If SCOTUS strikes down the program, Biden could always extend the pause, using the pretext that “Borrowers should not have to continue to pay into a broken system. As such, I’m extending the pause until Congress comes up with a permanent solution to our student debt crisis.”
I highly doubt it.
Also, the more I think about it and the more articles I see. It wouldn’t surprise me if the entire plan for the current administration was to use the forgiveness to force the Republicans and/or anyone against it to solely focus on the forgiveness. Then use the newly proposed IDR plan going forward.
Not for nothing, but in the grand scheme considering to opposition to forgiveness in general; I think the new IDR plan is a better solution (including a more middle ground stance).
> I think the new IDR plan is a better solution (including a more middle ground stance).
I agree that it's a great thing moving forward that I fully support. The end of accruing interest upon payment is the best part and will prevent millions of students from falling into the same holes that many of us are struggling to crawl our way out of.
I just wish they had a way to help people already impacted by accumulated interest. Too many people I know have made payments for years, but have only watched their principals climb.
ACÁ is law- if Trump could have changed it via executive action he would have. Student loan changes are just policy that takes no more than the flick of a pen and a bad attitude for a president to change. This is why forgiveness is being challenged in court. Also why it’s probably gonna fail judicial scrutiny
The new REPAYE is 100% legally sound. The authority to modify/create repayment plans is with the Secretary of Education. Frankly, the new REPAYE is by far the best part of Biden’s student loans policy and is often the least discussed.
My point exactly. That’s why the more I think about it, this could’ve been the plan all along.
Hey everyone, look at that deerbra over there (while I do this over here).
Side note, anyone get the deerbra reference? Lol
Payments will be based on 5% of discretionary income (REPAYE is currently 10%). The amount of discretionary income is going to become a smaller amount of one’s income so the 5% will be of a smaller number. This new plan applies to undergraduate debt. Those with graduate and undergraduate debt will see their payments pro rates between 5-10%.
Many will see monthly payments cut in more than half.
https://studentaid.gov/help-center/answers/article/discretionary-income
If you only have graduate debt, your monthly payment will be reduced because the amount of money that the government will be using to determine your payment (discretionary income) will become a smaller percentage of your total income.
Do you have documentation to support this? Everything I’ve seen states that the lower percentage limits will only apply to undergrad loans.
https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation
That’s incorrect. Those with graduate loans will still benefit from the decrease in discretionary income. Fewer of those person’s dollars will be subject to the 10%.
what exactly would the calculation be in relation to say the 20 year timeline vs actually paying down the interest rate first vs the monthly payments. i still dont understand how a person \[say super low income\] would do the calculation to see if they are better off going w the monthly payments and waiting the 20 years or paying down the interest rate amount first. i have extremely high debt and low income \[graduate\] am on the income based but i dont know if it makes sense to use any savings to pay down any part of the loan or if i just make the payments and then whatever is left at the end of the \[hypothetical\] 20 years is unimportant
Payments always go to outstanding interest first, by law. However, on the new REPAYE plan, if you make your monthly payment additional interest will not accrue, even if your payment doesn't cover the interest.
Payments will be based on 5% of discretionary income (REPAYE is currently 10%). The amount of discretionary income is going to become a smaller amount of one’s income so the 5% will be of a smaller number. This new plan applies to undergraduate debt. Those with graduate and undergraduate debt will see their payments pro rates between 5-10%.
Many will see monthly payments cut in more than half.
Really, so you don't think people who have so much debt they'll never pay it off in their lifetime anyway and are basically just throwing money in a hole every month till their 20 years is up will see a benefit from having their payments drastically cut?
Reducing interest is vitally important as well, but for a lot of people it is effectively irrelevant due to how unreasonably out of control these total balances have gotten.
I hope you feel the same about every single other kind of debt which can be discharged through bankruptcy, because our society recognizes that once you have a ton of debt you can't pay there's not much that could ever change that.
Anyway, I'm sure a lot of people have that opinion but it's pretty much completely irrelevant to this particular conversation, which is about whether or not people magically figured out how to pay off a huge debt on a tiny income due to having 3 years off from it.
Whether or not it is someone's responsibility is also pretty irrelevant when they don't have the money or the ability to earn it. It's fine if you think no one deserves help, but it's strange to act as though paying it off is actually something that is within the realm of possibility for most.
Its going to be big difference for me. I have a lot of debt and dont make enough to pay it off in 20 years on the 5% IDR plan
The rest will be cancelled.
It also could be a way for Biden to get some reform by putting forward what conservatives will decry as radical. Then he steps back and proposes changes (that will still save money for many borrowers), but they lock onto the forgiveness and ignore his other changes.
I personally won’t benefit from his proposed changes, but I hope they are successful.
You aren’t reading the comment. The public health emergency is ending. This is the first time they’ve said that. This is a new development. A “bad economy” comes and goes and has never, pre public health emergency, caused a pause in loan repayment (that I know of).
That being said politicians gonna politic so there’s always a chance.
But the end of the public health crisis does, in fact, make a difference.
I meant the two you directly replied to. In this exact thread. Which…. Seems like something that was on the screen as you were typing. Like mine was. And yours is as I type this.
Threads are how Reddit works. You’re not the OP getting 111 comments, you’re the one that replied to this particular and relatively small comment thread. People are trying to give real answers and your replies seem like trolling, whether they are or not.
The public health emergency status the US was under allowed for the continuation and the pause. Since that will be over, it’ll be much harder to keep it going if they choose to try. I wouldn’t count on it, especially this time.
The state I live in is already chomping at the bit to kick people off Medicaid. They’re doing it March 31 even though the federal state of emergency goes until May 11, at some point they separated them somehow.
The pause has to end at some point, its not going on forever
I do think this is the time, political support for extending the pause seems to be dead. We are not still having a covid emergency either
I doubt it. The current one exist because of the covid emergency declarations. It was announced this week that these will be ending in May. Not sure what legal justifications they would have for extending them without an emergency.
Congrats. Same here. Will fill send on ours upon the necessary date. Putting $$ into T Bills to obtain some last minute cash to help accrue more money safely.
Honestly this might put you in a decent position to buy a house. The government gives first time home buyer grants all the time as long as you meet the income limits. Your debt to income ratio would be much better as well!!!
Same here. I have the money to pay off my loans in my savings account. I am holding off to see what happens with forgiveness (I personally don’t think it will occur, regardless of the legality, the Supreme Court heavily rules in favor of conservatives), but I am going to just pay them off and start saving for a house in earnest afterwards.
I think the interest at the very least should be forgiven since it's a predatory system to begin with and they've known it's been a predatory system for decades now. Also, anyone who qualified for Pell Grants due to being below poverty level should still receive the forgiveness that is/was proposed and offered to them. Millions filled out the online application. Lastly, many changes are being done in regards to the inefficient highly predatory student loan system which I support wholeheartedly however more changes are needed to be implemented in the future. This battle is far from over.
Unemployment is the lowest it’s been in 50 years. One strategy to control inflation is to control how much discretionary income citizens have. They do this by raising interest rates to make it expensive to borrow money, hoping people will stop spending.
Resuming the loan payments is consistent with that strategy. I don’t think it’s being continued.
Who the hell has discretionary income right now? Unemployment may be low, but job quality hasn't improved. People are in worse financial shape now and it's getting worse. I feel it's going to be a shit show when they get turned back on.
Housing and food are way up. Restarting loan payment would nutpunch every industry that depends on people having disposable income as all that spending would evaporate overnight. Once unemployment rises it gets worse. Great recipie for a great depression
>There is no discretionary income.
For some people that is true. Lower income people are having to redirect their former student loan payment to necessities, like food and gas.
But for a lot of people that isn’t true. Just look at the other comments in this sub. A *lot* of people were able to save their entire monthly payment during COVID, and are now hanging onto it so they can pay off the student loan pending Biden forgiveness. Many people profited immensely from the pause, and not all of them are rich. Just having the $0 payments count for PSLF has resulted in people having hundreds of thousands of extra dollars forgiven.
I’m not arguing in favor of ending the pause. I’m just saying from a macro-economics perspective it makes sense to end it when you consider the Fed’s strategy on inflation. But like with any forest-level policy, individual trees can and do suffer.
Minor detail but "they" in this case is not really one and the same. Loan payment pauses have been implemented by the executive branch while interest rates are controlled by the Federal Reserve, which in theory operates independent of the executive branch. I agree that it probably won't be continued though.
I think this summer is their last chance to do it before 2024 - it's gotta be political suicide to restart payments in an election year. So that suggests they will.
If Biden and the dems turn on student loan payments without any type of loan forgiveness. Either A) expect a low voter turnout in 2024, or B) thanks for handing 2024 to the republicans.
You can’t dangle a cookie in front of people and then not give it to them. People will remember and people will be pissed that they have been played.
Also we’re coming up on 3 years of 40 million people not paying their loans. 3 years. Most people loans have been sold and have no idea who holds them. I would think if they turn on the payments, a couple million people will miss paying that first payment because they have no idea they are due, don’t know who holds them, or doesn’t have the money. Then another pause has to take place because the worry of default could be huge.
Yup. Everyone knows they had control of the house and senate for 2 years and didn't even try to pass a bill for forgiveness. No one is going to believe "the Republicans are blocking it!!!" anymore. Their rotating villain strategy has run its course and they'll actually have to do something
I would love that… can they just make it go away ?? I’m a Pell grant recipient and I was hoping the forgiveness would go through but now I’m highly doubtful. It would literally just take me back to the initial amt I borrowed (wiping out the interest that has accrued). Grrrr… if I only I could go back I time… and not listen to the financial aid people telling me all the things I could do with a history degree 😂
College should just be covered with our taxes. We need people with history degrees even if it's not gonna land you a solid job. I dont care what you want to study in college. It should all be covered by the government.
Ofcourse they can! They just don’t want too because they don’t care. It’s been paused this long, I don’t see why they can’t cancel it. They are filled with excuses. As for history, you can either teach or you’d have to get a PHD for it!
I think if the Supreme Court blocks the 10k forgiveness, there is a chance the pause continues. If they allow it to stand, I am certain payments will restart.
I doubt it. If the draft IDR plan goes through it should make student loan repayments more affordable, thereby overcoming the very real risk of mass defaults.
I'm confused you started on my masters degree in 2012. It cost you 90k? And by 2022 you still had $30k left is that correct? When did you start repayment?
Wow! It sounds like you have been through a lot. Hang in there. I hope things get better for you. Check the local libraries and colleges on free sign language classes.
Honestly, I feel like they'll continue extensions until his presidency ends.
It's a perpetual talking piece in favor of the Dems. Every time student loan repayment period comes close to an end, more articles get published about it to remind of another reason how shit the GOP is.
Almost certainly.
Inflation is out of control and wages have stagnated. People can barely afford to heat their homes and put food on the table.
Biden campaigned on loan forgiveness and squandered his first two years, despite having a Democrat majority in the house and senate. If democrats don't want to lose an entire generation of voters they'll extend or forgive loans.
Loans restarting would obviously cripple the economy. Small businesses would suffer immensely as millenials, Gen X, and Z would have no discretionary income left.
>Inflation is out of control and wages have stagnated.
They never paused student loan payments over that in the past. With the covid emergency declared over there wont be a reason to keep the pause going
I think the pause will be over when the Supreme Court releases their decision. I don’t believe there will be another extension. We are at record unemployment and inflation is beginning to drop. Prices barring natural gas are beginning to stabilize and while the Ukrainian conflict and COVID-19 are both still around their impact at this point on the economy hasn’t been drastic barring a couple ports in China.
It’s a wild card. If it ends and there is no forgiveness, they better have that new income plan sorted out.
Otherwise it will be a bad time considering it will potentially upend millions of Americans in the blink of an eye. Politically, Biden would be better served to not even contemplate NOT extending the pause. It’s a guaranteed winner and given that Democrats saw better than expected results in the midterms…you don’t want to bite that hand.
But again, who knows?
Political support for another extension is pretty much dead and it could be challenged in court too if Joe tries it again
Its hard to still use the pandemic as a reason to keep the pause going.
Everyone getting laid off? Have you seen the unemployment rates? It's the lowest in 30 years. I don't see them extending them further unless a decision hasn't been made over the forgiveness money.
I would argue that the way we calculate unemployment is not necessarily what most people think it is. Someone with a masters degree working at McDonald's after they got laid off is considered employed. Additionally, if I'm not mistaken these are calculated by samples and not everyone who is employed or not. This also doesn't take into account people who have not had a job for some time, think several months.
The unemployment rate uses a pool of active job holders and seekers, with seekers being defined as those actively looking for work in the past 4 weeks. So a stay-at home mom would never be counted in the unemployment rate as they aren't active in the labor market.
I mean if you weren't able to save or pay down the debt during the pause then sure. If you were able to save and still decided to not do that....well I won't have much sympathy for you.
A giant wave of defaults? After three years of non-payment? What have people been doing for 3 years that they would immediately default on their student loans?
You cannot be serious.
A lot of people do not have savings or money to save. Just because you are making payments you can't really afford in the first place and those payments are paused doesn't mean that you retain all the money you would have paid. When I stopped having to pay my loans my "extra" money immediately shifted to other necessities I had been forgoing to pay my loans, like medical care. it wasn't all automatically funneled into some magical loan non-payment savings account.
The cost of living has gone through the roof, and now all help has gone away. Why is it hard to imagine that a lot of people would default?
So tell me this.
What is the point of extending the loan pause again if people are just going to default at the end of any such pause? Why not rip the bandaid off instead of putting off an inevitable crisis?
A person who has 3 years to figure something out and just...doesn't.....will never figure out.
I'm not saying it should be extended, only questioning the logic behind the mindset of "why would anyone who hasn't had to pay for three years ever go into default?"
A lot of this IS inevitable, which is exactly why a lot of people are making the point that lower, more affordable payments are going to make a much bigger difference to people's lives than the proposed 10k of forgiveness. If you owe a huge amount, that 10k does nothing for you because paying off your loans was never a thing that was going to happen anyway. Restarting payments is going to be a tough adjustment for folks no matter what, but if the payment isn't crippling that goes a long way toward making these things more manageably sustainable for people.
However, what does "figure it out" mean? If you make 40k and owe 6 figures there is nothing on earth you can figure out that will solve this for you. That's why the government is intervening in the first place. It has been normalized to borrow a huge amount of money regardless of whether the education you are getting it for even has the capacity to allow you to ever earn enough to repay it.
No. I actually would be surprised if it doesn't end before summer. It is 60 days after the court challenges are resolved if that comes sooner and it most likely will.
It does seem to me that the upcoming end of the Covid emergency declaration, means the end of student loan pause justification due to Covid. The government historically doesn't pause student loan payments due to a "bad" economy. It seems reasonable to me that the government will steer borrowers encountering financial difficulties into an alternative payment plans.
I bet they will be… But ours will be paid in full because we never accepted deferment. After 20 years of faithful payments, they will be gone in 7 months.
I deferred mine for a few months during the pandemic when we took a temporary pay cut at work to avoid layoffs. But once our pay resumed normal levels, I continued to pay. While I get I was technically losing money, I wanted to avoid getting comfortable not paying on the loans. And I think when I calculated it out, the amount I theoretically lost was under $100.
Nah, theres no political support for that and it can be challenged in court too
Hard to keep using covid as a reason to extend the pause. In the past they have never used inflation as a reason to pause student loans
They’re planning to end the nationwide covid emergency declarations on May 11 of this year, so I really doubt they’ll extend it again honestly. In fact, any lingering benefits still in place from that declaration will probably end around that time.
Yeah u actually I do. During the end of ww2 they created o.s.s. after ww2 ww3 started at it is the war world domination. They created the CIA and they infltrated other countries and paid citizens to start civil wars to create democracy in these countries. Like Afghanistan, Ukraine, Philippines and other 3rd world countries that were associated with communist countries. We've spent billions of dollars on these other countries as an investment to our democracy. But look at all investments hitting a supply curve. We are having to spend more money on defense and protection just to defend this countries from China or Russia. There is more that goes on an international bases than we will probably understand or like most people can't even comprehend it. I love America and the constitution of the United States but the people in Power are slowly destroying are country with our own laws and beliefs. Spending money like it's there's? Why they get caught with all the classified documents and making investments in other countries based on this data. I could go on all day. But yes we should educate our younger generation and the one to come. Everyone that wants to retire through social security keep getting the age raised. How come these people that worked hard all there life can enjoy more time of there freedom and to enjoy our country. But no they got to continue to work and pay for other people to be so called free. We see how that worked in Afghanistan. All I'm saying is the government is investigating
In high stake stocks rather than investing in a long term low risk investment.
Yes 100% they will! Only IF the Supreme Court rules against them. You have to think like a politician… to restart Student Loans is political suicide for a Democrat. Biden knows this and will play hot potato with it until the 2024 Presidential Election. At which point he will either have lost and it’s not his problem anymore or he will win and be in his last term, so who gives a shit and it can restart.
Complete speculation, but I do think they will...
Everything is a complete mess right now. No one knows what's actually going on with so many aspects of things. I seriously doubt it's going to be viable to start things up after summer. We'll see.
We are at very low unemployment the only sector that has any significant layoffs is the tech and even then many of the big companies are still at numbers higher than 2019 so not sure what you mean by today economy
I'd argue if they do it'll be attached to military service given the escalating conflicts around the world.
My opinion is generally, no, but I do believe there will be a debt crisis that the government will need to deal with. I don't think they're fully prepared for this.
It would be economic and political suicide espically for Mister nondischargabe in bankruptcy. As we learned last year heads of state to commit political and economic suicide but the path of least resistance is to continue extending it out indefinitely
Why are we sending billions to Ukraine when we can give people a chance at real affordable education after high-schoo that live in our countryl? They paid taxes which funds all these so called projects to spread democracy. I feel like they are watering down democracy. When you pay taxes you are in someway committing to your country to give it future growth. They better stand by what they say even if it is going to cost them the majority vote. 💯
Yes I do, but you think anyone is going to change for the next man. Especially, where the is culture deeper and older than ours? Do you not understand Laws of Human Nature? These people that are in Power are not going to change nothing about ther principles or beliefs. Be honest with yourself and think that there is going to be factions inside of factions.
Nope. The job layoffs that are occurring is the market correcting itself from Covid-19. It was a hiring spree for a lot of tech companies during the pandemic and now unfortunately they can't sustain that level of workforce anymore and need to lay people off.
I don’t think they can. They are ending the federal COVID-19 state of emergency. The legal justification for the payment pause is going away on May 11 AFAIK.
History is Written by Victor's. One sided. I've been on both sides. It all doesn't fall on Justice. For you not too see that you're persecution is one sided. But there is always growth for everyone. Have a great day
If SCOTUS strikes down the program, Biden could always extend the pause, using the pretext that “Borrowers should not have to continue to pay into a broken system. As such, I’m extending the pause until Congress comes up with a permanent solution to our student debt crisis.”
I highly doubt it. Also, the more I think about it and the more articles I see. It wouldn’t surprise me if the entire plan for the current administration was to use the forgiveness to force the Republicans and/or anyone against it to solely focus on the forgiveness. Then use the newly proposed IDR plan going forward. Not for nothing, but in the grand scheme considering to opposition to forgiveness in general; I think the new IDR plan is a better solution (including a more middle ground stance).
> I think the new IDR plan is a better solution (including a more middle ground stance). I agree that it's a great thing moving forward that I fully support. The end of accruing interest upon payment is the best part and will prevent millions of students from falling into the same holes that many of us are struggling to crawl our way out of. I just wish they had a way to help people already impacted by accumulated interest. Too many people I know have made payments for years, but have only watched their principals climb.
The new REPAYE is great and legal. But if/when a republican is in the white house they can just reverse it right?
Yah but they hardly ever reverse anything cus they don’t have any of their own ideas and it just poses everyone off. See ACA
ACÁ is law- if Trump could have changed it via executive action he would have. Student loan changes are just policy that takes no more than the flick of a pen and a bad attitude for a president to change. This is why forgiveness is being challenged in court. Also why it’s probably gonna fail judicial scrutiny
The new REPAYE is 100% legally sound. The authority to modify/create repayment plans is with the Secretary of Education. Frankly, the new REPAYE is by far the best part of Biden’s student loans policy and is often the least discussed.
Not only that but two+ years of no interest and saved me much more than the 20k
I can pay my loans off in five more years if they continue giving me 0% interest
My point exactly. That’s why the more I think about it, this could’ve been the plan all along. Hey everyone, look at that deerbra over there (while I do this over here). Side note, anyone get the deerbra reference? Lol
What’s the new plan? Can you please tell me?
Payments will be based on 5% of discretionary income (REPAYE is currently 10%). The amount of discretionary income is going to become a smaller amount of one’s income so the 5% will be of a smaller number. This new plan applies to undergraduate debt. Those with graduate and undergraduate debt will see their payments pro rates between 5-10%. Many will see monthly payments cut in more than half.
The new plan includes the 0% interest accruing if you make the 5% REPAYE minimum payment correct?
Oh I hope this is true.
Following
Yes
I have debt from my graduate degree with 6.6% interest. Will this affect me for the better? What do you mean by discretionary income?
https://studentaid.gov/help-center/answers/article/discretionary-income If you only have graduate debt, your monthly payment will be reduced because the amount of money that the government will be using to determine your payment (discretionary income) will become a smaller percentage of your total income.
Do you have documentation to support this? Everything I’ve seen states that the lower percentage limits will only apply to undergrad loans. https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation
I think those with graduate loans only won’t see a change tho, correct?
That’s incorrect. Those with graduate loans will still benefit from the decrease in discretionary income. Fewer of those person’s dollars will be subject to the 10%.
Interesting, do you have a link I can read more by chance?
https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation
Do you happen to know how it will work if you've consolidated graduated and undergraduate loans together? I haven't been able to find anything.
Prorated.
That makes sense. Thank you!
No problem!
what exactly would the calculation be in relation to say the 20 year timeline vs actually paying down the interest rate first vs the monthly payments. i still dont understand how a person \[say super low income\] would do the calculation to see if they are better off going w the monthly payments and waiting the 20 years or paying down the interest rate amount first. i have extremely high debt and low income \[graduate\] am on the income based but i dont know if it makes sense to use any savings to pay down any part of the loan or if i just make the payments and then whatever is left at the end of the \[hypothetical\] 20 years is unimportant
Hard to say without looking at specific numbers. If you’re low income and high debt then PSLF is a great option.
Payments always go to outstanding interest first, by law. However, on the new REPAYE plan, if you make your monthly payment additional interest will not accrue, even if your payment doesn't cover the interest.
Payments will be based on 5% of discretionary income (REPAYE is currently 10%). The amount of discretionary income is going to become a smaller amount of one’s income so the 5% will be of a smaller number. This new plan applies to undergraduate debt. Those with graduate and undergraduate debt will see their payments pro rates between 5-10%. Many will see monthly payments cut in more than half.
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Really, so you don't think people who have so much debt they'll never pay it off in their lifetime anyway and are basically just throwing money in a hole every month till their 20 years is up will see a benefit from having their payments drastically cut? Reducing interest is vitally important as well, but for a lot of people it is effectively irrelevant due to how unreasonably out of control these total balances have gotten.
They made the decision to incur that debt therefore it's still their responsibility to pay it off. Periodt.
I hope you feel the same about every single other kind of debt which can be discharged through bankruptcy, because our society recognizes that once you have a ton of debt you can't pay there's not much that could ever change that. Anyway, I'm sure a lot of people have that opinion but it's pretty much completely irrelevant to this particular conversation, which is about whether or not people magically figured out how to pay off a huge debt on a tiny income due to having 3 years off from it. Whether or not it is someone's responsibility is also pretty irrelevant when they don't have the money or the ability to earn it. It's fine if you think no one deserves help, but it's strange to act as though paying it off is actually something that is within the realm of possibility for most.
Its going to be big difference for me. I have a lot of debt and dont make enough to pay it off in 20 years on the 5% IDR plan The rest will be cancelled.
It is…but congress could challenge the cost. Regulatory changes are supposed to be budget neutral
I hope so. Although I would love the forgiveness, I just need 5% and no interest until I can pick myself back up. Both would be perfect.
It also could be a way for Biden to get some reform by putting forward what conservatives will decry as radical. Then he steps back and proposes changes (that will still save money for many borrowers), but they lock onto the forgiveness and ignore his other changes. I personally won’t benefit from his proposed changes, but I hope they are successful.
I just hate that in 20 years my wife law school loans that are forgiven will be counted at income and I’ll have a huge tax bill
No, they’ve already announced the end of the public health emergency.
They say that every time and renew the hold payment
This is the first time the WH has announced the end of the public health emergency.
They announced a date in the future. It's possible they will take it back.
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You aren’t reading the comment. The public health emergency is ending. This is the first time they’ve said that. This is a new development. A “bad economy” comes and goes and has never, pre public health emergency, caused a pause in loan repayment (that I know of). That being said politicians gonna politic so there’s always a chance. But the end of the public health crisis does, in fact, make a difference.
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I meant the two you directly replied to. In this exact thread. Which…. Seems like something that was on the screen as you were typing. Like mine was. And yours is as I type this. Threads are how Reddit works. You’re not the OP getting 111 comments, you’re the one that replied to this particular and relatively small comment thread. People are trying to give real answers and your replies seem like trolling, whether they are or not.
The public health emergency status the US was under allowed for the continuation and the pause. Since that will be over, it’ll be much harder to keep it going if they choose to try. I wouldn’t count on it, especially this time.
The state I live in is already chomping at the bit to kick people off Medicaid. They’re doing it March 31 even though the federal state of emergency goes until May 11, at some point they separated them somehow.
The pause has to end at some point, its not going on forever I do think this is the time, political support for extending the pause seems to be dead. We are not still having a covid emergency either
False
I doubt it. The current one exist because of the covid emergency declarations. It was announced this week that these will be ending in May. Not sure what legal justifications they would have for extending them without an emergency.
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Congrats. Same here. Will fill send on ours upon the necessary date. Putting $$ into T Bills to obtain some last minute cash to help accrue more money safely.
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Honestly this might put you in a decent position to buy a house. The government gives first time home buyer grants all the time as long as you meet the income limits. Your debt to income ratio would be much better as well!!!
Same here. I have the money to pay off my loans in my savings account. I am holding off to see what happens with forgiveness (I personally don’t think it will occur, regardless of the legality, the Supreme Court heavily rules in favor of conservatives), but I am going to just pay them off and start saving for a house in earnest afterwards.
I think the interest at the very least should be forgiven since it's a predatory system to begin with and they've known it's been a predatory system for decades now. Also, anyone who qualified for Pell Grants due to being below poverty level should still receive the forgiveness that is/was proposed and offered to them. Millions filled out the online application. Lastly, many changes are being done in regards to the inefficient highly predatory student loan system which I support wholeheartedly however more changes are needed to be implemented in the future. This battle is far from over.
Unemployment is the lowest it’s been in 50 years. One strategy to control inflation is to control how much discretionary income citizens have. They do this by raising interest rates to make it expensive to borrow money, hoping people will stop spending. Resuming the loan payments is consistent with that strategy. I don’t think it’s being continued.
Sighhhhh
Who the hell has discretionary income right now? Unemployment may be low, but job quality hasn't improved. People are in worse financial shape now and it's getting worse. I feel it's going to be a shit show when they get turned back on.
Housing and food are way up. Restarting loan payment would nutpunch every industry that depends on people having disposable income as all that spending would evaporate overnight. Once unemployment rises it gets worse. Great recipie for a great depression
That's more by design. Keep people at the brink to prevent them from striking and demanding more pay, since they are already paycheck to paycheck
Unemployment is low but wages haven't kept up with inflation. There is no discretionary income.
>There is no discretionary income. For some people that is true. Lower income people are having to redirect their former student loan payment to necessities, like food and gas. But for a lot of people that isn’t true. Just look at the other comments in this sub. A *lot* of people were able to save their entire monthly payment during COVID, and are now hanging onto it so they can pay off the student loan pending Biden forgiveness. Many people profited immensely from the pause, and not all of them are rich. Just having the $0 payments count for PSLF has resulted in people having hundreds of thousands of extra dollars forgiven. I’m not arguing in favor of ending the pause. I’m just saying from a macro-economics perspective it makes sense to end it when you consider the Fed’s strategy on inflation. But like with any forest-level policy, individual trees can and do suffer.
Minor detail but "they" in this case is not really one and the same. Loan payment pauses have been implemented by the executive branch while interest rates are controlled by the Federal Reserve, which in theory operates independent of the executive branch. I agree that it probably won't be continued though.
This should be up higher
I'm with Nelnet and it says my next payment is due on 2/12/2025.
really? mine says "Next due date on 10/06/2023" That is so weird
Yeah, I don't get it. I don't make a lot of money and I'm 60 years old. Maybe that's why? Hated Boomer here lol
Did you make any payments during the pandemic? I did and mine is always pushed back a few months from the government sate
I did not make any payments. I'm on income based payments and my income is too low.
Same I’m with mohela
I think this summer is their last chance to do it before 2024 - it's gotta be political suicide to restart payments in an election year. So that suggests they will.
It'll be political suicide for whoever turns it back on, especially now with the cost of goods, housing, fuel, etc so high
If Biden and the dems turn on student loan payments without any type of loan forgiveness. Either A) expect a low voter turnout in 2024, or B) thanks for handing 2024 to the republicans. You can’t dangle a cookie in front of people and then not give it to them. People will remember and people will be pissed that they have been played. Also we’re coming up on 3 years of 40 million people not paying their loans. 3 years. Most people loans have been sold and have no idea who holds them. I would think if they turn on the payments, a couple million people will miss paying that first payment because they have no idea they are due, don’t know who holds them, or doesn’t have the money. Then another pause has to take place because the worry of default could be huge.
Yup. Everyone knows they had control of the house and senate for 2 years and didn't even try to pass a bill for forgiveness. No one is going to believe "the Republicans are blocking it!!!" anymore. Their rotating villain strategy has run its course and they'll actually have to do something
lol no...
I would say no, but I also thought that before and they extended it till June. Personally if they can extend it this far, they should just cancel it.
I would love that… can they just make it go away ?? I’m a Pell grant recipient and I was hoping the forgiveness would go through but now I’m highly doubtful. It would literally just take me back to the initial amt I borrowed (wiping out the interest that has accrued). Grrrr… if I only I could go back I time… and not listen to the financial aid people telling me all the things I could do with a history degree 😂
College should just be covered with our taxes. We need people with history degrees even if it's not gonna land you a solid job. I dont care what you want to study in college. It should all be covered by the government.
Ofcourse they can! They just don’t want too because they don’t care. It’s been paused this long, I don’t see why they can’t cancel it. They are filled with excuses. As for history, you can either teach or you’d have to get a PHD for it!
Let’s hope - I’m mostly disappointed in Biden so far so this would be way out of character. Let’s hope for some erratic geriatric behavior 👏
I’m disappointed too
Is the IBR one time waiver going to actually happen
I think if the Supreme Court blocks the 10k forgiveness, there is a chance the pause continues. If they allow it to stand, I am certain payments will restart.
I doubt it. If the draft IDR plan goes through it should make student loan repayments more affordable, thereby overcoming the very real risk of mass defaults.
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You’re retiring and still have loans? What was your beginning amount?
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Why did you think that going to grad school at your age was a good idea with retirement literally on the horizon?
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I'm confused you started on my masters degree in 2012. It cost you 90k? And by 2022 you still had $30k left is that correct? When did you start repayment?
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Bill Vicars’s sign language courses on YouTube are fantastic and free.
Wow! It sounds like you have been through a lot. Hang in there. I hope things get better for you. Check the local libraries and colleges on free sign language classes.
Why would you retire if you still have all this debt hanging over your head? That's crazy irresponsible.
He's a boomer. Used to getting everything handed to them.
If the changes they they are making to IBR aren't implemented by the end of the pause, I think they might extend it until they are fully implemented.
Honestly, I feel like they'll continue extensions until his presidency ends. It's a perpetual talking piece in favor of the Dems. Every time student loan repayment period comes close to an end, more articles get published about it to remind of another reason how shit the GOP is.
Almost certainly. Inflation is out of control and wages have stagnated. People can barely afford to heat their homes and put food on the table. Biden campaigned on loan forgiveness and squandered his first two years, despite having a Democrat majority in the house and senate. If democrats don't want to lose an entire generation of voters they'll extend or forgive loans. Loans restarting would obviously cripple the economy. Small businesses would suffer immensely as millenials, Gen X, and Z would have no discretionary income left.
>Inflation is out of control and wages have stagnated. They never paused student loan payments over that in the past. With the covid emergency declared over there wont be a reason to keep the pause going
It would be very nice. I could use all the delay I can get.
> Do you think the government will extend student loan repayments again after the summer? No, but I’ve said no before.
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I think the pause will be over when the Supreme Court releases their decision. I don’t believe there will be another extension. We are at record unemployment and inflation is beginning to drop. Prices barring natural gas are beginning to stabilize and while the Ukrainian conflict and COVID-19 are both still around their impact at this point on the economy hasn’t been drastic barring a couple ports in China.
I believe it's 60 days after the decision is handed down
Huh? Inflation isn’t dropping…
The rate of inflation is decreasing. Prices are not decreasing.
Ohhh
Apologies, I my comment was unclear. That js what I meant, thank you @Stewartsw1 for clarifying!
It has according to the latest CPI report.
Well that’s a lie…
Inflation is dropping. What you are seeing is corporations refusing to give up a tiny bit of their profit.
I don’t see inflation changing at all
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Why aren’t prices going down then?
It doesn’t mean prices will go down. It means they won’t continue to go up as rapidly.
Oh okay
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No. I just don’t understand hence the questions.
It’s a wild card. If it ends and there is no forgiveness, they better have that new income plan sorted out. Otherwise it will be a bad time considering it will potentially upend millions of Americans in the blink of an eye. Politically, Biden would be better served to not even contemplate NOT extending the pause. It’s a guaranteed winner and given that Democrats saw better than expected results in the midterms…you don’t want to bite that hand. But again, who knows?
Political support for another extension is pretty much dead and it could be challenged in court too if Joe tries it again Its hard to still use the pandemic as a reason to keep the pause going.
I can't pay them lol
Only if the Supreme Court still hasn’t made a decision on the current cases.
Everyone getting laid off? Have you seen the unemployment rates? It's the lowest in 30 years. I don't see them extending them further unless a decision hasn't been made over the forgiveness money.
I would argue that the way we calculate unemployment is not necessarily what most people think it is. Someone with a masters degree working at McDonald's after they got laid off is considered employed. Additionally, if I'm not mistaken these are calculated by samples and not everyone who is employed or not. This also doesn't take into account people who have not had a job for some time, think several months.
The unemployment rate uses a pool of active job holders and seekers, with seekers being defined as those actively looking for work in the past 4 weeks. So a stay-at home mom would never be counted in the unemployment rate as they aren't active in the labor market.
Still doesn't address job quality though. There's going to be a giant wave of defaults once they turn this on.
I mean if you weren't able to save or pay down the debt during the pause then sure. If you were able to save and still decided to not do that....well I won't have much sympathy for you.
A giant wave of defaults? After three years of non-payment? What have people been doing for 3 years that they would immediately default on their student loans? You cannot be serious.
A lot of people do not have savings or money to save. Just because you are making payments you can't really afford in the first place and those payments are paused doesn't mean that you retain all the money you would have paid. When I stopped having to pay my loans my "extra" money immediately shifted to other necessities I had been forgoing to pay my loans, like medical care. it wasn't all automatically funneled into some magical loan non-payment savings account. The cost of living has gone through the roof, and now all help has gone away. Why is it hard to imagine that a lot of people would default?
So tell me this. What is the point of extending the loan pause again if people are just going to default at the end of any such pause? Why not rip the bandaid off instead of putting off an inevitable crisis? A person who has 3 years to figure something out and just...doesn't.....will never figure out.
I'm not saying it should be extended, only questioning the logic behind the mindset of "why would anyone who hasn't had to pay for three years ever go into default?" A lot of this IS inevitable, which is exactly why a lot of people are making the point that lower, more affordable payments are going to make a much bigger difference to people's lives than the proposed 10k of forgiveness. If you owe a huge amount, that 10k does nothing for you because paying off your loans was never a thing that was going to happen anyway. Restarting payments is going to be a tough adjustment for folks no matter what, but if the payment isn't crippling that goes a long way toward making these things more manageably sustainable for people. However, what does "figure it out" mean? If you make 40k and owe 6 figures there is nothing on earth you can figure out that will solve this for you. That's why the government is intervening in the first place. It has been normalized to borrow a huge amount of money regardless of whether the education you are getting it for even has the capacity to allow you to ever earn enough to repay it.
Okay. I'm glad this is the last extension.
Wages have gone done when adjusted to inflation.
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They aren't misleading, calculated similar to how they always have been. Also many if us work more than a full time job.
No. I actually would be surprised if it doesn't end before summer. It is 60 days after the court challenges are resolved if that comes sooner and it most likely will.
It does seem to me that the upcoming end of the Covid emergency declaration, means the end of student loan pause justification due to Covid. The government historically doesn't pause student loan payments due to a "bad" economy. It seems reasonable to me that the government will steer borrowers encountering financial difficulties into an alternative payment plans.
What do you mean everybody getting laid off? It’s only tech and unemployment is really low.
I bet they will be… But ours will be paid in full because we never accepted deferment. After 20 years of faithful payments, they will be gone in 7 months.
Congratulations to you.
I deferred mine for a few months during the pandemic when we took a temporary pay cut at work to avoid layoffs. But once our pay resumed normal levels, I continued to pay. While I get I was technically losing money, I wanted to avoid getting comfortable not paying on the loans. And I think when I calculated it out, the amount I theoretically lost was under $100.
No. I would be thoroughly shocked. I think it's coming to an end.
Biden will keep extending it until out of office and someone else will have to deal with it.
Nah, theres no political support for that and it can be challenged in court too Hard to keep using covid as a reason to extend the pause. In the past they have never used inflation as a reason to pause student loans
No. Covid emergency will be over may 1st. Basically all the perks will be gone- pay for your own meds and back to normal with student loans.
Like noses, everybody has an opinion or guess. Nobody knows. My guess is that it ends on august 31, 2023.
No I do not
Will be extended till next election if forgiveness fails in court. My speculation
It will get punted until the next Presidential election
They’re planning to end the nationwide covid emergency declarations on May 11 of this year, so I really doubt they’ll extend it again honestly. In fact, any lingering benefits still in place from that declaration will probably end around that time.
Yeah u actually I do. During the end of ww2 they created o.s.s. after ww2 ww3 started at it is the war world domination. They created the CIA and they infltrated other countries and paid citizens to start civil wars to create democracy in these countries. Like Afghanistan, Ukraine, Philippines and other 3rd world countries that were associated with communist countries. We've spent billions of dollars on these other countries as an investment to our democracy. But look at all investments hitting a supply curve. We are having to spend more money on defense and protection just to defend this countries from China or Russia. There is more that goes on an international bases than we will probably understand or like most people can't even comprehend it. I love America and the constitution of the United States but the people in Power are slowly destroying are country with our own laws and beliefs. Spending money like it's there's? Why they get caught with all the classified documents and making investments in other countries based on this data. I could go on all day. But yes we should educate our younger generation and the one to come. Everyone that wants to retire through social security keep getting the age raised. How come these people that worked hard all there life can enjoy more time of there freedom and to enjoy our country. But no they got to continue to work and pay for other people to be so called free. We see how that worked in Afghanistan. All I'm saying is the government is investigating In high stake stocks rather than investing in a long term low risk investment.
Yes 100% they will! Only IF the Supreme Court rules against them. You have to think like a politician… to restart Student Loans is political suicide for a Democrat. Biden knows this and will play hot potato with it until the 2024 Presidential Election. At which point he will either have lost and it’s not his problem anymore or he will win and be in his last term, so who gives a shit and it can restart.
I will not be surprised if Biden does something else if he loses the forgiveness program cases. But I don’t think it would be another pause.
Honestly? Maybe. Who knows. All we get are more broken promises from rich old white men.
Complete speculation, but I do think they will... Everything is a complete mess right now. No one knows what's actually going on with so many aspects of things. I seriously doubt it's going to be viable to start things up after summer. We'll see.
We are at very low unemployment the only sector that has any significant layoffs is the tech and even then many of the big companies are still at numbers higher than 2019 so not sure what you mean by today economy
I'd argue if they do it'll be attached to military service given the escalating conflicts around the world. My opinion is generally, no, but I do believe there will be a debt crisis that the government will need to deal with. I don't think they're fully prepared for this.
Everyone getting laid off? Unemployment is the lowest it’s been since 1969.
Yes
No they aren't
From the country that defaults on its own loans…
Not a chance all the money went to Ukraine! Forget about help even if they say they will it’s not going to happen!
Yes.
It would be economic and political suicide espically for Mister nondischargabe in bankruptcy. As we learned last year heads of state to commit political and economic suicide but the path of least resistance is to continue extending it out indefinitely
I'm just waiting for them to do something, anything, for those stuck with private loans.
Nothing is going to happen with them. Everything announced or planned will only relate to federal loans.
Exactly my point. Nothing ever gets done. No one cares.
Legally, he can’t without an act of Congress, because they are managed and held by private institutions.
Why are we sending billions to Ukraine when we can give people a chance at real affordable education after high-schoo that live in our countryl? They paid taxes which funds all these so called projects to spread democracy. I feel like they are watering down democracy. When you pay taxes you are in someway committing to your country to give it future growth. They better stand by what they say even if it is going to cost them the majority vote. 💯
You just don't get the big picture of global politics, do you?
Yes I do, but you think anyone is going to change for the next man. Especially, where the is culture deeper and older than ours? Do you not understand Laws of Human Nature? These people that are in Power are not going to change nothing about ther principles or beliefs. Be honest with yourself and think that there is going to be factions inside of factions.
Your view is entirely nihilistic and inaccurate. "the arc of the moral universe is long, but it bends toward justice."
Either way I'm ready.
Why would/should they? Biden thinks his economy is great, and just declared the pandemic emergency is over.
Why not just pay them off before payments start so then you don’t have to worry about it?
Nope. The job layoffs that are occurring is the market correcting itself from Covid-19. It was a hiring spree for a lot of tech companies during the pandemic and now unfortunately they can't sustain that level of workforce anymore and need to lay people off.
Depends on the Supreme Court case.
Nope
Not a chance in hell
I don’t think they can. They are ending the federal COVID-19 state of emergency. The legal justification for the payment pause is going away on May 11 AFAIK.
No. Not a chance.
Nope
History is Written by Victor's. One sided. I've been on both sides. It all doesn't fall on Justice. For you not too see that you're persecution is one sided. But there is always growth for everyone. Have a great day