Odds of 0% forbearance extension? Should I refinance before March?

[legobikes]

I bet you that delay is the only thing Biden can do legally.

If he tries to forgive 10K, supreme court will definitely rule against him since Congress has the power of the purse.

In reality, the more he holds off, the more people are eligible for PSLF and forgiveness, essentially forgiving 10K.

Yeah, how long have the loans been on hold? I've been 'forgiven' that many months x ~$1,200.

I'm grateful, but the joke's on them - I don't vote.

[DynamicHipScrew]

Perfect. I woke up this morning to a 2am email from Laurel Road saying my application had expired. Didn't see the news of continued forbearance until this morning.

[drmka26]

I don't vote.

that's not something to be proud of or brag about

[Andrew StudentLoanAdvice]

I feel like there will be another delay until January 2023. Have to keep borrowers and servicers on their toes.

[legobikes]

that's not something to be proud of or brag about

I'm sure it's not in your worldview [insert smarmy eye rolling emoticon].

[medicoFIRE]

Well now that it’s official, We should all pat ourselves on the back for seeing the writing on the wall and staying strong in the face of low rate refinancing. I had a crazy low rate guaranteed with laurel road. But I think I’ll ride this truck until the wheels fall off then slap a lump sum payment on the loans when the party is over. I’ll refi the rest at whatever rate is available then pay it off within 2 years or so. In a way, the government still does well in my case because they will be getting all their money sooner than expected.

[Tim]

Well now that it’s official, We should all pat ourselves on the back for seeing the writing on the wall and staying strong in the face of low rate refinancing. I had a crazy low rate guaranteed with laurel road. But I think I’ll ride this truck until the wheels fall off then slap a lump sum payment on the loans when the party is over. I’ll refi the rest at whatever rate is available then pay it off within 2 years or so. In a way, the government still does well in my case because they will be getting all their money sooner than expected.

This is sort of like a car insurance claim, except you have your renewal increase for insurance will be an increase in taxes. So far the freeze was at $22b and $16b in the expansion of loan forgiveness. Congrats on your discount, but nothing is free. You will pay back the government later. But only your "fair share". The sad part, it will be interesting to see the demographics that will never be released. Basic cost/benefit. Your insurance rates just went up more than the forgiveness. And you will pay longer than most that don't have any loans. See how that works?

[drmka26]

I feel like there will be another delay until January 2023. Have to keep borrowers and servicers on their toes.

I wonder why they are only doing 3-4 months at a time... kind of makes you think if they are working on a big project which isn't quite ready to execute...so these small extensions are to pacify people until its ready?

[Tim]

"She’s exceptional in so many ways, but like many other Americans her age, 29-year-old Alexandria Ocasio-Cortez has student loans. "
"the Congresswoman is paying off between $15,000 and $50,000 in student loans."
I wonder why the $10k-$50k ranges are so popular?

[akwho]

Tim whats your background that student loan relief is so morally offensive to you? There has been an injustice done in our country with regards to how we are eating our own young's economic opportunities with spiraling college costs. I see this current student loan pause as an attempt to balance the scales of justice and think it is long overdue.

Over 4/5th's of the COVID stimulus went to businesses (who are owned by the wealthiest 1% of Americans). Trillions of dollars straight into the pockets of the richest of the rich. In comparison the student loan pause has cost the government only 5B/mo in forgiven interest. Which you can argue how much of that is a subsidy vs money that was never going to be paid back anyways.

I think this very minor government act of pausing payments/interest on student loan has made more impact on my life than any other government policy in my lifetime. You have to ask yourself why you are okay with business bailouts, bank bailouts, and military largesse, but on money that is forgiven to directly help the youth and future of the country you have chosen this act to direct your ire towards. I think you need to seriously re-examine your priorities.

[Andrew StudentLoanAdvice]

I wonder why they are only doing 3-4 months at a time... kind of makes you think if they are working on a big project which isn't quite ready to execute...so these small extensions are to pacify people until its ready?

I'm very curious as well. They probably could have just pushed this back once. Political reasons? Rolling out something new on September 1st? Combination of both? Not sure.

Definitely helpful for those with federal loans still.

[udrag14]

I wonder why they are only doing 3-4 months at a time... kind of makes you think if they are working on a big project which isn't quite ready to execute...so these small extensions are to pacify people until its ready?

Seems like there is a couple things. They need to transfer loans to new FedLoan, which is taking a while because they have a backlog for PSlF

They have a couple features like automatic employement verification that seems like they going to implement soon.

NPR was saying this morning Biden is looking into if forgiving loans is legally allowed. Supposedly, there is a law that would allow him to forgive them with no issues. This is current being tested before he potentially proceeds with this.

[medicoFIRE]

akwho- Yeah not sure why Tim is so triggered. I think the student loan forbearance is peanuts compared to all the free money they gave to the uber rich with the business stimulus.

Also I will be paying back my loan principal in full as I don’t qualify for PSLF. I don’t hear you arguing against people getting that. Is it right that people with 300-400k salaries get their loans completely forgiven after 10 years (with many of those years minimally paid back as a resident/fellow). I wonder if that bothers you too. I make the same as many people in my position- it just so happens that I work for a private group and not directly employed by the hospital. So at the end of the day, I will be paying back every penny of my principal plus any interest I already paid or will pay. Do I care that some people will make out like bandits with PSLF and periods of no payments under forbearance? No not really. If I was worried about that, I’d have to also worry about the unfair tax system that rewards people with pass thru entities or uber rich with tax shelters etc. Why should I make less after tax than a hedge fund employee that is paid in stock based compensation or a small business owner that uses a pass thru. Ultimately those people make more than me even if we have exactly the same income generation. Don’t sweat the small stuff Tim. Those tax issues I mentioned above are far and away a bigger contributor to our national debt than student loan 0% forbearance.

[BigoteGrande]

I wonder why they are only doing 3-4 months at a time... kind of makes you think if they are working on a big project which isn't quite ready to execute...so these small extensions are to pacify people until its ready?

I think they want to set up for another extension just prior to the midterms +/- some token “forgiveness” just beforehand so it is fresh in people’s minds. Plus if the Dems lose majorities they can then let it expire and blame the new Republican Congress for it.

It will be interesting long term, as someone who is a recent first time home buyer I do wonder how many people recently bought their first home during the student loan pause and if/when they are resumed their budgets will suddenly become super tight.

[Tim]

Tim whats your background that student loan relief is so morally offensive to you? There has been an injustice done in our country with regards to how we are eating our own young's economic opportunities with spiraling college costs. I see this current student loan pause as an attempt to balance the scales of justice and think it is long overdue.

Over 4/5th's of the COVID stimulus went to businesses (who are owned by the wealthiest 1% of Americans). Trillions of dollars straight into the pockets of the richest of the rich. In comparison the student loan pause has cost the government only 5B/mo in forgiven interest. Which you can argue how much of that is a subsidy vs money that was never going to be paid back anyways.

I think this very minor government act of pausing payments/interest on student loan has made more impact on my life than any other government policy in my lifetime. You have to ask yourself why you are okay with business bailouts, bank bailouts, and military largesse, but on money that is forgiven to directly help the youth and future of the country you have chosen this act to direct your ire towards. I think you need to seriously re-examine your priorities.

I completely agree with your sentiments about the system being a shambles. Fundamental difference between a “loan” and a “scholarship” or “grant”. Over 18 years old, the individual is responsible for their choices.
Need based “scholarships” and need based grants” was abused by the “non profit” system of the universities. Every “loan” required each individual to complete an educational terms and conditions.
Extremely onerous. They accepted “easy money” and the terms. Their choice. The “pause” was probably justified.
The pandemic is over. Has nothing to do students and parents and students accepting responsibility which for decisions they made.
Both you and they never asked my advice, I simply choose to ask you to pay back your loan.
Forgiveness makes myself and others financially responsible for someone else’s debts.
Yes, confiscate my or other taxpayers property. Call it a tax and redistribute. No thank you.