Student Loan Crisis!

[Kalel]

Navient has accepted defeat from the Consumer Finanical protection bureau and is banned from servicing federal loans and anything related to it ever again

The CFPB will mail checks to consumers who are eligible...

https://www.cbsnews.com/news/navient-banned-federal-student-loan-servicing-borrowers/

Newsroom | Consumer Financial Protection Bureau

Find the Bureau's latest press releases and news items.

www.consumerfinance.gov

 

[Kalel]

What The Election Results May Mean For Student Loan Forgiveness, Repayment And Relief Programs

Here’s what Donald Trump's victory may mean for student loan forgiveness and repayment programs, and what to expect in the coming months.

www.forbes.com

 

[Veritable Quandry]

My loans were discharged under PSLF, but Mrs Quandry works for for-profit healthcare. So her payments will restart and we have no idea what that will look like.

 

[Kamilah Hauptmann]

My loans were discharged under PSLF, but Mrs Quandry works for for-profit healthcare. So her payments will restart and we have no idea what that will look like.

Lots of Americans leave for Europe and never set foot in America again because of the loans.

 

[Kalel]

With trump going back into office, mostforms of relief is expected to vanish. Bidens SAVE program will likely collapse. other loan forgiveness programs rooted deeper into the law may last alittle longer. but with plans not finalized until 2025, uncertainty is expected.
financial watchdog agencies expect chaos with repayment plans and increased fees...

6 Student Loan Forgiveness Updates As Trump Returns To White House

Here are six critical updates on federal student loan forgiveness and repayment initiatives as Trump plans his return to the White House.

www.forbes.com

 

[Kalel]

Loans won't go away...Anything protected by law would need an act of congress to change.. they would just be moved to a different agency like the treasury department. what will lose is knowledge and experts who will worked tirelessly in those groups. Without the government to back it up, states will be forced to re-invest into higher education. Loss of people will likely increase any processing delays... will likely get worse if government is shutdown.. PLSF is likely stalled and up in the air on what will happen next.

https://www.northjersey.com/story/news/education/2025/03/06/what-happens-student-loans-us-education-department-closes/81574960007/

The Department Of Education May Shut Down In Two Weeks, And Student Loan Programs Could Suffer

Here’s what student loan borrowers should know as the Department of Education plunges deeper into crisis.

www.forbes.com

 

[Kalel]

small business administration will be handling student loans i guess...

US Small Business Administration to oversee student loans

The Small Business Administration will now manage the loans of some 40 million US borrowers.

www.bbc.com

https://www.npr.org/2025/03/21/nx-s1-5336330/trump-education-department-student-loans-special-education-fsa

 

[GoblinCampFollower]

small business administration will be handling student loans i guess...

US Small Business Administration to oversee student loans

The Small Business Administration will now manage the loans of some 40 million US borrowers.

www.bbc.com

https://www.npr.org/2025/03/21/nx-s1-5336330/trump-education-department-student-loans-special-education-fsa

I'm sure they'll receive the staffing and funding needed to process all of that! Note my heavy sarcasm.

 

[Veritable Quandry]

They have no experience with student loans and are getting a 43% staff cut. They were responsible for the Covid era business loans which were some of the worst examples of fraud in government.

 

[Dancien]

I'm just not going to pay the rest of mine back. They can eat it.

 

[Casey Pelous]

small business administration will be handling student loans i guess...

US Small Business Administration to oversee student loans

The Small Business Administration will now manage the loans of some 40 million US borrowers.

www.bbc.com

https://www.npr.org/2025/03/21/nx-s1-5336330/trump-education-department-student-loans-special-education-fsa

No, they'll sell off the loans cheap to private lenders who have made adequately pro-Trump noises.

'nuff said.

 

[GoblinCampFollower]

I'm just not going to pay the rest of mine back. They can eat it.

An unintended(?) side effect of all these cuts is they just might forget about you, haha.

 

[Free]

An unintended(?) side effect of all these cuts is they just might forget about you, haha.

Considering the morons in charge, it's also possible they'll go after those who've already paid off their loans.

 

[Veritable Quandry]

Considering the morons in charge, it's also possible they'll go after those who've already paid off their loans.

I have hard copies of EVERYTHING on my Public Service forgiveness.

 

[Noodles]

small business administration will be handling student loans i guess...

US Small Business Administration to oversee student loans

The Small Business Administration will now manage the loans of some 40 million US borrowers.

www.bbc.com

https://www.npr.org/2025/03/21/nx-s1-5336330/trump-education-department-student-loans-special-education-fsa

It would be really funny if they were just like, "Yeah no, we are not doing that." And went ahead with Biden's loan forgiveness thing.

 

[Noodles]

No, they'll sell off the loans cheap to private lenders who have made adequately pro-Trump noises.

'nuff said.

Why are Millenials so dead set on killing the Predatory Loan Industry?

 

[Kalel]

They wanted people to invest into the american dream .. giving people acess to higher education was key. That though hard work and dedication, you could achieve upward success enabling people to empower themsleves and benefit from and contribute to the economy.

instead as prices are rising and people are struggling, they garnish our wages and discontinue payment programs pushing us more down the hole and blame us when we are barely scrapping by. future generations all tricked into the ultimate lending scheme. We've become economic slaves to the elite and wealthily.

"Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education," DOE said in a statement notifying the public that collections will resume May 5. "This initiative will be paired with a comprehensive communications and outreach campaign to ensure borrowers understand how to return to repayment or get out of default."

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

"Parents delaying retirement. Grads postponing families. This isn't 45 million separate problems, it's one national crisis," the Student Debt Crisis Center (SDCC) said on social media. "They bailed out banks, corporations, and airlines. But when it comes to student debt? Suddenly it's 'too expensive.'"

The announcement from the department added, "There will not be any mass loan forgiveness."

https://www.cbsnews.com/news/student-loan-debt-default-garnished-wages-payments-education-department/

https://www.seattletimes.com/nation-world/millions-of-student-loan-borrowers-are-behind-on-payments/

 

[Zaida Gearbox]

And they wonder why people have stopped having kids.

 

[Jopsy Pendragon]

I was curious about the issue so I started googling random related stuff.

1) Interest rates haven't changed that much since I went to college (late 80's).
2) Newgrads make more today, but when adjusted for inflation actually make -less-.
3) The cost of a 4 year degree has increased by around 250%.
4) Student loans for my fellow graduates took 5-10 years to pay off. After which, due to interest they would have paid 2x what I paid for my degree without loans.
5) Students today will take 20-30 years to pay off their loans. By which time they will have paid 300% to 400% of the cost of their degree. Most of which will just be interest.

I'm pretty certain that student loan forgiveness is less about giving them the money to pay off their loan, as much as it is telling the bank "You got your principle and enough interest already. That's enough. Write off the rest."

New Grads today with student loans may end up paying 900% more than I did for my degree 35 years ago without financing.

That's just *wrong*.

 

[Kalel]

elderly still paying loans from 40 years ago...
applications arn't being processed...
entire live savings being used up...
people don't know what to do...

Older people in crosshairs as government restarts Social Security garnishment on student loans

As the Trump administration resumes collections on defaulted student loans, hundreds of thousands of older Americans with decades-old debts are now at risk of having their Social Security checks garnished.

apnews.com

“They said, ‘Move to a cheaper state,’” says Farro, who rents a 400-square-foot casita from a friend. “I realized I was living in a different reality than they were.”

“I don’t know what more I can do,” says McIntyre, who is too afraid to check what her loan balance is. “I’ll never get out of this hole.”

“We hear from people who skip meals. We know people who dilute their medication or cut their pills in half. People take drastic measures like pulling all their savings out or dissolving their 401ks,” he says. “We know folks that have been driven into homelessness.”

“We’re basically providing people with federal benefits with one hand and taking them away with another,”

“What’s a young person’s problem today,” he says, “is an old person’s problem tomorrow.”

First Big Update On Student Loan IDR And PSLF Processing Shows Slow Progress

The Trump administration released its first official update on student loan IDR and PSLF Buyback application processing this week. Here are the key details.

www.forbes.com

Department Of Education Reveals 96% Of Student Loan Repayment Applications Remain Unprocessed

The Department of Education revealed that 96% of IDR requests for more than two million student loan borrowers remain unprocessed. And things may soon get worse.

www.forbes.com