Student Loan Wage, Social Security, and Tax Refund Garnishments Resume in May

[Fantine]

MSN U.S. Department of Education announced Monday that its Office of Federal Student Aid will require borrowers, currently in default, to resume repaying their student loans, beginning May 5th. The department has not collected on defaulted loans since March 2020, at the start of the COVID-19 pandemic.

According to the Trump administration, 42.7 million borrowers owe more than $1.6 trillion in student debt, and more than 5 million borrowers have not made a monthly payment in more than 360 days.

"Only 38% of borrowers are in repayment and current on their student loans," according to the department. "Most of the remaining borrowers are either delinquent on their payments, in an interest-free forbearance or in an interest-free deferment."


"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," said Education Secretary Linda McMahon.

After all, why shouldn't young people starting their lives out share in the misery of their boomer parents seeing their life savings evaporate due to Trump economic policy?
As we move through "the worst April since the Great Depression," the government wants to be an equal opportunity bad news deliverer--everyone except billionaires gets to share the misery brought on by the bad decisions of 49.9% of voters.

I bet the 30 something percent of eligible voters who didn't show up last November are sure sorry now.

 

[Always in His Presence]

Where can I get a loan I do not have to pay back?

 

[dogs4thewin]

You take out loans you pay them back. You will not get garnished if you pay your debts.

 

[Always in His Presence]

You take out loans you pay them back. You will not get garnished if you pay your debts.

I’ve heard that someplace.

 

[Say it aint so]

Where can I get a loan I do not have to pay back?

From any bank.
If you run into a hardship where paying it back isn't feasible, you can just file Chapter 11 or even 13.
As long as it's not a student loan, the only loan where that is not an option.

 

[Nithavela]

Where can I get a loan I do not have to pay back?

You need to be a billionaire to get those.

 

[Belk]

You need to be a billionaire to get those.

Or a senator.

 

[Always in His Presence]

From any bank.
If you run into a hardship where paying it back isn't feasible, you can just file Chapter 11 or even 13.
As long as it's not a student loan, the only loan where that is not an option.

You are mistaken:

Can You File Bankruptcy On Student Loans?

It’s possible to discharge student loans through bankruptcy. The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But that doesn’t mean you shouldn’t try. To succ

www.forbes.com

It’s possible to discharge student loans through bankruptcy. The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But that doesn’t mean you shouldn’t try.​

​

To successfully have both private and federal student loans discharged in bankruptcy, you must show that repaying the loans causes an “undue hardship” on you and your dependents. That’s a tougher standard than those who file for bankruptcy must show to discharge credit card debt, personal loans or past-due utility bills. In many cases, however, it’s worthwhile to try to show you meet this standard if you have a case for it.​

​

There are alternatives to bankruptcy if your loan payments are unaffordable, and since bankruptcy has serious consequences for your credit and financial life, look into those first. If bankruptcy is the right choice for you, here’s how it can wipe out or reduce student loan debt.​

 

[Laodicean60]

I believe the student Federal Loan program should be redesigned to help lower-income Americans. I don't see why the well-to-do can get favorable interest rates when they can borrow from private lenders.

 

[Say it aint so]

You are mistaken:

Can You File Bankruptcy On Student Loans?

It’s possible to discharge student loans through bankruptcy. The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But that doesn’t mean you shouldn’t try. To succ

www.forbes.com

It’s possible to discharge student loans through bankruptcy. The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But that doesn’t mean you shouldn’t try.​

​

To successfully have both private and federal student loans discharged in bankruptcy, you must show that repaying the loans causes an “undue hardship” on you and your dependents. That’s a tougher standard than those who file for bankruptcy must show to discharge credit card debt, personal loans or past-due utility bills. In many cases, however, it’s worthwhile to try to show you meet this standard if you have a case for it.​

​

There are alternatives to bankruptcy if your loan payments are unaffordable, and since bankruptcy has serious consequences for your credit and financial life, look into those first. If bankruptcy is the right choice for you, here’s how it can wipe out or reduce student loan debt.​

I stand corrected. They changed that. Although more difficult than a standard discharge, looks like it can be done.

 

[dogs4thewin]

From any bank.
If you run into a hardship where paying it back isn't feasible, you can just file Chapter 11 or even 13.
As long as it's not a student loan, the only loan where that is not an option.

Actually, that is not quite true there ARE other debts from which bankrupty will not save you, moreover a chapter 13 does not get rid of debt it just gives you more time to pay and/or reduces your debt to UNSCURED creditors ( along with still showing up on your credit report so creditors will know your history, and sense you can only file once every so many years if you DO take out a loan some time later say after three years and default again it will just be worse the second time around because that will NOT be an option for a number of years. Chapter seven also shows up on the report. Yes it is an option, but it is neither the end all be all, nor is it free, nor does it not come with some major downsides. (including sometimes giving up property ( even if paid off).

 

[dogs4thewin]

You are mistaken:

Can You File Bankruptcy On Student Loans?

It’s possible to discharge student loans through bankruptcy. The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But that doesn’t mean you shouldn’t try. To succ

www.forbes.com

It’s possible to discharge student loans through bankruptcy. The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But that doesn’t mean you shouldn’t try.​

​

To successfully have both private and federal student loans discharged in bankruptcy, you must show that repaying the loans causes an “undue hardship” on you and your dependents. That’s a tougher standard than those who file for bankruptcy must show to discharge credit card debt, personal loans or past-due utility bills. In many cases, however, it’s worthwhile to try to show you meet this standard if you have a case for it.​

​

There are alternatives to bankruptcy if your loan payments are unaffordable, and since bankruptcy has serious consequences for your credit and financial life, look into those first. If bankruptcy is the right choice for you, here’s how it can wipe out or reduce student loan debt.​

It is a LOT tougher and so really I still consider it not really an option for the average barrower.

 

[iluvatar5150]

Where can I get a loan I do not have to pay back?

I bet Trump's bankruptcy attorney could steer you in the right direction.

 

[dogs4thewin]

I bet Trump's bankruptcy attorney could steer you in the right direction.

Those were different they were of businesses not personal.

 

[Say it aint so]

Actually, that is not quite true there ARE other debts from wich bankrupty will not save you, moreover a chapter 13 does not get rid of debt it just gives you more time to pay and/or reduces your debt to UNSCURED creditors ( along with still showing up on your credit report so creditors will know your history, and sense you can only file once every so many years if you DO take out a loan some time later say after three years and default again it will just be worse the second time around because that will NOT be an option for a number of years. Chapter seven also shows up on the report. Yes it is an option, but it is neither the end all be all, nor is it free, nor does it not come with some major downsides. (including sometimes giving up property ( even if paid off).

Acknowledged.

 

[Fantine]

Many borrowers said they had paid off the principal on their loans years before but, due to high interest rates, still owed, sometimes more than the additional debt, after years of payments.
While "loan forgiveness" may seem unjust, I'm cases like these interest rate forgiveness seems fair.
Just call my response: Reason 11 why couples remain childless or have small families.
Republicans have the answers to that question; but they'd rather criticize than take positive action.

 

[probinson]

In related "news" (to some, apparently), if you borrow money, you have to repay it per the terms you agreed to when you were approved for the loan.

 

[Richard T]

There currently is an income based repayment plan. "The payment percentage is 10% of discretionary income, defined as your prior year AGI minus 150% of the poverty line." Income-Based Repayment Calculator (All IDR Plans)
So if you make less than around 30k (as a single) you pay nothing. If you made 40k you pay 1K a year. If you made 60K, payment is around 3k a year. So why are some defaulting? it is on them, not the US government who is very generous with student loans. Also, if you remain current on loans, even if you do not pay due to low income, they are forgiven after 20-25 years. If you work for any government or most non-profits public service forgiveness is available after 10 years.

 

[RileyG]

Where can I get a loan I do not have to pay back?

I paid my back my student loans in full, and my wages were poverty level. I’m not even using my degree. Go to college? Pay the loan back. Simple really.

No. I don’t feel sorry for myself. That was my decision.

 

[RileyG]

In related "news" (to some, apparently), if you borrow money, you have to repay it per the terms you agreed to when you were approved for the loan.

Amen. Can’t afford to go to college? Then don’t go. Period.