“It’s really, really scary. We are going to be living on the brink,” one borrower said.

Tens of millions of Americans with federal student loan debt have had a financial reprieve for more than three years as a pandemic-era repayment pause was extended multiple times since March 2020.

Now many face a new reality on Sunday, Oct. 1, when they are due to resume making payments, all while struggling with nagging inflation and rising interest rates.

More than 45 million borrowers together owe approximately $1.6 trillion, according to President Joe Biden’s administration, which tried to cancel up to $20,000 in student debt for tens of millions of eligible borrowers, only to have the Supreme Court kill the program in June.

  • Sylver@lemmy.worldEnglish
    66·
    1 year ago

    Almost everyone I talk to about this has the same idea: “I’m not gonna pay that, they proved they don’t need the money, it’s inflated anyways etc”

    I agree with them

    • AncientBlueberry@lemmy.world
      543·
      1 year ago

      The situation is shameful, but it’s wishful thinking that such actions will end in any other way than interest accruing, making the inevitable repayment even more expensive and difficult. The system is set up so you can’t run away from it.

      • guacupado@lemmy.world
        7·
        1 year ago

        Yeah I don’t think these people saying they won’t don’t realize that this can end up at wage garnishment.

        • Bitrot@lemmy.sdf.orgEnglish
          5·
          1 year ago

          Up to 15-25% of disposable pay depending on the loan (federal or private).

          Student loans are pretty much the worst type of loan you can have. They can garnish your wages, they can sue you, they can take any tax refunds and social security benefits you might eventually be paid and there isn’t really a way to make them disappear.

    • Bitrot@lemmy.sdf.orgEnglish
      241·
      1 year ago

      The inability to get out of them and enforcement mechanisms make “not paying” a bad plan if you’re staying in the country. IBR and riding it out until it’s forgiven seems better, even though it’s shitty.