Bill introduced that would allow federal student loans to be refinanced at 0%
A Democrat Senator, Sheldon Whitehouse, introduced a bill related to federal student loans. If this bill passes both chambers and gets signed into law, many with student loans would be able to refinance their loans at 0%. The name of the bill is Zero-Percent Student Loan Refinancing Act.
From FOXBusiness:
Currently, federal student loans are in COVID-related forbearance and payments have been paused until Aug. 31st. During this time, borrowers are not required to make payments on federal student loans and their interest rates have been set to 0%. The Department of Education has also stopped collections on defaulted loans during this time.
But outside of this payment pause, some types of federal student loans accrue interest even during periods of in-school deferment, hardship forbearance and other times when payments are not due. And some borrowers who are on an income-driven repayment plan may even have a monthly payment that is too low to cover the interest accrual each month.
In fact, a 2021 joint report from the National Consumer Law Center and the Center for Responsible Lending found that 63% of student loan borrowers who made payments during the aforementioned payment pause still owe more now than they originally borrowed.
But Whitehouse said this new bill would eliminate these interest rates, allowing borrowers to make their full payments toward their principal balance. It would allow student loan borrowers to refinance their federal loans to 0% for all eligible FFEL, Direct, Perkins and Public Health Service Act loans. The bill would allow for the refinancing through Dec. 31, 2024. And it would also automatically refinance the student loan debt for Direct loan holders.
FOXBusiness has the article here.
Category: Democrats, Liberals suck, Society, YGBSM!!
I think people should be made to honor the original contract. But, this is way better than loan forgiveness
When I came back from serving three years in the Army the
VA loaned me money to go to school. I had to pay it back back.
When I later went back to school the goverment loaned me the
money and I had to pay that back also.
I refuse to pay for other peoples communist education.
Want to halt the exorbitant tuition charged for worthless degrees?
Make the universities pay off the loans.
aoc has a student loan to pay which she didn’t and is all for us to pay her bill while she makes 6 figures a year along with her pal omar.
Just the FIRST (ht 2 Chippy) step in wiping it all clean and hanging We, The People with the bill. What about the millions of people that either (a) took out a loan and paid it back, or (b) those that NEVER took out a loan and have worked and paid their own way for decades?
Not just NO, but HELLS TO THE NO!
FWIW, the Federally Insured Student Loan program has fueled and financed the increase of administrative bloat at universities across the land.
“Diversity” administrators: FISL money
“Safe Space” counselors: FISL money
“Inclusiveness” trainers: FISL money
FISL money has financed everything in the universities except education. Those who teach in the universities – actually hold classes for the majority of those attending – are predominantly adjunct professors who do not even make a living wage. The entire program has been a boondoggle for decades – and needs to be abolished. The FISL money needs to be repaid by the universities themselves.
Why a degree costs so damn much now. Subsidize anything, the price goes up.
If you want an eye-opener, look at the ‘fees’ that are charged over and above ‘tuition’
Somebody correct me if I’m wrong, but didn’t college tuition get even more expensive as soon as the Feds took over student loans? As to liberal indoctrination, they’ve been doing that full throttle for at least the past Forty years!
You are not wrong, API.
You, sir, are correct!
No loan deferment, zero interest or whatever. You borrowed the money, pay it back. I got what is probably still called a “Marching Scholarship” The Army paid for 3 years of college and I owed them 4 years…except I did 20. My son did the same thing.
You know those used cars financed at 31% right outside the gate, E2 and above welcome? Same stuff, different day!
But at least the GI has something to show for his debt. He may not have money for gas and insurance, but he has a bitching car with cool chrome rims.
True. The left/libtard college idjiot just has a worthless “studies” degree and a sh*tload more debt.
They can use that college diploma to mop up the spilled coffee at the Starbucks they currently work at.
“Just bring us your LES.”
(None of those car dealerships exist anymore outside the gates of Camp Pendleton (Oceanside, CA) anymore.
So, in other words, they took out loans for to pursue degrees that would never earn them the money to survive and pay off he debt they agreed to pay. Maybe they should sue the universities for selling them worthless degrees.
That is something that has been seriously suggested before.
And/or a law that would allow a student to sue the university for granting degrees that have no application to any job in the real world.
I’ve worked around some very nice retired tenured professors, and when they have to make a living outside the environment of the university they are stupider than the incoming freshmen.
The best Computer Science professor I ever had made a living programming in the real world as well as teaching it. He was hard, and many students hated him – until about 3 years after they were in the real world of programming
OT: I got a strange notification in my youtube that a blast from the past is back lying via stolen valor. Now he is saying he is a purple heart recipient:
https://www.youtube.com/watch?v=snXA5JhxYXs&t=46s
https://valorguardians.com/blog/?p=35326
Apparently, this dude is rocking lies in 2021 and probably now.
For how long? It could a wonderful bargain if all you have to do is repay what you borrowed and get it done with.
Then… what ever happened to contract law? Why should investors who funded the bad loans have to suffer the burden of no return on their risk?
The interest on federally subsidized or guaranteed loans has been paid to the investors. To the extent that the deadbeats have not complied with the terms of the loan agreements, every taxpayer in America has to take it up the ass.
Sheldon Whitehouse is who should be taking it up the ass.
A few decades ago a college education was a reasonably priced item. Then President clinton decided that a college education should be financed by govt loans. As a result, colleges and universities seeing unlimited fed money at the funding tap started to raise prices. That is why students are no longer able to work a side job and pay for college like I did back in the early 70’s. This is yet another dem debacle.
As they long as they are in school, they are not out in the real world competing for jobs. 35 year old professional students financed by Uncle Sugar make the unemployment numbers look good.
Hey, here’s an idea. The best way to solve the student loan problem in my opinion is to simply make the lenders liable for the debt. Meaning no longer will the federal government guarantee payment.
The biggest promoters of this are not the borrowers, but the college-industrial complex.
Colleges and universities are terrified that people may start to realize that the value of a college education is not what they say it is, and will start applying a cost/benefit analysis.
Which IMO is long overdue. I’m not sure I would have pursued a college education had I not been interested in studying law.
This notion that every bank teller, customer service rep, or TPS-cover-sheet-putter-onner-at Initech needs to be a college graduate is ridiculous. If high schools were teaching basic English and Math it wouldn’t be necessary.
That would interfere with their priorities, such as redefining “personal pronouns”. Hack Stone pities any High School English Teacher who actually wants students to learn proper grammar.
At this point if they pay them back I would be good with it. Just so they don’t get to skate with it.