topic Re: Millions of Americans hit with bad credit after missed student loan payments in Credit in the News

Millions of Americans hit with bad credit after missed student loan payments

Gollum — Mon, 26 May 2025 15:03:55 GMT

"Millions of Americans are suddenly facing dramatically lower credit scores from delinquent student loans, making it tougher for them to secure housing, insurance, car loans, even employment..."

https://www.seattletimes.com/nation-world/millions-of-americans-hit-with-bad-credit-after-missed-student-loan-payments/ (May 25, 2025)

Re: Millions of Americans hit with bad credit after missed student loan payments

Jnbmom — Mon, 26 May 2025 15:13:13 GMT

Sorry don't get it, this has been in the new for months you knew you had loans🙄my daughter who started with about 50K for grad school has paid ever month since she graduated and has gotten it down quite a bit . I guess she listened and learned from her mamma about credit

Re: Millions of Americans hit with bad credit after missed student loan payments

Varsity_Lu — Mon, 26 May 2025 19:05:23 GMT

The headline reads "Millions of Americans hit with bad credit after missed student loan payments" The bold part is the most important part. They missed their loan payments. It wasn't sudden, it was a deliberate choice. They could have kept paying, but they chose to put all of their eggs into the debt forgiveness basket. Word to the wise: don't ever trust that politicians will do what they say they will do. And that goes for both sides of the political aisle.

Re: Millions of Americans hit with bad credit after missed student loan payments

USMCOne — Tue, 27 May 2025 09:56:35 GMT

Zero sympathy here. First this just does not happen. You have to miss many payments for them to throw this into default. Ignoring a issue never makes it go away. They Fed around so they got to find out. The end game of this maddness has happened. I think so far 2 million credit scores have dropped over 100 points with more on the way since it takes X amount of time to process.

So you had to basically miss some payments, then you had to be oblivious to the past President's attempts while I disagreed that were offered. Not only could you have gone in to your payment service provider and renogationed the debt they would of spread the existing debt out over another 10-20 years..basically a reset. Not to mention you had zero interest while in school and 6 months of no interest once you gradated or moved on with your life. To boot that debt is at such a low interest rate other then a 0% transfer to a credit card you won't find a lender on Earth that charges so little. Bottom line is people simply assumed your debt would be wiped out and you would have to nothing when in fact to do all of the above required them to interact with the lender to figure out the best path. To make matters worse half of these people seemingly wracked up 100k in debt or more and then dropped out of college. What was the thinking in that case? Why did you ever even attend? Should of went to a 2 year trade school your debt would of been well on its way to being paid off. Oh add this one to boot. Past Administration increased the yearly dollar amount to what is considered poor so you would almost certainly qualified for debt lowering..but you had to do all of this yourself.

As someone who has paid off his student loans you have no idea what I sacrificed to do such. 10 years of tax refunds all went to it. Putting whatever extra I had to pay off my debt. As I rose in pay and positions with my employer I increased it. Know what happened as I approached my late 30s...paid them off entirely. I can show you the credit reports to prove such. That was last year and what a great month that was.

There is no free ride in life at least in the USA. The only thing your owed is a hard time. It's how we weed people out.

Re: Millions of Americans hit with bad credit after missed student loan payments

crystal626 — Tue, 27 May 2025 19:25:31 GMT

@USMCOne wrote:
The only thing your owed is a hard time. It's how we weed people out.

This is an absolutely disgusting statement and that's all I'll say about it.

Re: Millions of Americans hit with bad credit after missed student loan payments

dfwxjer — Tue, 27 May 2025 21:16:42 GMT

@crystal626 wrote:
@USMCOne wrote:
The only thing your owed is a hard time. It's how we weed people out.
This is an absolutely disgusting statement and that's all I'll say about it.

He's right. Are you implying the student loan borrowers should be let off the hook for all the debt they willingly signed up for?

I think it's disgusting that so many young adults are adament they need to go to 4 year universities without a clear plan on how they intend to not only repay the money they borrowed for the degree, but to even use the degree they think they need. Further, the entire country is fully aware that all of the delays and nonsense are now over, and these loans need to be repaid. So many people haven't yet felt the consequences for their actions and it's disgusting they feel entitled to continue avoiding consequences.

Re: Millions of Americans hit with bad credit after missed student loan payments

crystal626 — Wed, 28 May 2025 02:01:20 GMT

@dfwxjer wrote:
@crystal626 wrote:
@USMCOne wrote:
The only thing your owed is a hard time. It's how we weed people out.
This is an absolutely disgusting statement and that's all I'll say about it.
He's right. Are you implying the student loan borrowers should be let off the hook for all the debt they willingly signed up for?

I think it's disgusting that so many young adults are adament they need to go to 4 year universities without a clear plan on how they intend to not only repay the money they borrowed for the degree, but to even use the degree they think they need. Further, the entire country is fully aware that all of the delays and nonsense are now over, and these loans need to be repaid. So many people haven't yet felt the consequences for their actions and it's disgusting they feel entitled to continue avoiding consequences.

I don't have a problem with people being held responsible for their student loans, I do have a problem with the specific quote that I made though as it's clear the application was meant to be far from just for student loans. It's also very easy to sit in judgment when you're privileged enough to be able to afford everything you need without struggling. Things happen in people's lives and we are just making it harder for them to survive.

Re: Millions of Americans hit with bad credit after missed student loan payments

dfwxjer — Wed, 28 May 2025 14:53:41 GMT

@crystal626 wrote:
@dfwxjer wrote:
@crystal626 wrote:
@USMCOne wrote:
The only thing your owed is a hard time. It's how we weed people out.
This is an absolutely disgusting statement and that's all I'll say about it.
He's right. Are you implying the student loan borrowers should be let off the hook for all the debt they willingly signed up for?

I think it's disgusting that so many young adults are adament they need to go to 4 year universities without a clear plan on how they intend to not only repay the money they borrowed for the degree, but to even use the degree they think they need. Further, the entire country is fully aware that all of the delays and nonsense are now over, and these loans need to be repaid. So many people haven't yet felt the consequences for their actions and it's disgusting they feel entitled to continue avoiding consequences.
I don't have a problem with people being held responsible for their student loans, I do have a problem with the specific quote that I made though as it's clear the application was meant to be far from just for student loans. It's also very easy to sit in judgment when you're privileged enough to be able to afford everything you need without struggling. Things happen in people's lives and we are just making it harder for them to survive.

I did struggle through my 20s to manage the minimal student loan debt I incurred. I also went to a community college for 2 years to cash flow my education, and scrimped and saved to buy a house in my early 20s while my friends were having the time of their life on student loan overages.

I chose to face my hard time early on while a lot of people choose to take out massive student loans to get the full college experience. Now they're experiencing the consequences of their past decisions, and their lives get harder the more they choose to ignore the reality of their current situation. My "privilege" was delivering pizza for several years while taking classes and not really having fun while I aggressively paid off the loans I did take, so I don't feel sympathy for those that had fun along the way, and are now having to pay the piper. In almost every example I review, the "thing that happens in peoples' lives" is that they're accustomed to a certain lifestyle that they don't want to interrupt to divert funds to their outstanding student loans.

Re: Millions of Americans hit with bad credit after missed student loan payments

MarkintheHV — Wed, 28 May 2025 17:48:29 GMT

@crystal626 wrote:
It's also very easy to sit in judgment when you're privileged enough to be able to afford everything you need without struggling.

Wow, thats a loaded statement. I wouldn't exactly call it privileged, maybe makes better choices. There are many ways out there to get money together for an education without falling into the student loan trap. I spent 8 years in the Marine Corps, and got out with money for my education and never had to take a loan. I know there are many others like me. Maybe some should try to be creative and find an alternative way to find money for education.

Re: Millions of Americans hit with bad credit after missed student loan payments

USMCOne — Thu, 29 May 2025 09:06:32 GMT

You would be most incorrect on being "entitled". Retired Marine here. Did the invasion of Iraq/Afghan. The entire time was a grind. Name me a organization that does not weed you out. From US Military, Corporate America, blue collar. Marines from physical fitness, to mandatory PME (Professional Military Education), to secondary duties that consume years of your life to being held accountable for every action. (Does not get easier as you get older the same standard applies that a 18 year old has that a 40 year old has in most regards.. There is a 10% that slime their way by but most of them get out or thrown out. Its even more strict today actually. No idea on the other branches.

Today I work in the Aviation industry. Nothing but a grind from mandatory drug tests multiple times a year, working on a 150-160 degree tarmac, to having to ensure my people's paperwork, and job are correct (Quality Assurance guy here). Those that don't cut it we send packing. We shed it seems about 2-3 guys a year for failure to hit compliance standards. I travel alot. When I say travel tends to not be nice places. Africa, crappiest parts of Asia and some remote places in USA. Nothing worth anything is easy. The easy road leads to nothing worth anything in my experience.

Adveristy builds character you either overcome it or are left behind. Rather have a team anyday thats been through the grinder then one thats coddled but just my two cents. I would'nt have it any other way either.

Re: Millions of Americans hit with bad credit after missed student loan payments

crystal626 — Thu, 29 May 2025 19:26:03 GMT

I won't say anything nice so I'm just not going to say anything at all. You all can enjoy your sense of superiority in peace.

Re: Millions of Americans hit with bad credit after missed student loan payments

Varsity_Lu — Thu, 29 May 2025 20:17:40 GMT

@crystal626 wrote:
I won't say anything nice so I'm just not going to say anything at all. You all can enjoy your sense of superiority in peace.

Just want to make sure I understand your point: are you saying that people who either don't have student loans or have paid their student loans are privileged (aka been given something they didn't earn or deserve) and those people who are defaulting on their student loans are victims or somehow oppressed? Is that your position?

Re: Millions of Americans hit with bad credit after missed student loan payments

dfwxjer — Thu, 29 May 2025 19:57:54 GMT

@crystal626 wrote:
I won't say anything nice so I'm just not going to say anything at all. You all can enjoy your sense of superiority in peace.

Yet, you couldn't help yourself with the snide comment. Thankfully the delays and nonsense are over, and these delinquent borrowers are now being held accountable despite people like you.

Re: Millions of Americans hit with bad credit after missed student loan payments

JSUB — Thu, 29 May 2025 21:47:33 GMT

I paid here. I paid there. It wasn't anything I fretted over. I was young, stupid, out doing things I thought were more important with my money. I was an idiot. Now that I'm older and 1,000 times more responsible I look back at those times and shake my head. Two things haunt me. The amount of debt that I blew off was chump change (hindsight is 20/20) and it shouldn't have derailed my financial life for 7 years after I straightened up and finished paying the debt I owed. The other thing I think about all time is what my file would have been like had I taken care of business then. I'm in good shape now, but there's no zealot like a convert.
😁

Re: Millions of Americans hit with bad credit after missed student loan payments

AndySoCal — Fri, 30 May 2025 01:14:49 GMT

Yes adversity builds character. Your response to adversity and the decisions you make in those times will test you. At the end of 2018 the company worked for long story short I was laid off. I found a new job at the end of 2019. Over a year with out employment. Financially I was able to met all my obligations with out being late. I had prior to that time put money away into savings for years just in case something might happen. I sent out over 300 resumes and many interviews. All that said, why did not those people who have those lates did not put their student loans into deferment? Why did not those people when due to loss of job , health issue(s) etc. knew they are not going to be able to pay those loans during that time do something about it at the outset? Or is some of these cases are just money management skills that need to be honed. When you make bad decisions their are consequences. If I quit my job search too soon as could have done I would not have job I have now.

Re: Millions of Americans hit with bad credit after missed student loan payments

Realist — Fri, 30 May 2025 13:25:48 GMT

@Gollum wrote:
"Millions of Americans are suddenly facing dramatically lower credit scores from delinquent student loans, making it tougher for them to secure housing, insurance, car loans, even employment..."

https://www.seattletimes.com/nation-world/millions-of-americans-hit-with-bad-credit-after-missed-student-loan-payments/ (May 25, 2025)

I've mentioned before, ignorance can be expensive. To know finance, to know how the game is played, I stress this should be a requirement, not a choice these days, because choosing not to be financially literate can be very expensive on a household. I can't stress enough how this isn't only a financial issue, but part of it monetary history, and politics, and economics, along with legal. It's not a one sided issue.

Many students of today, may or may not have had a guide through this sitaution. I can see myself through P3 and P4, their friends are for lack of a better word, financial screw ups, and there are many of them. I pray they find their way and soon. Some walk through the school of hard knocks, and hopefully at some point in life they figure it out. Instead, we don't want this. We don't want disadvantage. We want to come out of the gate with 800+ FICO scores, college mostly paid off, and well on our way.

Student loans are loans that are never forgiven/discharged, and never written off, well mostly. Each and every loan type other than student loans, you can wipe away. The children of today, may or may not know this, but judging by the results, I'd say they either don't know and/or don't care, or they got caught up into a situation that prevents them from paying. As far as these student loans, did anyone not think they would come back online to bite them?

I do feel for these individuals, but that is sometimes the cost.

Re: Millions of Americans hit with bad credit after missed student loan payments

MarkintheHV — Sat, 31 May 2025 09:15:59 GMT

@dfwxjer wrote:
I think it's disgusting that so many young adults are adament they need to go to 4 year universities without a clear plan on how they intend to not only repay the money they borrowed for the degree, but to even use the degree they think they need.

Agreed, I make a six figure income from my itty bitty associates degree. Make more than some with PHDs. Never saw the need to go to a 4 year university.

Re: Millions of Americans hit with bad credit after missed student loan payments

AzCreditGuy — Sun, 01 Jun 2025 00:35:28 GMT

@USMCOne wrote:
Zero sympathy here. First this just does not happen. You have to miss many payments for them to throw this into default. Ignoring a issue never makes it go away. They Fed around so they got to find out. The end game of this maddness has happened. I think so far 2 million credit scores have dropped over 100 points with more on the way since it takes X amount of time to process.

So you had to basically miss some payments, then you had to be oblivious to the past President's attempts while I disagreed that were offered. Not only could you have gone in to your payment service provider and renogationed the debt they would of spread the existing debt out over another 10-20 years..basically a reset. Not to mention you had zero interest while in school and 6 months of no interest once you gradated or moved on with your life. To boot that debt is at such a low interest rate other then a 0% transfer to a credit card you won't find a lender on Earth that charges so little. Bottom line is people simply assumed your debt would be wiped out and you would have to nothing when in fact to do all of the above required them to interact with the lender to figure out the best path. To make matters worse half of these people seemingly wracked up 100k in debt or more and then dropped out of college. What was the thinking in that case? Why did you ever even attend? Should of went to a 2 year trade school your debt would of been well on its way to being paid off. Oh add this one to boot. Past Administration increased the yearly dollar amount to what is considered poor so you would almost certainly qualified for debt lowering..but you had to do all of this yourself.

As someone who has paid off his student loans you have no idea what I sacrificed to do such. 10 years of tax refunds all went to it. Putting whatever extra I had to pay off my debt. As I rose in pay and positions with my employer I increased it. Know what happened as I approached my late 30s...paid them off entirely. I can show you the credit reports to prove such. That was last year and what a great month that was.

There is no free ride in life at least in the USA. The only thing your owed is a hard time. It's how we weed people out.

Do you think banks need to be weeded out for being greedy as well and being bailed out by you the taxpayer? Or was it the dumb consumers who got robo loans? I mean good for you for paying off your loans and not being a leech to society but as you know, your taxes will go to other leeches.

Re: Millions of Americans hit with bad credit after missed student loan payments

FicoMike0 — Sun, 01 Jun 2025 00:57:13 GMT

@Varsity_Lu

I see the OSU card in your sig. You know what I paid for my first quarter there? $190. I did it pay as you go. Classes in morning, worked afternoons. Worked two jobs off quarters. Of course, back in the 70s, you could get a job by calling a wrong number.

Re: Millions of Americans hit with bad credit after missed student loan payments

Gregory1776 — Sun, 01 Jun 2025 02:00:54 GMT

@Varsity_Lu wrote:
The headline reads "Millions of Americans hit with bad credit after missed student loan payments" The bold part is the most important part. They missed their loan payments. It wasn't sudden, it was a deliberate choice. They could have kept paying, but they chose to put all of their eggs into the debt forgiveness basket. Word to the wise: don't ever trust that politicians will do what they say they will do. And that goes for both sides of the political aisle.

if thats the case I do hope they learn their lesson, and im not paying for their hopes and dreams. idiots.