Student loan forgiveness at risk following Trump order

President Trump signed an executive order on March 7 limiting eligibility for public service student loan forgiveness. Meanwhile, a study from VantageScore revealed that 9 million borrowers are currently behind on payments, representing over 40% of those with dues.
VantageScore chief economist Rikard Bandebo joins Wealth host Brad Smith to explain the potential impacts of these developments.
"Someone who has a high [credit] score, let's say they have a VantageScore super prime score of like 800, they could see their score drop by as much as 129 points," Bandebo says.
"A credit score ... takes a long time to build, but it can fall very quickly," he adds. "So a delinquency — like a student loan delinquency — will sit on the file for seven years. So it takes a long time to repair this."
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[JudeyCat]

Thank you for covering this because no one is talking about it and a lot of us millennial professionals who have student loans already on income driven repayment plans are being left in the dark. Please continue coverage so we can have some direction.

[hoodinisharif]

My credit score dropped over 150 because of student loans and it never dropped once under Biden smh and I like trump.

[Bilbo_Schwaggins]

Interesting how borrowers are labeled like meat based on thier credit score.

[jamesbar]

O well. Can’t find a job to pay it back.

[joshhoward]

SAVE plan in forbearance…pay off your loans while there is no interest…

[Lisamoore]

129? How about 161 points over a 4K balance . It really destroyed everything

[JD_-_]

You would think there are other priorities…

[Harmonizationtheory]

I don’t know about the US but drop-outs and/or an abusive and misleading system can certainly harm and to some extent *irreparably* a whole lifespan and generation of individuals. I think a well regulated and limited forgiveness plan is a very good initiative.

[TAYLORFAN]

Garnish both wages and tax returns if these borrowers don't settle their debt. Taxpayers should not have to pay for these freeloaders.

[FaithandBudget]

Eliminate 501(c)(3). 3 trillion in taxes lost just from exemptions to megachurches alone! Pastor Kenneth Copeland is worth 300 million---TAX-FREE. I thought churches were non-profits!

[toby]

I got mine forgiven just in the nick of time...under the wire. But mine was because my school was a bunch of scammers and then closed down..

[walterparrish]

Is anyone boycotting high interest fee based credit cards, payday loans or student loans?

[fatjoe]

Why do I need to pay your student loan? I paid mine off, gotta sell your house and pay it off, free lunch is over

[_nimrod]

Can’t find a tech job with this useless CS degree. Good luck US government on collecting.

[Gloria-uss]

You can’t expect the taxpayers to pay for your college loans. You choose to go to college, you choose to sign on the dotted line. You and you alone are responsible for your college loan debt. By the way, I went to college and work during my college years and after I graduated got a job and paid by my loan off. That what you call being an adult!

[onehittaquitta]

I work very hard to help pay off others student loans.

[kevindowell]

I do feel bad for everyone who fell for the university grift and got into student debt greater than the earning potential of their degrees. Rest of society shouldn’t have to eat those cost. Mike Rowe proposed loan forgiveness for trade’s people that have to buy vehicles and tools to do the work that sustains our society. We need to let it play out, so people stop going into outrageous debt. If people aren’t financing useless degrees and courses, universities will respond with more affordable and practical option. It will be tough, but we need the reset.

[amremnant]

Since they take our tax dollars anyway and don't ask us what we want to do with it, I wouldn't care if they paid student loans. If I was as rich as Musk, I'd do it myself. But if I could choose, I would offer bailouts to people trying to educate themselves a make a difference in the world because I know the job market has not kept up with degrees. But some people would rather give it to billionaires or on the other side of the spectrum, people would have been on welfare all their lives. Why doesn't anyone ever talk about that? Why don't they boycott that? They're just hating the fact that people might have an opportunity that they didn't. It's petty and immature.

[vsFY]

If you don’t pay your debt there is consequences

[greglane]

Quit calling it "forgiveness" it is not. It is passing someone's financial obligation they signed up for on to people that never signed up for it.