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

[MrSquished]

brandon getting spicy thanks to new twitter intern

https://twitter.com/x/status/1562957374339497987

Actually she's not an intern. She started as an intern in Phil Murphy's campaign, and was head of the New Jersey official Twitter account which got a lot of buzz under her. She's now a deputy director of the White House social media platforms

 

[FelixDeCat]

I never signed a contract to give PPP handouts to all the asshole local business owners that are now flooding my community Facebook page with posts about how much they hate government handouts, yet here we are. Fuck off.

You do realize PPP money went right into employees pockets, correct?

Granted there were dirt bags who just bought lambo's and/or created fake businesses to steal the money but many of those idiots are facing time in federal prison for their efforts.

 

[JD50]

You do realize PPP money went right into employees pockets, correct?

Granted there were dirt bags who just bought lambo's and/or created fake businesses to steal the money but many of those idiots are facing time in federal prison for their efforts.

Oh so you're fine with handouts to the employees then? Great, me too! Anyways I know plenty of people who still had their company going full time that got PPP loans forgiven.

 

[HomerJS]

You do realize PPP money went right into employees pockets, correct?

Granted there were dirt bags who just bought lambo's and/or created fake businesses to steal the money but many of those idiots are facing time in federal prison for their efforts.

Which face do we listen to when you are cool with PPP loans being forgiven in full but not 10K in student loans forgiven?

Who knew Tom Brady and Kanye West are too poor to pay their loans back

 

[BoomerD]

These 13 states may hit borrowers with up to $1,100 in state tax liability on forgiven student loans. How to know if your debt cancellation will trigger a bill

While Biden's student loan forgiveness plan is tax-free on federal returns, it may trigger liability at the state level. Here's what borrowers need to know.

www.cnbc.com

That's gonna suck for the people in those states...unless the state changes the rules on it.

 

[kitkat22]

Thankfully my undergraduate debt was <$10000. I graduated from a private medical school with $420000 in debt. I currently pay $3250/mo on a 15yr term and I am now approaching $260000.

I am ok with some loan forgiveness.I make way more than $125000 and to be honest 10k really won't make that much of a difference to me.

I did transfer my loans into Sofi for the lower interest rate. Went from 8.4% on some of the larger loans to about 5%.

I spent several years working for a private practice so I didn't qualify for the PSLF stuff.

My biggest complaint is why the freak is tuition so expensive!

 

[NWRMidnight]

Student loans are a voluntary system, you have to actively seek them out and agree to pay them back. Tax cuts are a reduction in the amount of money we have to pay under threat of force. They are completely different situations.

I only read a couple of the responses to you on this. What I am going to add to what others have said is this:. Until advanced education isn't for the most part a requirement to earn a living wage, taking on such debt is not a voluntary choice, it is a requirement.

 

[NWRMidnight]

You do realize PPP money went right into employees pockets, correct?

Granted there were dirt bags who just bought lambo's and/or created fake businesses to steal the money but many of those idiots are facing time in federal prison for their efforts.

Only a portion of it was required to go to pay employee wages. The majority went to the actual business and used with in the approved guidelines. Example is it could be used for business improvements, upgrades, equipment repair/replacement, renovations, etc., As well as other expenses required to keep the doors open. Not just employee wages.

 

[KMFJD]

even ben garrison is for this

https://twitter.com/x/status/1563228475091472384

 

[TheVrolok]

even ben garrison is for this

https://twitter.com/x/status/1563228475091472384

Holy shit, talk about bizarro world.

 

[pmv]

You do realize PPP money went right into employees pockets, correct?

How does that change anything? If a profit-making business takes a 'loan' and uses it to pay their employees - then gets the loan forgiven and then complains about "irresponsibility" with regard to student loan forgiveness, how does the fact the money went to the employees make any difference to the hypocrisy involved? Whether its Prager U, Steven Crowder or the Daily Caller. Money going to their employees (who tend to share the politics of their employer) is still indirectly benefiting the business.

 

[TheVrolok]

How does that change anything? If a profit-making business takes a 'loan' and uses it to pay their employees - then gets the loan forgiven and then complains about "irresponsibility" with regard to student loan forgiveness, how does the fact the money went to the employees make any difference to the hypocrisy involved? Whether its Prager U, Steven Crowder or the Daily Caller. Money going to their employees (who tend to share the politics of their employer) is still indirectly benefiting the business.

The counter argument is that the government forced business to close and no one forced students to take loans. Also, that PPP loans were always intended to be forgiven unlike student loans.

I think the former argument is pretty reductive and I don't support either argument, but they have SOME merit which makes them good talking points for those who don't want anything more than superficial discussion.

 

[ch33zw1z]

The counter argument is that the government forced business to close and no one forced students to take loans. Also, that PPP loans were always intended to be forgiven unlike student loans.

I think the former argument is pretty reductive and I don't support either argument, but they have SOME merit which makes them good talking points for those who don't want anything more than superficial discussion.

fair point, yet nobody forced a business to run a thin margins and subsequently require a government bailout.

I think keeping the economy from complete collapse was a good move, and this student loan move is also a good move for Economic reasons

 

[Lezunto]

Naturally, Trump whined about Biden's loan forgiveness program.

He also had the nerve to complain about schools fleecing students when his shuttered Trump University had to pay $25 million to settle lawsuits from former students who charged the for-profit and unlicensed school with fraud.

The school, shut down in 2010, offered fake diplomas, according to some critics.

https://news.yahoo.com/trump-fails-mention-defunct-trump-203910273.html

 

[GoPackGo]

The counter argument is that the government forced business to close and no one forced students to take loans. Also, that PPP loans were always intended to be forgiven unlike student loans.

I think the former argument is pretty reductive and I don't support either argument, but they have SOME merit which makes them good talking points for those who don't want anything more than superficial discussion.

No one forced people to take student loans... but when you are young until you finish high school you are told to go to college. Not just by the schools, but parents, other family members, etc... You are a failure / loser if you don't go. I go back to my main point... high interest rates along with capitalized interest make getting out from under the debt nearly impossible for many people. If what you earn vs what you can afford in student loan repayments is less than the interest, at the end of that year you will owe more than what you started with. You now start paying interest on interest.

 

[TheVrolok]

No one forced people to take student loans... but when you are young until you finish high school you are told to go to college. Not just by the schools, but parents, other family members, etc... You are a failure / loser if you don't go. I go back to my main point... high interest rates along with capitalized interest make getting out from under the debt nearly impossible for many people. If what you earn vs what you can afford in student loan repayments is less than the interest, at the end of that year you will owe more than what you started with. You now start paying interest on interest.

Don't need to convince me that the student loan system is essentially indentured servitude.

 

[K1052]

The counter argument is that the government forced business to close and no one forced students to take loans. Also, that PPP loans were always intended to be forgiven unlike student loans.

I think the former argument is pretty reductive and I don't support either argument, but they have SOME merit which makes them good talking points for those who don't want anything more than superficial discussion.

Politically having Republcian members of congress stumble through questions about why they took out hundreds of thousands or millions in forgivable loans while opposing this is a productive line of attack. A lot of regular people think thats weird and is sort of offensive when their mumbly defenses are paired with the usual "well people who want this are freeloaders, bootstraps etc" conservative stuff. It's also somewhat inconvenient to be the the party "against inflation" and turn around to say there is no way to lower education prices and that we shouldn't even try.

 

[ElFenix]

What happens now? What about the people who are going to start school next year? Do they get a 10K gift as well? Have controls been put in place to prevent this from happening again? Has the program been restructured in some way?

This is my problem - nothing about student loans has changed.

the relief for people going forward is the new IBR rules and no interest accruing on amounts above the repayment amount.

Actually she's not an intern. She started as an intern in Phil Murphy's campaign, and was head of the New Jersey official Twitter account which got a lot of buzz under her. She's now a deputy director of the White House social media platforms

as i said. twitter intern.

 

[Greenman]

the relief for people going forward is the new IBR rules and no interest accruing on amounts above the repayment amount.

That's not bad solution. I wonder how many people will utilize the program for the entire 25 years and have the balance forgiven? I also wonder how surprised they're going to be when the IRS comes looking for it's cut at that time.

 

[fskimospy]

That's not bad solution. I wonder how many people will utilize the program for the entire 25 years and have the balance forgiven? I also wonder how surprised they're going to be when the IRS comes looking for it's cut at that time.

They won’t be surprised at all because it’s not taxed.

 

[Greenman]

They won’t be surprised at all because it’s not taxed.

The amount forgiven is taxable according to the article I read. It points to this section of the IRS Q&A.

The tax impact of debt forgiveness or cancellation depends on your individual facts and circumstances. Generally, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt. There are several exceptions to the taxability of cancelled debt, such as insolvency or bankruptcy.

 

[uclaLabrat]

They won’t be surprised at all because it’s not taxed.

At the federal level. *your regressive red state tax experience may vary.

 

[fskimospy]

The amount forgiven is taxable according to the article I read. It points to this section of the IRS Q&A.

The tax impact of debt forgiveness or cancellation depends on your individual facts and circumstances. Generally, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt. There are several exceptions to the taxability of cancelled debt, such as insolvency or bankruptcy.

Generally that is true, not true for forgiven student loans.

 

[Greenman]

Generally that is true, not true for forgiven student loans.

I didn't see that exception in the IRS Q&A.
The idea makes sense from an IRS prospective. If you borrow money and don't have to repay it, that's income. What the money was spent on doesn't enter the equation unless it's specifically delineated by the IRS.

My guess is that it won't matter for most people. If you've been in the system for twenty five years and still have a balance large enough to make a difference on your taxable income, you've never had much income.

My fundamental issue with all of this is that we created a program to help out people that couldn't afford higher education. That's a good thing, but there were no controls put in place. Clearly that's a problem as we now have a large group of people that can't repay the cost of their education. That "good thing" we did has become a huge burden to the vary people it was designed to help.
We flooded the system with money, drove prices to stratospheric levels, and now have a "crisis" that requires us to add a whole bunch more money to the national debt.
Maybe it's time to consider solving problems by methods other than throwing cash at them.

 

[fskimospy]

I didn't see that exception in the IRS Q&A.
The idea makes sense from an IRS prospective. If you borrow money and don't have to repay it, that's income. What the money was spent on doesn't enter the equation unless it's specifically delineated by the IRS.

My guess is that it won't matter for most people. If you've been in the system for twenty five years and still have a balance large enough to make a difference on your taxable income, you've never had much income.

My fundamental issue with all of this is that we created a program to help out people that couldn't afford higher education. That's a good thing, but there were no controls put in place. Clearly that's a problem as we now have a large group of people that can't repay the cost of their education. That "good thing" we did has become a huge burden to the vary people it was designed to help.
We flooded the system with money, drove prices to stratospheric levels, and now have a "crisis" that requires us to add a whole bunch more money to the national debt.
Maybe it's time to consider solving problems by methods other than throwing cash at them.

If you look up PSLF you’ll see they are tax free, at least federally.

As far as the problem goes essentially student loans were created to offload the cost of educating people onto the kids because they parents didn’t want to pay for it anymore. It’s too late for the boomers to be responsible but the right answer is to return responsibility.