gravitywell@sh.itjust.works 5 months ago
I will never understand why people work so hard to pay off student loans… I know people who do and people who don’t and it seems like the people who don’t pay them tend to actually have much better credit or at least are better at managing their finances. If you’ve been paying off a loan for years and the balance just keeps going UP, the sensible thing to do is default on the loan, accept the consequences of that (which is minimal with student loans) and move on with your life
You can’t escape student loan debt by default, bankruptcy, etc.
The best thing you can do is sign up for IBR and accept that 5% of your income is lost for 20 years, and hope that whoever is president at that time isn’t a sadist cunt. Also try to save some extra money for possible income tax on the forgiven amount.
That’s assuming your loans are subsidized. If they’re private, try delivering for DoorDash on the side!
I’m saying you can stop paying, Im not saying you won’t still owe them, but I know people who owe tens of thousands in student loans and have not paid them a cent in over ten years, they have a credit score of around 800, its never affected their ability to get any kind of credit or housing.
I think people over estimate how important they are or what kind of consequences there are for not paying as if it ruins your credit score forever or something.
You may have missed this link someone else posted, but if you stop paying, your employer may be required to withhold some of your wages to make the payments
Okay but what I’m saying is, why take a second job? Why not just make a single minimum payment every 270 days to avoid them moving to the next steps? There are just so many other options besides working a second job to pay them, and so many delay tactics you could employ to avoid getting to the point of garnished wages.
Or just flee to a developed country
Yep, learn to do something in high demand, move the fuck out and don’t look back.
Be sure not to say that out loud before you do it though… taking out loans with the intention of jumping the country and never repaying them could end up with you wanted for fraud. Unlikely it’ll matter if you never come back, but it could bite you in the ass.
You can’t.
You can’t do this with student loan debt which seems incredibly dumb. I also don’t understand borrowing 100k for school.
I also don’t understand borrowing 100k for school
Other than the fact that college tuition has become absurdly expensive, the predatory fees and interest structures of student loans means that most people who have been paying theirs to the best of their ability for several years actually still owe MORE than the original amount borrowed, which I’m guessing is the case here.
The terms and conditions that people who are usually 17-18yo and know fuck all about contract law are coerced into agreeing to in order to “ever make something of themselves” would make Franz Kafka disown The Trial for being utopian sentimentalism in comparison.
Are in-state tuitions not a thing anymore? I’m old but when I went to school it was the difference between something like $30k a year and $5k a year.
My parent encouraged me to take out loans including housing, then charged me rent from it lol
Not all parents are helpful
State university in my city is 10k a year
Stop lyin
Most 4-year universities in the US average around $15k after federal aid, plus rent in a city like Boston or Atlanta will probably cost you a lot more than $15k per year, not including cost of living. Interest rates for student loans can range between 4% and 17% monthly. $100,000 is a little high but very realistic.
Which part of “most people who have been paying theirs to the best of their ability for several years actually still owe MORE than the original amount borrowed” didn’t you understand?
10k/y for 4 years comes out to 40k and it’s not at all unusual for people to end up owing 2.5 times the original amount or more in spite of doing the literal best they can to pay it off. That’s how awful the terms and conditions of student loans are.
It’s not the original loan amount. The trap in student loans is the initial deferment when they gain interest while you aren’t paying and taking classes for 4-6 years. One of my loans was 14k and when I graduated had more than doubled. By the time it was paid off in my 30s the total sum I had paid in to interest was over 100k. And I was paying on an accelerated cycle for the last 5 or so years to kill it faster.
I had discovered with one of my servicers that they were applying my overpayment only to interest as well so the principal would not go down and keep generating new interest. This is actually illegal now thankfully
Wow Americans start accruing interest on student loans while you’re still in school?? That’s crazy.
Yeah. There are two kinds of loan as part of the federal loan program. Subsidized and unsubsidized. You get granted a pool of loans from both kinds when you apply for aid. The unsubsidized loans accrue interest the whole time. The subsidized loans are equally horrifying mostly because the interest is accruing, it’s just being paid for by the taxpayers on your behalf. Neither public loan actually accrues no interest while you are in school
You’re thinking of bankruptcy, you can absolutely stop paying student loans, you’ll still owe them but they can’t force you to pay them.
They sure as fucking hell can garnish your wages.
I’d love a little extra on top of my wages. I just hope it’s not parsley.
I will never understand…
You might try reading up on it (or the link someone posted) as you’ve got it wrong. That’s why this has been such a huge issue, they are unlike other loans.
which is minimal with student loans
I like how you starter by not knowing that you couldn’t default, but then made it obvious you were just making things up (and not just being ignorant) with this statement.
I know people who’ve defaulted on student loans, I’m not making anything up, you are assuming a lot
kungen@feddit.nu 5 months ago
I thought one of the big problems with America’s student debt was that you can’t effectively default on it? That it will still persist even after filing for bankruptcy for example?
Fredselfish@lemmy.world 5 months ago
And guess who is president and responsible for that?
Dkarma@lemmy.world 5 months ago
Not how it works you utter fucking moron
fishpen0@lemmy.world 5 months ago
Joe Biden wrote and voted to pass the very bill that makes student loans immune to bankruptcy as part of BAPCPA back in the 2005 when he was a senator.
Learn the voting and bill submission history of your politicians you utter fuckng moron
gravitywell@sh.itjust.works 5 months ago
By default I just mean stop paying. You can’t get rid of the debt by bankruptcy or anything, but it also doesn’t affect peoples credit score as much as many seem to think it does.
Soulg@sh.itjust.works 5 months ago
They can garnish your wages