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Your statement is a broad rule of no matter what is going on in your life, suck it up and pay back your debts, I disagree and believe this is why bankruptcy exists. There are situations out of peoples control that greatly effect their financial well being. Some people may regain the means to pay back their debts, but that amount may be lower, and not cover the entire monthly payment. Student loan providers may or may not work with the individual and its a crap shoot. I believe it was Navient that misled thousands of their customers into higher payment and higher interest programs when the individual was eligible for lower payment programs. Its important to note how numerous student loan providers are continuously being sued for shady practices, especially in recent years. The whole you signed, so pay it back argument is s weak one IMO. If this were true, then we need to remove bankruptcy protections, refinancing, and consolidating. Whatever your debt is, you signed so figure it out. Its odd to me people have no problem with charging tuition onto their credit card and being able to discharge it.
See that’s really easy to say when it’s not you being affected by the non-repayment of the loan. But how about you let me borrow 5 Gs from you, and then something happens and I can only payback 3. You’d probably take me to court and be calling my phone all the time to get your money back. You surely wouldn’t want to hear my “sob story” or care about my excuses, because you are still personally affected by me not paying you back.
This is what is happening on a large scale, a lot of people are borrowing and then not paying it back, well instead of it only affecting an individual like the money I can’t payback to you… it affects all people who work, lend, and borrow because somebody will eventually have to pay for it. Don’t borrow money if you’re not going to pay it back.
See that’s really easy to say when it’s not you being affected by the non-repayment of the loan. But how about you let me borrow 5 Gs from you, and then something happens and I can only payback 3. You’d probably take me to court and be calling my phone all the time to get your money back. You surely wouldn’t want to hear my “sob story” or care about my excuses, because you are still personally affected by me not paying you back.
This is what is happening on a large scale, a lot of people are borrowing and then not paying it back, well instead of it only affecting an individual like the money I can’t payback to you… it affects all people who work, lend, and borrow because somebody will eventually have to pay for it. Don’t borrow money if you’re not going to pay it back.
LOL actually I take the opposite position in a way.
I don't lend money if I can't afford to lose it (or give it as a gift.)
I got a ton of student loan debt. Lower interest to some nominal amount or get rid of it would be fine with me. It’s one thing to charge the high costs but to also allow Congress to set interest at 8%+ profiting off young adults is a problem. I know for years I’ve paid a lot of my income into my loans only for the principal to grow.
To add a bit, educational debt is the number 2 asset(yes, asset)in this country.
They are making too much off this debt to forgive it, it'll never happen; as Congress is incapable of living within any budget.
If it happens, it'll be a measly 10k; a one time payment.
Then Biden can cost effectivelyfulfill his promise.
To add a bit, educational debt is the number 2 asset(yes, asset)in this country.
They are making too much off this debt to forgive it, it'll never happen; as Congress is incapable of living within any budget.
If it happens, it'll be a measly 10k; a one time payment.
Then Biden can cost effectivelyfulfill his promise.
Accounts receivable is an asset, yes, in accounting terms. When someone owes you money, the IOU is an "asset." But just like stocks you have not sold, it carries some risk, it is an unrealized asset. You can claim its value on your balance sheet but it may at some point become a loss.
And in terms of it as an investment, no interest has been accruing at least on Federal loans (all Federal loans, I think?) since March of 2020. Which means that although the debt is still considered an "asset"...it is not performing as an investment.
And they also have not been able to collect, all collections have been suspended, so they haven't been able to determine which are the % that are headed to default if/when the deferrals are lifted and which are still genuine assets and which will actually wind up being losses.
Though they probably don't write off most true defaults until the borrower dies. While they don't give any relief in bankruptcy, they do expunge student loans upon the death of the borrower, rather than trying to get paid from the estate.
I would say...it's not so much that "they" are making a ton of money on these loans, and cannot give them up because they need the revenue...after all, they've had drastically less revenue for over 2 years from them now... It's more that the US debt probably has to be backed by statements of net worth that involve assets and student loan debts may be used in the balance of assets to back our government's credit rating to borrow. Mind you, it's important to remember who the United States government borrows FROM. It is mostly the Fed and the people, by way of bonds and securities that are part of investment portfolios. The biggest chunk of US debt never leaves our shores. There are some foreign entities and governments that hold our debt (as an asset!) as well, the biggest one being Japan last I looked.
Stop offering student loans. Tuition will drop. Then for the people who have personal loans they can get PSLF if they don't want to then they can pay the bill.
Can people with very unmanageable student debt file bankruptcy?
If so, that's an option.
No, as of now, student loans are not able to be discharged in bankruptcy.
But there is a provision that if someone becomes totally and permanently disabled, then their loans can be discharged (only for certain kinds of student loans.)
And there is a list of specific schools, where if you attended one, you may be able to get your loans forgiven.
To support student loan forgiveness is mind boggling to me. If anything, the cost should be a motivating factor behind what you choose to do in life. College is not mandatory, its a choice. If you cant afford to go and you want to, there are options out there. Nothing like introducing these kids into the real world by teaching them its ok to sign up for loans that they cant afford. There are plenty of jobs out there that that are in desperate need of people that in many cases will yield a better income than if they had a college degree. Unfortunately, the high schools push college on everyone because the more people that go to college, the better it looks for the school system. Our High School sweeps trade schools and the military under the carpet unless you specifically dig at them for info. If we "forgive" one type of loan, why wouldnt we forgive other types of loans as well? Loan forgiveness not only teaches that you dont have to be held accountable for your actions, but its also a kick in the face to all of those that did struggle to successfully pay off there debt.
To support student loan forgiveness is mind boggling to me. If anything, the cost should be a motivating factor behind what you choose to do in life. College is not mandatory, its a choice. If you cant afford to go and you want to, there are options out there. Nothing like introducing these kids into the real world by teaching them its ok to sign up for loans that they cant afford. There are plenty of jobs out there that that are in desperate need of people that in many cases will yield a better income than if they had a college degree. Unfortunately, the high schools push college on everyone because the more people that go to college, the better it looks for the school system. Our High School sweeps trade schools and the military under the carpet unless you specifically dig at them for info. If we "forgive" one type of loan, why wouldnt we forgive other types of loans as well? Loan forgiveness not only teaches that you dont have to be held accountable for your actions, but its also a kick in the face to all of those that did struggle to successfully pay off there debt.
People who take out loans should repay the loans. That is what I have done my entire life. Apparently, you have, too.
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fulfill his promise.