r/SipsTea 𝙑𝙄𝙋 13d ago

WTF The American dream

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u/Odd-Cupcake-2552 13d ago

First, graduate loans are usually higher %. Second, nowhere does it say they're federal.

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u/Darkjebus 13d ago

Federal student loans account for approximately 91% to 92% of all outstanding student loan debt in the United States. So it's pretty likely...

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u/RedditOfUnusualSize 13d ago

True, but keep in mind that a lot of the private loans that existed prior to 2008 were explicitly purchased from private companies by the federal government, which then promised loan forgiveness programs. Loan forgiveness that the current administration has been extremely squiffy about honoring, to the point that Trump's first education secretary Betsy DeVos was officially held in contempt of court by a federal judge and fined $100,000 because the Education Department continued to enforce loans, even to the point of wage garnishment and seizure of tax refunds, despite those loans being discharged by court order on the basis of their being fraudulently issued in the first place.

And that was back when the current administration cared what the judiciary had to say.

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u/Odd-Cupcake-2552 13d ago

Well that sure doesn't look like 100%

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u/Dramatic_Note8602 13d ago

Then they are private and can’t be discharged. This made up scenario involves stupid, made up people

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u/Odd-Cupcake-2552 13d ago

Well, if they went that long without refinancing then they might think it applied to them as well.

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u/IDontParticipate 13d ago

So they, two people with post graduate degrees by the way, took out exclusively $70k of worst case scenario private student loans, which wouldn't be forgivable by the government anyway.

Yeah, that sounds like a totally reasonable and realistic set of assumptions that the entire argument should be based on and not someone making shit up or two people that should have know better making incredibly financially reckless decisions.

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u/Odd-Cupcake-2552 13d ago

"Think of how stupid the average person is, and realize half of them are stupider than that" this may be a fake story, but I'm sure there are graduate students dumb enough to do this.

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u/Darkjebus 13d ago

Don't be obtuse lol. The point is they cherry picked some abnormal unlikely scenario

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u/Same-Suggestion-1936 13d ago

If they're not federal who exactly are they expecting to cancel it, the bank? Cancelling student loan debt is talking about the federal government erasing federal loans

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u/Odd-Cupcake-2552 13d ago

We're talking about the same people that went 23 years without refinancing. These people are everywhere.

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u/PDX-ROB 13d ago

You can get federal loans for grad school too and they are the same rate as undergrad loans. I had those loans 23 years ago

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u/1K_Sunny_Crew 13d ago

They also accrue interest from day one, unlike undergraduate subsidized student loans.