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GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May

pizzadude
Moderator

GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May

The GAO said Education Department officials "expect it will still be a challenge to motivate borrowers to resume repaying their loans after over two years of payment inactivity."

 

"In addition, after months of informing borrowers that payments would resume in February 2022, Education's outreach efforts must now shift towards preparing borrowers for the new May 2, 2022, start date after the most recent extension of loan relief," the GAO added

 

https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2

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Message 1 of 10
9 REPLIES 9
1GaDawg85
Valued Contributor

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May


@pizzadude wrote:

The GAO said Education Department officials "expect it will still be a challenge to motivate borrowers to resume repaying their loans after over two years of payment inactivity."

 

"In addition, after months of informing borrowers that payments would resume in February 2022, Education's outreach efforts must now shift towards preparing borrowers for the new May 2, 2022, start date after the most recent extension of loan relief," the GAO added

 

https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2


I mean, they have been paused all this time. Why hasn't Congress worked on forgiving the debts once and for all? 


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Message 2 of 10
dragontears
Senior Contributor

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May


@1GaDawg85 wrote:

@pizzadude wrote:

The GAO said Education Department officials "expect it will still be a challenge to motivate borrowers to resume repaying their loans after over two years of payment inactivity."

 

"In addition, after months of informing borrowers that payments would resume in February 2022, Education's outreach efforts must now shift towards preparing borrowers for the new May 2, 2022, start date after the most recent extension of loan relief," the GAO added

 

https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2


I mean, they have been paused all this time. Why hasn't Congress worked on forgiving the debts once and for all? 


Because people actually borrowed the money knowing that they have to pay it back?

Message 3 of 10
1GaDawg85
Valued Contributor

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May


@dragontears wrote:

@1GaDawg85 wrote:

@pizzadude wrote:

The GAO said Education Department officials "expect it will still be a challenge to motivate borrowers to resume repaying their loans after over two years of payment inactivity."

 

"In addition, after months of informing borrowers that payments would resume in February 2022, Education's outreach efforts must now shift towards preparing borrowers for the new May 2, 2022, start date after the most recent extension of loan relief," the GAO added

 

https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2


I mean, they have been paused all this time. Why hasn't Congress worked on forgiving the debts once and for all? 


Because people actually borrowed the money knowing that they have to pay it back?


Yes, that is correct. But there have been plenty of predatory lending practices that have gone on for too long. Why should the first thing a student is offered when attending college be a student loan? As someone that graduated with no debt (thanks to the GI Bill), several of my friends are not as lucky (although serving isn't luck). They have so much debt that they can't afford to buy a house, start a family, etc. 

 

There has to be a better way to attain higher education without the massive burden of college costs. 


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Message 4 of 10
Dinosaur
Moderator Emeritus

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May


@1GaDawg85 wrote:

@dragontears wrote:

@1GaDawg85 wrote:

@pizzadude wrote:

The GAO said Education Department officials "expect it will still be a challenge to motivate borrowers to resume repaying their loans after over two years of payment inactivity."

 

"In addition, after months of informing borrowers that payments would resume in February 2022, Education's outreach efforts must now shift towards preparing borrowers for the new May 2, 2022, start date after the most recent extension of loan relief," the GAO added

 

https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2


I mean, they have been paused all this time. Why hasn't Congress worked on forgiving the debts once and for all? 


Because people actually borrowed the money knowing that they have to pay it back?


Yes, that is correct. But there have been plenty of predatory lending practices that have gone on for too long. Why should the first thing a student is offered when attending college be a student loan? As someone that graduated with no debt (thanks to the GI Bill), several of my friends are not as lucky (although serving isn't luck). They have so much debt that they can't afford to buy a house, start a family, etc. 

 

There has to be a better way to attain higher education without the massive burden of college costs. 


Feel fortunate as I was able to graduate using the GI Bill and working twenty hours a week for the college. They were flexible with my academic schedule and I helped them out when employees were gone and unable to work. Just enough money to not have debt. However, the price was serving in war zones and living half way around the world. Certainly no free ride. Smiley Surprised

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Message 5 of 10
1GaDawg85
Valued Contributor

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May


@Dinosaur wrote:

@1GaDawg85 wrote:

@dragontears wrote:

@1GaDawg85 wrote:

@pizzadude wrote:

The GAO said Education Department officials "expect it will still be a challenge to motivate borrowers to resume repaying their loans after over two years of payment inactivity."

 

"In addition, after months of informing borrowers that payments would resume in February 2022, Education's outreach efforts must now shift towards preparing borrowers for the new May 2, 2022, start date after the most recent extension of loan relief," the GAO added

 

https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2


I mean, they have been paused all this time. Why hasn't Congress worked on forgiving the debts once and for all? 


Because people actually borrowed the money knowing that they have to pay it back?


Yes, that is correct. But there have been plenty of predatory lending practices that have gone on for too long. Why should the first thing a student is offered when attending college be a student loan? As someone that graduated with no debt (thanks to the GI Bill), several of my friends are not as lucky (although serving isn't luck). They have so much debt that they can't afford to buy a house, start a family, etc. 

 

There has to be a better way to attain higher education without the massive burden of college costs. 


Feel fortunate as I was able to graduate using the GI Bill and working twenty hours a week for the college. They were flexible with my academic schedule and I helped them out when employees were gone and unable to work. Just enough money to not have debt. However, the price was serving in war zones and living half way around the world. Certainly no free ride. Smiley Surprised


Iraq was no free ride for sure! I was able to do Work-Study through the VA which helped me 


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Message 6 of 10
Lou-natic
New Contributor

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May

If the Feds "forgive" all this student loan debt that's when you know we have jumped the shark. If you take a loan you have to repay it. EVERYBODY KNOWS THIS! Why should I repay it for you? The Government already takes too much money from people's paychecks as it is.

 

As a matter of fact I think the Government should take all your tax refund money (if you get any) until it's repaid. Every penny. If you die before it's paid, there is your "forgiveness".

 

Sorry not sorry.

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Message 7 of 10
calyx
Super Contributor

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May


@Lou-natic wrote:

If the Feds "forgive" all this student loan debt that's when you know we have jumped the shark. If you take a loan you have to repay it. EVERYBODY KNOWS THIS! Why should I repay it for you? The Government already takes too much money from people's paychecks as it is.

 

As a matter of fact I think the Government should take all your tax refund money (if you get any) until it's repaid. Every penny. If you die before it's paid, there is your "forgiveness".

 

Sorry not sorry.


On the other hand, the gov't protects predatory and unscrupulous collectors who have gone out of their way to game the system while being protected from penalties by the government.

So yes, I do think they should have some form of relief/forgiveness.   I've paid 56k into my 20k loan.    If I had continued listening to servicers I would've ended up paying a lot more.    The system is broken.  I don't think there should be 100% forgiveness (and definitely think it should be sliding), but fixing a broken system isn't "jumping the shark"

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Message 8 of 10
Dinosaur
Moderator Emeritus

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May


@1GaDawg85 wrote:

@Dinosaur wrote:

@1GaDawg85 wrote:

@dragontears wrote:

@1GaDawg85 wrote:

@pizzadude wrote:

The GAO said Education Department officials "expect it will still be a challenge to motivate borrowers to resume repaying their loans after over two years of payment inactivity."

 

"In addition, after months of informing borrowers that payments would resume in February 2022, Education's outreach efforts must now shift towards preparing borrowers for the new May 2, 2022, start date after the most recent extension of loan relief," the GAO added

 

https://www.businessinsider.com/challenge-to-motivate-student-loan-debt-borrowers-in-may-gao-2022-2


I mean, they have been paused all this time. Why hasn't Congress worked on forgiving the debts once and for all? 


Because people actually borrowed the money knowing that they have to pay it back?


Yes, that is correct. But there have been plenty of predatory lending practices that have gone on for too long. Why should the first thing a student is offered when attending college be a student loan? As someone that graduated with no debt (thanks to the GI Bill), several of my friends are not as lucky (although serving isn't luck). They have so much debt that they can't afford to buy a house, start a family, etc. 

 

There has to be a better way to attain higher education without the massive burden of college costs. 


Feel fortunate as I was able to graduate using the GI Bill and working twenty hours a week for the college. They were flexible with my academic schedule and I helped them out when employees were gone and unable to work. Just enough money to not have debt. However, the price was serving in war zones and living half way around the world. Certainly no free ride. Smiley Surprised


Iraq was no free ride for sure! I was able to do Work-Study through the VA which helped me 


Learned something ... did not know there is an option for Work-Study through the VA. Did get to do Work-Study through the college back in time but, it was the college's money with no connection to the VA. The GI Bill paid a certain amount each month where my credit load was evaluated (part-time vs full time) which affected the payment amount. Great programs for sure!

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Message 9 of 10
Revelate
Moderator Emeritus

Re: GAO: It will be 'a challenge to motivate' student-loan borrowers to restart payments in May

I'm not a fan of forgiveness, but I don't think lenders should get special treatment for student loans either.  There should be no "undue hardship" clause at all.  

 

One of the reasons college has gotten so absurdly expensive is they're simply charging what the market will bear... but explicitly, that's tied to how much in loans people are able to get.  It's something of a foolish exercise because there's little risk involved in issuing a student loan: even in a BK the claimant has to basically sue the lender, and of course the lender will contest and it's not clear at all what metric needs to be hit to get it waived.

 

If there was the usual risk analysis done for student loans that we have for credit cards and others, there would be less student loans available, and while it'd suck for a few years for students, we'd rip the damned bandaid off and get it to a healthier normal.  I'd be fine with my tax money going to softening the landing for the students caught in the middle while the market corrects and anyone that's truly underwater from student loans, CH13 and get on that 5 year payment plan to get rid of it.

 




        
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