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  • Writer's pictureJoanne Jacobs

Debtors will have to repay student loans: 'We won't be able to afford a new house'

More than three years after student loan payments were paused and interest rates were cut to zero, borrowers will have to resume payments in October, the Education Department has announced.


The U.S. Supreme Court is considering whether President Biden has the authority to forgive up to $10,000 in student loan debt per borrower, and up to $20,000 for those who received Pell Grants, notes Fox's Breck Dumas. But that won't stop repayments for those who owe more.


Repaying "crushing" student loans will be difficult for debtors, writes Terry Collins on USA Today.


A school principal who borrowed $203,000 for a bachelor's, master's and PhD say she can't afford the $600 monthly payment on her $100,000 salary.


A young couple, both environmentalists, owe $42,000 combined. They plan to "cut back on shopping for organic food and their hobby of growing their own food, for starters." But plans for a bigger house may be out of reach.

. . . "We're mostly worried that we are not going to be able to afford a new house anymore. This is . . . quite life-altering."

Another couple with a combined $132,000 in student debt "used the payment pause to buy new appliances, including a refrigerator and oven for their home, and also a new car after their old vehicle's engine died," reports Collins.


The White House kept the pandemic "emergency" going as long as possible, but perhaps there will be a new emergency, writes Andrew Sullivan. Biden staffers' favorite constituency is educated cultural elites with student loans, he writes. "I think the climate emergency is calling, and it says it needs debt-free modernist literature PhDs and all mortgages (in Fort Greene, Rockridge, and Silverlake) to be forgiven."

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3 Comments


Guest
Jun 19, 2023

On June 1, the Senate voted to retroactively terminate the student loan pause but I don't think the House did anything. So the "loan pause" may simply be an interest accrual period.

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Guest
Jun 19, 2023

Who knew that borrowing more than you can repay would lead to such problems? Perhaps to qualify for student loans you should have to pass a course in personal finances...

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Guest
Jun 19, 2023
Replying to

Schools won't teach personal finance. That would break the whole education cartel.


It's bad enough that most of college will increasingly be useless in the world with AI


But, I want to go to the other end of the spectrum, which is intellectual services. It used to be, if you wave your Bachelor's degree, you're going to get a great job. When I graduated from college, it was a sure thing that you'd get a great job. And, in college, you'd basically learned artificial intelligence, meaning, you carried out the instructions that the faculty member gave you. You memorized the lectures, and you were tested on your memory in the exams. That's what a computer does. It basically memorizes what…
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