Student Loans

Recently, the Department found that MOHELA failed to meet its basic obligation by failing to send billing statements on time to 2.5 million borrowers – some within only seven days of their payment date - and over 800,000 borrowers being delinquent on their loans as a result. In response to identifying this error, the Department is withholding $7.2 million in payment to MOHELA for October, and has directed MOHELA to place all affected borrowers in forbearance until the issue is resolved. Any months these borrowers are in forbearance will count as credit towards loan forgiveness through Public Service Loan Forgiveness and Income Driven Repayment plans.

Such a terrible piece.

Making a generalized statement and interviewing one college student who recently graduated.

While I wouldn't dismiss new grads in these discussions, as the inflated cost of tuition impacts them, it's the existing loan holders that have been making an effort to pay down debt and end up with a balance 2x+ higher due to interest that we need to address.

Distracting people with free money and more payment options is a ruse. If I have a lower payment, over time, it just allows the balance to grow even more.

Such a mess, and overly politicized.

The biggest issue I have is how the interest rates have made it incredibly difficult for people just beginning their careers to get ahead of the growth curve that a low paying job and high interest debt creates.

How did we even get here? Talking with my Dad and my wife, we've seen such a massive spike in both tuition and interest over the last 20 years.

Debt should be paid, and loans should have interest, but, they should be reasonable. This is a profit machine that preys on the young, uneducated, and inexperienced.