4 ms·

I haven’t been paying anything since non-penalized forbearance started. Why pay when interest is 0% and there’s no penalty for not paying? I’ve been using mone

I haven’t been paying anything since non-penalized forbearance started. Why pay when interest is 0% and there’s no penalty for not paying? I’ve been using money that normally goes to loans for other bills. I imagine plenty of other people are buying more stuff with the money so i imagine it does contribute to inflation

tomcam 4y ago
> Why pay when interest is 0% and there’s no penalty for not paying? Just spitballing here… But maybe you should pay because you promised to pay it, the costs were borne by the vast majority of taxpayers who did not take out such loans, and because tradesmen and other perfectly deserving parties do not get access to such easy money?
- mrtranscendence 4y ago
  > the costs were borne by the vast majority of taxpayers who did not take out such loans The sheer amount of interest I have paid, and will pay, on my student loans makes me think the costs will in fact be borne by me.
  - nerdponx 4y ago
    I also pay a great cost when a huge number of other people are stuck paying down debts they probably should never have taken on and/or became bad after the economy shifted and their income potential flattened out. It's not that different from bailing out a bank, except that the banks usually don't deserve the bailout on a moral level, while people with student loans generally do.
- amscanne 4y ago
  An economic strategy should not depend on people behaving irrationally.
- bdowling 4y ago
  If the government decided it wants me to receive loan forbearance at 0% interest, then it’s my civic duty to accept it. After all, I don’t want to be labeled some kind of troublemaker.
- Pigalowda 4y ago
  It might hurt to spit ball a little bit harder here, but just so you know, penalty free forbearance is going to end very soon. And just like that all of us dirty debtors will begin repaying. If the government wanted us to repay during this period it would not have automatically turned our payments off and told us multiple times it turned auto-debit off. What kind of absolute fool would restart payment during a 0% interest penalty free forbearance? That’s having a loan that’s much less than the inflation rate. Why on earth except based on irrational internet principles would an individual restart payments on a loan like that? Very little spit balling went into that original comment..
deleted 4y ago
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scythe 4y ago
This is a potential contributor to inflation, but it wasn't part of the student loan forgiveness bill, and instead supports the proposition that inflation is mostly related to COVID-19 measures, which include this forbearance.

tomcam 4y ago

> Why pay when interest is 0% and there’s no penalty for not paying? Just spitballing here… But maybe you should pay because you promised to pay it, the costs were borne by the vast majority of taxpayers who did not take out such loans, and because tradesmen and other perfectly deserving parties do not get access to such easy money?

mrtranscendence 4y ago
> the costs were borne by the vast majority of taxpayers who did not take out such loans The sheer amount of interest I have paid, and will pay, on my student loans makes me think the costs will in fact be borne by me.
- nerdponx 4y ago
  I also pay a great cost when a huge number of other people are stuck paying down debts they probably should never have taken on and/or became bad after the economy shifted and their income potential flattened out. It's not that different from bailing out a bank, except that the banks usually don't deserve the bailout on a moral level, while people with student loans generally do.
amscanne 4y ago
An economic strategy should not depend on people behaving irrationally.
bdowling 4y ago
If the government decided it wants me to receive loan forbearance at 0% interest, then it’s my civic duty to accept it. After all, I don’t want to be labeled some kind of troublemaker.
Pigalowda 4y ago
It might hurt to spit ball a little bit harder here, but just so you know, penalty free forbearance is going to end very soon. And just like that all of us dirty debtors will begin repaying. If the government wanted us to repay during this period it would not have automatically turned our payments off and told us multiple times it turned auto-debit off. What kind of absolute fool would restart payment during a 0% interest penalty free forbearance? That’s having a loan that’s much less than the inflation rate. Why on earth except based on irrational internet principles would an individual restart payments on a loan like that? Very little spit balling went into that original comment..

deleted 4y ago

[deleted]

scythe 4y ago

This is a potential contributor to inflation, but it wasn't part of the student loan forgiveness bill, and instead supports the proposition that inflation is mostly related to COVID-19 measures, which include this forbearance.