Posted on 07/01/2023 10:54:59 PM PDT by MinorityRepublican
Some student loan borrowers encouraged others to default on their loans "en masse" following the decision by the U.S. Supreme Court to cancel President Joe Biden's student loan debt forgiveness plan, but one expert told Newsweek why that may not be a good idea.
"Okay, thing I can actually talk about: Mass default on student loan debt would be a really effective message and f*** you to this country from the folks most impacted by our constant slide backwards. Just don't pay it. Hit the bricks. En masse," Twitter user Derek Van Dyke wrote.
On Friday, the Supreme Court reached a 6-3 decision to side with Republican-led states and cancel Biden's student debt forgiveness plan, which sought to cancel up to $10,000 in debt for borrowers with an income of $125,000 or less and up to $20,000 for Pell Grant recipients.
Payments on student loan debt have been paused for several months dating back to former President Donald Trump's administration. However, under the recently signed debt ceiling legislation, payments are set to resume in October and interest on the payments will resume in September.
(Excerpt) Read more at newsweek.com ...
I propose a compromise. Each student loan that is forgiven, the corresponding school must reimburse the bank. The degree must then be rescinded. The degree is obviously of such low value that the recipient can’t earn enough to pay it back. This addresses the issue no one is talking about, why are these schools charging such insane tuition when they have millions, if not billions in endowments.
FJB is the one that put in you can not discharge a student loan debt.
Shhhhh That’s the surprise, but you have to wait until AFTER the midterms to open it.
Ex wife found that out the hard way.
Remember, the government is involved with the loans. Much nastier things can happen to someone who defaults
” the corresponding school must reimburse the bank”
Too many state run schools. State is the government. The government always gets their money
We could all file our W2s with 9 dependents and have no taxes taken out.
All Student Loans were Federalized under Obama. Very few private student loans out there at this time available if any.
Problem is they cannot be discharged in Bankruptcy so you’re ruining your credit for nothing, it stays there no matter what.
One could, theoretically, simply stop paying. Then what?
My kids paid off their student loans.
And my grandkids have paid off their student loans.
None of us fell for this 'free ride crap'...
Let's hope the young aren't going to fall for President Sniffer's lies again. Democrats want to make this a 'get out the youth vote' scam. But it'll backfire. Lots more citizens planed by the rules than those who wanted a free ride.
The Biden “plan” was only a $10,000 bribe ($20,000 for receivers of Pell grants). The problem is much bigger than that.
good luck repairing your credit afterwards.
https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/pages/dei-metrics-.aspx
Husband suggests after they finish pitching a fit on the floor, they each hold their breath until the rest of us see reason.
The credit based money system will fall, sooner or later.
Why not start here?
I know the thread concerned Student loans, but my comment was about Bank loans.
Just “default” is the most ridiculous path.
Soon your credit score will reflect only if you have the correct politics or not.
IIRC a bankruptcy does not discharge the student loan debt.
IIRC a bankruptcy does not discharge a student loan debt.
Education Loans Can Be Discharged in Bankruptcy
What is behind the perception that student loans cannot be discharged in bankruptcy? It is true that it can be more difficult to discharge many student loans than other types of unsecured debt; the Bankruptcy Code provides a more difficult test for relief (a showing of “undue hardship”) and an extra step in the process (an “adversary proceeding,” essentially a lawsuit within the bankruptcy). However, some borrowers may not realize that discharge is still possible even under that standard and extra step.
Importantly, some loans that borrowers may think of as “private student loans” are not subject to that standard and extra step. Instead, some private loans for educational purposes can be discharged in a normal bankruptcy proceeding, just like most other consumer debts.
For example, several types of loans associated with education expenses are dischargeable in bankruptcy, like most other types of unsecured consumer debt. These types of loans for education expenses are not subject to the more difficult standard and extra step. These loans could include, for example:
Loans where the loan amount was higher than the cost of attendance (such as tuition, books, room, and board), which can occur when a loan is paid directly to a consumer.
Loans to pay for education at places that are not eligible for Title IV funding such as unaccredited colleges, a school in a foreign country, or unaccredited training and trade certificate programs.
Loans made to cover fees and living expenses incurred while studying for the bar exam or other professional exams.
Loans made to cover fees, living expenses, and moving costs associated with medical or dental residency.
Loans to a student attending school less than half-time.
Yes. And stop paying mortgages and taxes. This could work!
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