the government is not obligated to compensate anyone for deposit losses .

 

[BackAgain]

So Trump wants lower rates for himself but higher rates for student loans.

No. He doesn’t want taxpayers picking up the borrowers’ tabs. Try to comprehend something further away than some daily talking point.

 

[Woodznutz]

Sure, because the banks arent trusted.

Because "shit happens".

 

[Woodznutz]

" American School Of Economics With Educated Public For Self Sufficiency "

* Lynch Pins For Fraudsters *

. FDIC Continues To Be Fraudulent ! .

The consolidation of commercial and investment banking assets violates fdic underwriting , and ultimately the government is not obligated to compensate anyone for deposit losses .

Glass-Steigall will likely be reinstated. FDIC still protects savings.