Current Events > Thank god biden extended student loan pause til May

(+) Yeah! (+)

This student loan pause is the silver lining on the pandemic for me. Thats almost 2 years of no payments and no interest.

You never went to school.

just keep pausing it for like, another 50 years and we're golden, Joe.

Same. Student loan debt has crippled me financially the last 8 years since graduating.

They said January was the final, final, final time though. Guess that embarrassingly redacted report that came out forced their hand.

Hope you've been paying it down since the interest was also paused.

What is stopping you from paying now?

OrangeShirt posted...

What is stopping you from paying now?

I literally don't want to pay until they unfreeze, incase I wake up and they decide to actually pay any of it. No point doing it myself if Warren actually gets her way, even if 10% of what she wants.

When the interest unfreezes, I will dump all the money I have been putting to the side at once.

Look at Jeff bezos over here profiting off of 78 million Covid deaths

OrangeShirt posted...

What is stopping you from paying now?

Why would you pay down something with an effective 0% interest rate? You're better off setting that money aside to collect even low amounts of interest and then dumping the money in when it unfreezes. Lots of companies that took out the PPP loan didn't pay back and even had it forgiven.

Assuming that none of it gets forgiven by the government, wouldnt it be better to whittle down the debt now while theres no interest? Then once the debt is unfrozen theres less of it and less interest

OrangeShirt posted...

What is stopping you from paying now?

I'm living somewhat tight on budget. By next summer I'll have a significantly better paying job so itll be much easier to manage finances.

Kloe_Rinz posted...

Assuming that none of it gets forgiven by the government, wouldnt it be better to whittle down the debt now while theres no interest? Then once the debt is unfrozen theres less of it and less interest

While this is true, one could arguably invest the savings of the monthly loan payment and over the two years maybe get 5-10% of growth that can then be dumped on it right before loans actually do resume for real. That way if they do toy with the idea of some degree of loan forgiveness in the near future, you aren't paying it off before you could benefit from something like that.