Student loans struck down... (Page 1/6)
82-T/A [At Work] JUN 30, 01:58 PM
Like I've said before, and I'll say it again.

The Supreme Court does not exist to enact social and economic change. It's there to verify the constitutionality of law, and as a check on executive action. The President has too much power. If Congress can’t pass things, because there isn’t bi-partisan support for it… then that’s by design. We need to respect that… even if I may not like it sometimes.
williegoat JUN 30, 02:38 PM
Yep, they made two good decisions this morning.
82-T/A [At Work] JUL 12, 10:28 AM
Biden administration official advises student-loan borrowers to make payments during grace period:
‘It’s not a pause’ https://www.marketwatch.com...6a?mod=mw_latestnews


With student loans being struck down, one of the biggest concerns from the Biden administration is what this will lead to. Nearly half of student loan borrowers used that $200-400 payment during the Trump payment pause, to instead use that money on things like buying a new car, or to augment their income for buying a home. When student repayments continue in August, the administration is concerned that this will lead to an economic shockwave of people defaulting... which could result in a stock market crash.

[This message has been edited by 82-T/A [At Work] (edited 07-12-2023).]

fredtoast JUL 14, 11:13 AM

quote
Originally posted by 82-T/A [At Work]:

Biden administration official advises student-loan borrowers to make payments during grace period:
‘It’s not a pause’ https://www.marketwatch.com...6a?mod=mw_latestnews


With student loans being struck down, one of the biggest concerns from the Biden administration is what this will lead to. Nearly half of student loan borrowers used that $200-400 payment during the Trump payment pause, to instead use that money on things like buying a new car, or to augment their income for buying a home. When student repayments continue in August, the administration is concerned that this will lead to an economic shockwave of people defaulting... which could result in a stock market crash.





Even during the grace period student loan debt was still included on all credit applications. No lender should have agreed to a loan that would only qualify if student loan was removed forever. If they did then that is their fault.

Otherwise it should be a zero net sum gain for the economy because the same amount of money is being paid to lenders. It just shifts from student loan to something else.

[This message has been edited by fredtoast (edited 07-14-2023).]

ray b JUL 14, 11:30 AM
stuffed full of nazi's by the rump

who want to infarce a program of cripto-christian terror on our nation

I fail to see the difference in them and the tali-ban both are religious in side government evil
Jake_Dragon JUL 14, 12:22 PM

quote
Originally posted by ray b:

stuffed full of nazi's by the rump

who want to infarce a program of cripto-christian terror on our nation

I fail to see the difference in them and the tali-ban both are religious in side government evil
82-T/A [At Work] JUL 14, 09:56 PM

quote
Originally posted by fredtoast:

Otherwise it should be a zero net sum gain for the economy because the same amount of money is being paid to lenders. It just shifts from student loan to something else.




This is quite honestly, one of the absolute dumbest ****ing things I've ever heard in my life. Like, I can't even tell if you're being serious here. I swear to God, you keep sucking me back in because I say I'm not going to respond, and then you say something that's just so completely retarded that I can't ignore it... what are you smoking?



quote
Originally posted by ray b:

stuffed full of nazi's by the rump

who want to infarce a program of cripto-christian terror on our nation

I fail to see the difference in them and the tali-ban both are religious in side government evil



Ray, come on man... what does any of this even mean?

[This message has been edited by 82-T/A [At Work] (edited 07-14-2023).]

rinselberg JUL 14, 10:24 PM

quote
Originally posted by fredtoast:

Even during the grace period student loan debt was still included on all credit applications. No lender should have agreed to a loan that would only qualify if student loan was removed forever. If they did then that is their fault.

Otherwise it should be a zero net sum gain for the economy because the same amount of money is being paid to lenders. It just shifts from student loan to something else.


That's macroeconomics.

I can't say that "fredtoast" is wrong, here.
82-T/A [At Work] JUL 15, 09:46 AM

quote
Originally posted by rinselberg:

That's macroeconomics.

I can't say that "fredtoast" is wrong, here.




Obviously, I think you get it too... but you're just trying to be overly kind. I can't even begin to try to understand what he was trying to say there, because the majority of the money owed to student loans is owed to the government, where as other loans (mortgages, car payments, credit card debt) are owed to private institutions. It's almost like he has a socialist view on debt, that everything goes to some magical evil people in the 1%... which, fine if you want to look at it that way, but that's not how the economy works.

As we mentioned somewhere earlier in this thread... 1/3rd of current student loan holders weren't JUST not saving or taking advantage of the pause to pay off other debt, they actually accrued MORE personal debt and decided to use the $200-300+ that they would have otherwise have had to allocate to student loans and instead use it towards a new car payment or a mortgage.

So, obviously, when student loan repayments continue, they're now going to have to begin repaying this. If not, their interest will accrue even further, and their credit worthiness will decline... which can have other effects, the least of which is the inability to not acquire new credit lines. Either way, for 1/3rd of the 32 million student loan debt holders... you'll have an immediate reduction in monthly discretionary spending.


What the Biden administration is concerned with is the potential for a "black swan" event, which is:

- GAS PRICES: Rising gas prices from OPEC and stopping the 1M barrels a day from the strategic oil reserves... probably anywhere from 45-65 cents a gallon more by September

- PROPERTY TAXES/INSURANCE: Increase in property taxes and insurance for all of these first time home buyers. And just to quantify, when you buy a new home (in MOST states), you acquire the tax rate of the previous home owner for the remainder of the year. Immediately following the next year, the property value is reappraised because the home just changed hands, even after applying for a homestead. So many home owners bought homes at say... $500k, where the last time the home sold 6 years ago, it was $250k. So the taxes effectively doubled in 2022 for people who bought in 2021. Also, because of inflation over the past few years, home owners insurance (home repair/replacement insurance) has effectively doubled in most states.

- Credit Card Debt: The average credit card debt is on average about $10k... which, while not a big deal for someone who makes $250k a year, it's a huge deal for the median personal income which is around $50k. Interest rates... the interest rates have gone up, and if you've ever carried debt on your credit card and cared about what you owe month to month, you'll remember that interest rates will go up with prime, and the more you'll have in interest will increase each month.

- AUTO DEBT: So many young people buy brand new cars, or take out leases... rather than buying used and / or working on a car themselves. The average auto loan holder is more than $5k underwater in their loan. For many people who are already irresponsible, they tend to make even more poor decisions after the fact, like swapping the car out for another one and getting even worse rates to get a newer car... this is partly what happened a couple of years ago. Auto prices have plummeted, so they can't even get the value from their cars if they sold them, and they're saying car debt is the next big crisis. I haven't had a car loan in more than a decade, so I don't even know what loan rates are for this.

- INTEREST RATES: This is the biggest problem, because in addition to making it harder to buy homes, or increasing the interest due on credit cards and variable rate loans... it's also increasing the overall mortgage cost for potential new home buyers. FURTHERMORE, people who HAVE 3% interest loans on the homes they have now, but that need to move, are sure as hell not going to sell them because they can turn them into rentals. And that's the biggest issue here... rent prices are skyrocketing all over the country because people can't afford to buy homes, and therefore they have to rent... and because more people have to rent, it increases demand for rentals and the prices go up. I just raised the rent to my tenant in Fort Lauderdale up to $3,150. It sounds like a lot, but I'm being extremely reasonable. The going rate for rent in that area for my sized home (not even as nice as mine), is $4,500 a month. These rents are way out of the price range of normal families.


So the concern from the Biden administration is that when student loan repayment start up again ... they don't want it to become a *SHOCK* to the economy.

Most people when they saw Biden talking about Student loan repayment, they knew what it was, and that it was more or less unlikely to happen. Even if it did, it only was going to wipe out 20k of debt. But at least 1/3rd of student loan holders had a different idea... and that was it would either all be wiped out, or this is new money they now have every month. The administration just doesn't want the **** to hit the fan...

[This message has been edited by 82-T/A [At Work] (edited 07-15-2023).]

Wichita JUL 15, 02:34 PM