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It's not as if many people have $10k-$20k sitting around they could put toward a student loan but have decided not to because of the announced policy. That is
by ipaddr 4y ago
It's not as if many people have $10k-$20k sitting around they could put toward a student loan but have decided not to because of the announced policy.
That is exactly what is happening. Sitting around could be defined as parents with $10,000 ready to help but deciding to let general tax payers pay up.
- ModernMech 4y agoIf that were the case, there wouldn't be such a clamoring for debt relief. Fact is that student loan calculations already take into account the assets of parents. Schools routinely factor in the help they could give into the total cost, and offer a package of grants and loans to make up the difference. If parents are withholding support it likely means the student can't meet tuition with their aid package.
- prieslo 4y agoPayments have also been paused for 2 years with no interest. I can say personally I have left the money “sitting around”, because there is literally no reason to pay the loans when you can just invest (or otherwise let inflation devalue the debt) and pay later
- maerF0x0 4y agoit becomes a marginally rational choice to defer whatever you're able to though. even if it's only $500, that's $500 more in your pocket.