“It’s really, really scary. We are going to be living on the brink,” one borrower said.

Tens of millions of Americans with federal student loan debt have had a financial reprieve for more than three years as a pandemic-era repayment pause was extended multiple times since March 2020.

Now many face a new reality on Sunday, Oct. 1, when they are due to resume making payments, all while struggling with nagging inflation and rising interest rates.

More than 45 million borrowers together owe approximately $1.6 trillion, according to President Joe Biden’s administration, which tried to cancel up to $20,000 in student debt for tens of millions of eligible borrowers, only to have the Supreme Court kill the program in June.

  • Sylver@lemmy.worldEnglish
    56·
    1 year ago

    Almost everyone I talk to about this has the same idea: “I’m not gonna pay that, they proved they don’t need the money, it’s inflated anyways etc”

    I agree with them

    • AncientBlueberry@lemmy.world
      442·
      1 year ago

      The situation is shameful, but it’s wishful thinking that such actions will end in any other way than interest accruing, making the inevitable repayment even more expensive and difficult. The system is set up so you can’t run away from it.

      • guacupado@lemmy.world
        7·
        1 year ago

        Yeah I don’t think these people saying they won’t don’t realize that this can end up at wage garnishment.

        • Bitrot@lemmy.sdf.orgEnglish
          5·
          1 year ago

          Up to 15-25% of disposable pay depending on the loan (federal or private).

          Student loans are pretty much the worst type of loan you can have. They can garnish your wages, they can sue you, they can take any tax refunds and social security benefits you might eventually be paid and there isn’t really a way to make them disappear.

    • Bitrot@lemmy.sdf.orgEnglish
      191·
      1 year ago

      The inability to get out of them and enforcement mechanisms make “not paying” a bad plan if you’re staying in the country. IBR and riding it out until it’s forgiven seems better, even though it’s shitty.

    • afraid_of_zombies@lemmy.world
      104·
      1 year ago

      I have some left and have no plans to pay. Let them sue me. I want them to take me to court, hire a lawyer, spend a week, and deal with collections for the few thousand they claim I owe.

      • Lem453@lemmy.ca
        81·
        1 year ago

        They will find a way to destroy your credit on case you had any hope of purchasing anything with a mortgage \ loan in the next 7 years

        • afraid_of_zombies@lemmy.world
          71·
          1 year ago

          You can’t kill what is already dead. I keep emergency funds around, enough that I could buy a brand new economy car at any time. Have a single credit card with a 5,000 dollar limit and charge a cup of coffee on it once a month to verify it still works.

          Debt is evil.

      • Bitrot@lemmy.sdf.orgEnglish
        7·
        1 year ago

        Assuming you are employed, they will just garnish your wages. They don’t have to sue for it, federal loans don’t even need a court order to do it. Private loans do, but they are also able to take more money out of your check.

        • afraid_of_zombies@lemmy.world
          51·
          1 year ago

          Which I can appeal and if it really came down to it I can switch over to an independent contractor in about a week. But it won’t come down to it because before that happens I will just setup a 5 dollar monthly payment.