Student Loan Reform thread

[katt_goddess]

4 hours ago, scoobdog said:

Not to interject, but that orders looks suspiciously like an attempt to disqualify teachers from the loan forgiveness plan.  

It would disqualify literally everyone that would have qualified for forgiveness based on going into and continuously serving in any public service but especially teachers because who needs an educated populace? 

[Raptorpat]

5 hours ago, discolé monade said:

what does this mean for you? 

i'm private sector, so for this particular change technically nothing. but folks in my cohort who went in that direction are at or nearing that ten-year mark.

but to extent that i'm in that broader student loan bucket generally and paying attention, it's just infuriating the absolute contempt these people have for kids who were told all their lives to stay in school and then were promised that if they sacrifice earning potential to work in the public sector for a decade, that debt would be wiped clean.

the PSLF stuff in particular is just mean, cruel, spiteful, and terrible all around.

[Raptorpat]

Trump announced student loan portfolio will be transferred to the Small Business Administration 

https://www.nbcnews.com/video/trump-announces-the-small-business-administration-will-handle-student-loans-235043909909

[1pooh4u]

5 minutes ago, Raptorpat said:

Trump announced student loan portfolio will be transferred to the Small Business Administration 

https://www.nbcnews.com/video/trump-announces-the-small-business-administration-will-handle-student-loans-235043909909

What could possibly go wrong 🫠

”forgiving student loans is unconstitutional”

”dismantling and rearranging departments approved by Congress not unconstitutional”

fuckin crazy land 

[Raptorpat]

Are they the ones who forgave all the fraudulent PPP loans? Maybe we're in business!

[MasqueradeOverture]

2 hours ago, Raptorpat said:

Are they the ones who forgave all the fraudulent PPP loans? Maybe we're in business!

If DOGE has any input I fully expect loan shark interest rates.

[Jman]

https://apnews.com/article/student-loan-debt-default-collection-fa6498bf519e0d50f2cd80166faef32a
 

Student loans will now be sent to debt collectors, which also means a lot of outstanding debt will be bought up for pennies on the dollar, dismissed by courts, or settled in lump sums.

This could go several ways.

[Raptorpat]

here's the official announcement: https://www.ed.gov/about/news/press-release/us-department-of-education-begin-federal-student-loan-collections-other-actions-help-borrowers-get-back-repayment

[discolé monade]

most people will try to settle if at all possible. 

payments can be broken up into 3 for a settlement of 60% or higher. 

any settlement under 60% will have to get approval for 3 payments, but will probably only be able to do in 2. 

what i see is a lot of people filing BK if the size is right. while in collections the interest does not stop. 

and i have to wonder will they revert to 'in house' or begin wih 2nd house or got straight to tertiary. 

 so many questions. next i BET the powers that be allow high risk lending again. 

[scoobdog]

You know.... putting a bunch more people into a cash crunch at a time when we'll likely start hemorrhaging jobs while industries go into correction all while inflation is going to go up....

seems like a bad idea.

[rpgamer]

Tariffs aren't making enough revenue. Gotta squeeze some money out of somewhere.

[tsar4]

[1pooh4u]

16 minutes ago, tsar4 said:

*narrator voice*
 

that was, in fact, not him 

[tsar4]

49 minutes ago, 1pooh4u said:

*narrator voice*
 

that was, in fact, not him 

(Shhhhh, let him sweat a little...)

[Doom Metal Alchemist]

21 hours ago, tsar4 said:

Ben Shapiro tells the country to not go to college.

[rpgamer]

No no, clearly he's saying college tuition should be free. Student loan debt shouldn't exist.

[Raptorpat]

Summary of the mixed bag of proposals that might go into the Republican tax bill:

https://www.npr.org/2025/05/12/nx-s1-5389644/trump-student-loan-program-forgiveness-overhaul

[Dark_Cloud_Overhead]

https://www.latimes.com/business/story/2025-06-12/forget-inflation-the-gops-policies-on-student-loans-will-crack-the-economy

Now things look worse. There’s no longer any talk in Congress of student loan relief. It’s been supplanted by partisan efforts to increase the burden, by raising the costs of student loans and closing off paths for struggling borrowers to manage their payments.

The damage wreaked by Trump policies on student loans is already showing up in economic statistics. According to a report by the Federal Reserve Bank of New York, about 9.7 million student loan borrowers have seen their credit scores plummet since late last year, when delinquencies and defaults on those loans began to be listed on credit reports.

The threat to the economy is real and immediate. Households burdened with student debt tend to delay or forgo homeownership and face difficulties in starting a family or building up savings. Eradicating student debt, or even materially reducing its burden, would produce a significant economic stimulus. But who in the White House or on Capitol Hill is even listening?"

Just another part of the war on higher education that's gonna rebound and bite them in the ass before long probably.