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A GOP proposal could snatch your student loan payment right from your paycheck
- Thread starter nightstalker962
- Start date
I feel like payment should always be voluntary, but I have even more reason to be against it. This isn't part of the agreement people made when they took out student loans. It might have affected their decision if they knew this was possible. If they have to have this, they should only apply it to new loans moving forward.
Difference being that the repayment is likely on a sliding scale in the UK, also the loan is likely to be entirely or mostly government backed. There are also likely programs to defer payment if it causes undue stress. Meanwhile in the USA...the loans are mostly privately backed, and knowing the GOP, they are going to want a full minimum payment instead of adjusting it based on income.
Although I am with you in principle, the ship sailed on that long ago.
Companies can and do (in most states) ask to know your credit history as part of the background check when hiring you. That is more intrusive than what is necessary to support this proposal.
And as for disclosing your outside income, the same issue already exists for calculating income tax withholding.
what is your average loan total after graduating with a 4 year degree? and is it a proper loan, with interest, etc?
The basic premise of this plan is that the minimum payment is 10% of your after-tax salary. If you make $0, your minimum payment is $0.
Can't stand Lamar Alexander but... If there is one of two mistakes I made when going to school it was not paying as I went.
Other states need a college network like NY has. College is so cheap here that one can pay their loans off easy in 5 years.
The average for 4 years in the UK now would probably be around £50K, but the repayment is more akin to a tax - you pay 9% only on what your earn above a £25k threshold. The debt is also wiped out after 25 years, so most people won't even repay it all back (including interest) unless they start a high paying job immediately after graduating.
all the while slashing resources for professors and adjuncts. It's gross how higher-ed enriches itself while absolutely kneecapping itself at the most base levels.
Mine is close to $1,500 a month as well and I earn a little less than $4,000 monthly after taxes. So nearly 40% of my salary goes to student loans, and will go to student loans for the next 20+ years. And that's for a public, four-year college.
Pre taxes, my wife and I make about $20k. I'm obviously paying the loans off quicker but that's the bill amount
Think a little about the social safety net you have in the UK vs the US. Maybe also factor in the cost of education here vs the UK. Lastly, what do you suppose the average interest rate is on student loans in the US vs the UK given that private companies are at it here?
Thank all the states and the anti-education sentiment in this country that have slashed state support of universities and passed the expenses to students/parents.
Mine was around $1,300 per month for a while when our household income was around 3k a per month.
After close to 10 years of that, I finally got some of the loans paid off, and we increased our household income to closer to $3,750 per month, and our monthly amount that is due is $500 now. But I'm putting every extra cent we have into the loans to try to get the rest paid off by the end of next year instead of 11 years from now which would cost us nearly 20k more in interest if we just paid the min :/
As for the topic of this thread. I'm not fundamentally opposed to the idea of taking student loans from paychecks, but it would have to be after a complete overhaul of the student loan system (well and higher education in general). In the current system the loans are designed to turn the students into sources of income for the companies for 20+ years. Many such students don't get jobs that allow them to do much more than keep a roof over their head and feed themselves, and if they are lucky pay an amount off their loans that actually make their totals decrease. Most get stuck in a loop of paying the min and actually having their debt raise because they have so much debt that the interest outweighs their payment even if they are paying hundreds a month. An emergency happens such as a large car repair, and right now they could call and stall the bill, just making the path to paying it off longer, but allowing them to keep the money to deal with stuff. You take that out of the wages they might have to take other loans out to pay for bills with even worse rates trapping them even more.
Honestly if it was pre-tax I could fuck with that. I'm generally on track with my monthly loan payments and a little extra always helps.
That being said - this obviously isn't a solution to any of the problems with the current status quo and adds a bunch more new ones into the mix. I doubt it's a serious proposal, sounds more like lip service.
That being said - this obviously isn't a solution to any of the problems with the current status quo and adds a bunch more new ones into the mix. I doubt it's a serious proposal, sounds more like lip service.
Step 1: Loan forgiveness
Step 2: Reign in the absurd cost of higher education, specifically administration should be paid way less, same with athletics (and I love me some college ball)
Step 3: Cut out the non-major classes. Students don't need to retake English and math if it's not part of their major
Step 2: Reign in the absurd cost of higher education, specifically administration should be paid way less, same with athletics (and I love me some college ball)
Step 3: Cut out the non-major classes. Students don't need to retake English and math if it's not part of their major
Honestly I'd say the costs of education aren't all that incomparable. For 3 years with maintainence you'll have a student loan debt of £36,000 in the UK, that's not having any sorts of Masters or a 4-5 year course. You have a payment threshold of £25,000 you have to be earning before you pay it back which is the sole silver lining to it.
the most I see in the article is
which easily could mean it's just a flat percent of the paycheck regardless of how much you make for this proposed rule.
You would have to make the min like 50k before you start paying to really even start to work with the current american set up (even then in come cities in america 50k a year isn't even enough to live there) but you also have this
aka they want to make it so they decide how people with loans spend their money, so that they can make sure the companies that give out loans get money even if you really don't have it.
It screams of the lines about avocado toast and iphones and how people just shouldn't buy them if they want health insurance and what not.
I would expect at best they would set a super low limit (like 5k per year) and the end result would be that while yes there are some people that are making decent money that could be spending better and pay off the loans which would be inconvenienced but survive such a thing. It would destroy anyone near the poverty line that went to school and dropped out, or just can't find a job in their field. But they don't care, they just want to make sure that the loan companies get more money.
I don't see what the play is here. If people default on their loans and you garnish their paychecks, it's going to have a negative feedback cycle to everything else in the economy as they're going to have less money to spend on rent/transportation/personal items.
The lesson to be learned here is to not give out predatory loans and to allow (easier) bankruptcy for this kind of debt so people can learn to do better and start over.
No it's not. There is a movement here to not hold students accountable for their loans.
I have a morbid curiosity to see what would happen to the GOP if this actually passed. We joke about guillotines but I can't help but think of...this bloomberg article from earlier in the year and this quote that nonchalantly mentioned shit hitting the fan:
Its fascinating to see how out of touch they are, and its very telling that many of the proponents of policies like these tend to be the ones not suffering. (Boomers, troll 4channers living with parents)
Its fascinating to see how out of touch they are, and its very telling that many of the proponents of policies like these tend to be the ones not suffering. (Boomers, troll 4channers living with parents)
I think there's a good reason student loans aren't eligible for bankruptcy. You could basically go to medical school, default on your loans during the time you're making very little, become a doctor and never have to pay it back. Not to mention loans are largely given to students with no credit history and if they were easier to default on without paying, who would foot the bill?
I accepted long ago I'm never getting my debt paid off in my lifetime, now I'm just hoping my lifetime isn't that much longer
My buddies are poor as shit and they owe student loans. They don't have steady work. Guess what , all of their Gst cheque's gone. If you get money back from income tax gone. The government takes it all. This is in Ontario, Canada. If they worked at the same work place longer than a few months, the government would garnish 20% of their pay cheque. It's harder for the government to garnish working wages. You have to find out where the person works. Get judge to sign of judgment. If it's a shitty job most people will quit job and find new job. The government has to do the whole garnish thing over again. But if government owes you money they take that no problem.
Out of touch, i don't think so. They just dont give a damn. I think they see the writing on the wall and are trying to cash out in any way, shape, or form they can.
I truthfully don't know how the GOP would lean on this. Pre-tax = less taxes/revenue for the government, the GOP seems bent on destroying government services.
