The Education Department planned to adjust how it calculates student loan payments to correct past errors, resulting in about 804,000 people balances erased.
Well they wouldn’t so they’d end up having to setup a payment plan with the IRS but that would still be better than the debt load. I’d rather owe 20k to the IRS than 100K in fed loans. At the end of the day it’s all money owed to Uncle Sam.
Personally though, I wouldn’t bank on IBR, I’d much rather consolidate my loans privately at a better rate and pay them off as quick as possible rather than pay a high interest rate to the fed in hopes that they forgive it one day. I understand that’s not an option for everyone though and some value the risk/reward differently.
You’re not wrong that private consolidation is great for those who can afford it, and I can see you acknowledge this doesn’t work for everyone. You seem quite reasonable about it.
But one of the biggest pain points for the entire student loan crisis is specifically those who truly can’t afford to get out of their debt.
For these struggling Americans, IBR plans aren’t being used as a savvy financial decision. It’s a lifeline. If that’s stripped from them, you’d see another wave of people who can’t afford basic necessities like housing. It’s sad that it even needs to be an option. And worse that for many, there’s no easy way out.
Well they wouldn’t so they’d end up having to setup a payment plan with the IRS but that would still be better than the debt load. I’d rather owe 20k to the IRS than 100K in fed loans. At the end of the day it’s all money owed to Uncle Sam.
Personally though, I wouldn’t bank on IBR, I’d much rather consolidate my loans privately at a better rate and pay them off as quick as possible rather than pay a high interest rate to the fed in hopes that they forgive it one day. I understand that’s not an option for everyone though and some value the risk/reward differently.
You’re not wrong that private consolidation is great for those who can afford it, and I can see you acknowledge this doesn’t work for everyone. You seem quite reasonable about it.
But one of the biggest pain points for the entire student loan crisis is specifically those who truly can’t afford to get out of their debt.
For these struggling Americans, IBR plans aren’t being used as a savvy financial decision. It’s a lifeline. If that’s stripped from them, you’d see another wave of people who can’t afford basic necessities like housing. It’s sad that it even needs to be an option. And worse that for many, there’s no easy way out.