Why pay your student debt? Just last week Biden, after eating an ice cream come (chocolate chip) decided that 42,000 student debts owners no longer had to pay $5 billion. That means those that did not go to college to learn gender or race superiority or rioting get to pay for these deadbeats.
“Americans saddled with student debt are boycotting their repayments to increase election-year pressure on President Biden to keep his promise of more loan forgiveness.
Since the federal government stopped a three-year “pandemic pause” on student loan repayments in October, only 40% of borrowers have paid all their monthly obligations. Meanwhile, 35% have made some payments and 25% haven’t made any, an Intelligent.com survey found.
One in 10 student loan borrowers said they have been skipping their payments intentionally to pressure Mr. Biden to cancel more debt, the survey found.
These are the kids who got “participation trophies: for just showing up. They have no goals, expect to get through life on the dole. They took your money and telling you to go to hell.
Student loan borrowers refuse to pay, prod Biden to pony up more debt forgiveness in election year
By Mallory Wilson – The Washington Times, 1/18/24 https://www.washingtontimes.com/news/2024/jan/18/student-loan-borrowers-refuse-to-pay-prod-biden-to/
Americans saddled with student debt are boycotting their repayments to increase election-year pressure on President Biden to keep his promise of more loan forgiveness.
Since the federal government stopped a three-year “pandemic pause” on student loan repayments in October, only 40% of borrowers have paid all their monthly obligations. Meanwhile, 35% have made some payments and 25% haven’t made any, an Intelligent.com survey found.
One in 10 student loan borrowers said they have been skipping their payments intentionally to pressure Mr. Biden to cancel more debt, the survey found. Dissatisfaction among Democratic voters who say Mr. Biden hasn’t kept his promise to erase student debt is another reelection challenge for the president.
Financial experts doubt their boycott will lead to progress.
“Although the frustration behind the student loan boycott is understandable, it’s unlikely to lead to positive change,” said Jake Hill, founder and CEO of DebtHammer. “Instead, it will destroy credit scores of those who choose to participate.”
Mr. Hill said a damaged credit score “may not seem like a major issue in the short term, but failing to pay your student loans makes it more difficult to obtain funding for future purchases.”
“For example, if you default on your student loans, you’ll be unable to obtain most mortgages, which will derail any plans you have to purchase a home,” he told Intelligent.com.
More than 43 million borrowers owe a collective $1.63 trillion in student loans. Among those surveyed, 18% said they were waiting until September, the administration’s extension deadline, to start repayments. After that, more severe consequences take effect.
Elaine Parker, president of the conservative advocacy group Job Creators Network Foundation, said the borrowers are “throwing a temper tantrum about having to repay their loans after a 3½-year payment holiday.”
She said Mr. Biden is largely responsible for the borrowers’ “bad decisions because he has continually given them false hope that their loans will eventually be canceled.”
“Many borrowers hope their turn will be next, but they risk financial ruin by taking this gamble,” Ms. Parker said. “Rather than demanding that taxpayers forgive their loans, students should protest their colleges for saddling them with these debts in the first place.”
She said tuition prices have increased over the past decade and schools should be held accountable for their role in the student loan crisis.
In June, the Supreme Court struck down Mr. Biden’s program to erase roughly $430 billion in student loan debt. Since then, the president has implemented smaller, more targeted programs that the White House says canceled $132 billion in debt.
The Saving on a Valuable Education program allows borrowers who took out less than $12,000 and have been making repayments for at least 10 years to erase their debt. At the start of January, about 6.9 million borrowers had enrolled in the plan. Debt will be canceled next month for those who qualify.
Even some of the president’s staunchest allies are concerned that Mr. Biden and his reelection team are not reaching voters with the debt forgiveness message.
“Nobody writes about that. Nobody talks about that,” Rep. James E. Clyburn, South Carolina Democrat, said this month on CNN. “I’m still hearing from people … that he did not keep his promise on student loan debt relief. And he has.”
Calls for the boycott began before the pause in repayments was set to end. In an August survey, 49% of borrowers said they were aware of the repayment boycott and 62% said they were “highly likely” or “somewhat likely” to join it.
Of those currently boycotting, 44% said they believe their protest will lead to the cancellation of some of the debt and 28% think they can persuade the government to cancel all of the debt.
A whopping 86% said the boycott would bring attention to the student loan debt conversation, and 64% said it would open the door for more elected officials who believe in loan forgiveness.
The survey found that 7 in 10 borrowers who hadn’t resumed payments said they couldn’t afford them, and 94% said resuming the payments has been financially challenging.
Those who are struggling have options, said Eric Eng, founder and CEO of AdmissionSight.
“Borrowers grappling with student loan repayments should explore income-driven plans, loan forgiveness programs and loan consolidation as possible strategies for managing their debts,” Mr. Eng said. “Income-driven repayment plans, which align monthly payments with income level, might provide a more feasible payment amount.”
Of the 41% of borrowers who are aware of the income-based repayment plans, 29% have enrolled. About 15% have applied and are waiting for a response.
The Intelligent.com survey was conducted online on Jan. 5 with 1,000 respondents.
