there could be almost 10 million borrowers in default in a few months
That’s not a small amount. That’s fucking with economic outlook levels.
As for their program to “guide” folks to repayment, I mean you might as well tell them that they’re indentured servants at this point. Bully tactics are not going to work in an economy where it does not matter how much or little credit you have.
And I highly doubt this administration has any kinds of plans to gentle get folks back to repayment. I fully expect, “pay your loans or we will make you a slave for the rest of your life” to be their go to solution.
There’s a correct manner to handle this, I expect Trump’s administration to fuck it up every step of the way.
Can’t use a trident, that’s lord Neptune’s weapon and directly incompatible with fire.
There didn’t seem to be a normal pitchfork emoji, at least not that I could find. 🤷
Think deportation could be on the table? Default on your loan and off to El Salvador? There’s no telling with these assholes
Calling it now: Debtor’s prisons are going to be the “next big thing” from private incarceration companies.
I had to do a quick google for a reminder of how they were done away with in the US in the first place… Supreme Court ruled it unconstitutional.
So yeah, I look forward to them coming back.
Private incarceration companies
This is some future we’ve built/inherited, huh?
What a great way to discourage up-and-coming (other than white) poor people from getting (higher) education. /s
Equate ‘not being able to pay for it outright’ to imprisonment.
It could go that direction, or could go toward forcing otherwise unwilling people to join the military through a program that pays off student loans. This program looks pretty limited, but it looks like it has all the linkage to be expanded to be more generally applicable to more people:
College Loan Repayment Program (LRP)
Summary
The Loan Repayment Program (LRP) is a special incentive that the Army offers to highly qualified applicants entering the Army. Under the LRP, the Army will repay part of a Soldier’s qualifying student loans. Only specified Military Occupational Specialties (MOSs) qualify for the LRP.
Benefit Highlights
The Army will repay 33 1/3% of the outstanding principal balance, less taxes of the Soldier’s student loans annually or $1,500, whichever is greater, after each year of service (up to $65,000, less taxes) up to three years total. Loans must not be in default before entering active duty, and during the repayment process
I don’t think so, at least when it comes to US citizens, because deportations would cost them and spark controversy for no benefit. I think they’d prefer to keep these deeply indebted people in the US as indentured servants willing to work for pennies and too poor to engage politically.
If there’s anything Trump is careful about it’s not sparking controversy for no benefit.
“The beatings will continue until morale improves” energy.
“Why aren’t young people having more kids??!!!”
“to protect taxpayers from shouldering the cost of federal student loans”
What fucking costs are the taxpayers shouldering from student loans???
Ironically, forgiving the debt would generate immediate economic activity that the government would tax and collect that money back with far greater returns.
Every dollar in food stamps generated $1.70 in economic activity and that’s just for “normal” poor people.
The problem isn’t (just) the cost of education being insane but that wages aren’t increasing to cover the bigger numbers.
The problem is that it’s becoming harder to hide the entire country is a “company town” or African diamond mine where keeping you trapped in debt you’ll never escape is the goal and it’s perfectly legal because they own the laws.
I have been with my employer for a decade. My nominal wage has increased 50% but once you account for inflation I’m still basically at my starting wage even after a decade of promotions and certifications.
Guess the students will keep living with mom amd dad but not have a job
