Situation:

A Student signs a loan agreement and is given a "Student Loan" to pay for their College Education. After making a few payments they decide they don't want to make anymore payments, they want that debt forgiven. So they decide to apply for, and are granted, a "Loan Forgiveness" from the US Government. No more payments.

Is that considered a "Default" and if so does it negatively impact their Credit Rating? Would they immediately be eligible to apply for another loan, say a car or home?

Just wondering because in my world I highly doubt I would get that, or any loan.

Bob

Bob, I would think if the US government is offering forgiveness on a US secured/guaranteed student loan, there are no repercussions, no default, no negative credit entry.

I would like to buy a brand new Renegade and a stacker, think they will loan me the money if I tell them is for my student tuition? I want to apply at the Sam Houston School of Technology (Good old S.H.I.T.).

Bob

I need to keep up on the news better. I thought this was struck down as outside of Presidential authority? Has there been additional developments?

Bucky,
Yes. Loan Forgiveness 2.0.
He just signed it into law.
Below is what he did. (it's a few days old but you get the jist).

This is the typical Dem way, BUYING VOTES.
You have to remember, it's NOT just the kid that goes to school that gets the bonus, it's the parents/co-signer, we are talking MANY MILLIONS of votes he's buying.

https://www.cnn.com/2023/07/14...20loan%20forgiveness.

Same here Ed, all our children paid back the money they borrowed to pay for their educations. Each one fulfilled their obligation even when it meant financial hardship.

We have one son who is still paying off his loan while supporting an invalid wife. When the loan forgiveness was offered he declined as a matter of honor, he signed for that loan and feels he has an obligation to pay the money back. Those that accepted the Biden offer should be ashamed of what they did. Not all that money was spent on an education, it bought vehicles, paid for Spring Break vacations, etc. Biden offered them a path to avoid their obligation, typical of a degenerate mentality.

Bob

Absolutely!

Since I paid out of pocket, I think I am due a refund if this goes through. (sarcasm)

quote:

Originally posted by RPROGAS:
I would like to buy a brand new Renegade and a stacker, think they will loan me the money if I tell them is for my student tuition? I want to apply at the Sam Houston School of Technology (Good old S.H.I.T.).

Bob

They essentially did this with those PPP business loans people didn’t have to pay back

Tom since I paid for my 2 daughters college I also would like a refund if this goes through.

I once had a renter that was late and a new BMW showed up in the driveway. She told me her daughter had used her PELL grant money to buy it.

No, I don't think it is noted as a default - which is aggravating in and of itself - because the note is being totally disolved.

It may show as a default depending on how the creditor decides to report the debt to the credit bureau. The forgiveness does trigger a tax issue. The forgiveness has to be reported as income and is taxable.

This will be struck down by the Supreme Court, as was Brandon's last attempt, and he knows this. But the suckers who vote for him don't know it, and it won't make it's way to the courts before the election in November, so Brandon will get the votes anyways.

Is it a morally wrong thing for the Biden Administration to even be trying? In my personal opinion, yes, absolutely! Will it end up buying a bunch of votes (whether the Supreme Court strikes it down or not)? Again, I think absolutely! Politics is even more of a blood sport than bracket racing. As I've been told, if you make personal morality choices over results, you are just making laps. Applies here too, as long as it remains acceptable to the majority. Take care. Tom Worthington

Doesn’t matter, it should be abundantly clear to all that we are powerless to stop our elected officials from doing what they want, not what we want, not what’s in the best interest of preserving our republic, our constitution, our economy, our military, our way of life!

So don’t worry about you can’t control and live your best life for the short time you are on this rock.

quote:

Originally posted by racerdude2054:


They essentially did this with those PPP business loans people didn’t have to pay back

It's not quite an apples to apples comparison.

The PPP loan was specifically designed to act as a deterrent to massive runs on unemployment benefits. The whole point of the loan was as long as you continue to keep your employees on the payroll the loans would be forgiven. Why would they do that? Well, if every employer had let their employees go during covid the entire unemployment system would have collapsed.

Student loans, on the other hand, like other forms of traditional debt, are evidenced by a binding contract and a commitment to repay amounts borrowed on agreed terms.

quote:

Originally posted by Trans Lady:

quote:

Originally posted by racerdude2054:


They essentially did this with those PPP business loans people didn’t have to pay back

It's not quite an apples to apples comparison.

The PPP loan was specifically designed to act as a deterrent to massive runs on unemployment benefits. The whole point of the loan was as long as you continue to keep your employees on the payroll the loans would be forgiven. Why would they do that? Well, if every employer had let their employees go during covid the entire unemployment system would have collapsed.

Student loans, on the other hand, like other forms of traditional debt, are evidenced by a binding contract and a commitment to repay amounts borrowed on agreed terms.

While I agree apples and oranges.. both are loans from the government that didn’t have to be repaid

A lot of race cars and boats were purchased with PPP money

quote:

Originally posted by racerdude2054:
A lot of race cars and boats were purchased with PPP money

Quotes for the TRUTH

Will they have to pay taxes on that forgiven debt? Technically now it's income.

Oh, and I forgot - having the debt cancellation scam voided by the Supreme Court gives Biden and his henchmen in the media another opportunity to bash the conservative majority on the court, demonize "MAGA Republicans" and give more fuel to the left's attempts to neutralize our court system/pack the court. It's a win-win for Biden - all he needs is stupid voters, one thing never in short supply.