December 20 – Since President Joe Biden’s executive order on student loan relief fell through, apparently people just aren’t paying.
Almost 40 percent of the people who had bills come due in October just haven’t paid them, according to the Department of Education – and that’s about nine million people.
In August, Biden announced a federal student loan forgiveness program, which ultimately didn’t make it through the courts, but apparently a certain percentage of the public didn’t get that memo.
Pat Ryan of NewsTalk 103.7FM said, “We’ve got a real problem on our hands here and the liar that comes up with Bidenomics. I’m sure he’d love to get that word back considering your gas, your groceries, your 401 K, the epic disaster that’s happening on the southern border that will affect all of our taxes.”
Attorney Clint Barkdoll said, “We know that student loan debt in the aggregate has been ballooning for years and it actually got worse when all of those forbearance agreements were made during COVID that no one had to pay. I think what’s happening, and there were some economists that predicted this, all of those borrowers got into the habit of a few years not having to pay these monthly debt payments. So they were spending the money on other things. Well, then, when the payments had to restart recently, those people just, not only do they not want to pay it, but they’ve already budgeted the money for other things. So they’re just not paying it. Student loans, you cannot discharge through bankruptcy. So if you have enough of a mass of people like this not paying, it’s going to be interesting to see what does the federal government do about this? In theory, the government could bring collection actions, the banks that are owed this money, could bring collection actions, they could get judgments against these people. In some states, they could even do wage attachments against their wages to make these debt payments.”
Michele Jansen of NewsTalk 103.7FM pointed out, “Why would they? Why would they when they see other people getting forgiven under these very bizarre things that the Biden administration is determining that they can do? Stretching the meaning of public service, trying to push in as many of those loans as they can to forgive, which I still think is not constitutional and shouldn’t be allowed, but that he’s doing that. So they’re thinking well, wait, he had this promise of up to $125,000 salary, I’m not going to have to pay my loan. I mean, I heard from parents with kids, who thought we’re going to get out of this loan. So they already have a mindset. Plus, we’re losing all standards. Why should I repay my loan? Other people are getting away with murder, well, not quite murder, but they’re going into stores, they’re stealing stuff. There’s no prosecutions. Why in the world should I have to pay this loan back? The mindset now is that there’s no need to do this and I’m not even morally wrong not to pay my loan.”
Barkdoll said, “I think that is the mentality of a lot of these people, in conjunction with the fact that they just didn’t pay it for years. They’ve already reset their monthly household budget for other things and now this is a new payment that they just can’t pay and they won’t pay. So I don’t know what the government does about this. I mean, the Supreme Court ruled, Biden cannot administratively do blanket student loan forgiveness. Now he’s done some other workarounds for other aspects of student loan borrowers, but the ones that are in repayment status now, I mean, they’re stuck, for lack of a better term. I don’t see those loans getting forgiven. So something’s going to have to break here. Either the government and these banks bring enforcement actions, or the government and the banks do nothing and then what happens? Do these loans just keep accruing interest and penalties and it forever hangs over the borrower? It’s an odd situation.”