Students Are Refusing to Pay Back Their Loans When Payment Pause Ends

[DigitalDrifter]

You signed the papers, just like I did, so you can pay it all back just like I did. Those refusing to pay hopefully will see their credit ratings go in the toilet.

Some college graduates are suggesting there should be a general boycott on repaying student loans, once the current federal loan payment pause ends in the summer.

The debt ceiling deal agreed between President Biden and Speaker Kevin McCarthy says the pause, initially introduced as a temporary measure during the coronavirus pandemic, will "cease to be effective" from 60 days after June 30.

Student loans have emerged as a highly charged political issue in recent years. On Thursday the Senate backed a House resolution that would cancel Biden's student loan forgiveness plan, which would wipe $10,000 from the debt of most borrowers, and up to $20,000 for graduates who received Pell Grants. The president has pledged to veto this bill, which he described as "an unprecedented attempt to undercut our historic economic recovery." The Supreme Court is expected to rule on Biden's plan in late June or early July.

MSN

www.msn.com

 

[wamose]

Catch them and bus them to Honduras.

 

[Winco]

There will be consequences.

If there is any forgiveness, it needs to come from the schools themselves.
Not the taxpayers.
Use the large endowments, not my taxpaying $$$$'s to pay off these loans.

 

[okfine]

Sounds like a personal problem. They will be fending off the bloodsucking collectors forever. Time for bankruptcy.

 

[multivita-man]

There will be consequences.

If there is any forgiveness, it needs to come from the schools themselves.
Not the taxpayers.
Use the large endowments, not my taxpaying $$$$'s to pay off these loans.

AFAIK, the schools can't forgive; they are not the lender. The school simply determines how much borrowing is required based on academic workload, textbooks, average COL, etc. But the debt is either owned by Uncle Sam or private lenders.

The solution is to allow these debts to be discharged in bankruptcy. Since there's so much outstanding debt out there I'm not sure regular bankruptcy would work without destabilizing the higher ed lending ecosystem and the overall economy so there might need to be some tweaks.

 

[Dont Taz Me Bro]

They will find out the hard way what happens when they don't.

 

[OhPleaseJustQuit]

You signed the papers, just like I did, so you can pay it all back just like I did. Those refusing to pay hopefully will see their credit ratings go in the toilet.

MSN

www.msn.com

.

Too bad we no longer have debtor's prisons.

.

 

[Vastator]

Sounds like a personal problem. They will be fending off the bloodsucking collectors forever. Time for bankruptcy.

If what I've heard is correct; these particular student loans cannot be absolved through bankruptcy filings...

 

[two_iron]

How predictable was that? They're easier to lead around than livestock.

 

[1srelluc]

They are going to get loved tenderly.....Maybe that will teach them a lesson on dem promises.

 

[jknowgood]

.

Too bad we no longer have debtor's prisons.

.

They will find out when they try to buy that nice car or house.

 

[multivita-man]

They will find out the hard way what happens when they don't.

It will get ugly quickly. They'll garnish wages. Uncle Sam doesn't fuck around.

 

[bodecea]

They will find out the hard way what happens when they don't.

Meh...declare bankrupcy 7 times and then run for President.

 

[okfine]

If what I've heard is correct; these particular student loans cannot be absolved through bankruptcy filings...

The person with the default loan has to prove undue hardship to claim bankruptcy. The collectors can renew their cases every 10 years. The dilemma. I don't think the taxpayers should be on the hook for their financial situation.

 

[Dont Taz Me Bro]

The person with the default loan has to prove undue hardship to claim bankruptcy. The collectors can renew their cases every 10 years. The dilemma. I don't think the taxpayers should be on the hook for their financial situation.

The taxpayers gave them the money in the first place. Why wouldn't they be on the hook for it?

 

[multivita-man]

 

[multivita-man]

Meh...declare bankrupcy 7 times and then run for President.

Brilliant!

 

[WorldWatcher]

The Student Loan ‘On-Ramp’: Should You Delay Payments for a Year? - NerdWallet

The on-ramp is meant to protect vulnerable borrowers from the worst consequences of missing payments: delinquency and default. For many borrowers, the new IDR plan could be a better option.

www.nerdwallet.com

Our son graduated with his bachelors with no debt.

Our daughter graduated with her JD with about 1/3 the total debt of her peers. She's in the 1.2% of student loan holders who have still been making payments even though payments have been suspended with a temporary 0% interest. That means 100% of her payments have been going directly against principal which will have good long term impacts.

WW

 

[Vastator]

The person with the default loan has to prove undue hardship to claim bankruptcy. The collectors can renew their cases every 10 years. The dilemma. I don't think the taxpayers should be on the hook for their financial situation.

Neither do I. Just pointing out that Bankruptcy won't make the student loan debt go away...

 

[WorldWatcher]

Meh...declare bankrupcy 7 times and then run for President.

Brilliant!

Two of them being casino's where the business model is literally people walk in and hand you their money.

Wow.

WW