there could be almost 10 million borrowers in default in a few months
That’s not a small amount. That’s fucking with economic outlook levels.
As for their program to “guide” folks to repayment, I mean you might as well tell them that they’re indentured servants at this point. Bully tactics are not going to work in an economy where it does not matter how much or little credit you have.
And I highly doubt this administration has any kinds of plans to gentle get folks back to repayment. I fully expect, “pay your loans or we will make you a slave for the rest of your life” to be their go to solution.
There’s a correct manner to handle this, I expect Trump’s administration to fuck it up every step of the way.
Think deportation could be on the table? Default on your loan and off to El Salvador? There’s no telling with these assholes
Calling it now: Debtor’s prisons are going to be the “next big thing” from private incarceration companies.
I had to do a quick google for a reminder of how they were done away with in the US in the first place… Supreme Court ruled it unconstitutional.
So yeah, I look forward to them coming back.
Why do you think things like CFPB are/were being lied about so much? Andreesen sat there and brazenly lied about them.
But the elites hate that there is anything protecting the little guy. They’d much rather have zero regulation and have the parasitic, predatory idle rich class be able to fleece the poor and middle class even harder, and imprison those that cannot repay…
Private incarceration companies
This is some future we’ve built/inherited, huh?
A friend of my parents once invited them to an investment seminar (“free dinner!”), and it turned out to be an investment in a private prison company. Their friend bought in, and was surprised my parents didn’t. It was partially because they are very risk averse, but also because they simply didn’t like the idea of profiting off of human misery.
“to protect taxpayers from shouldering the cost of federal student loans”
What fucking costs are the taxpayers shouldering from student loans???
Ironically, forgiving the debt would generate immediate economic activity that the government would tax and collect that money back with far greater returns.
Every dollar in food stamps generated $1.70 in economic activity and that’s just for “normal” poor people.
The problem isn’t (just) the cost of education being insane but that wages aren’t increasing to cover the bigger numbers.
The problem is that it’s becoming harder to hide the entire country is a “company town” or African diamond mine where keeping you trapped in debt you’ll never escape is the goal and it’s perfectly legal because they own the laws.
I have been with my employer for a decade. My nominal wage has increased 50% but once you account for inflation I’m still basically at my starting wage even after a decade of promotions and certifications.
