Bloody Sunday - Student Loans Kicking In Today

[JohnyMac]

Since the middle of March 2020, student loan repayments have been put on hold due in part to Covid-19 lock downs. After starts & fits they will resume today Sunday October 1, 2023.

It is being reported (I think this number is low) that 60% of Americans are living paycheck to paycheck. The average student loan monthly payment is $400-. If a husband and wife are both paying off student loans, they need to come up with an additional $800- a month.

Put these two facts together. If a family is living paycheck to paycheck, where will the additional $800- come from?

We can all argue as to whether this is fair to folks who took out the loans or to the tax payer that may have to help paying these loans off. Regardless, this will have a serious affect on businesses bottom line and INCREASE credit card debt.

How will this affect the economy overall? How will this affect people with a student loan relationship with .gov? Remember, .gov now owns most of that debt. We now have a whole class of people who in a sense, are indentured servants to .gov. What will .gov do with that power?

Just my opinion, retail numbers will be down slightly in October. A shitton (Financial term) in November, and Holiday sales will be nonexistent. January, 2024 we will see retailers hemorrhaging and retracting their store base. They will have to.

Oh thinking about student loans this tune came to mind https://www.youtube.com/watch?v=tdGzzfQ52TQ and this one too, https://www.youtube.com/watch?v=UaO1mE-dRBs

Stay tuned...

 

[Searchboss]

I look at student loans like I do any other type of loan. The person asking for the loan wanted the money for a reason that is personal to him. He was not forced to take out the loan, it was an option. It was available so that he could purchase an advanced education that had value to him. In return, he agreed to repay the loan in accordance with a set of requirements that were spelled out in the written loan agreement. He knew what he was getting himself into when he accepted the loan. There are other methods of obtaining an education without incurring massive debt.  Working while attending school is one of them.

The government should not be involved with these types of personal financial transactions. If the person has trouble repaying the loan as agreed upon, there are legal options available. They may not be pleasant, but they are there. When the government starts meddling things usually get all mucked up. 

Today there seems to be a generation of people who seem to think anyone else, but particularly the government, is supposed to take care of them and give them whatever they want. I expect that they are going to be sadly disappointed. The government rarely does anything that will benefit the people unless they get more of something in return. I call that a bad bargain.

That is just my opinion. I am going back to my corner now. 

[Felix]

Searchboss, you only state the obvious:  ?You can avoid reality, but you cannot avoid the consequences of avoiding reality.? (attributed to Ayn Rand)

  I just wish the impact of their reckoning with consequential reality was a burden they bore alone.    Alas, when shit hits the fan, splatter hits the innocent too.
For our own self-interest, it seems a "soft-landing" for fools might cost less in the end but when counting the attending "moral hazard" as well... I just don't know.    Our charity should take a squinting view of fools, and keep what is valuable, correct and right in focus throughout.
But you're right.   Government's placing themselves in the mix has and always will, only make things worse.
Prep like your life and the ones you care about depends on it.
'Cuz way things are shaping up - it will.

[Sir John Honeybucket]

And yet, nobody is volunteering to pay-off my house loan.  I wonder why THAT is? 

OTOH, paying huge sums for a an advanced degree in Baluchistani Lesbian Poetry seems like a bad investment.  Better to apprentice as a plumber, and have a reliable career, saving more lives than doctors: sewage matters.


Sir John Honeybucket

[JohnyMac]

Some great comments.

Many, many moons ago, I went to my boss and asked him to support me in my application to the company for money to obtain my Masters in Business.

He told me, "absolutely." Then asked me, "John, why do you want to add an additional workload to your existing workload?"

I looked at him kind of funny and he went on,

"Listen, you are already doing business at the level of a PHD in Business let alone a Masters level. You are running a $35m district, plus training other district managers for the expanding company. You helped with the recent IPO offering and we send you on the road to do 'road shows' to sell the stock. Hell, if you are telling me you want more work just let me know and I will pile it on your plate...Trust me."

I thought about it for a few days and he was right. I really didn't need that piece of paper. Not the expense or spending more of my time away from MrsMac.

The following week I was promoted to Sr. District Manager. A Year later I was prompted to AVP (Assistant Vice President) and a year after that, I was made a vice president and controlling $160m chuck of the company. No piece of paper needed. 

[Deathstyle]

RN at my ED was talking about comparing his private and govt student loans side by side and what he?ll have to pay. He?s decided to join the army or AF reserves to help pay it off. This is a RN that should be making 6 figures and lives well on the surface appearance wise.

If he is having trouble w his income, I can?t imagine how hard it?ll be for the rest.