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Paying your student loans first

Established Contributor

Paying your student loans first

I'm not sure how I feel about this one there is a proposal to have student loan payments taken out of a person's paycheck like taxes.

 

 

https://www.marketwatch.com/story/prominent-republican-wants-to-take-student-loan-payments-out-of-yo...

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Message 1 of 7
6 REPLIES
Frequent Contributor

Re: Paying your student loans first

Not cool.
Also, it doesn't address the real problem.
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Message 2 of 7
Member

Re: Paying your student loans first

I don't see it bad as an option (Let's be honest, we have not few people that waste money and if you take the money out of their paycheck they would adjust cutting frivolous spending) but if it becomes a must then we would have a problem, as you said, it doesn't attack the problem but it would help some people paying and would reduce the impact on credit scores.
Message 3 of 7
Frequent Contributor

Re: Paying your student loans first

If it were pre-tax dollars, then I may be willing to sign up.




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Message 4 of 7
Established Contributor

Re: Paying your student loans first

I had mixed feelings on the overall concept. It's going to come out of our paycheck either way, except the only people that it could affect most are those who don't pay.
But the reality sets in...the government still defaults to that standard repayment plan when you get out of school. That same plan that sends a large portion of students into debt unnecessarily because they could have been on an IDR plan if they had only known their payments had to be so high. So no, passing the buck to the youth without changing the existing problems is not okay.
Additionaly, when students default it's going to get taken out of their paycheck eventually anyway. They already have this power in those circumstances, no extra court time needed. They don't need extra access to our paychecks. And anyone who knows servicers is aware they definitely do not need this field day to make "accidental" mistakes that they will be reluctant to fix. In the meanwhile, people's lives will be ruined. It's one thing to have an error in what you owe, and a completely different thing to have an error in the money people need to live on. The same way they think it's cute to take away people's professional licenses until they pay what is owed (with what job??).
These politicians need to grow up and face the real issues in the looming student loan debt or the generations that owe are just going to continue to be haunted by it. They should be ashamed of themselves.



Message 5 of 7
Established Contributor

Re: Paying your student loans first


@Workin4abetterFICO wrote:

If it were pre-tax dollars, then I may be willing to sign up.


I might go in this case, but I highly doubt anything like this would be part of it. Most people can't even take advantage of taking the interest off the top because of all the stipulations. I seriously doubt they would consider allowing you to take principal and interest off the top

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Current 02/13/19:


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Message 6 of 7
Established Contributor

Re: Paying your student loans first

"Most people can't even take advantage of taking the interest off the top because of all the stipulations. I seriously doubt they would consider allowing you to take principal and interest off the top"
What do you mean the interest off the top?



Message 7 of 7