#StudentLoanForgiveness #DebtStruggles #FinancialHardships
Have you ever stopped to think about what really goes into student loan forgiveness? 🤔 Let’s break it down:
– Principal Paid: $970.15
– Interest Paid: $10,773.74
– Collection Cost Paid: $0.00
– Total Paid: $11,743.89
Before you dismiss student loan forgiveness as unnecessary or unfair, consider these factors:
1. Interest accrues over time, often surpassing the initial loan amount.
2. Collection costs can add up, making repayment even more challenging.
3. The total paid can be significantly higher than the original loan balance.
Instead of focusing on the negative aspects, why not explore potential solutions? 💡 For example, increasing financial literacy and promoting responsible borrowing can help prevent future debt struggles. Let’s shift the conversation towards proactive measures that benefit everyone in the long run! 💪🎓 #FinancialFreedom #EducationMatters
I cried tears of joy when my student loan debt was wiped out. I went to a predatory for profit private school. My college gave me a worthless degree that nobody would hire me with. Provided 0 support when they promised a 98% job placement rate. I was working minimum wage jobs for years after school with no way to pay off my growing debt. Getting that debt eliminated was a godsend and allowed me to go to a legit school and get a legit degree where I actually got hired into a job that I’ll be able to pay off the new loans in just a couple of years.
Meanwhile if you ‘owned a business’ in 2020 you got six figures of free money
My student loan balance through DOE is 192k because I’ve never made enough money for my payments to be more than $250/month. About 52k is solely 15 years worth of interest. Meanwhile, most foreign students go to college for free…including many I studied in undergrad with.
Yup, don’t sign those agreements.
Step 8: leave country in smoking ashes and move to foreign country that is cheaper to live cause things are two expensive here
A lot of people aren’t against loan forgiveness, they are against how the current administration went about it. Zero changes were proposed to fix the underlying issues causing all the predatory debt in the first place. Forgive the loans and that same day, a thousand new people have the same problem. It’s stupid and they used loan forgiveness to buy votes. They need to fix the system before they start handing out money or it’s instantly happening again. It’s a joke.
Thank you! Most people aren’t trying to completely escape paying the debt, but they debt isn’t really payable. You get buried under interest and can never get out. Student loans would be manageable if they had no interest.
More on the whole “but you need financial education on how interest works”
2 problems with interest. One is that its compound interest. So the interest is making money of the interest. The last one is a doozy, so grab a coffee and a popcorn….
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So the narrative (by the FED) is that there is this concept called ‘time value of money’. This was suppose to be a way to explain that money not owed back today is going to be worth more in the future. So if you have debt, it would grow bigger and that was to “make sense”
The PROBLEM is that is not how time value of money ACTUALLY works. It loses its value over time in 2 ways. One it loses value in inflation. TWO, it loses another value. Here is an example….
People give up getting money owed to them such as the kid wanting his lunch money back, or hey I borrowed 10 bucks. 10 years later do you think anyone is collecting that? The reasons why nobody bothers to collect old debts is because the value of the debt has shrunk to zero.
Money has a value in one direction
Debt has a value in the other
So why do banks or corporations still collect money owed to them? They are not even a person and have no feelings. Yet the human, who has feelings, lets debt go. Its natural and human nature.
People love to argue: well you knew what you were signing up for when you signed for the loan.
Please show me any other loan you can get at 18 with no job, no income, and no credit history? It was hard enough for my friends to open their first bank accounts, let alone get a credit hard with a $150 limit at 18.
There needs to be serious student loan reform. It needs to move away from the loan shark model..
I’m still of the mindset that people should pay off their loans, BUT all interest should be canceled. Pay off what the loan originally was and we’re square. As long as it comes with major reform. Don’t just remove all of this debt and then continue to allow the predatory stuff to happen as usual as kids start college the next semester.
I just don’t pay my student loans anymore. Let that shit go to collections and die.
Here in NZ student loans are interest free as long as you stay and work here. Interest starts clocking up if you leave.
I just calculated mine out the other day out of curiosity. I graduated in 2014 with ~$20k in government loans. Luckily I’ve had low income-based monthly payments so it was actually affordable, and I’ve paid ~$24k towards those loans.
Wanna know my current balance? $12k.
I’ve paid $24k towards my $20k loans and still have $12k left to pay.
I know I’m in a far better situation than most other millennials when it comes to student loans, but still what the FUCK. And people think it’s unfair to forgive student debt, when all those business PPP loans for hundreds of thousands of dollars were forgiven.
I’ve been saying the same thing. They need to change how they calculate the interest. I was able to pay off two new cars (SUVs) with 5 year loans and still owed over 10k on my student loans. I was able to get that last forgiven through the public service loan forgiveness plan.
This is why I tell people the absolute least, bare minimum, is dropping the interest to 0.
I had about $95K in student loans, refinanced it and paid it off in 5 years. I would not wish that experience on anyone. It was like paying a second mortgage. I am not one of those people who thinks because I had to suffer others should too.
Probably the BIGGEST thing folks miss about these forgiveness programs, is that they are a way to spur the/a economy.
I’m all for student loan forgiveness. Someone else’s victory isn’t a loss for me.
Took out $48k. Paid back $84k. Thankfully I make enough that I was able to do it in 10 yrs instead of 25 yrs. But imagine what that number would have been if I’d sat on it for 15 additional years.
The system is designed to screw people over
The cruelty is the point.
People who don’t believe in debt forgiveness want a section of the populous to be stuck in crippling poverty.
This example wasn’t a student loan to have paid $10,773.74 in interest and only $970.15 in principal. The % of that loan would be well over the 5-7% of student loan rates.
Even a $100,000 student loan at 30 years is closer to half and half.
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|Repayment:|**$651.93/month**|
|Total Interest:|$134,693.07|
|Total Payments:|$234,693.07|
Looking at Amortization schedule to get $10,773 in interest you’d have paid about double that even at start of loan. I’m guessing payments weren’t made, missed, or not always paid in full.
|Year|Interest|Principal|Ending Balance|
|:-|:-|:-|:-|
|1|$6,767.50|$1,055.60|$98,944.40|
|2|$6,693.44|$1,129.66|$97,814.74|
|3|$6,614.19|$1,208.92|$96,605.82|
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How much did you borrow?
It’s just crazy how much it is for you guys.
The government gives some loans where I am at (not many because we have grants based on just existing basically if you cannot afford the school; but you have to pass your clases. If you fail an x% you might look into a loan to pay the 2-3000 euros/semester tuition)
They are I think 2% interest rate and your interests don’t build up for the first 2 years.
(And of course they are small loans. Like 5k tops)
Anyway, very little money to be made on the student loans.
Did you start making payments (i.e. principal and interest) at the same time the loan was initially taken out?
Student loans either needs to be completely forgiven or the interest needs to be removed from all the student loans and made illegal for student loans to have interest. A massive amount of the money people owe on their student loans are the interest. Especially now a days when it is hard enough to live more than paycheck to paycheck.
Almost all student loans are owed to the government. They can be cancelled and nobody will notice a negative side effect.
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For the people that say, it’ll cause inflation.
No it won’t. This is money that has yet to be generated by the public that would have been paid to the government.
It’s not like people got $25k ready to pay their loans and they get cancelled so they go spend the $25k all at once.
What it will do is create more fluidity of money. So if you own essentially any type of business, having your neighbor paying $150 to their student loan now buying your whatever service/item you’re selling, is a good thing.
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And please don’t even get me going on the “But inflation is so high right now!!!” bullshit rhetoric. It’s not inflation when you have multibillion dollar stock buybacks and record breaking quarters.
Before people get crazy about “tHaTs HoW iNtErEsT wOrKs”..
Student loan interest rates are set by congress and while ZIRP (Zero interest rate policy) (read, 0% interest rates) was in full swing, student loan borrowers get the low low rate of 7%.
Also… you can’t really deduct it from your taxes, unlike any other “business expense.” Don’t people go to school so they can do business stuff? (same with a home loan… explain that logic.)
Oh, and you can’t discharge in bankruptcy, so theoretically its the most secure loan in the US because you literally cannot escape it aside from death or disability. So, when you’re high risk, your interest goes up but when you get the loan you cannot escape, your interest rate goes up?