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Anyone else worried what impact this will have on the markets and economy?
Over 40 million people haven't had to make student loan payments in nearly 2 years. People freaked out when their monthly child care act payments dried up, whats going to happen when inflation hits 10% and people have to start making those $500 student loan payments again?
Anyone else worried what impact this will have on the markets and economy?
Over 40 million people haven't had to make student loan payments in nearly 2 years. People freaked out when their monthly child care act payments dried up, whats going to happen when inflation hits 10% and people have to start making those $500 student loan payments again?
The issue with the student loan debt forbearance is that many didn't continue paying on their debt at 0% interest, nor saved the money from the forbearance. So where did this money go? It very well could have went to trips/experiences or a new car for them. The best decision students could have made was pay what they could on their student loan debt, so that all their payment would go to principal reduction.
The students who were really hosed with the forbearance were the students who refinanced their Federally funded loans to private loans with SoFi. Those students received a cheaper rate, but had to continue paying their student loans throughout the entire pandemic. I would recommend any student to seriously consider all options when refinancing their Federally funded loans to private loans. You have so many perks available to you under the Federally funded loans compared to going private just to get a 2% rate cut.
Last edited by weezerfan84; 02-22-2022 at 12:07 PM..
The issue with the student loan debt forbearance is that many didn't continue paying on their debt at 0% interest, nor saved the money from the forbearance. So where did this money go? It very well could have went to trips/experiences or a new car for them. The best decision students could have made was pay what they could on their student loan debt, so that all their payment would go to principal reduction.
Or, in the alternative, dollar cost averaged into the market for the past nearly two years. That money would have doubled and they could pay down the loans as soon as the forbearance and 0% ran out.
The issue with the student loan debt forbearance is that many didn't continue paying on their debt at 0% interest, nor saved the money from the forbearance. So where did this money go? It very well could have went to trips/experiences or a new car for them. The best decision students could have made was pay what they could on their student loan debt, so that all their payment would go to principal reduction.
The students who were really hosed with the forbearance were the students who refinanced their Federally funded loans to private loans with SoFi. Those students received a cheaper rate, but had to continue paying their student loans throughout the entire pandemic. I would recommend any student to seriously consider all options when refinancing their Federally funded loans to private loans. You have so many perks available to you under the Federally funded loans compared to going private just to get a 2% rate cut.
That’s not even true. The best financial decision would have been to pay nothing towards them and let inflation eat at the principle. You would have been better off investing the money elsewhere and getting return throughout this time or tackling a different non-tax deductible debt. Then, now that the rates will turn back on, now at the end, maybe it makes sense to pay the principle with your funds you invested and grew the last 2 years.
However, I’m letting my student loans continue to ride even now to stretch out the time the governments own inflation will eat at it. And it will be tax deductible. And I’ll use my money elsewhere to chase return. Also as a hedge that these jokers might wipe it clear entirely or some other amount.
That’s not even true. The best financial decision would have been to pay nothing towards them and let inflation eat at the principle. You would have been better off investing the money elsewhere and getting return throughout this time or tackling a different non-tax deductible debt. Then, now that the rates will turn back on, now at the end, maybe it makes sense to pay the principle with your funds you invested and grew the last 2 years.
However, I’m letting my student loans continue to ride even now to stretch out the time the governments own inflation will eat at it. And it will be tax deductible. And I’ll use my money elsewhere to chase return. Also as a hedge that these jokers might wipe it clear entirely or some other amount.
Here's my question about student loan forgiveness. Do you feel like you have led a successful life from the student loan debt you accrued? I took out student loans and had about $30k total in debt. I have $5k remaining and it's in forbearance. The 0% interest is not much benefit to me and the $250/month I was paying is better off being invested.
However, I do have an issue with a prior student wanting $50k+ of their student loan debt forgiven and they aren't in a field that will aid in subsidizing their student loan debt for years of service. I think college is way overpriced, but that doesn't just mean you should have your student loan debt forgiven, because you all of a sudden can't afford it. Also, it's up to the student to perform well enough in college to better prepare themselves for the world after college.
What has happened is that too many students went to college that had no business being there. Honestly, me included. I was a B student at best. However, I was able to attend college and graduate during a time when college was very affordable. I graduated in 2011.
College became available to anyone who could sign their name on a FAFSA form and that was the culprit to campuses expanding, since so much money was flowing into all the universities. This has really become a mess where the colleges and students are to blame. Just because college was available to you, doesn't mean that it's the best decision for you.
That’s not even true. The best financial decision would have been to pay nothing towards them and let inflation eat at the principle. You would have been better off investing the money elsewhere and getting return throughout this time or tackling a different non-tax deductible debt. Then, now that the rates will turn back on, now at the end, maybe it makes sense to pay the principle with your funds you invested and grew the last 2 years.
However, I’m letting my student loans continue to ride even now to stretch out the time the governments own inflation will eat at it. And it will be tax deductible. And I’ll use my money elsewhere to chase return. Also as a hedge that these jokers might wipe it clear entirely or some other amount.
How is student loan debt tax deductible?
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