I particularly enjoyed the bit where they interview the guy who is an Uber driver. He doesn’t care about his credit score since he will never be able to buy a house; feds can’t garnish his wages because technically he doesn’t work for Uber 
The social contract has been so degraded the common mechanisms of debt collection enforcement have become ineffective
If nobody is paying back their loan debt and there is no way to enforce it, then It sounds like the debt is canceled to me.
I was talking with someone recently who said he roughly earns about $4k/m and pays $2k/m for his studio and up until now had paid like $200/m on his loans.
But the change in the payment structure due to Trump’s BBB makes it so now he will have to pay $2k/m for his loan along with $2k/m for his studio from his $4k income.
Probably showing him the standard 10 year payment plan, but he shouldn’t actually have to pay that–BBB gets rid of the partial financial hardship requirement for IDR so he’d at most have to pay 15% of discretionary income, or 10% if he took the loans in 2014 or later. There’s the RAP as well but that could be worse depending on his AGI.
I’m so goddamned glad and lucky that I was able to pay off my loans during the pandemic. I actually got a job that paid more than I’d ever made just before the pandemic hit and since we weren’t going anywhere or doing anything for a few years after that I had more money than I knew what to do with. And when they stopped interest on the student loans I just poured all my money into paying them off. I went from $130k to $0 in 5 years where previously I’d spent almost 8 years paying the minimum and taking deferrals and whatever before that and the loans went up from $70k to $130k.
Fuck the whole goddamned system. I didn’t even get a degree. That alone should absolve you of the requirement to pay back the loans because in most cases you won’t get a job to be able to afford to pay them off anyway.
went up from $70k to $130k.
JFC shit like this tells me they make student loans as unrepayable as possible to just leech people dry. And I bet your principal was like ~$50k initially.
The mafia can’t even hit people that hard.
There is zero reason to charge interest above the tbill rate on a government sponsored debt
I have been paying in for 15 years now and have paid well in excess of the principal. Its fucking usury
God forbid someone without rich parents have the audacity to pursue higher education. A tax on the poor.
My principal was 70k when I had to start paying them. I hit the max limit before my final semester so I thought I would just stop and try to pay it down some until I could go back and finish. Silly me.
This will increase considerably over the next year as people have to move to the new plans and lose forbearance. What a fucking disaster. SAVE was too little to fix anything, but it was better than PAYE.
OBBB completely fucked it all moving forward. Now it’s only congress which can change/add plans, not the SoE. Looking forward for a Dem candidate for '28 to make a gesture towards reinstating SAVE and then go “sorry, my hands are tied, vote harder next time”.
The worst part is that even if 100% of people went into garnishment, nothing would be done. It would just become a fact of life that a significant proportion of the population was having their wages garnished by the government, just like everything else in hell world is “just how it is”.
'28 to make a gesture towards reinstating SAVE and then go “sorry, my hands are tied, vote harder next time”.
Reduced debtor’s prisons for one-armed latina entrepreneurs starting businesses in the dark side of the moon.
i’m ignoring mine and finally getting phone calls which still say “please pay” but then start to threaten collections
idk probably a bad choice but i figure if they want to bleed my money from me they’re gonna have to fucking spend money to take it. send it to collections
the rest of everyone else paying on their loans is fucking this up for me btw, stop paying nerds
p.s. it used to be a hurricane would hit and then some federal national disaster shit would trigger and it’d bring my loans into forbearance and it’d happen every 5-6 months
i guess they’re done doing that though considering the hurricane damage in asheville was probably the worst in years and no forebearance were declared
that is probably a bad idea… they said they’re going to start garnishing wages of anyone who is in default status
i can’t speak to now, but you used to be able to avoid default just by telling the servicer you couldn’t afford it. they usually wanted like last years tax return if you were still employed at the same place, but you could also claim hardship like losing your job or housing. what they drilled into my head was that if you stayed in contact with them, didn’t hide, and provided documentation, they had lots of options. but once you went to default, it was real hard to get out of that status.
i can’t even imagine what a shitshow it is now that there’s not even a veneer of legitimacy, the lawsuits and legislative cockups made everything more confusing, the DoE is MIA, and servicers are probably looking for a quick “out” like selling it off to scumbags for cents on the dollar. people that will call extended family, employers, and anyone else they can track down numbers to making threats and all kinds of illegal shit. the CFPB used to be able to come down on places like that, but i guess those days are over too.
You should really get on an ibr or something if you can. if you make little enough you wont have any payment to make anyway without worrying about them coming after you.
Sounds pretty stable!
