My student loan. Will it be easier to repay when the depression comes?

Here is how I see it.

The democrats are most likely going to solidify a larger majority in both houses. Some of their main legislation goals is to cut the interest rates for school loans in half.

Obama now has ex-Fed Chairman Paul Volcker as one of his top economic advisors. This probably means that interest rates will begin to increase during Obama's first term. If he follows Volcker's advise we will probably see a strengthening dollar but the economy will be in such bad shape that alot of people will be forced to go bankrupt. Add that with the lack of funds being received due to the low interest rates for loaners like Sallie Mae we will probably see another Fannie Mae predicament where the govt will have to bail them out. If these type of bailouts become standard practice that 5% + interest rate will mean nothing and the dollar will continue to get weaker.

So of course it is always best to pay of loans as soon as possible because the interest rate even though is in half will still shrink the amount of money your investments are having. But since the dollar will be worth so little during payback time it may not even be that much of a difference if you pay back now or later.

The two factors I am not sure of is if Sallie Mae and other loaners do go bankrupt what does that do to the loans still outstanding?

And how does the new bankruptcy laws effect people who claim bankruptcy on their student loans?

to pay off my debt. Some rich people on this board may have the luxury to speculate whether inflation or deflation, but at the end of the day, if I could not service my debt, I would be screwed. So, I'm doing my best to pay off my debt. Of course, this is just what I'm doing and everyone has his or her own situation, so I cannot comment on what others should do.

"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
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only paying it back right now with about 65% of the value of the dollars that you borrowed.

As the money supply becomes more and more inflated, and the value gets less and less, your loan is paid back in worthless dollars, so you paid back less than you borrowed, in real terms of purchasing power.

They can't call in loans like that, what you're talking about is similar to a margin loan. It would have to be part of your student loan agreement which is highly unlikely. The most important thing you can do right now is be at a fixed interest rate, so re-negotiate if you're on a floating rate. More Inflation will make the value of the loan go down because the principal stays the same but wages will rise which will make it easier to pay off... Especially if you are invested in metals. But you want to be fixed because at some point interest rates are gonna have to be hiked, i'm not sure how much but I think 20% or more is a conservative guess.

some say get out of debt some say do not..since inflation lowers the real value of it..

then ofc..interest rates will likely go up... and who knows what happens to the currency after to much inflation...

I guess it depends on your specific situation..

I have been thinking much on debt also... dunno yet..

what seems like a large student loan debt in terms of total amount owed may not seem like that much money at all later down the road, assuming the loans are locked in at a low interest rate.