Cancelling student loans and how it affects you

[liner]

Both the stimulus money and the student loan forgiveness will hit me. And they help. I mean I’m not gonna lie it’s certainly nice to have that money, but I’ll be the first one to say, it’s not like I “need” the money. I’m not worried about feeding my family and my bills are paid every month. There’s tight months here and there but overall I do ok.

So why am is money being thrown at me hand over fist? It’s a bit confusing. Sure it’s nice to get the money but I’m not even at the top of the bracket for folks being given these funds so it makes you wonder how many of these people actually need assistance.

I'm almost the exact same. Just found out my wife's student loan is a pell, what we still owe will be wiped. We are already pretty comfortable, now we will be more comfortable each month. Thanks I guess and I'm not going to donate the money to charity but I don't think I'd vote for this

 

[liner]

I'll try and put some of what was going to the student loan to my mortgage.

 

[SaiWa]

Yes. I laughed when the analyst on the news said people who were saving up to pay loans can now spend there extra money. Who's saving up to pay loans

I had loans, I paid back a ton my first 4 years or so out of college. I'm not bitter that people are being let off the hook though, doesn't affect me anymore.

It is annoying a bit though and it does affect you just not directly. That tax money can be used for better purposes. That's assuming we believe the government would have used it for better purposes.

But as someone else stated this doesn't fix the root of the problem. Others will still be in massive school debts and more will come each and every year we dont attempt to address the issue. Buddy texted in one of my group chat actually texted us that my college now cost almost 55K a year. Even Ivey leagues schools weren't that expensive back then but whatever... I don't see how the middle class can afford to send one let alone multiple kids to college without incurring massive amounts of debt as a family.

 

[Spounman]

It is annoying a bit though and it does affect you just not directly. That tax money can be used for better purposes. That's assuming we believe the government would have use it for better purposes.

But as someone else stated this doesn't fix the root of the problem. Others will still be in massive school debts and more will come each and every year we do attempt to address the issue. Buddy texted in one of my group chat actually texted us that my college now cost almost 55K a year. Even Ivey leagues schools weren't that expensive back then but whatever... I don't see how the middle class can afford to send one let alone multiple kids to college without incurring massive amounts of debt as a family.

Yeah it does but I mean it doesn't affect me enough to get upset over something I have no control over. Yeah I don't see how people can afford college these days, it was expensive for me and I graduated in 2007.

 

[Only Here for Attachments]

This is nothing more than a move made for political gain, not the betterment or well being of those it actually effects.. it’s pandering for votes, plain and simple

AKA anything any politician does

 

[Richmma80]

The cost is going to be $300 billion on the low end of the estimate. And they're talking about increasing it from 10k to 20k.

 

[WandySaku2]

It'll make me officially debt free.

 

[Osculater]

Thank you Biden now I don't owe the government

 

[mb23100]

Won't affect me at all. My only debt is my mortgage and I'm almost done with that

 

[Omegaboy13]

Won't affect me at all. My only debt is my mortgage and I'm almost some with that

After the cancellation of student debt, our only debt is our mortgage as well.

It's nice, but I understand the larger implications as well. No one was really this up in arms when 300 billion out of a 1.7 trillion dollar bill was passed, 1.4 trillion of which was largely for piggy back bullshit and corporations. Only 300 billion of that went to stimmies, and only a few people bitched about it.

Forgiving student loans seems to be a wash in the long run, but will most assuredly have an edfect on inflation in the short term. I don't know man, I've probably paid 10k in interest plus some, so I don't give a fuck.

 

[SummerStriker]

I suspect the cash value of my house will go up 10k.

 

[TardStrong]

Just keep raising the interest rates. That is what I am hoping for. It is the best answer. High interest rates are better than inflation

I'm also curious to see this actually play out. When is student debt going to be cancelled? What hurdles are left in the way? Is this a done deal or still hurdles to clear?

 

[mb23100]

After the cancellation of student debt, our only debt is our mortgage as well.

It's nice, but I understand the larger implications as well. No one was really this up in arms when 300 billion out of a 1.7 trillion dollar bill was passed, 1.4 trillion of which was largely for piggy back bullshit and corporations. Only 300 billion of that went to stimmies, and only a few people bitched about it.

Forgiving student loans seems to be a wash in the long run, but will most assuredly have an edfect on inflation in the short term.

My problem is forgiving the debt without fixing the problem. Ok so they forgive it today. What about the guy who takes out a loan tomorrow? Are people gonna take out more loans figuring they'll eventually be forgiven?

 

[syct23]

My problem is forgiving the debt without fixing the problem. Ok so they forgive it today. What about the guy who takes out a loan tomorrow? Are people gonna take out more loans figuring they'll eventually be forgiven?

Building an Empire 101,

No need to pay back a debt if you're the only one left..

 

[Omegaboy13]

My problem is forgiving the debt without fixing the problem. Ok so they forgive it today. What about the guy who takes out a loan tomorrow? Are people gonna take out more loans figuring they'll eventually be forgiven?

I'm with you. They need to change the system, which is largely predatory (And has begun to be proven in court with the ITT, Devry, etc colleges). College isn't about education, it's all business.

 

[ferrisjso]

I'm almost the exact same. Just found out my wife's student loan is a pell, what we still owe will be wiped. We are already pretty comfortable, now we will be more comfortable each month. Thanks I guess and I'm not going to donate the money to charity but I don't think I'd vote for this

No one who needs their loans to be forgiven has only 10k. 10k is a joke amount people with loans are actually more angry at the 10k than anything because it's an offensively low number.

 

[Omegaboy13]

No one who needs their loans to be forgiven has only 10k. 10k is a joke amount people with loans are actually more angry at the 10k than anything because it's an offensively low number.

The average is 30k out of school. That's at worst 1/3 for most people. 10-20k 10 years ago forgiven would have changed the trajectory of my financial life. Now, it cleared the last 5k, which i could have paid off myself, but was waiting for a decision from the feds.

 

[chill doggie]

I don’t have any student debt but I’m happy for those that are getting rid of it. Even the ones that say they don’t need it but yet haven’t paid it off.
Whoever made money out of this debt isn’t gonna go broke now since they’ve been living off interest for many years while the debtors have been out actually working to support themselves and the creditors.

If previous debtors have more money and “blow it” that’s more money spent on food and other businesses that make up the local and national economy instead of money sharks.

 

[boingyman]

I'm also happy for those that can reduce their student loan debt, but this type of government move rubs me the wrong way. It also questions my choice of contributing so much to my kids 529 plans (which we have done since they were born) or even paying for my kids college. I would rather roll the dice, have them take out student loans in hopes one day the government will forgive them. It also questions being excessively fiscally responsible because I know at the end as I'm old and retired I will probably get screwed somehow and those that were not fiscally responsible get bailed out while I foot part of their bill in some indirect way.

 

[LHWBelt]

I don't want to get into whether it's a good or bad idea to cancel student loans. That shit can be debated in the war room.

But since it's happening I thought it might be good to discuss the economic impact and how we can prepare.

1. My first thought is that it will make inflation worse, as people suddenly having more money tends to do. Just like we saw with all the pandemic stimulus money.

2. Also, we've had a labor shortage as people who got stimulus money were able to hold out longer for better job offers or possibly leave the labor force for good as they used the money to start their own businesses. Cancelling student loans will have much the same effect, making the labor shortage worse. So companies will just have to pay higher wages, right? Not so fast.

3. If inflation is going to get worse, the fed will have to keep raising interest rates on top of the big rate hikes they've done already. This will probably make the stock market go down. And when that happens, companies tighten their belts, stop hiring new people, and even lay off employees.

4. When that happens, our labor shortage can quickly turn into a labor surplus. And high unemployment will be the final domino. Once that falls we'll undeniably be in full recession mode, if not depression mode.

And this sucks because there's no good way to prepare. If you sell all your stock to avoid the crash, you'll be left holding cash, which will erode in a high inflation environment. So you're kinda fucked either way.

I dont think it'll effect me much at all or most people. I still owe like 5k so it'll wipe that out but that's it. If you include my house and all my other various debts I owe like 250k so I'm not worried about it either way lol.