May 16, 2020

This is what happens if you stop paying your student loans


The coronavirus relief package lets borrowers forgo student loan payments until this October with no interest or penalties. 

It is not a small gesture.

Americans owe more than $1.4 trillion in student debt. The average borrower carried more than $35,000 in loans in 2019.

Story Young, 30, dropped out of college 10 years ago after burning through her savings and exhausting her loan options. She was one class short of earning her degree.

Young estimates that she took out around $87,000 in a mix of private and federal loans to pay for college. After a decade of defaults and repayment plans, Young has decided she will never repay the nearly $67,000 in loans she still holds. 

Young is not alone. 

The Debt Collective was formed in the aftermath of the Occupy Wall Street movement and helps people dispute debts with the goal of canceling student loans, and all debt in general. The group currently has more than 700 people signed up to refuse to repay their loans. It says the rescue bill will only expand the movement. 

By Robert Exley Jr.@ROBERTEXLEY

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