I’m going back for a master’s degree this fall and am weighing the idea of taking out a federal student loan that I don’t need.
In normal times, I would have just used the university’s option to pay tuition/fees with a credit card and been happy with easily hitting a CC’s signup bonus spending threshold. However, given all the rumblings about Biden exploring ways to forgive between $10k and $50k of federal loan debt per student, the option of forgoing the CC cash back and rolling the dice on loan forgiveness sure is tempting.
Curious what the members of this community would do. Thoughts?
The interest rate is 5.3% + a one time 1% fee. Interest would start accruing as soon as the temporary 0% Covid interest rate expires at the end of September, of course that could be extended.
Looks like loans can be returned in the first 120 days for a full refund. This would also buy some time to see if the 0% Covid interest rate is extended or if there is any forgiveness.
Free money for 120 days? Might as well use it as funding for a savings account sign up bonus while I wait to see how things shake out in Washington.
I like this train of thought… I wonder if it would work if I pay with CC first before requesting a loan. “I decided I needed that loan after all. Books are super expensive!”
In the remote event they decide to forgive student loans, me thinks that will only apply to AA or BA/BS degrees, and not for professional or advanced degrees.
What is your current & expected future income level vs the median?
Decent chance that IF theres any loan forgiveness it will not apply to higher income households.
I vote no for multiple reasons. Its a gamble and not a good one.
While I agree with the sentiment, that would seem to be difficult to administer unless they just disallow people who went beyond a BA/BS for any forgiveness. It the stimulus was any hint, they prefer a hammer to a scalpel for these programs.
I’m supportive of any politician’s realization that they don’t have the power to do something that the clearly don’t have the power to do. It’s quite refreshing.
From a political standpoint, mid-term elections are coming up. If only Congress can forgive student loans, then you need to elect Democrats to get student loan forgiveness. If the President can do it via executive order, there is no need to elect Democrats to Congress to get student loan forgiveness. The narrative is changing to fit where the votes are needed.