According to Federal Reserve data, student loan debt holds the top spot for amount owed by people in the United States. In fact, it’s currently at around 1.3 trillion dollars. Yes, that is “Trillion,” with a T. With this debt weighing down on so many Americans these days, every politician seems to have a plan put together to help them out of the cycle of debt. However, as reported by Business Insider, that could be a serious problem for the country. That does not necessarily mean that you have to feel obliged to pay your student loan debt back.
When you take into consideration the fact that you will soon likely be forgiven for however much you owe to the U.S. for these loans, there really doesn’t seem to be much reason to even attempt to start paying it off. Theoretically you could (like this author is doing) simply keep applying for forbearance on your student loans until they are old enough to simply apply for forgiveness. And even if that doesn’t fit your fancy, surely one of the many programs currently being discussed will work out well for you, too.
This might leave you wondering whether or not taking the hit on your credit report would be worth not paying off your loans, but apparently it doesn’t even make a real impact. One writer for the Huffington Post reports that she has a credit score of 719 though she hasn’t made any effort toward paying back her more than $109,000 in student loans. If that’s the case, there doesn’t seem to be any reason whatsoever people would feel inclined to pay back their student loan debt.
And why should they? There seems to be no penalty for not making the payment and the reward is a college degree. This puts the populace in an interesting situation. Do you rightfully pay back the money that you borrowed or should you just ignore it entirely?
What do you think? Let us know in the comments below.