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

[fskimospy]

I wonder if the $10k amount has something to do with the minimum amount of income that has to be reported to the IRS?

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 also assume that anyone getting the debt forgiven will likely have to claim it on their taxes as earned income... or does debt forgiveness not work that way?

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

 

[brycejones]

It's such a weird way to look at things too. The government exists to provide services to its citizens and that principally involves spending tax money to do it. Everything government does is 'buying votes'!

Imagine how deranged someone's world must be where they say in effect 'the president doing things voters will like in order to get them to vote for him' is a bad thing.

The GOP has become the party opposed to democracy so I guess his position makes sense in that context.

 

[K1052]

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

This is correct. Schumer wrote this relief into the ARP.

 

[Maxima1]

Here’s a fun fact. Really want to make those student loans? Go into philosophy.

Um, it's obviously not that simple. The type of person to intend to major in philosophy is different from another given major. This reminds me of when one of my instructors praised studying abroad saying something like they make a quarter more and almost everyone that graduates is hired within a year.

It's such a weird way to look at things too. The government exists to provide services to its citizens and that principally involves spending tax money to do it. Everything government does is 'buying votes'!

What happened to income inequality and considering fairness?

https://twitter.com/x/status/1561882928413642752

 

[brycejones]

What happened to income inequality and considering fairness?

https://twitter.com/x/status/1561882928413642752

I have no doubt some people will suddenly pretend to care about those issues.

 

[Paratus]

While I think schools have been screwing people for decades, I do not like the forgiveness.

People knew the costs going into it. They need to pay up. This is just another redistribution of wealth. Biden and the Dems are going full socialism here. Of course, rewarding those who have NOT been responsible. Like in so many other cases. I'm better off quitting my job, running up whatever debt, and depending on government to take care of me. Seriously that's a better career path for many these days.

I didn't finish college because I couldn't afford it (and I was already hired in my career profession.) I didn't get loans because I didn't want the debt. I've been removed from applicant pools because I lacked a degree. I feel stupid now I should have just finished college and refused to pay the bill.

But no, I did the responsible thing. Determined my financial future and determined dropping out was the best choice. I figured my experience was just as valuable as the degree.

That said, I've been highly successful so I don't really care. But why are we teaching people to be less responsible?

The bogus degrees from scam schools again let the buyer beware. The government should have stopped that right away. That is the purpose of the government and they failed. I can see it in that case.

Nm

 

[fskimospy]

I have no doubt some people will suddenly pretend to care about those issues.

From what I read 90% of the benefit will go towards people making less than $75k.

 

[Maxima1]

I can’t put a finger on why but your post made me think of this.

Interesting that we have to go back on slavery, Jim Crow, GI bill grievances, but it's a firm no for everyone that's not getting anything here.

https://twitter.com/x/status/1562456098136735744

 

[brycejones]

From what I read 90% of the benefit will go towards people making less than $75k.

I don't have the data to disagree. I'm just commenting on the people like the poster who posted it suddenly being concerned about equity and fairness.

 

[Maxima1]

I don't have the data to disagree. I'm just commenting on the people like the poster who posted it suddenly being concerned about equity and fairness.

How did I suddenly become concerned with it? It's a big reason why I support UBI.

 

[Paratus]

Interesting that we have to go back on slavery, Jim Crow, GI bill grievances, but it's a firm no for everyone that's not getting anything here.

https://twitter.com/x/status/1562456098136735744

Why don't they ask their representatives to pass legislation granting them a refund or tax break.......

 

[hal2kilo]

Interesting that we have to go back on slavery, Jim Crow, GI bill grievances, but it's a firm no for everyone that's not getting anything here.

https://twitter.com/x/status/1562456098136735744

Since when is anything remotely fair in this world.

 

[brycejones]

How did I suddenly become concerned with it? It's a big reason why I support UBI.

I've never taken that away from your posts but sure if you say so. Do you think the clip from RNC research represents a viewpoint that would also support something like UBI?

 

[96Firebird]

I'm not a fan. Seems like a bandaid to me.

It does nothing to help tuition costs.

It does nothing to help student loan interest rates, both federal and private.

It does nothing to help the fact that student loans are not forgivable in bankruptcy.

I think a blanket $10k for federal loans was a sloppy move. For those who have near $10k in loans left, that is manageable and there is light at the end of the tunnel. Those with $50k in loans left, it makes a dent but that is still a manageable amount to pay off. For those with $100k+ in loans (is it even possible to amass that much federal student loan debt?), it doesn't do much and the interest will claw back that $10k in no time.

They should have done a percentage of federal loan payback, or work on lowering the interest rates. Or, better yet, allocate as a percentage looking at income vs debt.

 

[Fenixgoon]

Since when is anything remotely fair in this world.

While the world isn't fair, it's a valid criticism to bring up disparate benefits - even if they're not designed that way.
It is a challenge to do better and address some of the structural inequalities borne of racism.

 

[dainthomas]

It does nothing to help student loan interest rates, both federal and private.

Actually it kind of does. Your accrued interest can't exceed the payment due in any given month, even if the amount due is zero. That should prevent anyone from ever seeing their balance go up as long as they're making the payment due.

 

[Paratus]

What about the business jet owners?

 

[TheVrolok]

What about the business jet owners?

Yeah but they used those savings to pay a liveable wage to many employees. Right? ... Right?

 

[fskimospy]

It is pretty amusing to see the ‘write off your private jet’ people pretend to care about inequality and fairness in government policy.

In some ways I admire their total lack of shame. They know they are lying. We know they are lying. They still ask us to pretend we don’t know this.

 

[K1052]

I'm not a fan. Seems like a bandaid to me.

It does nothing to help tuition costs.

It does nothing to help student loan interest rates, both federal and private.

It does nothing to help the fact that student loans are not forgivable in bankruptcy.

I think a blanket $10k for federal loans was a sloppy move. For those who have near $10k in loans left, that is manageable and there is light at the end of the tunnel. Those with $50k in loans left, it makes a dent but that is still a manageable amount to pay off. For those with $100k+ in loans (is it even possible to amass that much federal student loan debt?), it doesn't do much and the interest will claw back that $10k in no time.

They should have done a percentage of federal loan payback, or work on lowering the interest rates. Or, better yet, allocate as a percentage looking at income vs debt.

The 10K is getting a lot of ink right now but other changes are going to be pretty big and favorable.

Have a gander at the income based repayment rules changes:

https://twitter.com/x/status/1562470265665495040

I want way cheaper college, to make loans dischargeable, and low to zero rates for borrowers but absent major legislation this is a real good step.

 

[fskimospy]

The 10K is getting a lot of ink right now but other changes are going to be pretty big and favorable.

Have a gander at the income based repayment rules changes:

https://twitter.com/x/status/1562470265665495040

I want way cheaper college, to make loans dischargeable, and low to zero rates for borrowers but absent major legislation this is a real good step.

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.

 

[K1052]

Making loans dischargeable is not a viable option because no one would make those loans if they were.

I'm not talking about new loans.

Better to scrap the system and return to public funding.

100%

 

[MrPickins]

So many of the arguments against loan forgiveness sound just like this

 

[MrSquished]

I saw some lady on a news post about this on FB bitching that this is Biden BS, what about her son who is on a private loan? I said the president doesn't have the authority to do that. She complained more with usual conservative talking points. I said look, you have plain as day showed that you are just selfish, a common GQP characteristic, you only like things that benefit you, then you support anything. If you don't you call it names. If this included private loans you'd be fine. Thus, you are selfish.

 

[Jaskalas]

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.