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re: Rejoice debtors, Biden says student loans won't be considered delinquent until 9/30/2024
Posted on 7/5/23 at 11:13 am to GetCocky11
Posted on 7/5/23 at 11:13 am to GetCocky11
quote:
However, borrowers will be spared from many of the usual consequences of missing a payment until October of next year.
For example, loans will not go into default and delinquencies will not be reported to credit reporting agencies, said higher education expert Mark Kantrowitz. Late fees won’t be charged, either.
Since COVID, has interest been accumulating on these student loans, or did they defer interest too?
Also, are interest rates tied to the FED Funds rate or are they fixed depending on when the loan was taken out?
Some may be in for a shock when their interest rates have gone from 1-3% to closer to 5-8% with the Biden interest rate hikes.
2
Posted on 7/5/23 at 11:14 am to Tarps99
0% interest since the covid relief stuff went into effect.
Posted on 7/5/23 at 11:15 am to Odysseus32
quote:
I worry about the effects of this on an even greater level of welath inequality when a lot of people who were living paycheck to paycheck get their credit score knocked because they thought this was a pause and they can't get approved for anything to make ends meet except shark loans.
You can't worry about the people who will make this mistake, because they aren't doing so mistakenly. They will be warned monthly that payment is late, I assume. Interest will pile up, I assume. How could they not know?
Posted on 7/5/23 at 11:18 am to SlimTigerSlap
quote:
You can't worry about the people who will make this mistake, because they aren't doing so mistakenly. They will be warned monthly that payment is late, I assume. Interest will pile up, I assume. How could they not know?
Did you finish reading?
I'm not worried about these people. I'm worried about the effects these people's tough times will have on the economy as a whole.
I know it isn't a popular opinion here, but when our poorest people have decent lives the entire country does better. I'm not saying hand it to them, I'm saying don't enact policy that is going to frick these people over long-term without them realizing it.
It's nothing to do with these people. It's everything to do with me not wanting to have to avoid most areas of a city.
Don't confuse apathy with hatred. I don't hate people worse off than me. I don't care about them. I don't want to teach them a lesson. I don't care if they learn lessons. I just don't want even more a hellscape.
This post was edited on 7/5/23 at 11:19 am
Posted on 7/5/23 at 11:24 am to GetCocky11
This is a horrible idea. Interest starts back up in a couple months so you’d be screwing yourself to not make payments for that long
Posted on 7/5/23 at 11:25 am to GetCocky11
quote:
A lot of borrowers are going to think this is essentially a freeze extension and will frick themselves big time
So come September 2024 are these folks going to get a letter asking for full repayment on a large lump? Because that's what it sounds like.
Economy going to be in shitter by 2025
Posted on 7/5/23 at 11:26 am to Tarps99
quote:federal loan interest rates are fixed they aren’t going to jump like that most of mine are around 4%
Also, are interest rates tied to the FED Funds rate or are they fixed depending on when the loan was taken out?
Posted on 7/5/23 at 11:27 am to Boudreaux35
quote:
Now do that for mortgages
I’m pretty sure they literally did.
Posted on 7/5/23 at 11:28 am to GetCocky11
So the only difference between now and a year from now is interest will accrue?
Posted on 7/5/23 at 11:28 am to Thundercles
quote:
buy a bunch of votes with empty promises.
It's what democrats do.
Posted on 7/5/23 at 11:29 am to GetCocky11
Have they considered just doing away with interest? They’ll get the loans back, borrowers get some taken off and the feds then finally get out of the loan business.
Posted on 7/5/23 at 11:30 am to HailToTheChiz
quote:
So come September 2024 are these folks going to get a letter asking for full repayment on a large lump? Because that's what it sounds like.
No you just get a forebearance
Posted on 7/5/23 at 11:32 am to GetCocky11
They’ve kicked this can down the road so many times that it’s going to be an absolute nightmare to restart. Most people who were paying their loans have completely written their monthly payments out of their budget. Getting hit with that monthly bill at a time when the economy is shaky will be rough for a lot of people. I don’t think they’re done yet with extending the payment deferrals
Posted on 7/5/23 at 11:36 am to Odysseus32
quote:
Did you finish reading?
I'm not worried about these people. I'm worried about the effects these people's tough times will have on the economy as a whole.
I know it isn't a popular opinion here, but when our poorest people have decent lives the entire country does better. I'm not saying hand it to them, I'm saying don't enact policy that is going to frick these people over long-term without them realizing it.
It's nothing to do with these people. It's everything to do with me not wanting to have to avoid most areas of a city.
Don't confuse apathy with hatred. I don't hate people worse off than me. I don't care about them. I don't want to teach them a lesson. I don't care if they learn lessons. I just don't want even more a hellscape.
I read your post and I believe you're creating a false premise. No one willing to ignore warnings for an entire year cares about their credit anyway. They are likely already removed from a credit worthiness pool. But a year pause on delinquency may actually pull a few out of this box.
Posted on 7/5/23 at 11:36 am to DeafJam73
quote:this is the fairest compromise for everyone imo but of course that means it will never happen
Have they considered just doing away with interest? They’ll get the loans back, borrowers get some taken off and the feds then finally get out of the loan business.
Posted on 7/5/23 at 11:50 am to SlowFlowPro
quote:
Man, whomever wins the 2024 race is going to have such a shite economy to deal with
Looks like Democrats are hedging their bets. Plan to use student loan forgiveness as a major platform to run on, AGAIN. Claim that if they win the Presidency, House & Senate they will set legislation/budgets in place to finally do something about the student loans.
Or lose the races to the Republicans and watch the economy crash and blame it on Republicans.
Posted on 7/5/23 at 11:54 am to elprez00
Reread the article now. Seems like folks are going to get hit hard. Instant default, credit reporting, and interest starts. A lot will think this is another freeze.
quote:
For example, loans will not go into default and delinquencies will not be reported to credit reporting agencies, said higher education expert Mark Kantrowitz. Late fees won’t be charged, either.
“The 12-month on-ramp is similar to a forbearance in many ways,” Kantrowitz said.
But as is the case with a forbearance, interest will continue accruing on your debt while you don’t make payments. As a result, Kantrowitz recommends borrowers start repaying their bills, if they can.
Posted on 7/5/23 at 11:54 am to GetCocky11
Pay your loans. Just get it over with.
Daddy government won’t be helping you, especially if you earn a decent salary.
Daddy government won’t be helping you, especially if you earn a decent salary.
Posted on 7/5/23 at 11:55 am to GetCocky11
The worse will get worse. As someone said, debt holders will likely continue deferring payment. So, for 3 years, they refused to pay down the principal interest free. Now some will continue to defer, but this time the interest will accrue. No delinquencies, defaults or late fees doesn't mean no interest. More "woe is me" is to come. SMDH.
Posted on 7/5/23 at 11:58 am to GetCocky11
How does this affect the suckers who never stopped paying their student loans?
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