I think you're right. I think the kids will be happy to have the payments delayed but will lose faith long term and it won't help with them coming out to vote.
I'm sure they've lost faith in the admin like the rest of us.
IF they would have come out with this from the start then maybe. But because they've promised to cancel debt that's now what's expected. These kids won't except any less is my guess.
Can we also make it so they don't use the funds to go shopping on worthless shit? It really pissed me off when my niece did this then quit school.
Maybe a direct payment to the college they attend?
It's amazing we as voters on either side can offer solutions but the people we vote in can't.
It’s applied to every type of debt other than student loan debt
Businesses fuck up business ventures and liquidate debt and do partial bankruptcies all the time. How many has Trump enterprises done? Just to name one big conglomerate company.
and I don’t think his issue was necessarily with the failed student. More of a “how could it possibly be paid back” question.
Government gives out incredibly risky 60k loan to a kid in college? Kid does not graduate with a degree, so instead of landing a 75k salary job enabling them to make payments on that loan, they’re working retail making 28k a year and can’t pay that loan back.
What happens then? The government created an education crises not unlike the mortgage crisis of 08. So what are they doing to remedy it?
If the government doesn’t have some consequences to their poor decision making, how are they going to learn to stop giving 5 and 6 figure loans to 18 year olds with zero income?
If the government doesn’t have some consequences to their poor decision making, how are they going to learn to stop giving 5 and 6 figure loans to 18 year olds with zero income?
I could have sworn it was banks that give these people loans. But OK.
Anyways, The government takes responsibility by holding these goofs to there agreement.
I could have sworn it was banks that give these people loans. But OK.
Anyways, The government takes responsibility by holding these goofs to there agreement.
There are private student loans as well to banks, but those have never been discussed being forgiven. Only the federal ones.
For federal applications they look at parental income for how much of a loan you qualify for (as in rich parents the kids don’t get gov backed loans) and then these loans also have other perks such as income based repayment, but they come with much higher interest rate than a private bank loan.
Updated 12/22/21
Looks like this wasn’t the final extension. I don’t see how this won’t continue happening. No president wants to be the guy to make millions of start paying their debts again
Was somewhat expecting this since the relief bill did pass. At the moment, this looks like a punt even on the 10k.
Updated Post 4/2/21
New development. Biden may be caving to the 50k. Can't determine if this is similar to the parliamentarian thing where he wants the person to tell him he can't legally do it to show his hands are tied (but keep the base happy he "tried") or it means he's shifted and will attempt to forgive the 50k without Congress
Original Post 11/22/20
No thread yet on this but I think it will become a focus in DC once Biden's term kicks off.
More and more people have been pursuing undergraduate and graduate education in the past few decades, leading to student loan debt to become the largest consumer debt category aside from mortgage debt at 1.6T (over 4x what it was in 2004). Democrats have had student loan forgiveness on their checklist for quite sometime. In the primary, you had an array of plans addressing it, from Bernie Sanders calling for full forgiveness, Warren for those making up to 100k (with phase outs afterwards), and Biden with a 10k forgiveness plan in return for 1 year of public service.
Once COVID hit, student loan payments were deferred, defaulted collections/interest paused ultimately by the SoE then Congress and the President until September 30, 2020. Trump then did a EO which continued the pause until the end of the year.
Last week, Schumer along with Warren called for Biden to do a EO forgiving 50k. Biden initially responded with a reference to his 10k in forgiveness possibly without the 1 year service involved. He has since met with Schumer and Pelosi this Friday to discuss this and other COVID relief points that could possibly be passed next year.
Some breakdowns in the debt:
Some viewpoints from each position:
Proponents For:
-The forgiveness or deferment would provide financial relief during the COVID crisis
-Beyond the crisis, loan carriers would now be able to use the money for spending elsewhere or savings
-The forgiveness would address the racial (black-white) wealth gap possibly by 25 points
-To continue for a policy of universal secondary education, prior loans should be addressed as well
-Some higher education degrees are important to society but their career income prospects are significantly lower than the cost in attaining the degree(s) needed
-The cost of this (lower revenues) would be taken over a long course of time and not have an immediate large cash impact for the federal government
Proponents Against:
-This will not solve the problem of rising secondary/post secondary tuition; it addresses a symptom rather than a main ongoing problem
-The distribution among income/ wealth brackets isn't necessarily progressive as nearly half of the debt is with graduate degrees and 35% of balances are with the top 20% income bracket
-Stimulus for COVID relief can be distributed through better means
-Those who made the decision to not to pursue further education were unable to factor in this forgiveness into their decision and are already likely in fixed career trajectory at this point
You may also notice there's a whole other debate on whether this has to be done via legislation or simply executive order.
What are your thoughts on student loan forgiveness? Should some or any of the balances be forgiven beyond the programs we already have in place? If not, should deferred payments continue during this period of COVID?
Another problem is when college students (a disturbing %) do 3 years or less in college and drop out without a degree. This means they still owe a crap load of $$ without a degree to show for it.
No he's not saying they shouldn't pay it back he's just noting that there's no value so you can't exchange it or get monetary value back
Your car quote for example you can simply trade the car back in or wait for it to get repo'd. Your car even though it wasn't fully paid off still have monetary value (same thing with a house loan). You don't have that luxury with student loans and you can't file for bankruptcy like you can for medical debt.
That's all he was pointing out, it's one of the few things your really truly boned on if you don't finish
It’s applied to every type of debt other than student loan debt
Businesses fuck up business ventures and liquidate debt and do partial bankruptcies all the time. How many has Trump enterprises done? Just to name one big conglomerate company.
and I don’t think his issue was necessarily with the failed student. More of a “how could it possibly be paid back” question.
Government gives out incredibly risky 60k loan to a kid in college? Kid does not graduate with a degree, so instead of landing a 75k salary job enabling them to make payments on that loan, they’re working retail making 28k a year and can’t pay that loan back.
What happens then? The government created an education crises not unlike the mortgage crisis of 08. So what are they doing to remedy it?
this take would make more sense if it was actually how the policy is meant to play out. as of now the people who did graduate and did get good jobs are also going to get the debt forgiveness aren't they?
when this is the proposed policy its taking money from everyone and giving it to the already haves so they can have more. i used to be in support of something like this until i really thought about it... any economic benefit the country could/would receive would be just as good if this money were given to everyone who DID NOT go to college and was on the lower end of income. they could immediately buy cars, tires, new roofs on their homes, home repairs in general etc.
if we are going to give out free money it has to ONLY be for those who did not graduate and we need to give the same amount to the poor imo. even those who did graduate but did not get the career they are looking for get bumped to the front for nearly every management position or promotion so they still get a lifelong benefit from that education over and above anyone who did not go to college. this seems like an elitist plan the more i think about it.
i think we are giving the money to the wrong people here.
this take would make more sense if it was actually how the policy is meant to play out. as of now the people who did graduate and did get good jobs are also going to get the debt forgiveness aren't they?
when this is the proposed policy its taking money from everyone and giving it to the already haves so they can have more. i used to be in support of something like this until i really thought about it... any economic benefit the country could/would receive would be just as good if this money were given to everyone who DID NOT go to college and was on the lower end of income. they could immediately buy cars, tires, new roofs on their homes, home repairs in general etc.
if we are going to give out free money it has to ONLY be for those who did not graduate and we need to give the same amount to the poor imo. even those who did graduate but did not get the career they are looking for get bumped to the front for nearly every management position or promotion so they still get a lifelong benefit from that education over and above anyone who did not go to college. this seems like an elitist plan the more i think about it.
i think we are giving the money to the wrong people here.
The exact numbers vary, but the proposals I saw floated around back when it was a 50K forgiveness was only for people making under 80K, and then an amount phased out up to 100K
(so like 60K income could get 50K forgiven, but 90K income could only get 10K forgiveness, someone doing very well making 120K would get no forgiveness. Again not exact numbers but there were some controls to prevent doctors and lawyers from getting money they don't need)
The exact numbers vary, but the proposals I saw floated around back when it was a 50K forgiveness was only for people making under 80K, and then an amount phased out up to 100K
(so like 60K income could get 50K forgiven, but 90K income could only get 10K forgiveness, someone doing very well making 120K would get no forgiveness. Again not exact numbers but there were some controls to prevent doctors and lawyers from getting money they don't need)
Thats just another give away to the already haves. I strongly oppose this legislation. The more I think about it the more patently absurd it seems to be. It's just giving money to the people who are already over rewarded by employers and society in general and who get bumped to the front of the line for promotions even in jobs unrelated to their field of study...
Give it to the poor. It will do way more good I would support that legislation in a heartbeat.
Thats just another give away to the already haves. I strongly oppose this legislation. The more I think about it the more patently absurd it seems to be. It's just giving money to the people who are already over rewarded by employers and society in general and who get bumped to the front of the line for promotions even in jobs unrelated to their field of study...
Give it to the poor. It will do way more good I would support that legislation in a heartbeat.
I didn’t say I supported it either, I do spend some time in this thread simply chatting about some of the policies being floated around.
I think the correct solution is to cancel the interest on the debt. Without the compound interest, this debt taken on isn’t a life of being trapped. But the people who borrowed still pay back everything they borrowed to the federal government. Person can’t make an $800 payment every month for the next 20 years. But they could do $350 and have that actually paying down principal. Win win
Feels wrong that the fed gov is profiting off predatory loans with 8+% interest rates they gave to teens with 0 income. That’s just irresponsible lending.
I didn’t say I supported it either, I do spend some time in this thread simply chatting about some of the policies being floated around.
I think the correct solution is to cancel the interest on the debt. Without the compound interest, this debt taken on isn’t a life of being trapped. But the people who borrowed still pay back everything they borrowed to the federal government. Person can’t make an $800 payment every month for the next 20 years. But they could do $350 and have that actually paying down principal. Win win
Feels wrong that the fed gov is profiting off predatory loans with 8+% interest rates they gave to teens with 0 income. That’s just irresponsible lending.
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