Student loan changes take effect: What borrowers need to know

Lol have resources- great advice

Total bullshit college should be free like in civilized countries

"Just work more". Wow. What a great answer to give to an entire generation for this country's failure to address student loan debt. I'd rather die with my loans than pay them off at this point. Because with what I make now, it's not even going to make a dent.

Then again it's the government's and the educational system's fault in the first place.

This was incredibly disappointing in not pointing out the new options at all, and the guest speaker saying "just work 2-3 jobs" making her either part of the problem, or someone who hasn't learned how to live life yet.

Also, those caps will, in large part, increase the drastic healthcare provider shortage in the US, as medical degrees in terms of jobs like doctors and advanced practice nurses who typically fill doctor roles in many areas, exceed those caps. That's especially true with professional roles such as those that are nurse/doctor interchangeable since the APRNs aren't considered professional under these rules.

It isn't crazy to think this is just part of gutting public services to turn them private.

I'm glad I got out of this rat race, although it took me from 1997 to 2021 to finally pay the loans off. I'm the only one in my cohort who did that, everyone else had help like an inheritance, paying them off via Public Service Loan Forgiveness, and one just had $250,000 waived. It really wasn't worth it, spending that much on a degree solely to have a job that still didn't pay enough to live well, just get by.

the academic-industrial complex most damning statistic in the entire debacle: a 30% default/distress rate.

If a bridge had a 30% collapse rate, it would be closed. If a bank had a 30% default rate on its mortgages, it would be seized by the FDIC. But in the world of student loans, a 30% failure rate is simply treated as "the cost of doing business" while the universities continue to collect their checks upfront.

Because student loans are nearly impossible to discharge in bankruptcy, that 30% default rate doesn't represent people who walked away; it represents people whose lives are being financially consumed by interest.

The policy architects argued that "access" was the goal. But giving someone "access" to a debt they can never repay is like giving someone "access" to a predatory payday loan. It’s not a social good; it’s a trap.

I’m not a Trump fan, but I completely support these caps. The federal government has been actively hurting its citizens allowing people to get in this kind of debt.

Go to trade school problem solved and repay your loans!

They want to make it harder for poor folk to make it out of the trap.

They gotta get that 40 trillion debt down

An insecure workforce is an obedient workforce.

its not going to reduce costs. It's going to diminish the value of degrees. Already you're seeing colleges laying off full time professors in record numbers and replacing them with part time professors, especially in the humanities, which is the number one discipline necessary to check Ai. Colleges are also reducing the credits necessary for an Associates and a Bachelors degree, further diminishing the value of degrees. UTK, for instance, is reducing a bachelors from 120 to 90 credits, which will make a bachelors from UTK practically worthless. A highly technological society like ours depends on a highly educated class of people capable of running it, and this war on education is going to tank our society because we will have an advanced society with an insufficient number of people capable of running it.

Housing market is not any lower. 1 job does not pay enough for cover most bills unless you're at a high paying job, which mostly requires you to have college education these days. Telling folks to get a side hustle honestly sounds like selling drugs or working 2 jobs just repay their college debt.

This will happen just watch. I'm pretty good at telling the future. So less FEDERAL student loans to be given out to college kids. That's is what he can control. He didn't change PRIVATE student loans which are worse than Federal Student loans. In order on how kids take out student loans, 1st subsidized, 2nd unsubsidized, 3rd parent plus loans, 4th and final Private student loans. The universities won't bring down the prices it might slow them from raising tuition prices for 2 to 4 years but when they realize that there is no cap on private student loans, cost will continue to rise like it normally have. You might even see big banks on campus handing out fliers on private student loans. Kids will take them. Banks will roll back restrictions on student loans borrowers. You won't need a co signer. So now instead of owing the federal government you owe big banks. Big banks will be happy to get this debt. Imagine holding a debt over someone's head, that they can't file for chapter 11 bankruptcy. A loan that interest rates is dictated by the Big Banks now. Miss a payment, fees and interest goes up by 3% more now. Just watch.

Funny I hoped this was good news. Shame on me

I'm so glad I walked away from college 17 yrs ago

I guess someone will get half the education at Harvard med 😂

I think you could have done the absolute bare minimum and updated your thumbnail to more modern technology so that you don't show somebody crunching numbers on both a laptop and a calculator that is the size of the laptop because I mean what are we doing

President trump with zero sense

Yeah so- my loans will now double (again) - to 300k- based on student loan companies being allowed to compound interest.
Originally borrowed $160k to be an RN/ MSN FNP.

Its not going to make schools lower costs, its going to discourage people from furthering their education. Which is what this government wants, they dont want people educated

I say stop going to colleges you cannot afford or I understand. Sometimes there’s big universities for a specific career that you really cannot cut corners but my personal experience I put both of my kids through college the way that I did. It was first they went to community college because classes are way cheaper And then they transfer after they receive their associates to a university but since we live in Houston, I basically made them stay in Houston because I was not gonna go in debt or allow them to go in debt yes it was a little bit difficult, but these universities normally have payment plans and both of my kids went without financial aid or any type of scholarships or loans so I am so thankful that they finish their careers debt free. Example my son has a colleague. They both make the same amount of money because their salary based the only difference is his colleague has $100,000 student loans because he went to a out-of-state university. He lived in the dorms etc. and I’m thinking off for what he ended up in the same spot as my son making the same amount of money. The only difference is my son doesn’t owe anything he’s debt-free. Be smart don’t just pay for a name and to live away in your dorm that is a luxury and if you can’t afford it, don’t go in debt for it. At the end of the day, it all comes down to the worth ethic of the person you’re gonna achieve success if you’re a hard-working dedicated person because you can have a degree in Harvard, but if you’re lazy, and you don’t do anything with it it’s just gonna be in your wall. I say be very smart and understand that you will be doing this for a couple years with living cause being so high and continuing to rise you have to consider this loan plus as you become older and you start even starting your own family you have to consider living cause car payment, etc. etc.

40 years ago, paid off undergad loans with Army service. Army ed benefits and loans for grad school, paid the off through public service. Total forgiven about $418,000. With alll the education, earned more income and bought bigger house. Between higher income and property taxes, the forgiveness amount was a wash when compared to higher taxes.

What borrowers need to know: Consider that your high school may have socially promoted you and you may not be smart enough to learn. If you are going into debt to cover tuition, that is a symptom of un smartness. Will the education you receive provide you with gainful employment? More importantly do you aspire to aquire gainful employment. If this offends you, you are certainly going to fail at schooling.

Side hussle and networking. That’s your advice…

I have no questions. Got an email this morning saying my .25% rate reduction has automatically become a 1% deduction through July 2028.

Good day to be a responsible individual.

Save plan was nice and low. But it’s not like the IBR/RAP will be high. You will still be able to afford it. You’ll just have to work 40 hours or 60 hours. 1 or 2 jobs.