4 ms·
Perhaps the burden on the loan holder is more than financial. Credit aside, paying $5 per month on student loans of say $80k isn't much better than paying $0.
by tedmiston 9y ago
Perhaps the burden on the loan holder is more than financial. Credit aside, paying $5 per month on student loans of say $80k isn't much better than paying $0. You still won't pay them off in your lifetime.
Edit: I missed this part:
> The consumer bureau estimates that the vast majority of borrowers who rehabilitate their defaulted debt with $5 monthly payments are eligible for $0 payments after they exit default, under an income-based repayment plan. But about 90 percent of debtors who rehabilitated their debt failed to enroll in these programs, according to the CFPB’s analysis.
In that case $5 * N months is an inexpensive temporary peace of mind even if the looming debt remains.
- Spooky23 9y agoMy friend had this issue when health issues required her to drop out senior year. No degree, but saddling debt. The deals you make are always temporary and often misunderstood. If 90% of borrowers aren't doing something, there's a reason. The best thing that she was able to do was to declare chapter 13 bankruptcy, which shut down the collections bullshit and trickery and let her pay debt down. In her case, the student loans picked up a prorata share of her payment which put a dent in the balance.