Newsweek
Of the more than 40 million Americans with student loan debt, roughly 5 million are already in default, and an additional 4 million are at least three months behind on payments, according to the U.S. Department of Education (DOE).
Without intervention, the agency estimates that nearly 10 million borrowers could be in default within months, pushing nearly a quarter of all federal student loans into collection.
The shift, reinstated under the Trump administration, comes amid heightened scrutiny over student debt relief policies and concerns about growing delinquency rates.
Education Secretary Linda McMahon framed the decision as a return to fiscal discipline, arguing that, “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies.” More
I know a lot of us paid our own way through college. It was honorable and doable, if not the norm. And I’ll admit I was damn proud to walk out of my last class at St. Thomas not owing a dime. But I have to admit, I paid the bill for my two daughters. Only because it was no longer ‘doable’. The costs went up so fast and far that there was just no way they could do it on their own. Therein is the current trap. Make the kids dependant on the govt. from the minute they enter the adult world. 0bama ensured this when he had the feds take over the student loan business. Only to use it as voye buying power over the indebted kids in the future.
Make them pay current interest rates.
The one loan a person can’t default on and that’s the one they decide they aren’t going to pay back.
Geez, that’s too bad! I DO agree with Camaro Davy, in that I paid for my own university education (1971-1975) in Canada. I had one student loan of $ 800.00 and a bursary (which you are given) of $ 800.00. The rest was money earned. I DID pay for first year for my daughter (Computer Science) and my sister paid for second year. Caitlin received 3 scholarships and worked a gap year and for computer companies on work programs. She graduated with $ 17,000.00 Cdn. debt and had it paid off after 3 years of work. The key is to take courses which will turn into great paying jobs.
Well, children, welcome to your first class in the school of hard knocks. It is unfortunate that your mommy and daddy kept you in a bubble, but my chickadees, time to leave the egg and the nest.
So I gotta pay ’em back for my degree in Latino Lesbian Studies? Damn!!
1st year at University of Toronto in 1964 was $1,000.00, living at home, full course load. Half doable with a half-decent summer job. Mom chipped in 50%.
I left without any student debt, but then the university told me if I would leave they wouldn’t press charges. Picked the wrong major: booze broads and drugs.
My kids (Only helped them the first year, no funds available. The nurse practitioner was debt free three years after starting her nursing career and then completed masters and became nurse practitioner paying as she went, no debt. Now in private practice.
Son the eye doc married to another eye doc has mountains of debt from both of their educations. Make large numbers and just getting by…
Not my business and understand there’s some forgiveness program after paying X number of years, but the forgiveness is then taxed as income. If they don’t find a way to put away funds the forgiveness is gonna kill them.
Instead of the government making the loans I’d like to see the universities make the loans and have them be on the hook for the defaults (the Ivy Leagues and others have BILLIONS in their coffers). Might make a difference on how they structure the majors and who could even be considered as worthy of the risk for loans. The Trans African Culinary Studies program might not be a good risk.
I don’t believe in cheating my kid out of the opportunity to feel personal satisfaction and mastery of adult responsibilities. We paid for her undergrad at a fine university school of business which we were soaked for because all that money the university spent on state-of-the-art research buildings during the oblowme and biden years. So, when #1 daughter got nervous about her looming adulthood and floated the idea of grad school, we said, “Wow! That sounds great! We hope you have a great job that will pay for it and your living expenses.” That idea evaporated like the proverbial fart in the wind. She’s getting along fine on her finance degree and just bought a house last spring. And there are no Sword-of-Damocles loan debts hanging over anyone.
That might put dent in their Uber Eats budget. I rode the commuter train that ended in Seattle and listened to what the worthless shits complained amongst themselves about not being able to afford because of student debt and none of it was in any way justified. When I was in college the ones racking up debt were the ones talking about Florida or Mexico Spring Break plans, the ones who were working surely weren’t.
I was fortunate to go to college at EWU in Cheney, Wash. on the GI Bill from 1976-1980 and I have no college debt. Of course, tuition back then was still relatively inexpensive and affordable compared to what it is now.
JMM
Oh what you said…what you said. I’ve said it over and over…don’t get a stupid social justice degree loan and expect to earn REAL money to pay it back. Ain’t happening. Get a degree that will produce a product, or serve a viable money making service for someone else, or save a life, or promote discovery, or etc.
Further to ^^^^^ I forgot to add that a student loan was pretty well impossible to get. Had to prove that your parents were indigent so it was almost shameful to let people know about it.
The government needs to get out of the school loan business.
The government needs to get out of ‘higher’ education entirely. Even junior, or community, ‘colleges’. Return occupational training to the high schools.
By HS graduation, all CITIZENS should be equipped to be functioning, contributing members of society. Otherwise, build manual labor programs for the dropouts.
Imagine Scientific Research that is purposeful and productive! IOW, not about the sexual proclitivies of homosexual fruitflies.