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should I pay off my student loans in full before intrest kicks in? (lemm.ee)

submitted 1 year ago by [email protected] to c/[email protected]

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General financials:

I can afford to pay them off in full and have plenty left over for general life needs

The interest rates on them should be 4.53% according to their chart of when it was awarded.

If I do hold onto the money and pay off monthly I can put everything into a CD but I'll still be losing .03% if I lock in the student loan money maybe I'll beat but .07-.43% so not a ton of upside unless there's sudden political will to actually follow through on student loan forgiveness.

Is there anything else I'm missing when considering this? I am leaning towards just pay off as I've been planning for this, but I want to make sure there isn't something else to do.

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[–] [email protected] 10 points 1 year ago (1 children)

I’m watching this now because we’re about to do the same in October or whenever that turns back on. We’re even having to return the Pell grant credit from being that close to paying everything off.

I just want to be done with it all, there’s no political will for it. The excuses are constant. The Supreme Court majority would call an Apple a banana if it meant they could deliver something miserable to their very politically defined opponents by legislating from the bench.

I think the only thing going through is if you’ve been paying for more than 20 years. It’ll be a LONG time before that happens for us, so we just want to send it all back.

I’m curious if anyone else knows more though.

[–] [email protected] -2 points 1 year ago (2 children)

Interesting you say SCOTUS legislating from the bench in this case. Deferment and forgiveness were both "legislated" from the White House. Seems the only party not legislating here is the legislature.

[–] [email protected] 4 points 1 year ago* (last edited 1 year ago) (1 children)

No, they weren't. Congress passed laws giving the executive that authority.

It was in fact legislated by the legislature.

[–] [email protected] -2 points 1 year ago (1 children)

I think it's disingenuous to make it sound that simple.

If Congress supported forgiveness, we wouldn't be having this discussion. Whether they had implicitly given that power to the executive with previous legislation is controversial, thus the SCOTUS case. But it's not like SCOTUS was the first to question it. Pelosi and even Biden had previously stated it was not an executive power.

Again, it could be easily settled now by the legislature if they supported it, but they do not.

[–] [email protected] 1 points 1 year ago

I think it's disingenuous to say it's not that simple. Because it is.

[–] [email protected] 3 points 1 year ago (1 children)

Under powers that were explicitly granted to the White House by the legislature. You can doubt their validity all you want, but they’re there—including the right of the secretary to “waive or modify”—WAIVE or modify—“the existing provisions.” It’s quoted in the majority opinion then ignored by the ruling.

That is the apple being legislated into a banana.

[–] [email protected] -1 points 1 year ago

I guess you must know more about law than Biden did 2 years ago when he publically talked about probably not having the authority: https://www.politico.com/news/2021/02/17/student-loan-forgiveness-biden-469677

It's nowhere near that straightforward. And for a third time, if it was the intent of Congress, now would be the time for them to clarify that with direct legislation. But they are not.