Forgive Student Loans?

[mr.checkerboards]

After 24 hours to marinate on this, I'm feeling like this is nothing more than a taxpayer-funded popularity bribe.

Thats the way ive looked at it from the beginning. Biden is just trying to buy votes.

 

[Majors]

why are the elites driving gas powered vehicles in CA anyways?

Have to be able to get to back and forth from home to The French Laundry with ease.

 

[allvol123]

I'm starting to wonder if this plan might actually backfire. You've pissed off a lot of people who a)paid off their loans, b)don't think taxpayers should further subsidize these choices (especially those that didn't attend college) and c) think $10k isn't enough. You may have just encouraged the wrong group of people to get out and vote in November.

If it doesn’t, we are done. Full throttle ahead to the Idiocracy.

 

[utvolpj]

Lord we are screwed

That woman is a gold mine of terrible ideas. A policy of doing exactly the opposite of anything she suggests would be a great start (maybe she's actually LG)

 

[Ashevolle]

It's not better than doing nothing.

It's printing new money causing more inflation, making others pay for loans they didn't take out and enhancing the problem.

If it's bad for the people that took out the loans to pay it back, it's that much worse for people who didn't take out the loans to pay it back.

You being "fine with it" proves my point.

It's not printing money, but writing off money that was expected to be paid to the government that no longer will. Its a revenue cut. Same as a tax cut or PPP loan forgiveness. Love watching people who idolize tax cuts twist themselves into knots arguing how this is so much different. It's all the same.

 

[volinbham]

The notion that people who can't afford 10k in loans would be better off with even more inflation instead is a ridiculous one.

To your point - inflation raising average costs $460/mo. Applying that towards a 10K loan (even at 8%) covers the loan in just under 2 years. To the extent this raises or even extends the high inflationary period it could be a net loss for the borrower.

 

[theFallGuy]

That woman is a gold mine of terrible ideas. A policy of doing exactly the opposite of anything she suggests would be a great start (maybe she's actually LG)

So kind of like Elizabeth Warren when she gives financial advice

 

[SpaceCoastVol]

The program was stupid. The banks were stupid. The universities were stupid.
I hold them all more responsible for their stupidity than an 18 year old kid and I think universities and banks should feel some of the pain.

You have got to be kidding. Banks loaning money that they KNOW they will get a return on is not 'stupid'. Universities increasing their rates because they know the income stream is guaranteed is not 'stupid'. In both of those cases, it is good business. I think it could be construed as somewhat unethical in making loans for PhDs in gender studies and other such rot, but if you KNOW you are going to make a return on your investment, there is nothing 'stupid' about it.

What is glaringly stupid is thinking that any of this will make the banks/universities feel any pain.

 

[utvolpj]

So kind of like Elizabeth Warren when she gives financial advice

Even worse. That lady has no clue where govt funding comes from. In fact, I'm not sure she understands anything about money

 

[theFallGuy]

Even worse. That lady has no clue where govt funding comes from. In fact, I'm not sure she understands anything about money

let me guess she has 1.5 million followers on twitter. LOL

 

[mr.checkerboards]

Also just my 2 cents, but like has been mentioned college costs way too much and that is part of the bigger issue.
1) Not every kid needs to go to college, and kids need to be told thats OK.
2) Imo all years of school should be free/or inexpensive enough to where it can be paid without taking on massive loans, espically at 18 where kids are just trying to find their way.
3) How do we do this? Look into Berea college in UK, no tuition, but every student on campus has to have an on campus job while they are there. I believe more colleges should adopt this model.
4) College takes way too long to complete anyways. The large majority of first and second year classes (that are now free or really cheap at CC) honestly are a waste of time (imo). This is stuff that shouldve been taught in high school and kids should come out knowing. Public speaking, writing etc... are some of those classes that I think should be taught in high school. But History for the 15th time or listening to some professor drone on about MacBeth which 95% of the class couldnt give 2 ***** about or humanities classes that are completely pointless. If you know or at least have an idea of what you want to do coming out of high school you should be allowed to go straight into those programs without having to take 2 years of pointless core classes first.

 

[Majors]

Even worse. That lady has no clue where govt funding comes from. In fact, I'm not sure she understands anything about money

Topic of conversation the other day

 

[utvolpj]

let me guess she has 1.5 million followers on twitter. LOL

Only 500k

 

[SpaceCoastVol]

You have a great point. What Biden should have done is make all federally backed student loans dischargeable through bankruptcy instead of forgiving x amount. That would stop the lenders and institutions from preying on inexperienced naive kids.

*ding ding ding*

 

[allvol123]

To your point - inflation raising average costs $460/mo. Applying that towards a 10K loan (even at 8%) covers the loan in just under 2 years. To the extent this raises or even extends the high inflationary period it could be a net loss for the borrower.

You’re approaching from an analytical viewpoint.

This is a farce and it was never meant to help anyone, other than some politicians. A gimmick to purchase power.

 

[volinbham]

It's not printing money, but writing off money that was expected to be paid to the government that no longer will. Same as a tax cut or PPP loan forgiveness. Love watching people who idolize tax cuts twist themselves into knots arguing how this is so much different.

we shouldn't be cutting taxes in an inflationary period

tax cuts almost always go to everyone whereas this is a targeted gift.

further those who complain about tax cuts for the rich seem cool with this eventhough it benefits upper middle income people with higher earning potential. The $250K / couple (assuming that's AGI) is closer to a $300K household. That puts the household in the 96th percentile! Even 250K is the 94th and for those 125K individuals they are in the 76th assuming no other household income.

so if we are calling out people selectively complaining then we need to expand the list

 

[C-south]

Unless the backer of the agreement says you do not need to.
Consider it like a class action law suit or maybe a manufacturer's rebate.

My god. Taxpayers aren’t the backer of the agreement and the the only victims of mass stupidity would be the taxpayers.

 

[SpaceCoastVol]

Odd how none of the folks that are defending this stupid policy are upset that the core issue isn't even being addressed to avoid it in the first place.

It's what government does.

 

[SpaceCoastVol]

I'll bite. I'm fine with it and I, at the same time, think there is more that can be done. Happy? Reminds me of the PPP loans. Reactionary, unfocused yet better than doing nothing.

No... it isn't. Doing nothing is precisely what they should be doing. This is not a crisis for the vast majority of Americans.

 

[ButchPlz]

No... it isn't. Doing nothing is precisely what they should be doing. This is not a crisis for the vast majority of Americans.

Especially when this particular version of "doing something" is explicitly forcing the working class to subsidize a load of privileged drains on society.

 

[volinbham]

You’re approaching from an analytical viewpoint.

This is a farce and it was never meant to help anyone, other than some politicians. A gimmick to purchase power.

Oh I know - I guess I'd be more worried about our near future if I thought the current administration really believed this was good fiscal policy.

Just posted for some here who might be open to other views.

 

[C-south]

Wonder if the gullible idiots will get a $10k coupon on their loan going forward then cry when they still can’t/won’t pay?

 

[allvol123]

People actually have to fill out some form to get this, I believe. If so, there will be quite a few too lazy to even make the request.

 

[luthervol]

Nothing says I'm in touch with my base like a 170K vehicle.

Maybe a gold plated toilet seat.

 

[C-south]

People actually have to fill out some form to get this, I believe. If so, there will be quite a few too lazy to even make the request.

If they do they will soon find out that when you deal with any government agency you deal with massive incompetence.