Forgive Student Loans?

#506
#506
luthervol said:
My plan would be that after each year of on time payments, 10% of the outstanding balance is forgiven.
Click to expand...
No. I'll tell you what I would go for though. Establish a business for a minimum of 5 years that employs 10 employees and I'd forgive it all.

I'd think about what you propose if it is treated as income and they pay taxes on it.
 
  • Like
Reactions: luthervol
#510
#510
luthervol said:
Not me, people with student loans. Us tax payers would not be rewarding them as much as easing an unfair and unjust burden.
Why do tax payers give Ukraine 40 billion? Good question - many think this is too much.
Why do tax payers bail out companies? Depends on what you mean by "bail out". TARP for example was loans (forced in many cases) that were paid back by nearly every company except a few that went out of business. TARP made money for the government. Loans were not forgiven
Why do tax payers subsidize farmers? Good question - many think we should not.
Why do tax payers provide a safety net? Many think the safety net is excessive and goes beyond "safety".
Click to expand...

Let's continue with this logic of easing someone of an "unfair and unjust" (not sure how you reached that conclusion) burden:

why not pay off everyone's mortgage? It's a larger burden than student loans
why not pay off car and other asset notes? These are often larger burdens than student loans
why request any one work for a living? If the "safety net" was all encompassing think of how much burden would be relieved
 
  • Like
Reactions: SpaceCoastVol
#511
#511
SpaceCoastVol said:
No. I'll tell you what I would go for though. Establish a business for a minimum of 5 years that employs 10 employees and I'd forgive it all.

I'd think about what you propose if it is treated as income and they pay taxes on it.
Click to expand...
That seems like a fair addition.
 
#512
#512
K-town Vol Fan said:
4 years at UT, living on campus, is over 120k. How many 17 years old have that type of earning power? Thats 30k a year. I suppose you could work full time, and pay 100% of your salary and MAYBE get close to paying it off, but then you probably aren't going to be able to graduate in 4 years working full time. The whole system is ****ed. And don't get me started on the $130 text books. Its all ****ing money racket, and it needs to stop.
Click to expand...

I presume this includes room and board. So if someone worked 20 hours a week while going to school @ $12/hour 48 weeks a year they'd have about 10K/year to put towards this. I worked about 25/week all through undergrad. Same for graduate school.

Further, room and board is required whether you go to college or not so that should be subtracted out.

In fact, going to college is about the only way you can pay for room and board with a loan. No college and you have to pay for it yourself.
 
#513
#513
volinbham said:
Let's continue with this logic of easing someone of an "unfair and unjust" (not sure how you reached that conclusion) burden:

why not pay off everyone's mortgage? It's a larger burden than student loans
why not pay off car and other asset notes? These are often larger burdens than student loans
why request any one work for a living? If the "safety net" was all encompassing think of how much burden would be relieved
Click to expand...
I, and many others, view the student loan situation differently. Many of the loans were only made because they were guaranteed by the government. The lender knew the loans were a bad idea, but it was a cash cow for them.
The government guaranteed the bad loans, time for the government to at least partially back up that guarantee.
 
#514
#514
Rasputin_Vol said:
Not sure. It will obviously be inflationary. But outside of that, what are you driving at.
Click to expand...
I’m asking what would really happen if the Democrats were allowed to wipe out $1.7T of student loan debt with a single keystroke.

Not what Democrats promise will happen, but what will actually happen.

@allvol123 is usually pretty good at predicting “actual” outcomes like what I’m asking here ^
 
#515
#515
luthervol said:
?????????????
You just gave a scenario where you said it all should be forgiven 10 minutes ago.
Click to expand...
I guess I wasn't clear. In my scenario, they would be producing taxpayers... Putting back into the system. In yours they simply do what they signed a contract to do in the first place.
 
#516
#516
luthervol said:
I, and many others, view the student loan situation differently. Many of the loans were only made because they were guaranteed by the government. The lender knew the loans were a bad idea, but it was a cash cow for them.
The government guaranteed the bad loans, time for the government to at least partially back up that guarantee.
Click to expand...
No... It is time for the government to stop guaranteeing any future loans. The ones who are stuck... Are stuck. Life isn't fair. Pay your ****ing debts.
 
#517
#517
85SugarVol said:
I’m asking what would really happen if the Democrats were allowed to wipe out $1.7T of student loan debt with a single keystroke.

Not what Democrats promise will happen, but what will actually happen.

@allvol123 is usually pretty good at predicting “actual” outcomes like what I’m asking here ^
Click to expand...

Idk. Add to our debt, contribute to inflation.

The worst part is it would create a mentality that education should be free. If everyone had their debt cancelled, there is a new supply of people going to school every year. So now we just start back from 0 and create a new population of youth going in debt for school? Why should they care? They expect it to get forgiven. So they borrow more wildly than the previous bunch and institutions raise tuition more. Ugly cycle.
 
#518
#518
SpaceCoastVol said:
I guess I wasn't clear. In my scenario, they would be producing taxpayers... Putting back into the system. In yours they simply do what they signed a contract to do in the first place.
Click to expand...
So should anyone positively impacting the economic system get some type of consideration?
 
#519
#519
allvol123 said:
Idk. Add to our debt, contribute to inflation.

The worst part is it would create a mentality that education should be free. If everyone had their debt cancelled, there is a new supply of people going to school every year. So now we just start back from 0 and create a new population of youth going in debt for school? Why should they care? They expect it to get forgiven. So they borrow more wildly than the previous bunch and institutions raise tuition more. Ugly cycle.
Click to expand...

If you forgive the debt and continue the programs, you’re asking to create an even bigger problem in 10 years. Everyone will then be asking when the taxpayer can pay off their debt.
 
  • Like
Reactions: SpaceCoastVol and volinbham
#521
#521
DC_Vol said:
If you forgive the debt and continue the programs, you’re asking to create an even bigger problem in 10 years. Everyone will then be asking when the taxpayer can pay off their debt.
Click to expand...

Yep

There is no rational answer to why you would do it one time but not another

The moral hazard suggests that borrowing would actually go up for future borrowers as a result.
 
  • Like
Reactions: DC_Vol
#522
#522
allvol123 said:
From what I read if you cancelled the debt to 0 we would be right back to the same amount in loans by 2035.
Click to expand...

volinbham said:
Yep

There is no rational answer to why you would do it one time but not another

The moral hazard suggests that borrowing would actually go up for future borrowers as a result.
Click to expand...

You cannot rationally cancel student loan debt without getting rid of the federal programs.
 
  • Like
Reactions: GoVols1998Yeah!, allvol123, SpaceCoastVol and 2 others
#523
#523
allvol123 said:
Idk. Add to our debt, contribute to inflation.

The worst part is it would create a mentality that education should be free. If everyone had their debt cancelled, there is a new supply of people going to school every year. So now we just start back from 0 and create a new population of youth going in debt for school? Why should they care? They expect it to get forgiven. So they borrow more wildly than the previous bunch and institutions raise tuition more. Ugly cycle.
Click to expand...
Well the complete dismantling of the Federal Student Loan program would have to be a core tenant of the “what do we get” analysis.

And with that would come a complete repudiation of that entire philosophy and line of thought.

That alone would make for an interesting proposal, but I think we would get more than that for our $1.7T
 
  • Like
Reactions: allvol123
#524
#524
SpaceCoastVol said:
No... It is time for the government to stop guaranteeing any future loans. The ones who are stuck... Are stuck. Life isn't fair. Pay your ****ing debts.
Click to expand...
Unless you start a business, run it for five years, and employ at least 10 people?
Then and only then do you not have to pay off your f*****g debts.

People always leave off the second part of the "life isn't fair" statement.
My version goes like this, "life isn't fair, which is precisely why people should be."

Or as Ann Richards said, “Life isn’t fair, but government must be,”
 
#525
#525
I’ll jump in!

My wife graduated from medical school in 2018. I’m currently pursuing a Doctorate. Obviously we can pay for the Doctorate without borrowing, but we did borrow everything else. We have almost 300k to pay back in loans.

I don’t want a handout. I don’t want a 10k relief package. We borrowed the $$ and we knew the terms when we borrowed it.

What I want is an interest rate more on par with my other purchases. My wife’s loans are at nearly 7%! That’s insane for someone with a nearly 800 credit score. We understand we can refinance, consolidate, yadda yadda.

My overall point is, we will pay what we borrowed, as should everyone else BUT 7% is too high. 2 to 3% should be the range IMO.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top