Student Loan Forgiveness is Set to Expire: This is Going to be Painful for Many!

[brycejones]

My only concern with the notion, is we once again have neglected basic needs while targeting some people. It is rife for division and some confusion over priorities. I would hazard to say we may not be ready to properly tackle education costs in this country, nor do I expect anything presented from this Congress or President to be a real lasting solution. Altogether mixed feelings on it.

Addressing those larger issues are going to be outside of the power of the President. There are some good changes here but yeah congress has to be able to act which means we need people who are willing to be adults in office. Instead we have performance artists held hostage by media personalities.

 

[Zorba]

We really need 0% interest student loans.

This, or at least very close to 0%. I believe Bush signed a law in 2006 that massively increased and fix interest rates on student loans. My loans were consolidated at 1.75% and my wife's a year later were like 4.95%.

 

[Zorba]

I personally don't love the forgiveness. I wish the money was going to fixing the real problem of our of control cost increases, along with massive reform over how much could be borrow and which institutions qualified for loans.

Although I love the ACA, I think it has the same fundamental issue of treating the symptom as opposed to the cause. Students entering college this year will have higher cost than anyone before them and will get zero benefit from this forgiveness.

I see this like Reagan's amnesty. It was great for the people that got it, but did absolutely nothing to fix the issue.

 

[Sunburn74]

This, or at least very close to 0%. I believe Bush signed a law in 2006 that massively increased and fix interest rates on student loans. My loans were consolidated at 1.75% and my wife's a year later were like 4.95%.

I actually disagree.
I think the concept of zero percent loans is fine but it'll simply make it less risky for people to take massive loans, screw around in college, make bad decisions and then have to pay them back. It won't resolve the situation we currently have. People aren't being killed by the interest on their loans. It's largely the principal in relation to their take home pay that's the problem imo. The basic issue is college costs a ton and many people don't really take advantage of it whilst there.

Ultimately what needs to happen is creation of failsafes to ensure people actually will get a good job out of college. I like the idea that if you're not making x amount of dollars by x amount of years post college, you must work for the government (for example right now there is a shortage of accountants, fbi agents , etc etc) and they will find some job pathway with specific training that will eventually let you successfully pay your loans back.

 

[Zorba]

Making loans dischargeable is not a viable option because no one would make those loans if they were. Better to scrap the system and return to public funding.

I agree that we should massively increase funding and do other reforms. But aren't all federal loans federally guaranteed? So if they were discharged the feds would just pay the loan off, right?

 

[Wreckem]

This, or at least very close to 0%. I believe Bush signed a law in 2006 that massively increased and fix interest rates on student loans. My loans were consolidated at 1.75% and my wife's a year later were like 4.95%.

The Republicans did pass that. They went from loans based on Fed Rates which were 1.75-2.5 to setting them at 6.5%. So for 2006 until Obama changed things in 2009 the rates were 6.5. Those who took out undergrad loans from 2006-2009 got fucked over on interest rates. Student loan costs spiked dramatically because of those changes.

Essentially because of the Republican changes all my interest rates are on the 6.5% side and 7.25 side(grad plus). My avg interest rate averages right around 7 for all loans. I’m on the PLSF track through REPAYE and I’ve accrued about over 100k in interest since. Thankfully I’ll have around 30-36 payments till PLSF once payments resume. We will see what number the Department of ED spits out when they recalculate my payments.

In the end under PSLF I’ll payback About 66% of my original loan amounts, but I’ll have over a $140k in interest forgiven.

 

[Zorba]

I actually disagree.
I think the concept of zero percent loans is fine but it'll simply make it less risky for people to take massive loans, screw around in college, make bad decisions and then have to pay them back. It won't resolve the situation we currently have. People aren't being killed by the interest on their loans. It's largely the principal in relation to their take home pay that's the problem imo. The basic issue is college costs a ton and many people don't really take advantage of it whilst there.

Ultimately what needs to happen is creation of failsafes to ensure people actually will get a good job out of college. I like the idea that if you're not making x amount of dollars by x amount of years post college, you must work for the government (for example right now there is a shortage of accountants, fbi agents , etc etc) and they will find some job pathway with specific training that will eventually let you successfully pay your loans back.

Yeah, I already addressed the cost side and safe guards in a different post. Using high interest rates as a deterrent won't work. The kids paying and living high on student loans likely have no concept or concern about the difference in 1% and 5-7%. And while interest isn't the driving issue, it does make the loans much harder to pay off.

 

[fskimospy]

I agree that we should massively increase funding and do other reforms. But aren't all federal loans federally guaranteed? So if they were discharged the feds would just pay the loan off, right?

Yes but if the feds changed the law to make them dischargeable and left themselves on the hook then we are essentially federally finding higher education anyway as who would ever pay on their loans?

 

[Zorba]

Yes but if the feds changed the law to make them dischargeable and left themselves on the hook then we are essentially federally finding higher education anyway as who would ever pay on their loans?

I'm guessing the same reason most people don't run up a ton of credit card debt and claim bankruptcy. They could make it difficult to discharge, but not impossible.

 

[IronWing]

Two of my siblings are bitching about this program. I reminded them that the taxpayers covered a hell of a lot more of their college costs than we do for today's students. They don't see that tuition was cheaper then, in part, because the taxpayers were picking up the bulk of the actual costs of college. When I went through, the taxpayers were covering 75-80% of the actual costs of my education and for my siblings, it was an even higher percentage.

 

[MrSquished]

Two of my siblings are bitching about this program. I reminded them that the taxpayers covered a hell of a lot more of their college costs than we do for today's students. They don't see that tuition was cheaper then, in part, because the taxpayers were picking up the bulk of the actual costs of college. When I went through, the taxpayers were covering 75-80% of the actual costs of my education and for my siblings, it was an even higher percentage.

You can also point out to them that besides that crucial game-changing fact, is that does anything that benefits the younger generation that you didn't so terrible? Must we not adapt as a society and do better? Or everyone must go through the exact same shit we did? Do they have kids, do they want things to be better for their kids or not out of spite?

 

[TheVrolok]

You can also point out to them that besides that crucial game-changing fact, is that does anything that benefits the younger generation that you didn't so terrible? Must we not adapt as a society and do better? Or everyone must go through the exact same shit we did? Do they have kids, do they want things to be better for their kids or not out of spite?

The "FYGM" crowd is also often the "IDGIFY" crowd (I DIDN'T GET IT F YOU). It's the same mentality - they have stunted emotional intelligence and an inability to see "greater goods."

 

[HomerJS]

I find it odd the people bitching the most about Biden’s announcement were silent when PPP loans were forgiven for the likes of Kanye West and Tom Brady

Also remember the 2007 financial bailouts? Suddenly when the benefit is for the middle class person there is weeping and gnashing of teeth

 

[cytg111]

Suppose education was free.
Suppose education was free for foreigners.
What would it look like, if the west began to educate everyone who wanted it on the planet.
Think of the possibilities.

 

[K1052]

Been doing some reading of regular person reactions to this I think I will revise my estimation on what the implications of R appointed judges killing or stalling the program would be. It would be like pushing the button on a rage bomb the likes of which has not been seen since...well at least Dobbs. Maybe worse. If you wanted to turn out tens of millions of low propensity voters who might not basically ever show up otherwise to angry vote against your party thats a way to do it.

 

[K1052]

Students entering college this year will have higher cost than anyone before them and will get zero benefit from this forgiveness.

They would still substantially benefit from the changes to the income based repayment rules.

I also want a lot more but that's going to require congressional action.

 

[Zorba]

They would still substantially benefit from the changes to the income based repayment rules.

I also want a lot more but that's going to require congressional action.

Yeah, I had missed that until posted here. That will be the gift that keeps on giving.

 

[Pens1566]

Been doing some reading of regular person reactions to this I think I will revise my estimation on what the implications of R appointed judges killing or stalling the program would be. It would be like pushing the button on a rage bomb the likes of which has not been seen since...well at least Dobbs. Maybe worse. If you wanted to turn out tens of millions of low propensity voters who might not basically ever show up otherwise to angry vote against your party thats a way to do it.

Rage bomb is a good way to describe it.

 

[Juiblex]

It does really explain your points of view on many things that you are not educated above a high school degree. You just simply don't have the exposure to things that you get with a 4-year degree at a decent school. And it shows.

At least I've worked 40 hours a week for my entire life, and I've never used a government program ever. I don't think going to a liberal college for 4 years to be indoctrinated is really necessary. I know you wish that on everybody because you want everybody indoctrinated (and in debt apparently.) I'm really ok with where I am and who I am and what side I'm on...

The only question you should be asking is if the country is better off where people carry massive, undischargeable debt for life or if with these loans, like in business, it would be better to let people who got in over their heads start over.

Which do you think is better?

Those who make stupid choices should take the brunt of their poor decisions. Felons in prison have to pay the price for their poor decisions. Why should everybody else give a free ticket to those who made poor decisions financially? Nobody is forcing these people to go to college except brainwashed indoctrinated fools like MrSquished. Be a plumber. Learn a trade... Nobody needs a liberal arts degree from a liberal college that nobody cares about. Ooo! I have a degree in soft skills and Microsoft Word.

I believe the system should be fair. Those who are responsible should be rewarded, those who do not should be penalized. We have the opposite currently. It's completely backwards.

That said, I am a reasonable person. If someone is working and paying towards the loan, give them a 0.05% interest rate so they can get on top of it. Make it a backwards amortized schedule. So, as they pay off their debt the interest rises a bit (up to 1%) to make it fair to the lender... I don't care if its McDonalds. Do something! Be responsible.

Thinking of a fair solution isn't that hard. That took me 5 seconds of brainpower and I think it's a good one.

If you just refuse to work or pay off your loan after you soaked up $50,000+ in college debt. Sorry, to me that's theft/fraud, and the person should be treated as such. If I stole $50,000 like a brand new car, that would be a felony and prison time.

 

[K1052]

I don't think going to a liberal college for 4 years to be indoctrinated is really necessary.

I'll remember to tell my doctor that his degrees don't mean shit next time I see him. I'm certainly not in the everybody needs to go to college camp but a lot of people really do.

 

[HomerJS]

More shameless vote buying by Democrats.


Sigh 😕

No where near the "vote buying" by the Trump tax cuts. The wealthiest get hundreds of thousands while the middleclass got $5

Biden kept a campaign promise. Shock

 

[K1052]

No where near the "vote buying" by the Trump tax cuts. The wealthiest get hundreds of thousands while the middleclass got $5

Biden kept a campaign promise. Shock

The vast majority of voters favor at least some debt forgiveness and that's what Biden is doing, largely consistent with his pledge. The Trump tax cuts were never popular but the GOP did it anyway and simply lied that they were paid for.

 

[iRONic]

“Indoctrinated” “Penalized”

Your words do speak volumes.

 

[Aikouka]

I don't think it has any legal significance, it was a nice round number for Biden to campaign on that will cut balances for half the people with student loans by 50%+.

I am nearly certain this will function in the same way that public service loan forgiveness does where it is not considered taxable income.

Thank you for the explanation.

Those who make stupid choices should take the brunt of their poor decisions. Felons in prison have to pay the price for their poor decisions. Why should everybody else give a free ticket to those who made poor decisions financially? Nobody is forcing these people to go to college except brainwashed indoctrinated fools like MrSquished. Be a plumber. Learn a trade... Nobody needs a liberal arts degree from a liberal college that nobody cares about. Ooo! I have a degree in soft skills and Microsoft Word.

I can understand your point, but the reason why I'm willing to let it go is that I don't think the populace has done a great job (on average) in properly guiding the youth toward a responsible adulthood. I don't think some of the young adults really have the maturity or forethought to consider what exactly they are signing up for. Should that mistake solely rest upon them? No... I don't think so. I am of the opinion that the primary responsibility of a parent/guardian is to ensure that their child/ward is shaped into a responsible/respectable adult. Part of that responsibility has to be willing to step in and offer advice/guidance in situations such as taking on debt at a young age. The authority figures through the past few decades have also not done a great job to rein in higher academia to avoid this problem in the first place. We can't ignore our own ignorance.

I'm not really sure when you grew up, but I graduated from high school in 2002, and I can assure you that the atmosphere was fully geared toward progression from secondary school to higher education. The question wasn't "are you planning to go to college?", but rather, "What college are you planning on attending?" The idea was that unless you were already in a co-op program, you would likely either go to the military or college where everyone's choice of college was brandished outside the guidance counselor's office for everyone to see. Fortunately, since I was 14, my mind was set on computer science, which has a good overall return in regard to salary.

 

[fskimospy]

At least I've worked 40 hours a week for my entire life, and I've never used a government program ever. I don't think going to a liberal college for 4 years to be indoctrinated is really necessary. I know you wish that on everybody because you want everybody indoctrinated (and in debt apparently.) I'm really ok with where I am and who I am and what side I'm on...

No government program ever? Were you raised by wolves or something and never went to school?

Reminds me of Craig T. Nelson, lol:

I've been on food stamps and welfare. Anybody help me out? No. No.

Those who make stupid choices should take the brunt of their poor decisions. Felons in prison have to pay the price for their poor decisions. Why should everybody else give a free ticket to those who made poor decisions financially? Nobody is forcing these people to go to college except brainwashed indoctrinated fools like MrSquished. Be a plumber. Learn a trade... Nobody needs a liberal arts degree from a liberal college that nobody cares about. Ooo! I have a degree in soft skills and Microsoft Word.

So you believe business bankruptcy should be illegal then, correct?

I believe the system should be fair. Those who are responsible should be rewarded, those who do not should be penalized. We have the opposite currently. It's completely backwards.

So to be clear you would prefer our country to be worse off so long as it adheres to your personal morality?

That said, I am a reasonable person. If someone is working and paying towards the loan, give them a 0.05% interest rate so they can get on top of it. Make it a backwards amortized schedule. So, as they pay off their debt the interest rises a bit (up to 1%) to make it fair to the lender... I don't care if its McDonalds. Do something! Be responsible.

Thinking of a fair solution isn't that hard. That took me 5 seconds of brainpower and I think it's a good one.

Your solution is a HUGE giveaway to doctors, lawyers, and people with expensive grad degrees. You're putting tens or hundreds of thousands of dollars in the pocket of rich people.

This is why a good solution takes more than five seconds to think of, haha.