NEW YORK—Some people holding student loan debt have decided the best repayment plan for them is to never repay the loan at all.
“They don't care if their credit is ruined, because they are never going to be able to afford a home anyways,” reported Newsweek. “Too, the attitude now is, just ignore it and live for today.”
The report notes that today the median home price in the United States is $431,000, and for tens of thousands, of not hundreds of thousands of Americans, their student debt is quickly making this dream out of reach.
Taking to Tik Tok
More than one borrower has taken to TikTok to proclaim that they are not ever planning on paying back their loans.
"People are like, so what if I don't pay my student loans?” asked one person on TikTok. “What are you going to do? Ruin my credit so I can't buy the house that I wasn't even going to be able to buy ever in my lifetime anyways?"
The video creator went on to say that all the fear factors that were once used against loan holders are simply not working anymore because the system is broken.
‘People Don’t Care Anymore’
"People just don't care anymore when there's no way to win and the cards just keep getting stacked against you," the person said in their TikTok. "At what point do you just say ... it and just start living the way that you want to?"
Newsweek said the situation as it stands is leaving many Americans to accept that they may very likely die with the student debt still attached to their name.
"This is one of the most common questions we get at Savi: what happens when I die with my student loans?" Lindsay Clark, the director of external affairs at student loan forgiveness platform Savi, told Newsweek. "That's a reality for them based on their age, where they are in life, and how much debt they have."
Fastest Growing Demo
The report further noted that student loan borrowers over 50 are among the fastest-growing demographic of borrowers, with high interest rates upping their debt each month.
"So many borrowers have been making payments for years, or decades, if not more, and their student loan balance has not decreased, it's increased," Clark said. "And the reason for that is because of capitalized interest."
Added Dennis Shirshikov, a finance and debt management expert and a professor at the City University of New York, "It's a grim reality, but increasingly common, for individuals to carry student debt into their later years.”
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