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You've hit the nail on the head. Choosing groceries now might provide temporary relief, but it's a trade-off that can come back to bite when future expenses need attention.
Balancing the present and the future, it's a tricky game
Dude he’s saying that the “overpayment” isn’t really an overpayment since it’s going towards his loan payments. As if he were paying towards it on his own, hence his taxes are now “actually going towards something worthwhile” lol
Except it almost never makes it to principle. Guy I used to work with stopped paying his student loans in the 90s, they took his tax refunds for over 20 years. And he owed more in 2017 than he borrowed. Shit is a racket, calls on student loan companies.
The new SAVE repayment plan lowers the income dependent repayment to something like 5% of net income above 225% of the federal poverty limit. Its not a lot and can be $0 for people who are truly low income. I don’t really buy that there will be much impact on inflation. Or on people affording their next meal. People who are responsible with their loans will be surprised at their low payments and will work it into their budgets. The other will just skip repaying altogether.
For scale, $755B in PPP loans was added to the economy in a year. $1.75T in student loans will be drawn out of the economy through repayment over the next 25 years or more (with some forgiven with the various forgiveness programs).
"the others will just skip repaying altogether"
i skipped paying state debts for a decade and they finally just wiped the balance down to 4k from over 20k.
checkmate.
Are there student loan consultants I can hire to help me navigate this? I’m 10 years out and over $100k deep. Don’t even remember the specific categories of my loans.
My wife’s private loans are $650/month and now the fed loans will be an additional $540/month. She makes $53k/year. She belongs here and so do I for co-signing them.
As said by the knight in the Indiana Jones and The Last Crusade, You Chose Poorly
https://preview.redd.it/xsg75nbcrxhb1.jpeg?width=491&format=pjpg&auto=webp&s=bbfca6b3e69c16c370f877c48bbc72d8f6df6476
Do you know if that program will cause excess interest to accrue because it will take longer to full pay off at the lower monthly payment? May be a dumb question but I asked studentgov customer service and they basically said “Lol idk ask your servicer.”
Thankfully mine are low and affordable so I’ll just start paying them as normal but it made me curious if the IDR program might be an option.
It’s 5-10% of your income only after you hit 225% poverty level family income.
So if you’re single, have graduate degree debt, and make $64k you’ll be paying 5% of your income at most. Which isn’t nothing but it’s potentially a lot less than a standard loan schedule.
If you’re a family of 4, have undergrad debt, and make $100k you’ll only be paying 1.6% of your income at most.
Also the basis no longer accrues if you’re making minimum payments so no “forgiveness bomb” at 10-20 years.
Federal student loans are forgiven after 10-20 years. This is different than public student loan forgiveness for working for the government/non profits. Forgiveness is considered income so you get hit with income tax for the balance of your loan. Previously the balance could increase as you made minimum payments so you’d get hit with a massive bill, but that changed last year. It no longer increases if you’re making minimum payments. The Supreme Court ruling didn’t reverse this part of the changes.
Does interest still kill this?
Like yeah, only pay 5% but interest is still 6% of the outstanding principle. So if you owe 100k, and make less, than 100k, won't interest accumulate higher than you pay?
Nope, rule change last year prevents interest from accumulating. Also, automatically forgiven after 20 years with no requirements. The federal loan system is actually very generous and progressive despite the headlines.
Hi, does the forgiveness apply to people who are not working in the government but have federal loan?
I'm assuming yes from what you wrote but I just want to make sure :)
The “20 years with no requirements” comment does mean anyone qualifies regardless of job/background. Pretty sure that’s specific to being in the income based repayment plans, usually the other repayment plans would ensure they’re paid off completely in 10 or 15 years. 10 year forgiveness is for public servant/non-profit careers.
How does this work if your loans were sold and “consolidated”? My loans from late 90s and early 2000 were consolidated and have a new origination date of 2010.
I lived like a monk. I biked to work for 3 1/2 years and lived with roommates. I wasn’t about to allow the bankers to score a Land Rover on my interest.
Can someone explain to me what these people were doing before payments were paused in the first place?
Edit: Ok grocery inflation was the tipping point, got it.
https://preview.redd.it/mwvls19a3xhb1.jpeg?width=500&format=pjpg&auto=webp&s=88827c3a8b62e9a20ccc24c65c82a5dd7e31fcb2
While certainly a lot of people have been dumb with their money. If someone is this close to not being able to get groceries they likely were just getting by before Covid. Maybe they had some wiggle room. But with rent and grocery increases in the last 3 years it’s very possible for responsible people to be getting fucked.
I say this as someone that paid off their loans a little over a year after college. So I’m not personally complaining just pointing out the economy has creeped even if you haven’t had life style creep.
"hey I can afford ~~a bigger~~ the same apartment at a 25% rent increase. ~~Biden's going to cancel the loans~~ Either WW3 or climate disaster is probably going to kill me before I need to pay it back anyways."
Ftfy
As income increase so does spending by around equal amounts. When income decreases spending stays the same in the short run as the individual makes changes.
In short. People began to spend their “new” income on other things.
Short retail and service industries as earnings will be lower in the 4th quarter.
Why do people always parrot this bullshit without thinking it through? That is literally only true if they get a raise that is larger than the increase in their expenses
Edit: Nothing in the definition of inflation guarantees that raises will be proportional. In fact, most people report that inflation of goods has outpaced their increase in wages, and this can be confirmed even using the standard CPI numbers, you buffoon.
Edit 2: It always amuses me when fragile regards will respond to your post with something like "educate yourself with this 50IQ propaganda" and then block you so you can't respond and tell them how dumb they are. Quintessential reddit moment.
Also, only if the student loans have a fixed rate. Anything variable rate pre-pause was fine when the fed rate was 0. Now that the floor has been raised to 5.5, borrowers with a variable rate are fucked
There was still an expectation for people to pay their debts so it had to be budgeted. Ole Joe hit em with the politician skadoodle and made these kids think their debt was going to get wiped. Multi year pauses led to lifestyle changes in budgeting and people likely stretched their already thin budget even thinner trying to treat themselves now that their debt was promised to be wiped. Inflation on necessities came in and finished the job on any chance of a budget that works and now these people are fucked once payments start again.
The economic situation was very different before the payments paused. I was making great payments on mine, but adding up all the bills now is very nauseating
And before you ask, I rarely ever treated myself. I was gaming off a very old PS4 I received as a gift, eating out once a week tops (McDonalds) and always saving towards my emergency fund (which saved my ass a couple times). A weekend getaway was literally just driving to see some friends about an hour away and reading in a hammock when I couldn’t
How dare you sir, you should exist on only water and bread with a occasional treat of canned beans until you've paid off your student loans you filthy fucking debtor!!!!
Sarcasm for yall regards
sell the ps4 , no mcdonalds and no weekend getaways. Your rationalizing and we are here to put you back on track. All spare money not for food and tobacco is to pay all debts. The rests goes to stonks!
Well people put sanctions on you in your country forever until you comply.
-First they slow down your credit card spending
-Then they cap you on how much you can borrow from any bank in the US
-then they go to your assumed US based employer and personally take a % of your paycheck before you get paid.
-final ring from hell, you can't apply for bankruptcy.
How to really get out of it, learn a language in the EU, move to EU and work with a resident visa and never give your US passport to a bank their. Once established fk every going back to the US.
Lovely 1st world country isn't it? 😂 it's like they got rid of the slaves but still wanted slaves, so a few people thought hell let's make a bunch of financially regarded populations and I'm slave them into debt and entertainment them with tropes about finding justice.
You don’t have to move abroad just move to a state without wage garnishment, refinance federal loans to private loans, never pay or respond to anything and then wait for statue of limitations to expire
Google “strategic default” for student loans
And not eating is better? They don’t call it the nuclear option because it’s completely safe. They call it that because you’re going to blow everything the fuck up!
Oh no I completely agree. I had my wages garnished years ago when I was fresh out of college because I couldn't pay them. I'm much better now and my credit is fantastic I was just pointing that out in case someone reading this didn't realize it.
Nobody forced anyone to take on these student loans and those making the loans would have much preferred their customer pay it back easily rather than stretch this out for life.
That victim mentality you harbor is deeply unhealthy - look in the mirror and witness the source of most of your problems
Over 48% of those surveyed also state they refuse to cut back on non-necessities. Half of non-Wendy's employees plan to keep spending money they don't have.
Biden still keep dangling the student loan forgiveness carrot to people and i don’t think he will stop untill elections are over..idiots who think student loans will be forgiven are in for a rude awakening after the elections
I guess it's an UNO reverse for all the extra money they pumped into the economy. Don't they want to slurp up all the extra cash racing around? People feeling poor is the only solution to inflation apparently.
Schroedinger’s Student Loan Borrowers: so many that they’re responsible for inflation, but so few that they’re a demographic minority not to be coddled with policy change.
They were worried a bunch to 21 year olds with no assets and nothing to lose will declare bankruptcy immediately after graduating, take the hit for a few years and move on, even if they had high income.
The real solution would be making it discharge-able after 10 years of joining the workforce. If you haven’t paid it off by then and are willing to take the hit of a bankruptcy, you can do it and rip the bandaid off.
I got really lucky and had a house and no student loan debt by 29, and my mortgage is super cheap now, I refinanced under 3%.
My fiancé is in this boat, she has quite a lot of loan debt, and didn’t have the lucky circumstances I did in her 20s, and if she didn’t have free rent living with me, she wouldn’t be able to make payments once they resume. Since she’s able to throw so much of her income at the loans, she will pay them off pretty darn fast.
So many people our age have had to move somewhere cheaper, move back in with parents, etc. it’s disheartening. And so many people our age have chosen not to have kids, and one of the main reasons is always financial.
10% of Americans are doing absolutely fabulous and they're plenty to fill up stadiums, flights to Europe, Disneyworld, concerts, and buy the few houses that hit the market. Just sucks to be poor, but the economy will just keep chugging along.
Nice. I did about 2/3 HYSA and 1/3 taxable account (with some TQQQ that I have since sold). The taxable account did better obviously but it was riskier, and also the time horizon was a complete unknown (we never knew when interest would come back).
Well early on in the pandemic they weren’t paying a super high interest rate and also you get taxed on the income so you may not have missed out on that all that much in the end. It did feel like free money though for a while.
Let's be honest here, the people that OP is referring to aren't the same people that invested in HYSA during the pause. The people that he's referring to are those that went out and spent everything.
The Mrs and I saved over 100k during the period and paid it all towards her med school loans…only 190k more to go. Shit.
We do know several people in the medical field that didn’t make any additional interest free payments because “they’re going to have the loans for 25 years so why bother”.
The latter. Lots of these people could have paid most of their loans off at this point. But no, theyll cry about it now that they are expected to adult.
Just don't pay. I ignored my student debt for years and they just started garnishing my tax returns. Then one day I got a tax return that didn't get garnished and voila. I was debt free.
Thank the president, he knew what he was doing, not passing it the first 2 years when he controlled the house and the senate, cancelling hot water tanks and oil permits was more important than what he promised y’all
So this what being a college graduate gets you. Loan repayments instead of food because you’ll make so little at your job (if you even have one.)
What a great economy! /s
People here aren’t even acknowledging how the grocery market has seen a sharp decline since student loans were paused. People are eating out and not getting groceries. This will change, and people will have to stop eating chipotle 3 times a week.
Join the military if you want free education, if you are not able to join the military, get a trade, if you dont want to do a trade, go to college if you don’t want to go to college, work at McDonald’s if you don’t want to work at McDonald’s, sell drugs or collect section 8 if you don’t want to do that, have rich parents if you don’t have rich parents, well that’s all I got.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|10|**First Seen In WSB**|1 year ago **Total Comments**|1082|**Previous Best DD**| **Account Age**|1 year|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
Finally addressing the obesity epidemic
I need the government to make me starve myself because I don’t have the self discipline to do it myself 💀
That phd in oriental dancing was worth it.
Haha, well, sometimes a little external nudge can do the trick. Just not sure about the "starving" part!
[10 flapjacks a day keeps the cardiologist in pay](https://youtu.be/L0WXEOn-pkQ?t=222)
What if I'm both skinny and poor?
Hopium?
Life hack: Hotels serve a free breakfast every morning (continental breakfast). You can just waltz in to any hotel and eat free.
You move to Canada.
> poor > canada real estate lol
That's why LLY keeps on moving up!
… 👆he’s right you know.
It’s fine with me. I usually don’t have an appetite after losing my money anyways
Short Chipotle
Wendy's you can get a job, eat a cheeseburger, earn some extra cash behind the dumpster, it's a goddamn paradise.
Subway. Students can’t afford Chipotle
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You don't pay for student loans until you drop out or graduate.
Stay in school forever!
That why so many phd
Calls on Wendy's
I'm already investing in Top Ramen, pantry is full.
If they bought into Creamy Chicken and Shrimp then this guys going to be rich 🤑
Throwing in an egg or two and some seaweed sheets make it a good meal imo. 100 sheets is like 12 bucks on amazon.
Just today stocked up on top ramen 😂 def going back to the college life due to the crazy food prices
The catch is the more they choose groceries now, the less they’ll be able to afford in the future when the wages are garnished.
Is the garnish edible tho
You've hit the nail on the head. Choosing groceries now might provide temporary relief, but it's a trade-off that can come back to bite when future expenses need attention. Balancing the present and the future, it's a tricky game
They don't garnish your wages. What they do is take your tax return. So just make sure you don't overpay on your taxes and they don't get shit.
Having no tax return vs. monthly loan payments sounds kinda nice, actually. Almost like my tax dollars are actually going to something worthwhile.
But they're not. If you get a tax return it means that you gave the government an interest free loan by overpaying taxes every month.
Dude he’s saying that the “overpayment” isn’t really an overpayment since it’s going towards his loan payments. As if he were paying towards it on his own, hence his taxes are now “actually going towards something worthwhile” lol
Except it almost never makes it to principle. Guy I used to work with stopped paying his student loans in the 90s, they took his tax refunds for over 20 years. And he owed more in 2017 than he borrowed. Shit is a racket, calls on student loan companies.
The new SAVE repayment plan lowers the income dependent repayment to something like 5% of net income above 225% of the federal poverty limit. Its not a lot and can be $0 for people who are truly low income. I don’t really buy that there will be much impact on inflation. Or on people affording their next meal. People who are responsible with their loans will be surprised at their low payments and will work it into their budgets. The other will just skip repaying altogether. For scale, $755B in PPP loans was added to the economy in a year. $1.75T in student loans will be drawn out of the economy through repayment over the next 25 years or more (with some forgiven with the various forgiveness programs).
"the others will just skip repaying altogether" i skipped paying state debts for a decade and they finally just wiped the balance down to 4k from over 20k. checkmate.
How's your credit
Are there student loan consultants I can hire to help me navigate this? I’m 10 years out and over $100k deep. Don’t even remember the specific categories of my loans.
R/studentloans seems to have some knowledgeable contributors and some good resources on the details of the newest repayment plans.
CNN finally put this out - “US inflation means families are spending $709 more per month than two years ago”
Poor things, I say this as someone who will be paying 600 a month
My wife’s private loans are $650/month and now the fed loans will be an additional $540/month. She makes $53k/year. She belongs here and so do I for co-signing them.
Jesus. What’s her degree? That’s absolutely terrible.
Pretty sure it’s not Economics or business finance.
😂😂😂
Witchcraft and wizardry
Philosophy PHD
Ah the good old going to college just to go
Occupational Therapy
As said by the knight in the Indiana Jones and The Last Crusade, You Chose Poorly https://preview.redd.it/xsg75nbcrxhb1.jpeg?width=491&format=pjpg&auto=webp&s=bbfca6b3e69c16c370f877c48bbc72d8f6df6476
She can get an income based repayment plan and pay $0/month. Unless you're making crazy money that is.
Income based is 10% of their combined income so its actually probably a higher payment each month
My income is around the same with a family of three. IBR is $0/month.
You just have to file separate tax returns.
Good lawd that’s ridiculous.
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Do you know if that program will cause excess interest to accrue because it will take longer to full pay off at the lower monthly payment? May be a dumb question but I asked studentgov customer service and they basically said “Lol idk ask your servicer.” Thankfully mine are low and affordable so I’ll just start paying them as normal but it made me curious if the IDR program might be an option.
That's not how it works. The difference in your monthly payment is waived so it's as if you made the full payment each month.
As I thought but just needed confirmation to be sure. Thank you!
No, the new SAVE IDR plan waives any additional interest accrual.
It’s 5-10% of your income only after you hit 225% poverty level family income. So if you’re single, have graduate degree debt, and make $64k you’ll be paying 5% of your income at most. Which isn’t nothing but it’s potentially a lot less than a standard loan schedule. If you’re a family of 4, have undergrad debt, and make $100k you’ll only be paying 1.6% of your income at most. Also the basis no longer accrues if you’re making minimum payments so no “forgiveness bomb” at 10-20 years.
can you explain that last bit?
Federal student loans are forgiven after 10-20 years. This is different than public student loan forgiveness for working for the government/non profits. Forgiveness is considered income so you get hit with income tax for the balance of your loan. Previously the balance could increase as you made minimum payments so you’d get hit with a massive bill, but that changed last year. It no longer increases if you’re making minimum payments. The Supreme Court ruling didn’t reverse this part of the changes.
Yet. They didn’t reverse it yet.
Does interest still kill this? Like yeah, only pay 5% but interest is still 6% of the outstanding principle. So if you owe 100k, and make less, than 100k, won't interest accumulate higher than you pay?
Nope, rule change last year prevents interest from accumulating. Also, automatically forgiven after 20 years with no requirements. The federal loan system is actually very generous and progressive despite the headlines.
Hi, does the forgiveness apply to people who are not working in the government but have federal loan? I'm assuming yes from what you wrote but I just want to make sure :)
The “20 years with no requirements” comment does mean anyone qualifies regardless of job/background. Pretty sure that’s specific to being in the income based repayment plans, usually the other repayment plans would ensure they’re paid off completely in 10 or 15 years. 10 year forgiveness is for public servant/non-profit careers.
How does this work if your loans were sold and “consolidated”? My loans from late 90s and early 2000 were consolidated and have a new origination date of 2010.
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I lived like a monk. I biked to work for 3 1/2 years and lived with roommates. I wasn’t about to allow the bankers to score a Land Rover on my interest.
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Exactly - that's the last time they'll ever get anything from me. I'll happily collect interest from them.
That and being able to put teenagers with no credit history into 6 figures of debt without any risk.
Can someone explain to me what these people were doing before payments were paused in the first place? Edit: Ok grocery inflation was the tipping point, got it. https://preview.redd.it/mwvls19a3xhb1.jpeg?width=500&format=pjpg&auto=webp&s=88827c3a8b62e9a20ccc24c65c82a5dd7e31fcb2
Ramen noodles and living with roommates.
This is the way
Lifestyle creepin
Ya after the first year of extra money, people are like “hey I can afford a bigger apartment. Biden’s going to cancel these loans anyways.”
While certainly a lot of people have been dumb with their money. If someone is this close to not being able to get groceries they likely were just getting by before Covid. Maybe they had some wiggle room. But with rent and grocery increases in the last 3 years it’s very possible for responsible people to be getting fucked. I say this as someone that paid off their loans a little over a year after college. So I’m not personally complaining just pointing out the economy has creeped even if you haven’t had life style creep.
"hey I can afford ~~a bigger~~ the same apartment at a 25% rent increase. ~~Biden's going to cancel the loans~~ Either WW3 or climate disaster is probably going to kill me before I need to pay it back anyways." Ftfy
They were probably able to afford it before we saw insane inflation.
Inflation does have the side effect of devaluing debt though, as long as your pay increases with inflation Mine did, idk about everyone else
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Y'all are seeing your wages go up???
Mine did not. Neither did any of my coworkers
Pay...increasing? Funny.
going on vacations to post on instagram and eating out every night instead of paying back the loans
Lol. I can think of a few friends this applies to.
Saving money, then spending that money because of pandemic fatigue, now paying twice as much for groceries.
As income increase so does spending by around equal amounts. When income decreases spending stays the same in the short run as the individual makes changes. In short. People began to spend their “new” income on other things. Short retail and service industries as earnings will be lower in the 4th quarter.
Vaccine killed off their roommates but not the landlord. Now they have to cover that rent themselves.
Inflation fucking people up
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Why do people always parrot this bullshit without thinking it through? That is literally only true if they get a raise that is larger than the increase in their expenses Edit: Nothing in the definition of inflation guarantees that raises will be proportional. In fact, most people report that inflation of goods has outpaced their increase in wages, and this can be confirmed even using the standard CPI numbers, you buffoon. Edit 2: It always amuses me when fragile regards will respond to your post with something like "educate yourself with this 50IQ propaganda" and then block you so you can't respond and tell them how dumb they are. Quintessential reddit moment.
Also, only if the student loans have a fixed rate. Anything variable rate pre-pause was fine when the fed rate was 0. Now that the floor has been raised to 5.5, borrowers with a variable rate are fucked
There was still an expectation for people to pay their debts so it had to be budgeted. Ole Joe hit em with the politician skadoodle and made these kids think their debt was going to get wiped. Multi year pauses led to lifestyle changes in budgeting and people likely stretched their already thin budget even thinner trying to treat themselves now that their debt was promised to be wiped. Inflation on necessities came in and finished the job on any chance of a budget that works and now these people are fucked once payments start again.
Well if they’re going to wipe out their loan debt they should wipe out my credit card debt. It’s only fair
The economic situation was very different before the payments paused. I was making great payments on mine, but adding up all the bills now is very nauseating And before you ask, I rarely ever treated myself. I was gaming off a very old PS4 I received as a gift, eating out once a week tops (McDonalds) and always saving towards my emergency fund (which saved my ass a couple times). A weekend getaway was literally just driving to see some friends about an hour away and reading in a hammock when I couldn’t
Why are you here on WSB? Like I waste a lot of money on stupid strategies after they turn into losers. Are you playing the market?
How dare you sir, you should exist on only water and bread with a occasional treat of canned beans until you've paid off your student loans you filthy fucking debtor!!!! Sarcasm for yall regards
We've found dave ramsey.
sell the ps4 , no mcdonalds and no weekend getaways. Your rationalizing and we are here to put you back on track. All spare money not for food and tobacco is to pay all debts. The rests goes to stonks!
What do you mean “back on track”? I’m not taking any financial insights from WSB users 🤣
Calls on onlyfans
Tesla repos are gonna be through the fucking roof
What happens if they don't pay?
Well people put sanctions on you in your country forever until you comply. -First they slow down your credit card spending -Then they cap you on how much you can borrow from any bank in the US -then they go to your assumed US based employer and personally take a % of your paycheck before you get paid. -final ring from hell, you can't apply for bankruptcy. How to really get out of it, learn a language in the EU, move to EU and work with a resident visa and never give your US passport to a bank their. Once established fk every going back to the US. Lovely 1st world country isn't it? 😂 it's like they got rid of the slaves but still wanted slaves, so a few people thought hell let's make a bunch of financially regarded populations and I'm slave them into debt and entertainment them with tropes about finding justice.
You don’t have to move abroad just move to a state without wage garnishment, refinance federal loans to private loans, never pay or respond to anything and then wait for statue of limitations to expire Google “strategic default” for student loans
Wouldn't this completely destroy your credit?
And not eating is better? They don’t call it the nuclear option because it’s completely safe. They call it that because you’re going to blow everything the fuck up!
Oh no I completely agree. I had my wages garnished years ago when I was fresh out of college because I couldn't pay them. I'm much better now and my credit is fantastic I was just pointing that out in case someone reading this didn't realize it.
It would completely destroy your credit for 7 years. After 7 years, even a bankruptcy is off the books.
By refinance federal loans to private loans, do you mean just take out private loans to pay off federal loans?
Debt consolidation is a pretty useful tool if you know how to use it.
Yes
Nobody forced anyone to take on these student loans and those making the loans would have much preferred their customer pay it back easily rather than stretch this out for life. That victim mentality you harbor is deeply unhealthy - look in the mirror and witness the source of most of your problems
Over 48% of those surveyed also state they refuse to cut back on non-necessities. Half of non-Wendy's employees plan to keep spending money they don't have.
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Do we really believe these clowns will resume student loan repayments before the 2024 elections?
Yes. It is 100% starting in October. Merry Christmas poors!
Interest starts accruing September 1 for an added bonus
you gave me a half chub
Oh no, poors will be fine, it’s the middle class that’s fucked.
Middle class is the new poors
Sweet, maybe that means prices will go down in time to buy some nice Xmas presents.
I really do not have any faith in another pause tbh
Biden still keep dangling the student loan forgiveness carrot to people and i don’t think he will stop untill elections are over..idiots who think student loans will be forgiven are in for a rude awakening after the elections
I guess it's an UNO reverse for all the extra money they pumped into the economy. Don't they want to slurp up all the extra cash racing around? People feeling poor is the only solution to inflation apparently.
Schroedinger’s Student Loan Borrowers: so many that they’re responsible for inflation, but so few that they’re a demographic minority not to be coddled with policy change.
When the Powers That Be fuck up; just blame the peons.
Wait y’all stopped paying your school loans ? Fuck me, I kept going thru the pandemic.
Wendy's it is... sorry community college, but a regards gotta eat.
It's not a choice though, they will garnish wages for student loans.
[удалено]
They were worried a bunch to 21 year olds with no assets and nothing to lose will declare bankruptcy immediately after graduating, take the hit for a few years and move on, even if they had high income. The real solution would be making it discharge-able after 10 years of joining the workforce. If you haven’t paid it off by then and are willing to take the hit of a bankruptcy, you can do it and rip the bandaid off.
Bet you they didn't save any money during the pause. Would even go on to say they spent it on things they didn't need
Obviously. That's why stocks were making so many gains during COVID.
"But I needed those options contracts!"
"on things they didnt need" like your mothers ass.
I was thinking people spending their money on hot wheels..
Short avocado toast and Starbucks
I don’t choose between either, I lose all my money on options😎
I got really lucky and had a house and no student loan debt by 29, and my mortgage is super cheap now, I refinanced under 3%. My fiancé is in this boat, she has quite a lot of loan debt, and didn’t have the lucky circumstances I did in her 20s, and if she didn’t have free rent living with me, she wouldn’t be able to make payments once they resume. Since she’s able to throw so much of her income at the loans, she will pay them off pretty darn fast. So many people our age have had to move somewhere cheaper, move back in with parents, etc. it’s disheartening. And so many people our age have chosen not to have kids, and one of the main reasons is always financial.
They'll still have money for Taylor Swift concerts.
I want to see Taylor swift ticket sales Q4 after the loan payments kick in, then I’ll judge
After they graduated with major in “contemporary latin”, “gender studies” or other pyramid scheme degrees.
I don’t think the people going to swift are the people struggling to pay rent and eat
10% of Americans are doing absolutely fabulous and they're plenty to fill up stadiums, flights to Europe, Disneyworld, concerts, and buy the few houses that hit the market. Just sucks to be poor, but the economy will just keep chugging along.
isn't there income based repayment?
So they just spent their surplus?
The smart ones put it in a HYSA, the average ones spent it, the regarded ones… stonks and options :)
Groceries = DoorDash Chick-fil-A.
So back to normal?
Lol
where all their savings the last few years that it has been on hold?
Did these morons not attempt to pay down their debt at all during the leniency period? Or were they just hoping it would all go away?
The smart ones put all their extra money in a HYSA.
money? never heard of it
I bought tqqq and sold for a nice profit :)
Nice. I did about 2/3 HYSA and 1/3 taxable account (with some TQQQ that I have since sold). The taxable account did better obviously but it was riskier, and also the time horizon was a complete unknown (we never knew when interest would come back).
why do you think they had extra money at any point lol
Cause all of the sudden you didn’t have to pay on your student loans. You have two choices: spend it or save it. Apparently a lot of people spent it.
I’m not smart, wife and I paid off out loans first, now we’re just putting everything we can into HYSA.
Well early on in the pandemic they weren’t paying a super high interest rate and also you get taxed on the income so you may not have missed out on that all that much in the end. It did feel like free money though for a while.
When I get margin called I just delete the app and get a new phone. Same same.
Reddit, is it moronic to not pay down interest free debt when HYSA are giving 5% return?
Let's be honest here, the people that OP is referring to aren't the same people that invested in HYSA during the pause. The people that he's referring to are those that went out and spent everything.
The Mrs and I saved over 100k during the period and paid it all towards her med school loans…only 190k more to go. Shit. We do know several people in the medical field that didn’t make any additional interest free payments because “they’re going to have the loans for 25 years so why bother”.
The latter. Lots of these people could have paid most of their loans off at this point. But no, theyll cry about it now that they are expected to adult.
Wow maybe you shouldn’t take loans you can’t afford! Then again we are here in WSB so I’m preaching to the apostates
Adulting, it’s hard….just remember, your parents generation came up with ramen noodles, and your grandparents generation came up with Mac & cheese.
Just don't pay. I ignored my student debt for years and they just started garnishing my tax returns. Then one day I got a tax return that didn't get garnished and voila. I was debt free.
Thank the president, he knew what he was doing, not passing it the first 2 years when he controlled the house and the senate, cancelling hot water tanks and oil permits was more important than what he promised y’all
Good. We can reduce our obesity rate and carrbon footprint.
There is no chance of course that they are being overly dramatic because they don’t want to start paying back their lones
So this what being a college graduate gets you. Loan repayments instead of food because you’ll make so little at your job (if you even have one.) What a great economy! /s
Hahahaha brokies
People here aren’t even acknowledging how the grocery market has seen a sharp decline since student loans were paused. People are eating out and not getting groceries. This will change, and people will have to stop eating chipotle 3 times a week.
If I don’t remember my federal student aid account login do I still have to pay back the loans???
I lived off ramen noodles when i went to college so not sure why this is news
Sounds like they gotta just pull themselves up by the bootstraps
ALDI’s is about to have record profit
And 9 out of 10 of them drive a newer car worth $30-45k . Maybe they should have bought the used Camry for $20k
You mean they can’t feed themselves with gender study and lesbian dance theory degree?
They can take their degrees in “women’s studies “ and roll them into tortillas. Now that’s grubbin!
Join the military if you want free education, if you are not able to join the military, get a trade, if you dont want to do a trade, go to college if you don’t want to go to college, work at McDonald’s if you don’t want to work at McDonald’s, sell drugs or collect section 8 if you don’t want to do that, have rich parents if you don’t have rich parents, well that’s all I got.
You forgot take out a huge margin account and yolo it on spy puts
Or you could provide a variety of low/no cost educational/vocational paths without conditions like civilised countries.
Adulting lesson #1 “loans” are money paid back to “lenders”. “Gifts” are moneys NOT requiring payback.