Forgive Student Loans?

#801
#801
NashVol11 said:
I agree. That's why I referred to it as dropping bills back onto people, even though they could still be making payments (or at least budgeting for them) most people probably aren't
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Sooooo you are agreeing then that they should be paying down the principle instead of kicking that particular can and saving for a Disney cruise....?

And I still don't understand how you can refer to it as 'dropping those bills back onto people' when they never went away in the first place.

It is depressing to think that the average American is this financially stupid.
 
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#802
#802
I was just saying there's not really a point to making payments now other than psychologically keeping yourself disciplined, and making those payments could hurt you if an unexpected expense comes up (though if that happens and you have to spend loan money on it, it will probably end up hurting anyway but will be less of an emergency)
 
#803
#803
NashVol11 said:
I was just saying there's not really a point to making payments now other than psychologically keeping yourself disciplined, and making those payments could hurt you if an unexpected expense comes up (though if that happens and you have to spend loan money on it, it will probably end up hurting anyway but will be less of an emergency)
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You still don't get it. You are making a wild assumption that they will save that money for 'unexpected expenses' when there is overwhelming evidence as based on their previous behavior that they will (as @allvol123 said) buy that new Xbox or a new big TV instead of saving for that rainy day..... but then there's that pesky student loan they contracted for that they will whine about being unable to afford that gets 'dropped' back on them. It's ludicrous.
 
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#804
#804
SpaceCoastVol said:
Sooooo you are agreeing then that they should be paying down the principle instead of kicking that particular can and saving for a Disney cruise....?

And I still don't understand how you can refer to it as 'dropping those bills back onto people' when they never went away in the first place.

It is depressing to think that the average American is this financially stupid.
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I'm saying they should be setting those payments aside and making a lump sum payment later. I don't really advocate for making unnecessary payments just to keep yourself disciplined.

Making a monthly payment is better than treating loans like they don't exist, yes. If we're talking about what is realistically actually happening, most people are probably not making monthly payments or saving up for a lump sum payment.

Should people be setting aside loan money? Yes. But for those who aren't, it isn't necessarily just stupidity either; part of the reason loans were paused was people losing their jobs or having other negative financial impacts due to the pandemic.

I don't think what we are saying is really that different tbh, but go off
 
#805
#805
NashVol11 said:
Sure but you can just keep that money and pay it in a lump sum at the end of the pause, which leaves you no worse off and leaves you with extra money/flexibility during the 2 years in case something unexpected happens (or in case you want to invest it, time value of money and all that)
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That is true, how many people do you think did any of that vs how many just spent the money betting on loan forgiveness?
 
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#806
#806
NashVol11 said:
I was just saying there's not really a point to making payments now other than psychologically keeping yourself disciplined, and making those payments could hurt you if an unexpected expense comes up (though if that happens and you have to spend loan money on it, it will probably end up hurting anyway but will be less of an emergency)
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The point is to pay off the loan faster. Those thinking they now have more money each month are just extending the time it takes to get out of debt
 
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#807
#807
NashVol11 said:
I'm saying they should be setting those payments aside and making a lump sum payment later. I don't really advocate for making unnecessary payments just to keep yourself disciplined.

Making a monthly payment is better than treating loans like they don't exist, yes. If we're talking about what is realistically actually happening, most people are probably not making monthly payments or saving up for a lump sum payment.

Should people be setting aside loan money? Yes. But for those who aren't, it isn't necessarily just stupidity either; part of the reason loans were paused was people losing their jobs or having other negative financial impacts due to the pandemic.

I don't think what we are saying is really that different tbh, but go off
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The average American is a financial moron. Discipline is precisely what they lack. If they don't exercise it now, what makes you think they will later? (They won't... guaranteed) In a way, we do agree, it is just that maintaining.... beginning... that discipline is critical to reducing this so-called student loan 'crisis', and you seem to think that will magically appear somewhere along the way. The student loan 'crisis' just like consumer debt of any kind is 100% self inflicted. The only concession I would be willing to make towards it is to allow it to be bankruptable. Then the banks can deal with the risk, and perhaps reinstate the value of a college education instead of turning it into an advanced high school.
 
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#808
#808
SpaceCoastVol said:
The average American is a financial moron. Discipline is precisely what they lack. If they don't exercise it now, what makes you think they will later? (They won't... guaranteed) In a way, we do agree, it is just that maintaining.... beginning... that discipline is critical to reducing this so-called student loan 'crisis', and you seem to think that will magically appear somewhere along the way. The student loan 'crisis' just like consumer debt of any kind is 100% self inflicted. The only concession I would be willing to make towards it is to allow it to be bankruptable. Then the banks can deal with the risk, and perhaps reinstate the value of a college education instead of turning it into an advanced high school.
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If the government really had wanted to help out with student loans during COVID they would have just paused interest but not the payments.
 
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#811
#811
hog88 said:
I think we'll see an EO this fall, late Sept or Oct forgiving most student loans to get the Dems an election bump.
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Trump should have done it as part of the wasted covid money. Then he should have decriminalized mj to watch everyone's head explode
 
#812
#812
hog88 said:
I think we'll see an EO this fall, late Sept or Oct forgiving most student loans to get the Dems an election bump.
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That’s a funny line to walk. Gonna piss a lot of people off that paid theirs. Maybe those type of people don’t vote D.
 
#813
#813
FWIW I should clarify that I haven't been making an argument for forgiveness here, more saying that based on what people realistically are actually doing (not paying off/setting aside money for loans), there is going to be a lot of pushback if the pause ends with no forgiveness. I doubt Biden wants to deal with that, so I think it gets extended again or we see some forgiveness. More of a "most likely scenario" than a judgment on what should or shouldn't happen
 
#818
#818
hog88 said:
If the government really had wanted to help out with student loans during COVID they would have just paused interest but not the payments.
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If the government really wanted to help they would change the prime rate as interest on student loans. Why were the interest rates 2x mortgage rates?
 
#821
#821
newyorkvol said:
This crap really gets me going….
Meet a medical school graduate with over $360,000 in student loans and says $10,000 forgiveness wouldn't make a difference for people in his position - NewsBreak
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Why would it get you going? He speaks the truth. Medical school is damned expensive and the work load is such that it’s not feasible to work a job while attending. Unless you only want doctors to come from wealthy families then they have to borrow. Then they must be in a residency for 4 years where they work crazy hours and are paid in the $50k range before being licensed and due to cost controls from insurance companies and Medicare doctors are now making less than 50% of what they made 15 years back. It’s a screwed up system
 
#822
#822
walkenvol said:
Why would it get you going? He speaks the truth. Medical school is damned expensive and the work load is such that it’s not feasible to work a job while attending. Unless you only want doctors to come from wealthy families then they have to borrow. Then they must be in a residency for 4 years where they work crazy hours and are paid in the $50k range before being licensed and due to cost controls from insurance companies and Medicare doctors are now making less than 50% of what they made 15 years back. It’s a screwed up system
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It’s because there are ways to have medical school paid for, but they require some form of service commitment. Those methods of payment are available to any medical student, but relatively few take advantage because it sometimes require 4-5 years of service after residency to fulfill the obligation.
So, those that decide they do not want to exchange free or low cost medical school for a service obligation can take loans and be free to do what they want, where they want. But that comes at a cost too. It’s called student loan repayment.
 
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#823
#823
walkenvol said:
Why would it get you going? He speaks the truth. Medical school is damned expensive and the work load is such that it’s not feasible to work a job while attending. Unless you only want doctors to come from wealthy families then they have to borrow. Then they must be in a residency for 4 years where they work crazy hours and are paid in the $50k range before being licensed and due to cost controls from insurance companies and Medicare doctors are now making less than 50% of what they made 15 years back. It’s a screwed up system
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Obama fixed it I thought
 
#824
#824
I’m sick of people acting like they’re a damn victim. Don’t understand the terms of a loan agreement? Don’t take out the loan! Not sure if or how you’re going pay it back? Don’t take out the loan! Not willing or no intention to bust your @$$ and do everything possible to pay back a loan? Don’t take out the loan! Had a family member (cousin and spouse - who never stayed in touch otherwise) come to me crying about a “predatory loan” with a teaser rate back in the 08/09 financial crisis (they know I’m into investing and follow financial markets, plus they had already approached other family members for money, so I was warned it was coming). I simply asked, did you not understand the loan as it was explained to you and did you not read the loan document yourself? Do you know what an “ADJUSTABLE RATE MORTGAGE” means?? If you answer No to any of these, you had no business buying a home. They blamed everyone else (lender/mortgage company), not one ounce of ownership. You’re not a victim, you’re stupid.
 
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#825
#825
Vol737 said:
I’m sick of people acting like they’re a damn victim. Don’t understand the terms of a loan agreement? Don’t take out the loan! Not sure if or how you’re going pay it back? Don’t take out the loan! Not willing or no intention to bust your @$$ and do everything possible to pay back a loan? Don’t take out the loan! Had a family member (cousin and spouse - who never stayed in touch otherwise) come to me crying about a “predatory loan” with a teaser rate back in the 08/09 financial crisis (they know I’m into investing and follow financial markets, plus they had already approached other family members for money, so I was warned it was coming). I simply asked, did you not understand the loan as it was explained to you and did you not read the loan document yourself? Do you know what an “ADJUSTABLE RATE MORTGAGE” means?? If you answer No to any of these, you had no business buying a home. They blamed everyone else (lender/mortgage company), not one ounce of ownership. You’re not a victim, you’re stupid.
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With medical school it’s even less about “victim” or “stupid” and more about personal wants

There is always a shortage of primary care doctors. There are severely underserved areas in this country. There are ways to get medical school paid for and serve in one of these areas for 4-5 years and then be able to go practice wherever you desire free or nearly free of debt.

But instead, many Med students don’t “want” to do that. They want to go where they want to go and practice whatever specialty they want to practice. Which is fine if they also realize that decision comes at a cost as well. The cost is often hundreds of thousands in loans paid off over 30 or more years.
 
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