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It sure hurts me. My student loans are pegged to the federal interest rates. I went from like 4% to as of today nearly 10%

irrational 4y ago
Same with my HELOC.
bushbaba 4y ago
Something to note is that Federal student loans are paused. I've wondered if the government can resume requiring payments without causing a massive recession.
- UncleOxidant 4y ago
  Payments are paused, but does interest still accrue?
  - ModernMech 4y ago
    No.
Forgeties79 4y ago
If you’ve been setting aside what you would have paid while the interest was frozen, you could have a decent little pile that should insulate you for a while. I have friends who said the pause is approaching a point where it’s more valuable to them than the cancellation at this point. I’m not saying that’s definitely the case for you, and I’m guessing you’ve already thought about this, but figured I would throw it out there. Sorry you have to stress about this.
- thwayunion 4y ago
  > I have friends who said the pause is approaching a point where it’s more valuable to them than the cancellation at this point. How is this possible?
  - DiggyJohnson 4y ago
    If the amount of accrued interest that's been avoided by the pause is greater than 10k, I presume.
    - thwayunion 4y ago
      I get that, of course, but the only paused/forgivable loans were subsidized, which have known and non-predatory interest rates... so that means they accrued hundreds of thousands in student loan debt... my question remains "how?!" I always figured the "x00K in student debt" stories were people who took out a lot of non-subsidized loans and let interest accrue for years.
      - mrep 4y ago
        Can you get those loans for grad school/dental school cause my girlfriends dental schooling was over 100k a year so easy peasy if so.
  - teg4n_ 4y ago
    I guess if it’s simply paused forever instead of forgiven you don’t have to pay tax on the forgiven amount?
  - dghlsakjg 4y ago
    Student loan forgiveness is limited to $10k. Turning off the interest for a few years has no upper bound as to how much it can benefit someone. Someone with large principal amounts can easily see more than $10k of benefit.
  - bombcar 4y ago
    Anyone who was on a repayment plan that cancelled the loans after a certain period (PSLF: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service https://studentaid.gov/manage-loans/forgiveness-cancellation... ) has had the clock ticking even as they've paid nothing during that time; each payment "skipped" is money in the bank. And that doesn't count the people who have paid no interest during the period, the interest amount is gone forever for that time; which could quickly overstep the $10k "forgiveness" that is being talked about.

irrational 4y ago

Same with my HELOC.

bushbaba 4y ago

Something to note is that Federal student loans are paused. I've wondered if the government can resume requiring payments without causing a massive recession.

UncleOxidant 4y ago
Payments are paused, but does interest still accrue?
- ModernMech 4y ago
  No.

Forgeties79 4y ago

If you’ve been setting aside what you would have paid while the interest was frozen, you could have a decent little pile that should insulate you for a while. I have friends who said the pause is approaching a point where it’s more valuable to them than the cancellation at this point. I’m not saying that’s definitely the case for you, and I’m guessing you’ve already thought about this, but figured I would throw it out there. Sorry you have to stress about this.

thwayunion 4y ago
> I have friends who said the pause is approaching a point where it’s more valuable to them than the cancellation at this point. How is this possible?
- DiggyJohnson 4y ago
  If the amount of accrued interest that's been avoided by the pause is greater than 10k, I presume.
  - thwayunion 4y ago
    I get that, of course, but the only paused/forgivable loans were subsidized, which have known and non-predatory interest rates... so that means they accrued hundreds of thousands in student loan debt... my question remains "how?!" I always figured the "x00K in student debt" stories were people who took out a lot of non-subsidized loans and let interest accrue for years.
    - mrep 4y ago
      Can you get those loans for grad school/dental school cause my girlfriends dental schooling was over 100k a year so easy peasy if so.
- teg4n_ 4y ago
  I guess if it’s simply paused forever instead of forgiven you don’t have to pay tax on the forgiven amount?
- dghlsakjg 4y ago
  Student loan forgiveness is limited to $10k. Turning off the interest for a few years has no upper bound as to how much it can benefit someone. Someone with large principal amounts can easily see more than $10k of benefit.
- bombcar 4y ago
  Anyone who was on a repayment plan that cancelled the loans after a certain period (PSLF: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service https://studentaid.gov/manage-loans/forgiveness-cancellation... ) has had the clock ticking even as they've paid nothing during that time; each payment "skipped" is money in the bank. And that doesn't count the people who have paid no interest during the period, the interest amount is gone forever for that time; which could quickly overstep the $10k "forgiveness" that is being talked about.