Another Month of Student Loan Relief!

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Republican - Democrat…. I don’t care…. I’m just watching my forgiveness date like:




And yes - I can do this whole dance in real life…. It took me about 3 years to master what I call, “The Kool Shuffle”


Wow that's some crazy coordination they have while playing instruments. Much more impressive than all the stupid lip syncs today.

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BMB must be rejoicing.


Lol no one cares about the 5th, it’s in SCOTUS’ hands now with the 8th.

Best case scenario for me is if Kavanaugh denies the lifting of the injunction and the full court hears the case with a decision in June.

EDIT: YESSSSS SPOKE TOO SOON

That's like another $9k+ for me. I will just about hit 120 by the time payments resume. I will have a dedicated PSLF thread once all is said and done to document amounts owed/paid and answer any questions.
 
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Many are calling for investigations into PPP fraud.

Can we do the same for student loans and make it a condition for forgiveness, if it ever passes? Make sure that borrowers actually spent the money on tuition and not on cars and vacations.
 
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You get the certain amount forgiven from your total. No way to commit fraud..

Main issue is it wouldn’t stop schools from simply increasing their tuition. So, essentially there is no forgiveness for future students. You will luck out if you have current debt.
 
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Many are calling for investigations into PPP fraud.

Can we do the same for student loans and make it a condition for forgiveness, if it ever passes? Make sure that borrowers actually spent the money on tuition and not on cars and vacations.
I don’t think this makes sense. How do you prove which dollar went to tuition and which dollar went to something you don’t approve of? The loans are based on cost of attendance so if the person attended the school they can only get the amount allowed. The only fraud I can imagine is someone who didn’t attend school at all getting a student loan which doesn’t seem very likely.
 
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Many are calling for investigations into PPP fraud.

Can we do the same for student loans and make it a condition for forgiveness, if it ever passes? Make sure that borrowers actually spent the money on tuition and not on cars and vacations.

Since money is fungible once it hits my account, this sounds like a colossal waste of taxpayer money. Plus, tuition gets paid first before disbursement, so you’re really spending dollars to chase dimes.

Like…my student loan disbursement paid for rent and transportation, freed up my intern money and 100% went toward vacations, steak dinners, and booze!
 
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Main issue is it wouldn’t stop schools from simply increasing their tuition. So, essentially there is no forgiveness for future students. You will luck out if you have current debt.

Then the Dems will forgive student loans again, and again, and again and again and again.
It's ok, the only consequence in theory is slight inflation everytime the loan is forgiven and the notion why pay back debt at all.

Oops, mods will delete this post and ban me.
 
Then the Dems will forgive student loans again, and again, and again and again and again.
It's ok, the only consequence in theory is slight inflation everytime the loan is forgiven and the notion why pay back debt at all.

Oops, mods will delete this post and ban me.

They may or may not actually forgive them. Just string voters along with “it would have passed if only Republicans didn’t block it; vote harder for us next time!”
 
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You guys kinda caught the point while also missing it. Why can’t we focus on WHY these institutions are charging this much in the first place. Wouldn’t need debt forgiveness if students weren’t gouged in the first place.

EDIT: before anyone accuses me of being a LIBRUL or a MAGAT I don’t have a dog in this race. No student loans, outcome doesn’t phase me. Neither does either sides pandering in the topic.
 
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Then the Dems will forgive student loans again, and again, and again and again and again.
It's ok, the only consequence in theory is slight inflation everytime the loan is forgiven and the notion why pay back debt at all.

Oops, mods will delete this post and ban me.
Mods - attack!
 
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What a shocker. Instead of using the student loan pause to save up for an emergency fund for when the payments restart, many borrowers took out even more loans to buy cars, houses, vacations, and other consumer goods.

 
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What a shocker. Instead of using the student loan pause to save up for an emergency fund for when the payments restart, many borrowers took out even more loans to buy cars, houses, vacations, and other consumer goods.

It's the American way!
 
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What a shocker. Instead of using the student loan pause to save up for an emergency fund for when the payments restart, many borrowers took out even more loans to buy cars, houses, vacations, and other consumer goods.

Me and my spouse were just discussing this. It’s going to be a rude awakening for those who bought expensive homes and overpriced cars. Great for us without student loan burdens looking to buy from desperate sellers.
 
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What a shocker. Instead of using the student loan pause to save up for an emergency fund for when the payments restart, many borrowers took out even more loans to buy cars, houses, vacations, and other consumer goods.


Oh shi*…. That’s what I did. I bought absurdly risky stocks too…. (don’t worry though I’m still holding…)

😬😬😬

I can’t take the high road on this one..
 
What a shocker. Instead of using the student loan pause to save up for an emergency fund for when the payments restart, many borrowers took out even more loans to buy cars, houses, vacations, and other consumer goods.

Hah, actually bought a home (nothing outlandish) and have been saving up an emergency fund for finishing up my remaining student loan payments. Kind of had to take advantage of the low interest rate and ability to actually make substantial savings in HYSAs in order to avalanche off debts when loan repayments start up again

Definitely wouldn’t have been able to buy a house if I hadn’t already made/already paid off a significant amount of my student loans debts already
 
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Hah, actually bought a home (nothing outlandish) and have been saving up an emergency fund for finishing up my remaining student loan payments. Kind of had to take advantage of the low interest rate and ability to actually make substantial savings in HYSAs in order to avalanche off debts when loan repayments start up again

Definitely wouldn’t have been able to buy a house if I hadn’t already made/already paid off a significant amount of my student loans debts already

Nice job!
 
Me and my spouse were just discussing this. It’s going to be a rude awakening for those who bought expensive homes and overpriced cars. Great for us without student loan burdens looking to buy from desperate sellers.

bUt iT’Ll kIlL ThE EcOnOmY!

-those who overleveraged themselves and won’t be able to afford their mortgages, car payments, and now student loans

Borrowers have already had a de facto loan forgiveness of 15-20% with inflation and zero interest on the last 3 years. That’s about $10k if you have a balance of $50,000.
 
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Me and my spouse were just discussing this. It’s going to be a rude awakening for those who bought expensive homes and overpriced cars. Great for us without student loan burdens looking to buy from desperate sellers.

bUt iT’Ll kIlL ThE EcOnOmY!

-those who overleveraged themselves and won’t be able to afford their mortgages, car payments, and now student loans

Borrowers have already had a de facto loan forgiveness of 15-20% with inflation and zero interest on the last 3 years. That’s about $10k if you have a balance of $50,000.

If they bought homes at 2020 prices with <3% mortgages then they're way ahead. They can probably sell them for 30%+ higher today.
 
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If they bought homes at 2020 prices with <3% mortgages then they're way ahead. They can probably sell them for 30%+ higher today.
Good point. Assuming prices stick into next year. Certain markets are already seeing 10% correction. Also some did buy at upswing prices in 2021 and 2022.
 
Good point. Assuming prices stick into next year. Certain markets are already seeing 10% correction. Also some did buy at upswing prices in 2021 and 2022.

Yep depends on the area. Boston area is still stupid expensive, it takes longer to sell but they eventually sell. People still buying 2mil new construction homes with 6% mortgage. Some houses in the 1.5mil range are going for 200-300k over list price. Starter homes still in the 450-600k range.
 
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If they bought homes at 2020 prices with <3% mortgages then they're way ahead. They can probably sell them for 30%+ higher today.

Good point. Assuming prices stick into next year. Certain markets are already seeing 10% correction. Also some did buy at upswing prices in 2021 and 2022.

It seemed that everyone and their mom was buying homes in 2021-2022. Mortgage interest was low but the homes became overpriced with bidding wars, waived inspections, etc.

Interest rates have increased significantly since then but prices have not come down much in many areas. Homes are still selling even with the stupidly high monthly payments.
 
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Yep depends on the area. Boston area is still stupid expensive, it takes longer to sell but they eventually sell. People still buying 2mil new construction homes with 6% mortgage. Some houses in the 1.5mil range are going for 200-300k over list price. Starter homes still in the 450-600k range.

The American economy - in its current state - can not sustain starter homes over 400k.

The only solution is for multiple families to live in a home for anyone making less than 70k/ year (in my opinion).
 
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The American economy - in its current state - can not sustain starter homes over 400k.

The only solution is for multiple families to live in a home for anyone making less than 70k/ year (in my opinion).

Or don't live in a high COL area. Or rent until buying makes sense.
 
Or don't live in a high COL area. Or rent until buying makes sense.
What is average rent in Boston? I want perspective on the comment of rent until is makes sense. Google is telling me is almost 3800$, which I don’t feel is right?
 
What is average rent in Boston? I want perspective on the comment of rent until is makes sense. Google is telling me is almost 3800$, which I don’t feel is right?

Average rent in MA is $2,000. The city of Boston is probably that high, but most people live in the suburbs inside I-95 not the city itself.
 
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Average rent in MA is $2,000. The city of Boston is probably that high, but most people live in the suburbs inside I-95 not the city itself.
So basically less than a mortgage payment at current rates. Got it.
 
I was finally able to start maxing out my 401k during the student loan pause. We will see how it goes in the future. Not too worried about payments resuming since I am offloading one of my children from the payroll (just finished college).
 
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Also how would it be possible for rent to be lower than a mortgage payment? How would the landlord make a profit? That would be a really nice landlord to rent out the place below cost.
 
My mortgage is WAY less than that!

I’m assuming a mortgage taken out in 2023 at current inflated home prices. I looked up, average home price in 2023 is 436k. At average interest rate currently with 20% down I’m getting a monthly payment of ~2500$. I would also use the Boston prices cited above of 450-600k and that monthly payment only goes up.

Just out of curiosity what’s average home prices vs rent prices in your city?
 
I’m assuming a mortgage taken out in 2023 at current inflated home prices. I looked up, average home price in 2023 is 436k. At average interest rate currently with 20% down I’m getting a monthly payment of ~2500$
How nice of the landlord to pay $2500 per month and only charge rent of $2000.

Or are we comparing apples and oranges? Because I doubt the places being rented for 2k/month are comparable to the places being purchased for 2.5k/month.
 
How nice of the landlord to pay $2500 per month and only charge rent of $2000.

Or are we comparing apples and oranges? Because I doubt the places being rented for 2k/month are comparable to the places being purchased for 2.5k/month.

I understand your point being made. I’m speaking pure dollars. It’s easier to get out of expensive rental vs an expensive home when the market crashes.
 
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How nice of the landlord to pay $2500 per month and only charge rent of $2000.

Or are we comparing apples and oranges? Because I doubt the places being rented for 2k/month are comparable to the places being purchased for 2.5k/month.

He is comparing what you can rent for $2,000/mo vs what you can buy with $2,000/mo at current home prices and interest rates. To purchase something comparable to what you can rent for $2,000/mo would cost much more with a 30 year mortgage at 6-7% and 20% down.

The landlord probably pays less than $2,000/mo mortgage because they bought a few years ago and locked in <3%.

A landlord who bought in 2023 isn't necessarily cash flow positive right away. They could very well be paying > $2,000/mo mortgage, insurance, and taxes. But real estate is a long term investment. The mortgage stays the same but rent increases each year, so eventually the landlord becomes cash flow positive but it could take several years. Not good for impatient people like me.
 
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Still waiting for @confettiflyer to post how he made out with PSLF after the loan pause

OH yeah, forgot to post here. I'm done, everything has been discharged, I'm student loan free. Let's see, luckily I already "pre-calculated" all of this back in this post.

I basically paid out of pocket $110k after originally taking out $202k.

Officially, because of interest, me pausing payments back in the mid-2010s to help fund a house purchase (you're allowed 3 years of forbearance with no reason, only accruing interest, which is irrelevant under PSLF), my balance ballooned to $300k and stayed there. That is the "official" forgiveness number for me on my discharge letter.

Because of the PSLF waiver that expired 10/31/22, I actually got those forbearance dates to count as payments (separate from the COVID pause counting), which explains why my total out of pocket is $110k.

I feel like... we should just ban all interest on student loans, or peg them to 0.5% undergrad and 1% grad. That's functionally what I got, sort of. I actually did better than that, but that's a fluke from COVID and waivers. I do feel lucky because I got a PharmD for basically $110k, which seems pretty reasonable-ish.

I owe @BMBiology a beer, I think I also owe @awval999 some beers, but I have to go to Ohio to collect. Lol this has been ongoing since 2012.
 
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I feel like... we should just ban all interest on student loans, or peg them to 0.5% undergrad and 1%
While I agree to a certain extent, I think we need to address the root of the problem. Why did tuition get so expensive to begin with? I remember when I did my undergraduate (wild to think how long it’s been) I saw tuition go from 3300 a semester to 5400 by the time I graduated for a similar credit load. I can only imagine it’s much worse now. I know this isn’t apples to apples but my point about hikes stands.
 
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While I agree to a certain extent, I think we need to address the root of the problem. Why did tuition get so expensive to begin with? I remember when I did my undergraduate (wild to think how long it’s been) I saw tuition go from 3300 a semester to 5400 by the time I graduated for a similar credit load. I can only imagine it’s much worse now. I know this isn’t apples to apples but my point about hikes stands.

Agreed. My first year was $2800, I think about $6000 my 4th year undergrad by the mid-00’s. It was actually supposed to be straight free, but those principles were abandoned long before I started.

Loan interest is the easiest to rein in by single act of Congress, at least undergrad has caps. Grad does not as it assumes you are more savvy than some new 17-18 yo student.
 
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Down goes the President's student loan forgiveness plan! Thanks SCOTUS!
 
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Biden likely set up his own loan forgiveness plan to fail from the start.
 
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In August - I will be moving to the deep Amazon in South America..

Nice knowing you all! 😁
 
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There's a new IDR plan called SAVE now. Is the forgiven amount still taxed under this plan?
 
There's a new IDR plan called SAVE now. Is the forgiven amount still taxed under this plan?

Yes, I think the tax bomb is only suspended until 2026.

Not many people in this forum will benefit as the 5% IDR will likely be limited to undergrad debt only. More to come this week once it’s published to federal register.
 
Down goes the President's student loan forgiveness plan! Thanks SCOTUS!

lol it was obvious once Major Questions became a thing, but they were totally reaching on the standing question (I thought it would fail there).

I think most people on this forum saved more from the actual pause vs. $10k.
 
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I think most people on this forum saved more from the actual pause vs. $10k.

Not just in nominal terms from the interest pause but also on inflation wiping about 20% of the balance in real terms.
 
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Not just in nominal terms from the interest pause but also on inflation wiping about 20% of the balance in real terms.

Yet they still feel entitled to loan forgiveness.
 
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