Can’t squeeze a rock. If they can’t afford homes, and a good credit score is all that’s good for, why pay it? Wage garnishment is only a concern if you’re employed or make enough that it’s an option. No future, no payments.
I’m ahead on payments because I want to get rid of them. Now I’m wondering if I should hold on to them and stop paying ahead so I am not covering other peoples chunk of the debt today. This sounds cruel in some passive way but I’d rather help signal the unaffordable-ness of the Usa.
I can’t afford:
- eggs (generally many groceries are more expensive)
- a 1-2 bed home of any quality
- medical care that doesn’t cost an arm and a leg
- my energy bill has doubled
- my savings payments have lowered
- 9+% inflation
And many of these problem have existed for the last 10+ years. But at least we had a pretty great bond market for a few years to help offset regular inflation.
If people can’t afford something like a student loan that’s already been “delayed or postponed” they will definitely deprioritize it.
As they should. They bailed banks in 2008. It's time for each citizen to equally get same level of tax money, amounts they deserve like bank owners and banks? why it was only possible for banks in 2008 and airlines in covid and PPE loans in Covid ?
I think I was 47 when I finally paid mine off. My wife and I are doing everything we can to help our boys get out of college debt free. Starting your career at a net worth of zero is so much better than negative tens of thousands.
Of course they're not paying their student debt. When the federal government of the moment is using student loan forgiveness to try bribe reelection votes, it sends a pretty strong signal that this shit is frivolous.
As a taxpayer who has never taken on loans of any kind, I find this all quite irritating. You take on debt, you pay the debt, don't turn my tax dollars into your negligence subsidy.
Financial aid programs began so that deserving students could get to college and afford to do so without requiring extended family support.
Not too surprisingly, the perverse incentive of government aid to school administration and loan brokers has made college nearly unaffordable for all.
And of course, boomers cut the tax subsidies to schools once they are out so that even without the administrative bloat, tuition would be more expensive for those who came after
Anyone have a way to read this without a log in? I can't seem to get past the paywall with archive tools.
Aside from that, a friend of mine had a good solution for this - she just moved to Europe, got citizenship, and plans to never return to the states. Granted, she also had a terrible connection with her family, so she didn't stand to lose much anyway.
Edit: WarOnPrivacy has us covered with a link. Thanks!
Various people in the government have been telling them for years that they'll be forgiven, and creating periods where they don't need to pay on them, what did people expect would happen?
I think both the student and school should be on the hook for the loan. If the student is successful and does not pay, the school has legal rights. If the student is unsuccessful, then the student has legal rights. Both can sue each other for the full cost of the loan.
I still don’t know why there aren’t mass scale class action lawsuits against higher education for certain degrees.
Paying taxes in America is like taking out a high interest loan on a used car. And not a particularly reliable one.
Why exactly am I paying taxes if college is still unaffordable and health insurance gets more expensive every year ?
I probably pay a higher percentage of my income in taxes and health insurance as I would in Germany, and get much less in return.
Unemployment insurance is a joke for higher income people.
College in particular is a bit complex. In my Mom's time State College was tuition free. The State of California, assuming it's residents are stupid, claims it's state schools are tuition free for residents. It's just a 15k fee !
State College should be free. Particularly if you go to community college first, this is where the vast majority of students should start. Unless you get a full ride, it's better to drop out after 3 semesters of community vs 3 semesters at USC.
I think the 10k in forgiveness would of been reasonable. That was a very moderate plan, but it didn't happen.
Some type of long term reform is needed though. Maybe allow for a discharge after 15 years ?
I have never understood why student loan debt is the only debt that cannot be discharged in bankruptcy proceedings.
It’s so insane that we expect 18 year olds, with brains still very much developing, to be able to make such a life-altering choice. Even though I myself understood this dynamic and decided to go to a state school with max 5k a year in tuition, I’ve never faulted others in the same situation that made less than ideal financial choices.
It’s really tragic that the US chooses to economically hamper so many people for money that is fairly inconsequential in the grand scheme of things. Everyone deserves a chance at upward economic mobility, even if they made a bad choice to study something in college with bad job prospects at a high price tag.
The loans would never be made under normal circumstances, so the govt. guarantees them. Part of that deal is that they must be paid back. Fair enough.
I agree that the whole system is poor, but not because the loans have to be paid back. A better system would be to take the money and instead build subsidized public colleges. Loans just fuel cost inflation, exactly as we've seen.
The Federal Reserve Bank of New York has a great quarterly report on consumer credit [0], which the article briefly mentions. The latest report (Q1 2025) is here [1]. Student loan delinquencies shot up in the last ~2 quarters, which checks out with TFA. It's amazing how the age 50+ cohorts carry substantial student loan debt (slide 21). Is this original debt from their own time as students or is it, for lack of a better word, "second-hand" debt from supporting their children through school?
18 comments
[ 2.9 ms ] story [ 40.9 ms ] threadI can’t afford:
- eggs (generally many groceries are more expensive)
- a 1-2 bed home of any quality
- medical care that doesn’t cost an arm and a leg
- my energy bill has doubled
- my savings payments have lowered
- 9+% inflation
And many of these problem have existed for the last 10+ years. But at least we had a pretty great bond market for a few years to help offset regular inflation.
If people can’t afford something like a student loan that’s already been “delayed or postponed” they will definitely deprioritize it.
As a taxpayer who has never taken on loans of any kind, I find this all quite irritating. You take on debt, you pay the debt, don't turn my tax dollars into your negligence subsidy.
Not too surprisingly, the perverse incentive of government aid to school administration and loan brokers has made college nearly unaffordable for all.
And of course, boomers cut the tax subsidies to schools once they are out so that even without the administrative bloat, tuition would be more expensive for those who came after
Aside from that, a friend of mine had a good solution for this - she just moved to Europe, got citizenship, and plans to never return to the states. Granted, she also had a terrible connection with her family, so she didn't stand to lose much anyway.
Edit: WarOnPrivacy has us covered with a link. Thanks!
I still don’t know why there aren’t mass scale class action lawsuits against higher education for certain degrees.
I know because I did it. Took almost seven years but it was possible.
And it's it also how I know that the U.S. has truly gone to shit.
Why exactly am I paying taxes if college is still unaffordable and health insurance gets more expensive every year ?
I probably pay a higher percentage of my income in taxes and health insurance as I would in Germany, and get much less in return.
Unemployment insurance is a joke for higher income people.
College in particular is a bit complex. In my Mom's time State College was tuition free. The State of California, assuming it's residents are stupid, claims it's state schools are tuition free for residents. It's just a 15k fee !
https://admission.ucla.edu/tuition-aid/tuition-fees
State College should be free. Particularly if you go to community college first, this is where the vast majority of students should start. Unless you get a full ride, it's better to drop out after 3 semesters of community vs 3 semesters at USC.
I think the 10k in forgiveness would of been reasonable. That was a very moderate plan, but it didn't happen.
Some type of long term reform is needed though. Maybe allow for a discharge after 15 years ?
It’s so insane that we expect 18 year olds, with brains still very much developing, to be able to make such a life-altering choice. Even though I myself understood this dynamic and decided to go to a state school with max 5k a year in tuition, I’ve never faulted others in the same situation that made less than ideal financial choices.
It’s really tragic that the US chooses to economically hamper so many people for money that is fairly inconsequential in the grand scheme of things. Everyone deserves a chance at upward economic mobility, even if they made a bad choice to study something in college with bad job prospects at a high price tag.
I agree that the whole system is poor, but not because the loans have to be paid back. A better system would be to take the money and instead build subsidized public colleges. Loans just fuel cost inflation, exactly as we've seen.
[0] - https://www.newyorkfed.org/microeconomics/hhdc/background.ht...
[1] - https://www.newyorkfed.org/medialibrary/Interactives/househo...