USA: Federal government tells student loan servicers not to contact borrowers as payment deadline nears

[shinobi602]

Waiting for that last minute mid-term boost I reckon.


View: https://twitter.com/kylegriffin1/status/1551960540418699264?s=20&t=u6kMkILg-xiGmyeJ0V5KFw

WASHINGTON — A little more than a month before the student debt moratorium is scheduled to end, the federal government has told loan servicers not to contact borrowers about resuming payments, a trade group official said Monday.

The Education Department has been telling loan servicers not to reach out to borrowers as recently as "the last couple weeks," said Scott Buchanan, the executive director of the Student Loan Servicing Alliance, which represents all of the companies that service the federal loans subject to the administration's moratorium.

NBC News has asked the Education Department for comment. The Wall Street Journal first reported Monday that loan servicers have been told not to contact borrowers.

President Joe Biden in April extended the pause on federal loan repayments until Aug. 31, saying the nation was still recovering from the coronavirus pandemic. A White House official said Monday night that "no decision has been made" about whether to extend it again. The official said Biden will make a decision before Aug. 31.

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Student loan servicers told not to contact borrowers as payment pause deadline nears

President Joe Biden in April extended a pause on repayments of federal student loans to Aug. 31.

www.nbcnews.com

 

[BlkSquirtle]

So another pause orrrr

 

[Kaeden]

Waiting for that last minute mid-term boost I reckon.

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Yeah I've always felt it was gonna be put on hold until it could help him the most. I'm fine with that... just get that shit squashed and take as much credit as you want Biden.

 

[Surakian]

Guess we wait until mid-terms to find out what exactly Biden will decide to do?

 

[Nordic4tKnight]

So can they announce how long the pause is extended until?

 

[Sanjuro]

Fuck you. This means nothing to me until they tell the extended car insurance people first...

 

[wingkongex]

So can you announce how long the pause is extended until?

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It's extended until: ???

 

[Tomita]

So what are you supposed to do if they already contacted you? My loan got switched over to a different provider a couple of months ago and when they transferred my info over they made it setup for auto payments once the August 31st freeze expires.

 

[Instro]

It will be interesting to see what they do on this. Doesn't really feel like there is a move they can make that wouldn't be a negative politically. Might just have to keep kicking the can.

 

[KillLaCam]

Just cancel some Joseph

 

[butalala]

So what are you supposed to do if they already contacted you? My loan got switched over to a different provider a couple of months ago and when they transferred my info over they made it setup for auto payments once the August 31st freeze expires.

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In the past when this situation came up (I got a notification about resumption of payments, then another freeze was created), the payments didn't happen. I didn't have to do anything.

In your case, keep an eye on the news and check your provider after the possible freeze is announced, I guess?

 

[ChaosXVI]

Just pull the trigger, get a big boost before midterms to at least try and keep the Senate.

 

[Friskykillface]

Probably waiting until after midterms but if there's a tiny tiny microscopic chance they eliminate all student loans then that'll be amazing

I wonder how that'll go for freshman this year and beyond 🤔

 

[Nordic4tKnight]

It's extended until: ???

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I mean it will be extended until year end for sure, but what about beyond that?

 

[ToddBonzalez]

Dems need something to try to stem the bleeding at least a bit in the midterms. Could easily see this being it.

 

[ToddBonzalez]

Probably waiting until after midterms but if there's a tiny tiny microscopic chance they eliminate all student loans then that'll be amazing

I wonder how that'll go for freshman this year and beyond 🤔

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Don't get your hopes up for anything more than $10k.

 

[Deleted member 7148]

I don't care what their tactics are just cancel that shit.

 

[Crayolan]

Last time the deadline was nearing they tried calling me to ask why I hadn't made any payments in a while, as if they didn't already know why. Told them they can call again when the moratorium is over.

 

[TrojanAg]

No way that this doesn't get extended again. Cases are up, inflation is still rampant and we could be looking at a recession by the end of the year. Not to mention the looming midterm elections. I don't see any scenario where this doesn't get pushed again, possibly into next year. If anything, not delaying this further would make a recession even more likely.

 

[PAFenix]

My wife's grandmother whining that "Biden's just trying to buy votes by doing this"

Like.......lol? Okay? Like no shit politicians are supposed to do things that benefit their constituents.

But maybe that's foreign to her since she's gotten more and more hardcore conservative in the last few years.

 

[Svadhyaya]

No way that this doesn't get extended again. Cases are up, inflation is still rampant and we could be looking at a recession by the end of the year. Not to mention the looming midterm elections. I don't see any scenario where this doesn't get pushed again, possibly into next year. If anything, not delaying this further would make a recession even more likely.

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It would be career suicide to restart them again. Can you imagine what it would do to the economy if everyone had to pay their Student Loans again? Even the GOP wouldn't dream of touching that.

 

[PostModernMaybe]

I hope student loans payments just become this political liability that keep getting pushed back forever because nobody wants to take the political hit of restarting them 😂

 

[Hedge]

I hope student loans payments just become this political liability that keep getting pushed back forever because nobody wants to take the political hit of restarting them 😂

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Someone else in a prior thread brought this idea up but Biden should just announce a permanent freeze until congress a passes student loan reform bill. Pass the ball to them

 

[Mandos]

I hope student loans payments just become this political liability that keep getting pushed back forever because nobody wants to take the political hit of restarting them 😂

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People hoped the same for child tax credit. Tho this involves less obvious money so

 

[Ascenion]

I've got $15000 left. If you cancel even 5k it helps me. Just do something man.

 

[DrForester]

Dems have taken a morale beating this year, and Joe could boost morale a lot by forgiving student debt.

Unfortunately Joe is a fucking moron who doesn't give a shit and doesn't when seem to care if Dems remain in control next year. He'll kick the can down the road, maybe even do the minimal 10k forgiveness.

 

[Defect]

Cancel my $10k pls thx

 

[jaekeem]

no fucking way they turn these back on as we enter a recession

 

[Ryuelli]

 

[Violence Jack]

If they can give hundreds of billions to military spending every year, then they can afford to eliminate at least $25k if not all of it for everyone.

 

[Zoph]

I hope student loans payments just become this political liability that keep getting pushed back forever because nobody wants to take the political hit of restarting them 😂

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this is absolutely going to happen. The original moratorium created the ultimate dog poo stick that nobody wants to touch. Any party that turns them back on will lose the millennial vote forever.

Personally I am happy to have them remain in forbearance for as long as they can. My PSLF comes due in 2024 so let's keep this train going.

 

[Ryuelli]

People hoped the same for child tax credit. Tho this involves less obvious money so

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Wasn't the Child Tax Credit tied to the stimulus bill though (I'm not a parent, so I never really looked into it)? Something like this (which is as simple as the white house saying "Hey guys, we're extending this shit again") is a lot more likely to keep getting extended than the Child Tax Credit, which relies on congress extending it.

 

[Norris1020]

Sure wish my federal loans were a part of all this, would have been a big help to be a part of the pause these past 2 years.

 

[ameleco]

My wife's grandmother whining that "Biden's just trying to buy votes by doing this"

Like.......lol? Okay? Like no shit politicians are supposed to do things that benefit their constituents.

But maybe that's foreign to her since she's gotten more and more hardcore conservative in the last few years.

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I'm sure she's said nothing about the immeasurable number of policies that benefitted her generation her entire life.

 

[Kusagari]

Won't be surprised if Biden never cancels a broad amount of debt and just keeps delaying repayments starting back up.

 

[Dakkon]

I don't care what their tactics are just cancel that shit.

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Unfortunately we've reached a point where we basically have to care. The memory of the average American voter is so short and fickle, and we're talking about the difference between having a fascist government or not.

 

[Shiloh]

Started at 110k, down to about 25k. I'd take whatever.

Also funny, as I've already received a few emails preparing me that my payments start up next month

 

[wisdom0wl]

you love to see it

 

[El Bombastico]

Started at 110k, down to about 25k. I'd take whatever.

Also funny, as I've already received a few emails preparing me that my payments start up next month

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I actually STOPPED getting those emails like a few weeks ago.

When that's when the loan companies got the message???

 

[DrForester]

I hope student loans payments just become this political liability that keep getting pushed back forever because nobody wants to take the political hit of restarting them 😂

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I guarantee a Republican president would revel in restarting them

 

[walkinfast]

If they can give hundreds of billions to military spending every year, then they can afford to eliminate at least $25k if not all of it for everyone.

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The difference being those military contractors turn around and line politician pockets, so they are happy to increase the spending every year.

But for something that would help out families, well that's just "socialism", "unamerican", "bootstraps", etc....etc....

 

[Falchion]

Straight scumbag move

 

[Pandora012]

this is absolutely going to happen. The original moratorium created the ultimate dog poo stick that nobody wants to touch. Any party that turns them back on will lose the millennial vote forever.

Personally I am happy to have them remain in forbearance for as long as they can. My PSLF comes due in 2024 so let's keep this train going.

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Yup, I'm hoping this goes on long enough that I won't need to make another payment for my pslf either.

 

[Tomita]

In the past when this situation came up (I got a notification about resumption of payments, then another freeze was created), the payments didn't happen. I didn't have to do anything.

In your case, keep an eye on the news and check your provider after the possible freeze is announced, I guess?

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Yeah, hopefully I don't have to do anything either. But since they're new I'm paranoid they're going to be assholes about it. 😭 I could use at least a few extra months without the payment so I'd be so mad if they forced it on me.

 

[shadowsdarknes]

Lmao I used to get bombarded with calls from my servicer that I'd just ignore.

Keep this shit paused forever. Forgive some. Let whatever inflation happening just lessen the impact of these loans.

 

[TrojanAg]

My wife's grandmother whining that "Biden's just trying to buy votes by doing this"

Like.......lol? Okay? Like no shit politicians are supposed to do things that benefit their constituents.

But maybe that's foreign to her since she's gotten more and more hardcore conservative in the last few years.

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I'm sure she has no problem cashing in on those social security checks that our generation is paying for but we will never receive ourselves.

 

[Cipherr]

Unfortunately we've reached a point where we basically have to care. The memory of the average American voter is so short and fickle, and we're talking about the difference between having a fascist government or not.

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Yep, still see hot takes about this admin having "done absolutely nothing" and its just solidifying for me that people have the memory of a goldfish. They forget anything right after it happens and the itinerary fills in with the next thing that needs to be addressed, which is fine; But it would be nice if they could remember that stuff actually happened instead of immediately purging it from memory.

The WH is going to run the clock on this all the way until midterms for sure, and that's honestly the smart thing to do considering how people are.

 

[Kendrid]

View: https://twitter.com/klitklittredge/status/1470402511630647305

 

[Katamari]

My wife has hundreds of thousands in debt. The interest savings alone has been worth more than $50k forgiveness. Him continuing the pause helps tremendously.

 

[deimosmasque]

Which is funny because I know some actually already were, trying to scare borrowers into making payments again.