People with student debt across the United States are biting their nails over the looming threat of the end of the student loan payment pause. Someone asked an online forum, “How in the world will student loans resume payment?”
The user is feeling the stress of inflation, and with rising prices everywhere, how on earth can they also afford to pay off their student loans? Other people took to the thread with honest opinions on student loan payments returning soon.
1. The Government Doesn’t Care
The top-rated comment was from a user who believes the U.S. government does not care what happens to individuals when payments start back up. “The student loan crisis isn’t a pressing issue to most members of Congress.”
2. Some Wish They Could Pay for Student Loan Debt with Social Security
One user desperately wishes to receive reimbursement for the money they invested in their social security account to pay off their student loans. Unfortunately, this isn’t how the government works, but people are pointing out the flawed system. “I’m never going to see that social security money anyway.”
3. A New Problem for Upcoming Students
So what happens when borrowers are forced to start paying off those loans again? Unfortunately, it’s possible that many borrowers could default, leading to results that impact future students.
In light of the challenges and concerns with student loan debts, it’s worth considering the role of 529 Plans. These tax-advantaged savings plans are designed to encourage saving for future education costs. By starting a 529 Plan early, families can accumulate savings to significantly reduce or even eliminate the need for student loans, offering a proactive approach to managing education expenses.
“Eventually, if enough people default, new borrowers will not be able to get loans for schools that reach that default limit,” one user wrote.
4. The Government is Out of Touch
Many borrowers feel elected officials only care about making money and getting elected rather than serving the people. For example, one user shared their frustration over elected leaders sending unsolicited campaign texts and emails without checking in to see what the people need. “It feels like elected officials work for either the extreme right or corporations.”
5. The Supreme Court Holdup is Selfish
Student loan forgiveness is up in the air because of a lawsuit that the Supreme Court is currently hearing. According to one, the case was started by two people who didn’t qualify for the proposed forgiveness plan and found the whole thing unfair. Because “they could not get what they want, they messed it up for everyone else.”
6. A Better Repayment Plan Would be Ideal
Some users were less focused on student loan forgiveness and more so on a better repayment plan, with interest rates that don’t keep people in debt for their whole lives. “A better repayment plan would be more “fair” to everyone.”
7. The Repayment Pause End Can Ruin Lives
Many people fear for their livelihood when the payment pause ends. “I don’t have enough money to pay them,” confessed one concerned borrower. They don’t get out much to save money, so they mainly stay at home and go to work. They have no idea what they will do to make ends meet when the pause ends.
8. People Are Done With the United States
Those who moved abroad after attending college in the United States realize that this whole mess makes them feel like they don’t even want to come back to the states ever again, except to see their family.
“I’d just like to pay off my debt and cut ties with the country, to be fully honest,” confessed one borrower living abroad.
9. Why Fund Wars When We Can’t Even Help Our Own People?
Some borrowers are highly distraught and confused over why anyone would oppose the forgiveness plan. They elaborated that they know inflation is part of it, and many people don’t want others to get a “free ride” when they have to pay off their debt. “We have money for wars but not for helping our own?”
10. The Money Just Isn’t There
Many people are wondering how on earth borrowers will be able to afford the rising costs of living plus student debt on top of that. Gas prices, housing prices, groceries, and car maintenance costs are increasing.
A final user suggested, “The money isn’t there. So it will be a financial bloodbath when the student loans get turned back on.”
50 Super Simple Side Hustle Ideas
50 Super Simple Side Hustle Ideas (& How to Make Them Work)
10 Frugal Lessons I Learned From Being Flat Out Broke
10 Frugal Lessons I Learned From Being Flat Out Broke
How To Make Money Without a Job
How To Make Money Without a Job
Creative Ways To Make Money
20 Easy Ways to Raise A Credit Score Fast
Read More: 20 Easy Ways to Raise A Credit Score Fast
Frugal Living Tips: The Essential Guide To Start Saving Money
Frugal Living Tips: The Essential Guide To Start Saving Money