Student-loan companies aren't prepared to restart payments in October, which could be a

[turbinetree]

Full headline:

Student-loan companies aren't prepared to restart payments in October, which could be a 'financial catastrophe' for borrowers, senators say

Ayelet Sheffey
Wed, July 14, 2021, 10:24 AM

Elizabeth Warren asked student-loan servicers last month how they were preparing borrowers to restart payments.

They responded on Tuesday that they need more time, calling the transition into repayment "unprecedented."

Lawmakers and advocates are calling on Biden to extend the payment freeze through next year.

https://www.yahoo.com/news/student-loan-companies-arent-prepared-142434788.html

[Chakaconcarne]

1. Student loan forgiveness in disguise...

Since this went into effect, my understanding is each month counts as a payment.

[benpollard]

2. Student loan payments should be based on income

Reinstating student loan payments in three months is going to be catastrophic for people who have been out of work due to the pandemic — many of whom are deep in debt from housing payments and other living expenses. People who have a choice between paying rent and paying students loans are probably not going to opt for the latter. People have made enormous sacrifices during the pandemic, and now the government is asking them to sacrifice even more.

We bailed out profitable, multi-billion dollar corporations and their CEOs with multi-million dollar yearly salaries, along with the employees who were able to work from home. People in those categories don't build up enormous debt trying to get an education. It's the lower and middle middle class who have to struggle, yet those are the people who rarely get help from the government.

It really does seem like there's a war on the poor in our country — especially when they try to get out of poverty or move up into the middle class. We used to have the philosophy and policies where we'd try to help those who help themselves, or "a hand up — not a hand out." Are those days truly gone? The rich are now paying less in taxes than many working people, and not just a lesser percentage. Now it's actually less in dollar value.

What's the answer? Allow borrowers to make payments based on their income, perhaps 5%. After 10 years, the loan is forgiven. And stop using federal student loans to fund private, for-profit universities who do nothing but rip off their students as well as the taxpayers.