How Student Loans Are Changing, Regardless of the Supreme Court Ruling | WSJ

It would be so nice if the DoE actually looked into why Universities are growing tuition costs at 50% per year and giving their leadership staff million dollar salaries to never show up and do any work. Lets also address why education costs too much as well.

The sad thing is, most people are taking out these loans that could effect them for decades, at only 17-18 years of age.

What sucks is you have a ton of students who did everything "right." They went to community college and then to a local public university and majored in something that would get them a decent-paying job yet they still ended up with insane amounts of debt that is impossible to keep up with due to the interest rates and high cost of living.

Start with university endowments. They wanna act and profit like pay day lenders treat them like payday lenders.

Let us please note that Student Debt is the only debt that cannot be erased due to bankruptcy. All other forms of debt can be forgiven by law. People can go to a casino and amount an enormous amount of debt & they can declare bankruptcy at some point but student debt cannot forgiven. The majority percent of the people that have student debt want to repay it but the current state of corporate America & bank financing makes if very difficult for people to gain employment that pays enough to make regular repayment possible.

I think they should just make student loans interest free. That would subsidize education essentially but be favorable towards everyone’s income limitations w/o feeling like a penalty.

Make schools accountable. Let them issue the loans, not the government. Then they might care about who they admit, what is required for a degree, how much it costs, and if their students find adequate employment.

And what really needs to he added to this plan is that we should not be charged daily interest while we’re full-time enrolled in school. That in itself puts you 4-6yrs into interest rates just by being in school.

In other words, the payment based plan method was never a good idea to begin with and shows extreme financial irresponsibility on the government’s part for creating a bad system

I don’t think any policy regarding student loan is effective unless you address the underlying issue that is rising tuition costs. But what do I know? 🤷‍♂️

I’m a student loan borrower, but my debt is manageable —- regardless if the 10-20k is knocked off. Still, I feel amortization is absolutely insane. I didn’t even know what that was at the age of 18 when I first started taking out the loans and most kids probably don’t. Financial literacy is so necessary and should be mandatory in our schools— smh

My question is, it feels like this is only for Government loans. Most students I know also have "Private loans" from predatory companies like Naviet and Sallie Mae. When is there going to be some real systemic change to how we approach educating our population, regardless of income, ensuring we have a population ready to do the work of the future, and become contributing citizens (and consumers because thats what we really care about) without being saddled with oppressive debt? America is getting education very wrong, and it shows. It's so disappointing.

I don’t know how but you’ve managed to package an unbiased analysis that is more entertaining than the sensationalized segment of economic and financial news. Thank you for your efforts to be the signal and not the noise. I understand that the economy is in currently in a downturn and that we must wait for the stock market to recover in order to break even and make a profit.

I don’t want to hear anyone from the generation that went to college for free, or close to free, talk about student loans. Period 😂

Taking a loan out that can't be paid off by the monthly payments seems illegal.

Glad to hear that I am above average. Please pass this on to my 10th grade biology teacher

What a disgusting education system.

Helpful tip, pay weekly instead of monthly. So if your student loan is $400 monthly, pay weekly about $95 every Friday or so. That’s what I did especially if your income fluctuates a bit. You don’t get a big surprise at the end of the month, and it keeps you consistent. I paid off all my student loans and I definitely wasn’t making a lot of money some years, but now I’m in a much better situation.

What they should have done is just limited the interest rates on the federally backed loans. I went in thinking the rates were 2% because that what they'd been. When I signed up for grad school loans, turns out they were 8-10%. And the first 10 years out of school were rough. So despite paying $300k over the past 10 years on an original $490k in debt, I ended up over $700k when COVID hit. We've been blessed and have got it back down to $650k. But we'll have to rely on the IBR forgiveness but even if we get that, there's a tax bill on what's "forgiven". So 25 years after graduation I'll owe the IRS about the same amount I owed the school originally, AFTER paying hundreds of thousands on it the whole time AFTER taxes. I have to earn an extra $80k a year to pay $50k on my loans. Getting screwed big time. Three solutions: 1. Drop the interest rates 2. Student loan payments aren't taxed 3. Kill the tax bill for the forgiveness (And hold the schools accountable for all the defaults!!! Stop guaranteeing the loans to the schools, the cost of my education more than doubled between the time I started working on it and actually getting in, because, why not?)

When I did university in Australia my loan was interest free and only started income deduction payback after I reached a certain salary. If I never earned enough to pay it back, the loan never needs to be paid without consequence.