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In the US, the year long student loan deferment ends in September. What happens when millions can't or don't start paying on them? (lemmy.world)

submitted 3 months ago by return2ozma@lemmy.world to c/asklemmy@lemmy.ml

13 comments fedilink hide all child comments

I accidentally asked this on shit post channel by accident so I'm asking in the correct channel now. Leaving the other one up because the replies were good.

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[–] andrewta@lemmy.world 36 points 3 months ago (2 children)

Realistically each bank will take that student / those students to court and have their wages garnished.

If it were one student the bank might write the debt off or they might send it to collections or a combination.

If it’s a ton of students they won’t take the hit in the pocket book. They will pursue it with all legal means.

[–] eldavi@lemmy.ml 28 points 3 months ago* (last edited 3 months ago)

the bank i used for one of my student loans came after me with legal action like this after my 3rd layoff and they'll use every single legal bit of legal fuckery they know to maximize your stress and to make sure that you cannot afford to put up a defense.

also the federal government gives them carte blanche to your finances once they win and permanent-for-life rules (both thanks to biden) so that they can keep coming at you for the rest of your life until you die.

[–] Imprudent3449@lemm.ee 9 points 3 months ago (1 children)

Most banks probably are not going to write off many student loans. They can pretty much go after it for life and the loans usually cannot be discharged.

[–] SoJB@lemmy.ml 9 points 3 months ago* (last edited 3 months ago)

Absolutely, student loans are one of the pillars holding up the Wall Street machine. That’s like throwing away free money.

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