Think a recession will be bad? The House wants $1.3T in student loans to start being paid back WITH over 2 years of interest back-payments…

[u/justinmillerco]

https://www.forbes.com/sites/adamminsky/2023/05/24/house-passes-catastrophic-bill-nullifying-student-loan-forgiveness-credit-for-millions/?sh=5e384b6f79e0

[removed] — view removed post

[u/VisualMod]

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[u/Vmaddo]

I wouldn't be surprised if student loans are deferred until after the next election.

[u/Muted_Yoghurt6071 → u/Vmaddo]

I thought he could no longer delay it as the public health emergency or whatever they called it is over.

[u/Joeschmo90 → u/Muted_Yoghurt6071]

Correct, my loan payments restart 60 days after the supreme court decision on student debt relief case. They'll probably make a decision right before they leave for the summer

[u/czs5056 → u/Joeschmo90]

I wouldn't be surprised if they say "last intern out, click send on your way out and get the lights."

[u/Juno_Malone → u/czs5056]

I wonder if that intern has student loans. Would be a shame if they forgot to click send.

[u/88trax → u/Juno_Malone]

Many (most?) of them are from wealthy families. Can’t afford housing in DC on intern salary alone.

[u/WackyShirt → u/88trax]

Well, in that case I hope that intern has daddy issues.

[u/RobtillaTheHun → u/WackyShirt]

Most kids from that level of wealth usually do. Source: made it up

[u/D-Alembert → u/RobtillaTheHun]

Upvoted because it's always important to cite your sources! :D

[u/Moist_Decadence → u/RobtillaTheHun]

No, it's true. They do.

Source: Am Daddy ;)

[u/RobtillaTheHun → u/Moist_Decadence]

daddy, venmo me pls

[u/atrus6 → u/88trax]

I mean, Pence still owes money on student loans for his kids. If he isn't even paying them off, how is everyone else supposed to lol

[u/masterofallmars → u/atrus6]

I'm assuming it's because the interest on the loans is far below the return on other investments

[u/WeimSean → u/masterofallmars]

ding ding ding.

I bought a car during Covid, got a .1% interest loan. I'm gonna take my sweet ass time paying that off.

[u/reallynotnick → u/Joeschmo90]

OR 60 days after June 30th if litigation isn't resolved by then (unless they can delay it further)

https://studentaid.gov/announcements-events/covid-19

[u/Dr-McLuvin → u/Muted_Yoghurt6071]

Well now the public health emergency has turned into a fiscal emergency.

[u/IdiocracyToday → u/Dr-McLuvin]

Public health emergency? Print more money! Fiscal emergency from printing too much money? Print more money!

[u/tornumbrella → u/IdiocracyToday]

Mouse farts in the woods? Print more money!

[u/InnocentUntilTaken → u/IdiocracyToday]

Name is fitting for the comment.

[u/Charming-State-6470 → u/Muted_Yoghurt6071]

Yep. They will restart in August.

[u/3Sewersquirrels → u/Vmaddo]

Too bad they didn't just push for interest free loans. That would be the compromise.

[u/Old-Calligrapher-783 → u/3Sewersquirrels]

Yep. Or at least a really low rate. Like 3%. Or dissolve them in bankruptcy.

[u/FightOnForUsc → u/Old-Calligrapher-783]

Allowing new loans going forward to be able to be released in bankruptcy (after a certain number of years) is an actual solution. It would force lenders to be more careful, student loans would be harder to get but 18year olds wouldn’t be saddled with loans they can’t afford later. And then colleges would have to reduce their cost because empty classes don’t generate money. So yea, they may have to cut back in some places, but overall it should let students get educated at a lower cost

[u/BlueFalcon89 → u/Vmaddo]

Yeah, no chance Biden restarts payments at this point. Will send economy off a cliff. Political suicide.

[u/LapulusHogulus → u/BlueFalcon89]

Seems like it’s gotten to the point where people just don’t expect to ever pay again

[u/lilaprilshowers → u/LapulusHogulus]

"Nohing is more permanent then a temporary government program."

[u/BasedSliceOfWinning → u/lilaprilshowers]

I live in IL. We had booths added all over our highways in Chicago. They were all just temporary until we get enough to fix the roads/expand where needed.

Then, the governor promptly sold the 10 years of receivable to a private company at a discount to get "more money now". And the toll roads are now permanent, with prices rising every year.

[u/Hawaii5G → u/BasedSliceOfWinning]

Lol how about the 99 year lease on street parking

[u/Violent_Milk → u/Hawaii5G]

Close. The street parking in Chicago was sold for 75 years. Last year, the company had already made back their investment, plus $500m. 61 years left.

https://chicago.suntimes.com/city-hall/2022/5/26/23143356/chicago-parking-meters-75-year-lease-daley-city-council-audit-skyway-loop-garages-krislov

[u/princeofzilch → u/Hawaii5G]

Damn, I thought that's what they were referring to but your comment reminded by it was street parking. Double L. There's probably a lot more examples in that area unfortunately.

[u/Hawaii5G → u/princeofzilch]

IMHO Chicago is the most corrupt city in the nation

[u/FerricNitrate → u/Hawaii5G]

People like to point out how Illinois sent several governors to prison (used to be >50% but they've been slacking) and laugh about how corrupt the state has been but those people have been missing a key point: Illinois has actually been exposing and prosecuting those cases. Countless other places let things slide, quietly or brazenly.

I'd put good money on some bumfuck southern city run by "good ol boys" doing things "the way they've always been done" being far more corrupt

[u/puddingboofer → u/FerricNitrate]

Interesting take. These toll roads are fucking ridiculous though.

[u/jkally → u/lilaprilshowers]

Just need it to be temporary for 2 more years and then my wifes get forgiven for working for a non-profit for 10 years.

[u/ATRomanNOBO → u/jkally]

I paid off my student loans in February 2020 like a goddamn clown

[u/Wright129129 → u/ATRomanNOBO]

I wouldn’t call yourself a clown just be happy they’re gone. You have no idea what’s going to happen in the future with this whole loan debacle. If they ever cancelled some it could be YEARS until anything happens.

[u/DistantBeholder → u/ATRomanNOBO]

you fool, you responsible fool!

[u/Insomniac1000 → u/ATRomanNOBO]

Hey still, kudos to you. At least you got your peace of mind

[u/itsnickk → u/Insomniac1000]

I don’t think about my student loans at all

Haven’t crossed my mind in four years. Complete bliss

[u/Mynock33 → u/itsnickk]

I've forgiven them myself at this point. Those loans are between congress and God now.

[u/ExistentialRap → u/Mynock33]

Chad

[u/BigKahunaPF → u/Mynock33]

Based af 😂

[u/sokkarockedya → u/itsnickk]

Yeah. I haven't thought about it in forever.... Cries in private student loans.

[u/DudeNamedCollin → u/itsnickk]

I’m just going to pretend they don’t exist anymore

[u/BasedSliceOfWinning → u/ATRomanNOBO]

If you want, call your old student loan provider. I had like 8 grand left, and used my free money as well as my tax return to just pay it all off at once. Then a week later Biden made that announcement.

I promptly called and got all the payments I'd made since a certain point "refunded". If the law doesn't pass I'll have to pay it back all over again. But fuck it, I want that loan forgiveness if everyone else is getting it for free.

[u/ATRomanNOBO → u/BasedSliceOfWinning]

I’ll definitely look into that, thanks for the info!

[u/Return-foo → u/ATRomanNOBO]

If you repaid during the pause you’re supposed to get that money back

[u/BJJJourney → u/jkally]

Don't you have to be paying the entire time for that to kick in?

[u/LookAtMeNoww → u/BJJJourney]

No, they revamped the system and forgiveness takes into account the current pause on student loans towards the 10 year count

[u/thebestatheist → u/LapulusHogulus]

They saw how it went for folks who got the PPP money and said “fuck it”

[u/Varaben → u/LapulusHogulus]

I def didn’t expect to have to pay back-interest I don’t think that was part of the bargain.

[u/gophergun → u/Varaben]

The good news is that has no shot at passage.

[u/JC1515 → u/LapulusHogulus]

Everyones budgeted that. Any sudden change to the assumption that we will pay again and we will see some real pain. Think rent, utilities and food inflation were bad? Resuming student debt will send people on the street

[u/AngelaTheRipper → u/JC1515]

Nah you'll just start seeing a whole bunch of defaults on them. When the choices are: staying alive or your credit score, staying alive will win every single time. If it gets bad enough and most people can't get a loan, credit companies will just drop student loans from calculations like they did for tiny debts under $100.

[u/Emperor-Pal → u/AngelaTheRipper]

I've kept paying my loans. $540 every month. But with a kid on the way and my wife becoming a SAHM (makes too little for daycare to be practical) I might have to default to keep a roof over our heads and food on the table. Going to try not to default. Due for a raise soon, so hopefully that will bridge the gap. Going to be a little dicy for a couple of years while I finish up my apprenticeship. But worst comes to worst, I'll default. Food, housing, and insurance are more important than my credit score.

[u/BlueFalcon89 → u/JC1515]

Wait til boomers can’t sell their houses and retire because educated 30-something high earners are stuck paying a $2300 loan payment that’s 80% interest service and $3000/mo in child care (2 kids).

[u/throwwwwwawaaa65 → u/BlueFalcon89]

YES - THIS IS THE ONE NO ONE IS TALKING ABOUT

• The boomers are about to flood the market with no buyers above par very soon 😂😂😂

[u/KeyCold7216 → u/throwwwwwawaaa65]

What do you mean? All of the multinational corporations will buy them and rent them for eternity!

[u/Joeness84 → u/KeyCold7216]

SOME states and groups are trying to prevent this! (needs to happen, nation wide)

[u/BenRobNU → u/throwwwwwawaaa65]

Why would they sell when rent income is never declining?

[u/in4life → u/BenRobNU]

This. Unless they don't have heirs, most these homes will never hit the market. The low rates essentially locked in homeowners with stupid positive cashflow on almost every property.

[u/Uhfolks → u/in4life]

Yep, we got lucky & were able to finally buy our "starter home" a few months into the pandemic.

Our ~5 years or so in this house plan turned into "They'll have to pry this interest rate out of my cold, dead hands."

[u/Dunduin → u/Uhfolks]

My starter home quickly became my forever home when the fed started raising rates

[u/Additional_Art_5485 → u/throwwwwwawaaa65]

well, its going to be their descendants that want to sell the house but cant.

meaning the entire theory is invalid.

[u/cowtow → u/Additional_Art_5485]

People often sell their house and move to a senior living facility rather than literally dying in their houses. Especially boomers with means who own $500k+ homes.

[u/dcrico20 → u/Additional_Art_5485]

Who the actual seller is in their case doesn’t matter, but I would agree the theory is invalid but only because hedge funds and/or investment companies will buy them if there aren’t individuals to buy them.

[u/JC1515 → u/Additional_Art_5485]

Their decendants wont be able to pay the tax on inheriting the property. Blackrock is going to have an asset purchase desk ready to go in the coming years as people try to offload those homes to avoid insane taxes

[u/Confident_Benefit753 → u/BlueFalcon89]

the economy is about to go off the cliff without this. if this happens, people would not pay the loans. they would wipe there butts with this. nobody cares about credit when you are just trying to pay high rents while most wages are stagnant.

[u/The_Gil_Galad → u/Confident_Benefit753]

nobody cares about credit when you are just trying to pay high rents while most wages are stagnant.

I don't think Gen X and Boomers realize what has happened to homes in the past 10 years. I am paying double the mortgage my neighbor is to rent a home in worse condition than his.

Our jobs pay about the same, and I'm a two-income household.

This is a crisis of extreme proportions. We cannot keep treating housing like an infinite money glitch of endless "passive income."

My parents bought their house on a construction workers income. I cannot afford to live in his neighborhood, and he can't afford to live in his parent's area. My grandpa dropped out of high school.

We're fucked.

[u/_Jobacca_ → u/The_Gil_Galad]

We cannot keep treating housing like an infinite money glitch of endless "passive income."

Shout this shit from the rooftops.

[u/Confident_Benefit753 → u/The_Gil_Galad]

thats funny. my parenst bought their house on my dads construction income in 1996 for 100k. house can sell today for 550. i bought my house last year for 520k. me and my wife made combined 180k last year. this year we are at 205k. we have 3 kids. its tough. if we had these careers 20 years ago, we would have a multi million dollar house at todays worth. atleast 1.5. ive done the numbers on what most 1.5 million dollar houses cost today in miami. just 6 years ago, most of those houses were at 700-800k. 20 years ago, they were at 250-400

[u/dboti → u/Confident_Benefit753]

My in-laws bought a 600k house in the Fort Lauderdale area 5 years ago. They are selling it for 1.4 million now. Grand parents bought a house for 400k in the same neighborhood and exactly a year later it sold for 800k. Absolutely ridiculous.

[u/Hawaii5G → u/Confident_Benefit753]

The magic of student loans is that they'll eventually just garnish your wages and tax refunds to pay it. The money will be gone before even see it on payday. It's happened to people I've known over the years and almost happened to me for my spouse's loans.

[u/RaxteranOG → u/Hawaii5G]

And they think the labor problem is bad now. Just wait until this bloc realizes there's no point working anymore.

[u/exileosi_ → u/Confident_Benefit753]

They are welcome to restart them and charge me a billion dollars interest, I ain’t paying a fucking dime. I don’t care anymore. I won’t ever be able to afford a house so what do I care about credit. Best my millennial ass can hope for is living in a van down by a river.

[u/weveran → u/Confident_Benefit753]

Pretty much this. I spent the better part of the last 10 years fixing my credit up so I could become a homeowner and stop sinking money (at this point far more money than my student loans total) into my landlord's pocket. If I still cannot buy a house in the next 10 years then I'm probably just not going to pay the loans back because credit will mean absolutely nothing to me.

[u/ProfessorZhu → u/Confident_Benefit753]

They'll garnish people wages, then you'll be paying fifteen percent of your income on it, probably not even paying down the interest

[u/CuckedSwordsman → u/ProfessorZhu]

Garnishing people's wages only works if they have a stable income. If you have a job but can't afford to resume repayment, garnishing your wages is only going to get them their money back for so long before you can't afford to live and work where you have been. Past a certain point, it's more affordable to just quit your job and go sleep on a friend's couch. What are they going to garnish then?

[u/renok_archnmy → u/Vmaddo]

Hopefully but I think those deferments hinged on COVID emergency status.

[u/aeywaka]

Already told HR if they get a garnish request from any .gov person it's a scam...big big time scam

[u/G7ZR1 → u/aeywaka]

Obviously this is a joke, but what are the consequences from not complying?

[u/Nanahamak → u/G7ZR1]

Right to jail, no nothing

[u/G7ZR1 → u/Nanahamak]

https://preview.redd.it/7ofoyvctqa2b1.png?width=505&format=png&auto=webp&v=enabled&s=973e42055fcf65a1dccb3b7b7f48ce3687e1a6ab

[u/Alphanerd93 → u/aeywaka]

Based IT rep

[u/WantedinReno → u/aeywaka]

Bigly

[u/tehs1mps0ns]

I stopped reading at "Biden has promised to veto the measure"

[u/BuffaloSea9778 → u/tehs1mps0ns]

I stopped reading after house

[u/ScipioAtTheGate → u/BuffaloSea9778]

There is no way for the government to reassert student loan interest it has already waived and to resurrect loans it has already forgiven. Article 1, Section 9, Clause 3 of the US Constitution specifically bans congress from passing ex-post facto laws. What is proposed is literally an ex-post facto law.

[u/oO0Kat0Oo → u/ScipioAtTheGate]

Bold of you to assume the politicians know the laws they create

[u/Zerobeastly → u/oO0Kat0Oo]

Bold of them to assume the politicians follow the laws they create.

[u/jimflaigle → u/tehs1mps0ns]

If it even survived the Senate. But that's the point, if you know a law won't be enacted you can propose the craziest thing you think your base will like.

[u/enby_them → u/jimflaigle]

I’d actually be curious if it’s legal. You can say “must start paying again” but when you add in interest for the forgiven/deferred period I think the legality gets murky. You’re essentially punishing people for being on the receiving end of a decision the federal government previously made.

[u/CatButler → u/enby_them]

If it gets passed, then confirmed by the Supreme Court, it would open the door to retroactive tax increases.

[u/communomancer → u/jimflaigle]

Remember how the House voted to repeal Obamacare like 100 times when Obama was in office? Remember how they promised their base they'd repeal that "abomination" if only they could get full control of the government?

And then remember how they couldn't get the vote passed once Trump was in office and the vote actually mattered?

[u/happy_snowy_owl → u/communomancer]

And then remember how they couldn't get the vote passed once Trump was in office and the vote actually mattered?

The annoying part became the phrase "but what do we replace it with?"

[u/Chubbymcgrubby → u/happy_snowy_owl]

all those years to come up with a replacement and yet no plan. pretty amazing how ineffective on purpose our government is

[u/Violent_Milk → u/Chubbymcgrubby]

They were hoping to replace it with nothing.

[u/albob → u/jimflaigle]

I’m struggling to get in the mind of a conservative who would like this bill. Specifically the part about having to pay 2 years of interest back payments. Don’t they understand how badly that would fuck so many people over who were just trying to be smart with their money by not paying a debt that they didn’t think was accruing interest? Or is that the point and this is just schadenfreude because they perceive college graduates to all be dumb liberals?

[u/Thereisnopurpose12 → u/tehs1mps0ns]

:30641:

[u/ticapnews → u/tehs1mps0ns]

The scorpion promised not to sting the frog...

[u/Dinosar-DNA → u/ticapnews]

but the good of the scorpion is not the good of the frog, yes?

[u/philodelta → u/Dinosar-DNA]

"Lol", says the scorpion. "Lmao"

[u/Pleasedontmindme247 → u/Dinosar-DNA]

Stupid science bitches

[u/BalognaMacaroni → u/Pleasedontmindme247]

Couldn’t even make I more smarter

[u/PapaBari → u/BalognaMacaroni]

I’ve grown quite hWhhheary

[u/MLD802 → u/Dinosar-DNA]

I have grown quite weary

[u/EatsRats]

The House wants a lot of things.

The senate would have to approve this. Spoiler: never gonna happen.

If for some reason it passes the senate (it won’t), then Biden would need to sign it. Spoiler: he won’t.

[u/AdvancedSandwiches → u/EatsRats]

I'd like to clarify that the current senate would never approve it, and the current president would never sign it.

99.1% of House Republicans voted for this.

When the Senate flips and we get another Republican president because BoTh PaRtieS ArE tHe SaMe, this absolutely will pass.

[u/Fancy_Load5502 → u/AdvancedSandwiches]

Just Like Obamacare - when the R's held the house but nothing else, they passed 40 something times a law to cancel it. but when they actually had Congress and the White House, they all of sudden got cold feet and couldn't pass the law. It'll be the same here.

[u/The_Woman_of_Gont → u/Fancy_Load5502]

No they didn't.

McCain did. Without him it was 50/50 vote that went to Pence as a tiebreaker. That one vote that saved the ACA from being functionally dismantled.

He is now long dead, and the last scraps of honor and dignity in that party were buried with him forever. The only other Republicans who crossed the aisle there were Murkowski and Collins, and neither can be relied upon nor is there any analog for McCain.

Frankly we got lucky.

If you think the GOP won't pass something like this once they get a trifecta, you're about 3-4 years behind on GOP politics. They are fucking insane.

[u/MawsonAntarctica → u/AdvancedSandwiches]

You're downvoted, but you are right. All it takes is a GOP executive and legislative (we already have the judicial) and the people get screwed.

It's not that far fetched of a possible outcome in the next 2-6 years.

[u/NotSoIntelligentAnt → u/EatsRats]

You still need to know the stupidity that they would be doing if they had the majority

[u/sofaslippers → u/NotSoIntelligentAnt]

The thing that I don’t understand is the interest. Why? It seems irrational considering the pause was intended to ensure that the economy didn’t completely crash during the pandemic. So they were okay with all the forgiven pandemic loans to businesses during that time, but want student loan borrowers who also contributed to the health of the economy to pay back that break with interest? The fuck is that?

[u/Large_Natural7302 → u/sofaslippers]

Because it's all about power and has nothing to do with morality or the people.

[u/Rrrandomalias]

Convert all student loans to forgivable PPP loans :4271:

[u/These_Pen_4190 → u/Rrrandomalias]

when Tom Brady and Khloe Kardashian have their million dollar federal loans forgiven: 🥰🥳🤗🤗

When there's the slightest chance Suzie The ER Nurse might have 10k of her federal loan forgiven: 🤬🤬😭😭😤

[u/gardenofwinter → u/These_Pen_4190]

Life is such a cruel joke sometimes

[u/Shadowws → u/Rrrandomalias]

Would even cost less and provide more benefits. I have yet to encounter a worker who benefited from PPP loans. Every single person I know would directly or indirectly benefit from student loan forgiveness.

[u/lostredditorlurking]

Maybe they should go after all the businesses who file false PPP loans instead of going after students. I guess they don't want to do that since it will affect them too.

[u/elliotLoLerson → u/lostredditorlurking]

Yea half of the U.S. senate personally took out PPP loans for their own private businesses and then voted to forgive their own loans.

[u/lostredditorlurking → u/elliotLoLerson]

That vote went through so fast too unlike the vote on raising the debt ceiling. Muh fiscal responsibility lol, only care about fiscal responsibility when it fits them

[u/dcrico20 → u/lostredditorlurking]

Meh, they only care about fiscal responsibility when it happens to fuck over the poor and working class

[u/[deleted] → u/lostredditorlurking]

[removed] — view removed comment

[u/NightOfTheLivingHam → u/[deleted]]

and in between each of those presidents the GOP had a majority and the debt ceiling had to be raised each time after the GOP left power because they spent like crazy

[u/RefrigeratorSalad → u/[deleted]]

Should also point out the THREE times that the GOP increased the debt ceiling under Trump without so much as a discussion while he increased the nation’s debt by 50% in only 4 years.

[u/TheRabidDeer → u/RefrigeratorSalad]

It's been revised 78 times since 1960. 49 of those times under a Republican President. All 49 of those times both parties in Congress had no issue raising the debt ceiling without causing a crisis. For whatever reason, the GOP likes to play chicken with the wellbeing of our country and permanently damage the global trust in our economy.

https://www.npr.org/2023/04/29/1172894580/congress-has-revised-the-debt-ceiling-78-times-since-1960-a-financial-historian-

[u/sYnce → u/[deleted]]

At this point they just use it to hold the government hostage whenever they are not in power.

[u/RefrigeratorSalad → u/lostredditorlurking]

And that’s not even getting into the fact that the debt ceiling needs to be raised because of spending they already agreed to, not because of future spending

[u/ricardoandmortimer → u/elliotLoLerson]

Working as intended.

[u/ShroomGrown → u/ricardoandmortimer]

Is being a politician an ACTUAL free money glitch?!?

[u/DesperateMud8789 → u/ShroomGrown]

Yes, it’s the only reason people stay in politics.

[u/md54short → u/elliotLoLerson]

I had no idea that is insane. That should be 100% investigated.

[u/JustCallMeBogus → u/md54short]

Investigated? This must be your first time… These people fuck tax payers for monetary gain all the time. They are just getting more blatant about it because there seems to be few consequences when you are rich and powerful.

[u/lostredditorlurking → u/md54short]

Here are some of them. The list included members from both parties. There are probably way more than what was reported, however, the story never get big enough to cause a public outcry.

https://www.citizensforethics.org/reports-investigations/crew-investigations/members-of-congress-ppp-transparency/

[u/Tha_Sly_Fox → u/lostredditorlurking]

Wasn’t just businesses, basically anyone with a temperature range or 50-120 degrees could just apply for a PPP/SBA loan and receive it with no oversight.

I worked at a bank during that period doing account reviews, you’d be amazed how many people with no job or business received those loans, or accounts opened like a month prior that were given 20k loans which were taken out as cash same day and then then the account holder disappeared with no more activity

That whole program feels like one giant fraud.

[u/SirGlass → u/Tha_Sly_Fox]

That whole program feels like one giant fraud.

The company that I work for got PPP loans , however our business wasn't all that affected by covid and we were busy during covid

I don't blame them for taking the loans when the government basically hands out free money to anyone why not take it, our competitors were.

However I did strike me as odd, PPP loans handed out to business like candy with little over sight or "needs testing"

Oh some poor person is applying for food stamps ? Need to fill out multipul forms send in proof you are looking for work or working, send in proof that you are in need, have to reapply every so often just to get $90 credit a month for food

business applying for 2 million forgivable PPP loan, just sign saying you really need it and here it is no questions asked

[u/rstbckt → u/SirGlass]

I think you meant "means testing."

Democrats wanted oversight. Trump and the Republicans did not and refused to appoint an Inspector General over the Treasury office to oversee the program.

Then, when Democrats had the White House, Republicans (predictably) complained how there was no oversight over PPP loans and how the money was wasted. Gee, weren't the Democrats warning that would happen this whole time?

Typical.

[u/ironichaos → u/Tha_Sly_Fox]

Didn’t the banks get like a 2% loan origination fee so they had no incentive to deny any?

[u/p00pstar → u/Tha_Sly_Fox]

This was my experience too. Cashiers from the local grocery store were withdrawing 10k as soon as it hit their account.

[u/Pleasedontmindme247 → u/Tha_Sly_Fox]

Worked for a retail store that tried to take out PPP loans, they had already been sucked dry by people with connections.

[u/CrayonUpMyNose → u/lostredditorlurking]

Yeah I'm ok with back interest as soon as we do the same with all PPP loans first.

Never mind that it's probably unconstitutional because you can't backdate new laws. Just an exercise at throwing scarry shit at the wall so that when regular repayment resumes people can tell themselves how lucky they are that they don't have to pay back said unconstitutional compound interest.

[u/TNMurse → u/lostredditorlurking]

Not only that, but tons of churches also got loans.

[u/SoCuteShibe → u/lostredditorlurking]

Seriously! I struggled throughout the pandemic while many bragged of their shady PPP scamming. These people need to be investigated and charged, it's not right. They should be propping up our broken economy.

[u/Shibongseng]

Always wondered, too lazy to check by myself.

Stupid question from non US here but wouldn't it be more acceptable to switch these student loans to 0% interest ? Has it been tried or proposed ?

Edit: Upvote or downvote if you want it is a real question ! don't let me in the dark please !

[u/burdenedwithpoipous → u/Shibongseng]

It’s not a stupid question but an adorable one. Adorable you think the government would do anything that benefits it’s people over corporate interests (here in the states)

[u/Shibongseng → u/burdenedwithpoipous]

Yea true but, from afar it seems like the problem can't be solved. These debts will never be paid, especially if they ask years and years of interest back payment.

So as a corporation I would rather get back at least the "absolute" value (do you say nominal in english ?) of the debt rather than seing it frozen or canceled.

Because if your president keeps vetoing this stuff, they look at 4 to 5 years of back payment. Is it possible for people to pay these in US ? Because in most other countries it's not.

[u/ninjewz → u/Shibongseng]

It's weird. Realistically the "interest" on the student debts should be people getting good paying jobs and then feeding back into the economy by getting higher paying jobs, paying more in taxes and buying more things. Instead they keep people buried under student debt payments. It's pretty short sighted.

[u/sassiest_sasquatch → u/ninjewz]

That's quarterly profit motive for ya.

[u/orionface → u/Shibongseng]

I've paid more interest than principal on my loans so yeah, that'd be pretty fucking nice if I only had to pay back what I borrowed. What a concept.

[u/4ab273bed4f79ea5bb5 → u/Shibongseng]

The nominal value of the loans isn't important. Keeping as many people as possible indentured into debt slavery for as long as possible is what matters.

[u/miclowgunman → u/burdenedwithpoipous]

What is crazy is almost every conservative I talk to about it (I live in the south) easily get on board with zero interest or at least interest tied to inflation. That would only be unpopular among rich people who make money off loans. It would be very bipartisan on the ground level. Conservative's moral obligation to pay back loans does not extend to interest in my experience. Many see interest like they see taxes.

[u/poboy212 → u/Shibongseng]

The crazy thing is that the student loan rates are insanely high - like 8-12% in some cases. And if you’re ever going to try to get them forgiven for working in the public sector, you can’t refinance them to a lower rate.

[u/xXwarsmithXx → u/poboy212]

That's me. I also found out my employer has a program to forgive a portion of it in exchange for several years of service. After going through all the hoops and getting multiple private job offers the agency comes back and says "We have thst program but we never fund it and no one ever gets it"

WTF - Why do you have it listed on your benefits page!! Why are you wasting my time.

I'm very disappointed by the Federal gov't, working in private industry pays more, appears to be more stable and now is less shitty to its own people.

[u/_Jobacca_ → u/xXwarsmithXx]

I'm very disappointed by the Federal gov't

Quote of the Century

[u/06_TBSS → u/xXwarsmithXx]

All employers should be taking advantage of this as a perk:

https://thecollegeinvestor.com/33583/employer-student-loan-assistance-tax-free/

[u/ShowAnnual9282 → u/poboy212]

Which federal loan rates are that high?

[u/Purple_Metal_9218]

Dudes really have the nerve to tell me to pay my debts when they can’t even pay their own 🥱

[u/Lordmcfarty → u/Purple_Metal_9218]

can’t even pay their own

With our tax dollars no less.

[u/teudaan]

Back pay student loan interest? How much would you get for that? 100 billions? How much would you get for making PPP recipients repay those loans? 800 billions? And how much would US treasury get if the IRS get the funding to go after tax cheats? 124 billions? It seems their priorities are a bit skewed, squeezing the millions of student loan borrowers does not seem as profitable as going after the bigger amount $$$ there.

[u/PreviousSuggestion36 → u/teudaan]

They do this because its a boomer favorite.

Until that generation has a few more years to diminish in size, this is the kind of bs we will have to keep putting up with.

[u/UlyssesSGrant12 → u/PreviousSuggestion36]

Boomer influence on political policy going away can't come soon enough.

[u/iwoketoanightmare → u/UlyssesSGrant12]

Too bad medical science has advaced as far as it has.. Now we got demented crypt keepers like Feinstein still calling shots.

[u/dcrico20 → u/iwoketoanightmare]

Feinstein is even like two generations older than boomers as depressing as that is

[u/ThrowItNTheTrashPile → u/iwoketoanightmare]

That crypt keeper likely isn’t calling anything except her staff and coworkers mistakenly by the names of dead people she worked with 30+ years ago

[u/1nd3x → u/PreviousSuggestion36]

Its not a generation favorite, its a class favorite.

You know who else doesnt give a fuck about your student loans?

The 35 year old business owner who took a PPP loan and doesnt have student debts because they already paid them off.

[u/yldelb → u/1nd3x]

or because his daddy paid cash

[u/KonigSteve → u/1nd3x]

Paid off the student loan with the money they earned from having their PPP loan forgiven. 5D chess.

[u/sYnce → u/PreviousSuggestion36]

They do this because a lot of them had PPP loans and close to non of them have student loans. They literally voted to forgive their own loans.

[u/jackofallcards → u/teudaan]

It's a lot easier to squeeze the group that doesn't have the means to fight back. You really think enough people it would effect could organize and do anything about it?

[u/StudlyPenguin → u/jackofallcards]

Only 27% of Gen Z voted in the midterms. If 73% can’t even do the bare minimum, what’s to think they would do better if they had access to a trust fund?

https://www.elitedaily.com/news/how-many-gen-z-voted-2022-midterms

[u/jackofallcards → u/StudlyPenguin]

Thats basically what I was getting at with my second sentence. It would require people to give a damn en masse. The majority could never organize because they haven't even started to care.

[u/Narradisall]

Student loan interest will clear up the debts! Bullish!

[u/uchunokata]

Student loans? How about paying back PPP loans first?

[u/DynamicHunter → u/uchunokata]

Congress already voted to absolve their own debt, you think they’d do it for you? Lol

[u/Itchybootyholes]

Really tiffed that PPP ‘loans’ don’t have to be paid back but these do?

[u/ChosenJuan234]

Bullish! Why can’t you guys see nothing is taking this market down?

[u/tehdamonkey → u/ChosenJuan234]

<An ICBM has entered the chat>

[u/First-Translator966 → u/tehdamonkey]

<Lockheed-Martin instantly has the market cap of the EU>

[u/Dr-McLuvin]

Back pay of interest? Fuck no you’re not getting that money back. I would have paid my loans off years ago but then you (government) set the interest rates to zero. You can’t just reverse that decision. We made huge life decisions based on that rule change (like in my case buying a house).

[u/[deleted] → u/Dr-McLuvin]

I don’t know how OP came up with this headline. The only place I’m the article that mentions repayment on interest avoided during the pause is here.

It couldn’t be further from the truth. Nowhere in this resolution does it mandate backpay. It is prospective, not retrospective. If anything, it will be Secretary Cardona’s decision to enact backpay.

[u/StaredAtEclipseAMA → u/[deleted]]

Thank you for reading the article. I read it too and came back to the comments because I read nothing about interest being repaid on back log

[u/Nihlithian]

It's really weird how they love alienating any potential younger voter base.

The back-pay part of it just bleeds malice.

[u/foodank012018]

What happened to student loan forgiveness?

[u/numba1mrdata → u/foodank012018]

It's still being deliberated in the supreme court. Should have a decision on it in June

[u/Lease_Tha_Apts → u/foodank012018]

Got held up by supreme court.

[u/chewie8291]

What would happen if everyone refused to pay?

[u/Parabellim → u/chewie8291]

Believe it or not, straight to jail, right away!

[u/zirtbow → u/Parabellim]

Straight to Yale and youre forced to take out more student loans.

[u/HTown00 → u/chewie8291]

Interest keeps accruing and they'll garnish your W-2. You can't hide from Uncle Sam.

[u/Rugged_007 → u/HTown00]

Joke's on Uncle Sam. Wendy's dumpster doesn't issue W-2.

[u/Carthonn → u/HTown00]

Jokes on them assuming these students will be able to get jobs

[u/Savings_Courage205]

The government should just stop issuing student loans and allow them to be able to be defaulted. 18 year old kids who are barely legal shouldn't be getting thousands of dollars worth of loans.

[u/CoachGonzo]

Same assholes that forgave their own PPP loans Forgiving a part of student loan debt would supercharge the economy Abd lets face it, universities are insanely overpriced, fuckers

[u/Highly___Regarded]

Everything is fine.

Can't manage budget and debt

Everything is fine...

Demands money back from broke students

Everything is fine!

Blends up homeless population into soylent green due to food crisis.

[u/AudaciousPanther]

You know, student loan debt wouldn't even be a big deal if people graduated and got good jobs.

When I graduated with my BA, I made a whopping 9 dollars an hour at the mall with 50k of debt. It's insane how mislead our generation was.

Obviously there are some degrees with a high ROI, but most don't have any.

[u/robtbo]

Wait…. So they took the debt away and sent out cancellation letters to the ones that received the support.

Now they will contact those people and say… ‘JUST KIDDING , And also you owe back interest’

What a joke

[u/kellarman]

Boycott student loan payments:D