Forgive Student Loans?

[VolStrom]

Now the WH is dunking on MTG.

Did she break the law?

 

[volbound1700]

What I find funny that the 'black market" for any illegal product is probably the most honest form of capitalism. Capitalism is the best to way run an economy.

Not really because black market has overinflated costs because of the illegality of the products.

 

[volinbham]

Now the WH is dunking on MTG.

Yep - no rational arguments for defending policy - just "uh uh, you are" Typical of this administration

 

[volinbham]

Not really because black market has overinflated costs because of the illegality of the products.

if the inflated costs represent the scarcity/risk premium then the market is working as intended.

 

[Carl Pickens]

Now the WH is dunking on MTG.

This is dumb too. Ppp loans were a different animal

 

[lawgator1]

I am struggling to support this for two reasons. First, I see some merit to the fairness argument that is being raised for those who paid their loans or are paying their loans. Second, it is going to create yet another expense for the country on the whole.

I have not studied the issue, but I wonder whether a reasonable alternative and compromise would have been to simply stop the accrual of interest on certain amounts of money, but require that in order to get that break the borrower makes minimum payments that results in reduction of the principal.

It has always been my impression that one of the biggest problems is that early on after graduating, when a person gets a relatively lower salary, they enter into agreements for lower payments and that results in a lot more interest.

So, for example perhaps a better alternative would have been to provide that, if a person made monthly payments on time for 5 years, then the interest that would have accrued would be forgiven. But still have to pay the principal.

Just a thought.

 

[volinbham]

I am struggling to support this for two reasons. First, I see some merit to the fairness argument that is being raised for those who paid their loans or are paying their loans. Second, it is going to create yet another expense for the country on the whole.

I have not studied the issue, but I wonder whether a reasonable alternative and compromise would have been to simply stop the accrual of interest on certain amounts of money, but require that in order to get that break the borrower makes minimum payments that results in reduction of the principal.

It has always been my impression that one of the biggest problems is that early on after graduating, when a person gets a relatively lower salary, they enter into agreements for lower payments and that results in a lot more interest.

So, for example perhaps a better alternative would have been to provide that, if a person made monthly payments on time for 5 years, then the interest that would have accrued would be forgiven. But still have to pay the principal.

Just a thought.

I believe on your second point it's a wash - given we have to borrow the money if we change the payment structure to no interest but principal the interest paid to borrow the money still has to be paid. Maybe interest rates could be set to the cost for the government to borrow but that just incentivizes more borrowing and given the 10/20 forgiveness life time we'll just see more loss of principle. The other challenge is that the interest is link to other programs. ACA was originally partially funded by student loan interest (not sure if that set aside still exists)

I don't think anyone has to make lower payments but the minimum is currently set at 10% of annual salary and like credit card debt people take the option and let the debt ride.

Honestly the tough love solution would be to cap Federal borrowing much lower. The more expensive universities will howl bloody murder. Eventually we'll put some corrections on Higher Ed costs by starving it. If you want to borrow more, hit the traditional loan market.

Sadly we are going in the opposite direction and approaching a government paid college degree where we tell universities whatever you charge we'll pay it.

 

[82_VOL_83]

First reply to his idiotic tweet says it all

There is literally no response that can be made to this. You should be banned for life from VN. You might possibly the most despicable poster on Vol Nation.

@Freak

 

[Orangeburst]

I am struggling to support this for two reasons. First, I see some merit to the fairness argument that is being raised for those who paid their loans or are paying their loans. Second, it is going to create yet another expense for the country on the whole.

I have not studied the issue, but I wonder whether a reasonable alternative and compromise would have been to simply stop the accrual of interest on certain amounts of money, but require that in order to get that break the borrower makes minimum payments that results in reduction of the principal.

It has always been my impression that one of the biggest problems is that early on after graduating, when a person gets a relatively lower salary, they enter into agreements for lower payments and that results in a lot more interest.

So, for example perhaps a better alternative would have been to provide that, if a person made monthly payments on time for 5 years, then the interest that would have accrued would be forgiven. But still have to pay the principal.

Just a thought.

Why should anything be forgiven. You sign a private contract or make a commitment and not pay..you pay the piper.
Why should having some gov loan be any different?
This screams Freddie May government self infliction stuff.

 

[volinbham]

Given the way we handle SS inflows and outflows I wonder if we even pay down loans on a one-to-one basis for the principle reduction paid by the borrower or it's just a shell game where we credit their account but use the money for something else.

 

[mr.checkerboards]

We had a preventative maintenance agreement with one our clients for almost 20 years zero stormwater or discharge violations over the last 12-15 years. New CEO brings in a bunch of MBAs to maximize profits and increase productivity over their 300+ stores. 2nd year after scrapping our PM agreement over a million in fines in TX alone. NY shuttered a store over noncompliance.

Another reason school is terrible. People get these big fancy degrees but have 0 clue how the real world works. They have to have a step by step A B C checklist. They can't problem solve to save their lives.

 

[volinbham]

Found this interesting and telling

What Salaries Do College Graduates Expect?
According to a recent survey conducted by real estate data company Clever, the average starting salary for college graduates in 2022 stood at $55,260, the highest so far on record. Recent graduates, however, overestimate their own starting salaries by nearly twice that much. The survey of 1,000 undergraduate students found that current college students expect to make nearly $104,000 in their first job.

 

[Orangeburst]

Found this interesting and telling

What Salaries Do College Graduates Expect?
According to a recent survey conducted by real estate data company Clever, the average starting salary for college graduates in 2022 stood at $55,260, the highest so far on record. Recent graduates, however, overestimate their own starting salaries by nearly twice that much. The survey of 1,000 undergraduate students found that current college students expect to make nearly $104,000 in their first job.

Spoiled. Heart of all this.

What do you see in this generational attitude at your school?

 

[NorthDallas40]

 

[OHvol40]

It's not? What are they whining about?

“Women’s studies and Russian Literature”

 

[volinbham]

Spoiled. Heart of all this.

What do you see in this generational attitude at your school?

It's different for sure. Much less interest in studying and I confess we've dumbed things down on the content side. The upside is we do much more active things so it is what it is. Can't say if they're better off than students 20 years ago.

 

[OHvol40]

People are whining about people getting 10-20k in loan forgiveness.

Well, people here to love to whine so that being included as well isn’t surprising.

 

[volinbham]

So I just ran the numbers on max borrow for a UG (govt loan programs) at current interest rates and average UG salary.

At least until the salary grows this student will be have minimum payments less than interest charges under the proposed 5% minimum. Under the current 10% rule just under 1/2 goes to principle.

We are setting people up for failure and subsequent bailout.

 

[volinbham]

“Women’s studies and Russian Literature”

Don't worry I'm not saying a women's studies degree is worthless - however the average starting salary is 50% of the overall UG average. It will certainly change the cost/benefit equation; particularly from a debt perspective.

even under the 10% minimum they come up just short of covering the interest on the loan. at the 5% it's just under 1/2

 

[NorthDallas40]

Don't worry I'm not saying a women's studies degree is worthless - however the average starting salary is 50% of the overall UG average. It will certainly change the cost/benefit equation; particularly from a debt perspective.

I’ll go ahead and say a women’s studies degree is worthless. And completely stupid as hell to borrow money to complete.

 

[Orangeburst]

I’ll go ahead and say a women’s studies degree is worthless. And completely stupid as hell to borrow money to complete.

In this stupidity, is that even still a thing? or rebranded?

 

[NorthDallas40]

In this stupidity, is that even still a thing? or rebranded?

Wikipedia says it’s still real. YMMV

Women's studies - Wikipedia

 

[OHvol40]

I’ll go ahead and say a women’s studies degree is worthless. And completely stupid as hell to borrow money to complete.

I’m not arguing that it isn’t. I posted the actual numbers of degrees that were conferred over roughly 12 years. I wanted to know how relevant the prevalent thought that people are getting “worthless degrees” en mass really was. So I posted the facts and asked for a discussion which, predictably, nobody wants to have in sincerity.

 

[NorthDallas40]

I’m not arguing that it isn’t. I posted the actual numbers of degrees that were conferred over roughly 12 years. I wanted to know how relevant the prevalent thought that people are getting “worthless degrees” en mass really was. So I posted the facts and asked for a discussion which, predictably, nobody wants to have in sincerity.

I would say your semantics game is useless. Anybody taking out loans totaling amounts that their salaries their chosen field of study historically show a huge burden to pay it back have failed common sense and shouldn’t be given the damn loans. I don’t care what the field of study is.

 

[Orangeburst]

Wikipedia says it’s still real. YMMV

Women's studies - Wikipedia

Guess my blue font or blue hair card is applicable.