Guest Post by Martin Armstrong
President Joe Biden promised student loan cancellation during his initial presidential campaign. This became a big selling point for one-issue voters strapped with debt, but Biden likely knew this was a promise he could not carry out. The Biden Administration made a dent in the student debt crisis by forgiving around $127 billion, which means that tax payers at large will foot the bill. Three years have passed since student loan payments were paused due to COVID, and now, millions are refusing to resume payments.
Around 43 million borrowers now owe $1.63 trillion in student loans. Intelligent.com found that around 25% of student loan borrowers have not made a single payment since October 2023 when the grace period ended, and 60% have missed at least one payment since then. Why? Well, 69% state that they simply can no longer afford to pay off their debt. Around 9% said they are entitled to debt cancelation and will not pay a single penny as an act of resistance.
Boycotting student loans is asinine. Should people boycott their mortgages, car loans, or other debt that they deliberately agreed to take on? Lenders will not cave as this is simply business.
The on-ramp period will end in September 2024 and 18% have said they are waiting nine more months to resume payments. Do they realize their loans are still accumulating interest? They still need to pay the accrued interest before any of their payments go toward the principal. This period was merely meant to give borrowers a cushion from October 2023 to September 2024 to sort out their finances. The Education Department will begin reporting missed and late payments to credit bureaus in September.
Millions may see their credit scores ruined. Loans become delinquent after 90 days, and after 270 days, loans will go into default. The government will prevent anyone found delinquent from receiving future aid. Forget receiving any tax refunds. They will garnish wages, taking what they feel is necessary without factoring in your other monthly expenses. Still holding out on the student loan boycott? The government can take legal action against borrowers’ assets. You could lose absolutely everything.
To the 69% who say they can no longer afford their loan, bankruptcy is no longer an option, thanks to politicians in the same party offering loan forgiveness without a plan. Former President Bill Clinton repealed the Glass-Steagall Act of 1933 in November 1999. This handed students to the banks on a silver platter as they could no longer discharge debt through the traditional bankruptcy process.
September 2024 also happens to be when our models predict a massive rise in civil unrest and a potential DRAFT at the end of the month. People wanting to boycott will lose absolutely everything if they abandon their loan payment responsibility. There are serious consequences for failing to repay your debts.
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13th Amendment
Boycotting student loans is asinine. Should people boycott their mortgages, car loans, or other debt that they deliberately agreed to take on? Lenders will not cave as this is simply business.
Seems college graduates are very stupid these days.
Why can’t people get rid of student loans through bankruptcy now?
Although not impossible, discharging student loans in bankruptcy is difficult. Due to a 1976 law, student loans are not treated during bankruptcy proceedings like other forms of debt, such as credit card debt or auto loans. This policy stems from a federal commission on bankruptcy laws, which heard testimony that claimed the easy discharge of educational loans in bankruptcy could undermine federal student loan programs. Congress was concerned that students might borrow thousands of dollars from the federal government, graduate, declare bankruptcy to have their student loans discharged and never repay their educational debt.
Eventually their wages will be garnisheed.
The “Fed”absolutely,under NO circumstances should be in the BUSINESS of loaning any amount for ANYTHING!
PARTICULARLY to the US Government!!!!!
The “Fed”shouldn’t exist…
“You could lose absolutely everything”
bbbwwwwahahahahhahahahhahhhhhaaaaahhhhhaaaaaa!!! do they really have anything to lose?
A friend of mine was in charge of. financial aid office for a private college. When the Feds took over, they rapidly expanded the amount of loans students could take and did not limit a students right to take as much as possible.
At that time, my fired told me it would turn into the mess it has. Students were taking loans to buy cars, goon spring Break etc. there was no incentive or bake on the students greed to get as much money as they could. Students getting advanced degrees like medical and dental schools wee borrowing hundreds of thousands of dollars for school costs and complete living costs. My son knew a couple that the husband went to dental school and the wife got an advanced nursing degree and borrowed enough for all the fees. their living expenses. they would go out to eat on the weekends, all on the loan program. I have zero interest in letting them off of their financial responsibility.
The smartest of them (trickiest) can legally get their debt forgiven in a manner congress approved. They go to work for a government-favored industry. This includes the “hero” industries (govt workers) like teacher or cop, but also working for “green” energy companies.
Ass, gas or grass…nobody rides for free.
Especially with a name stealer…..
By ‘smartest’ you mean sell-out schmucks who join the legal crime syndicate known as ‘government’ and receive their paycheck curtesy of fellow Americans who are victims of this gang?
If anyone works for the government, you are a parasite and should be ashamed of yourself.
What students paying off the loans object to is the fact that they end up paying the principal many times over–to banks. The govt will not be out this money, the banks already scarfed it up. Why did the govt make sweetheart deals with banks to handle student loans? I’ll bet politicians got plenty of moola in their treasure chest for that. Look at what’s really happening, and it’s the same old bank usery story.
The government guaranteed the loans. The banks wouldn’t have lent the money without the guarantee. The banks will be made whole by the government.
And who is gonna make the GOV whole again?
You CAN NOT help those who are intent upon fucking themselves.
Breach of faith is not something to EVER take lightly…under ANY circumstance.
You can not stop those who are intent on fucking everybody else, either, it seems. Bait and switch is not something to EVER take lightly…under ANY circumstance.
Yes, that sweetheart deal I mentioned. That’s how pols get their money to get ‘re-elected’
Not all loans are guaranteed by the govt. And the govt could look at how much interest has already been paid, and tell the banks they already made their money many times over and should be satisfied, if they had any spine at all. But it’s easier to let the banks keep fucking people over and blaming them for wanting to improve their lot in life.
https://www.investopedia.com/articles/personal-finance/081216/who-actually-owns-student-loan-debt.asp
Yeah, those millions of “Afro Studies” degrees and loads of other worthless degrees where only several actual jobs exist is somebody’s fault.
Maybe the idiots who went after worthless degrees?
Plus, govt backstopping/guaranteeing repayment allowed students to get large loans which ended up doubling if not tripling tuition over the years.
Make Apprenticeship Common Again
Forget today’s cultural-Marxist “higher ed” – they don’t know shit. They’re helpless.
Learn machining, carpentry, electricity, plumbing, shoemaking, farming, gunsmithing (machining, again), auto mechanics, real medicine (including nursing) , oil drilling & refining, thorium salt nuke engineering, industrial engineering (factory maintenance) chemistry, metallurgy, mining, aeronautics, navigation, cooking, sewing, accounting, etc.
Truck driving is an honorable profession, too, as it enables commerce. Teens need to babysit, shovel snow, rake leaves, cut lawns, babysit, flip burgers and serve ice cream cones at 14 years old, to learn work and save for cars and manage check books.
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How State and Society Invented Adolescence, and Screwed Up Young People
According to Dr. Robert Epstein, adolescence is an artificial construct of recent vintage, unknown in earlier times or indeed in many parts of the world today. The creation of this category, and the assumptions that inform it (by state and society alike) have harmed young people, he argues, and are responsible for the anxiety and angst we associate with the teenage years. These problems are not evident in cultures that lack this category.
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“Adolescence is a relatively recent thing in human history — a period of years between the constraints of childhood and the responsibilities of adulthood. This irresponsible period of adolescence is artificially extended by long years of education, much of it wasted on frivolities. Tenure extends adolescence even further for teachers and professors.” ~ Thomas Sowell
This is a PERFECT illustration of the TRUE value of Man’s Word!
I now understand why so many idiots actually believe we descended from apes. Monkeys have always been thieves!
“Morality free is the way to be” is their credo.
Yes,as a Christian you are admonished to REJECT usury in society.thats all these loans are…..Babylonian Money Magick….
I have two solutions for the student loan problem.
First, the government forgives your student loan, but in exchange for your degree. In other words, you no longer have the debt or the degree. Personally, my tax money would be well spent to see many of these elitist assholes instantly become only high school graduates.
Second, to have your student loan forgiven, you have to perform government work at minimum wage until your loan is paid off. I’m thinking trash collection, sewer repair, pothole fixing, i.e., all the glamorous things government does.
Seems fair.
College should be capped at $5K a year. That way anyone with a job at McDonald’s could afford it. It’s grotesque that colleges are charging $50K a year for a substandard education when they are sitting on billions of dollars.
Just let the borrowers be able to discharge their debts in bankruptcy like any other borrowers and the whole problem will be fixed. If banks are dumb enough to loan $100,000 for a Cultural Studies or Art History degree, then can eat the loss like they should. The problem is the corrupt politicians protecting the banks. Why do taxpayers need to back-stop stupid bank loans? I’m sure welders or electricians enjoy paying taxes to support multi-gender snowflakes who sit around and think deep thoughts.