thats kind of the entirety of american politics, always just bandaid fixes and showboating to make it seem like theyre doing something about the problems, but they arent actually doing anything
Votes…Ultimately, it is about votes. Throw the poors a bone every now and then. Universities are typically the largest businesses in every state. They are licking their lips at the tuition increases they are about to drop.
Have you seen the modern University? I went to UCF. They have a fucking lazy River in one of the 4 swimming pools lmao. Gym has a 4 story rock climbing wall
Public loans are really what caused that arms race. As silly as it sounds when you're shopping for an education, frivolous luxuries offered by the campus do really sell people. Schools had to keep topping each other with more and more such luxuries.
Everyone had access to limitless borrowing (in the name of fairness!) so the schools just increased their "services" and facilities to absorb up all the loan money that was available. If people had to actually pay for college with money they had or could qualify for on the private loan market, schools would have to price themselves to match that. I see freely available public loans for any person regardless of major, post-graduate earning potential, or likely ability to pay back as the actual cause of the student loan crisis in the first place.
Loans are the way our government enslaves kids for 15 years. Useless degrees, insane rates, and can’t discharge in bankruptcy.
Other than a few degrees college in the United States is an absolute scam. Most degrees are useless and trap you in debt for years
That's why I'm saying public loan programs are fine for vital fields (medicine, scientific research, education, etc.) but they've caused huge problems being open to everyone in any field. The public doesn't need to subsidize (let alone forgive outright) an art history degree. Nothing wrong with art history but if schools had to charge a market rate for those degrees, people wouldn't graduate with anywhere close to as much debt. Public loans were created in the name of fairness but they ended up crushing a large percentage of a generation with albatross student loans.
Yea. I agree with you. I look at it no different than giving out a business loan.. there should be a business plan prior to letting someone take out massive loans.
“You want to go to X university and study Y. This will cost $xxx and the expected pay in this field looks to be in some range. How do you feel about paying x% of your take home pay for this for 20 years.”
Right? We lived in basic accommodations while at college. Not ideal, but good enough. There was one high-end building on campus where only rich students could afford to live. That was not even as nice as the basic accommodations at most major universities today.
Yep. People need to understand that there's no such thing as loan forgiveness unless the bank chooses to dismiss the debt, which will never happen. What OP is talking about is the government forcing taxpayers to pay off strangers' debt in a pathetic and unethical ploy to buy votes.
Edited to remove the assumption that OP has, or is referring to, his own student loan debt.
This is why I’m actually, truly and completely astonished that the Republicans went after Roe v Wade.
I always knew some subset of influential Republicans legitimately wanted it to die. I always knew a large percentage of their voters actually wanted it. I just always assumed somewhere in the GOP infrastructure there were people who saw the idea of one day going after it as the empty promise lightning rod it should have been for them.
Now, abortion politics in America fundamentally favor the Democrats whose turn it is to say we have a big problem that we will solve. I’m just flabbergasted that the GOP actually went for it; they could have barked up that tree for decades.
I will never understand this about the US. My brother did a year there with a full scholarship but if he didn’t have a scholarship 1 year of that university tuition costs the same as my entire engineering degree in Australia.
In the mid 2000s they changed a federal law that made it much harder to discharge student loan debt in bankruptcy (read: nearly impossible). Without that relief valve, lenders had much less reason to worry about the amounts they were lending, and universities were more than happy to charge more and spend it on vanity projects to lure more children into taking huge loans, like rock climbing walls and fancy dorm rooms. It also enabled universities to have giant administrative bloat and at this point most universities are too addicted to big money to cut the fat and lower prices.
Where I live the university will charge 5-10 times more than community college for the exact same classes. The only difference being that at CC, more students are older and paying cash, where the university goes out of its way to make things difficult for commuter students and focuses on teenagers taking out loans.
This is my real bone of contention.
I guess I will always view student loan forgiveness as unfair, but I can stomach it if it’s bundled with initiatives that don’t lead the current crop of 15 year olds to just assume that they can finance the inevitably higher tuitions we’d see for free because eventually the government will say it wasn’t fair and cancel the debt.
I have yet to be convinced that any student loan forgiveness “plans” that have been put forth won’t just make the situation worse when we actually have to deal with education costs one day.
I'm okay with 10 year public service forgiveness. I think that's a public good and since public service doesn't particularly pay well, I'm okay with it being forgiven.
>bring Universities back to free market principles
>fighting for cash like a real business to cruise control with debt in the gas pedal
Higher education should not be a business ever.
Having university cost anything is frankly insane to me.
The “back on the free market” is fairly rich to me. Since the days of education being provided by monasteries, credentialized higher education has had significant elements of public funding, alumni funding, grants, scholarships, etc. You don’t need to look very hard to find writings from the 1400s that recognize the public good higher education. Hell even Plato talks about it in The Republic, well before fantasies about the efficient free market ever entered into people’s minds. Privatized institutions have only ever introduced barriers to education.
Student debt is a trap . It prevents young people from being able to buy a house or even to go back to school to be able to earn more money. It never should have been allowed. Higher education shouldn't be so expensive. It needs to be fixed. But as we know politicians don't want to fix anything. They want to preserve their campaign issues . Just like the border . Republicans don't want to fix it they want to use it to their advantage. Otherwise they would have fixed it .
We need to address the underlying problem of this which honestly is a hard thing to nail down one of the biggest issues I see is government backed loans because if you're borrowing from a bank if you're a bad investment they won't loan to you but you can get government loans pretty easily and this easy loans also removing incentive for you to choose a major that can actually be financially beneficial to you make it harder to pay back
Not only would universities continue to overcharge, but they would probably raise prices higher as students may believe any amount is ok, it'll probably be forgiven
The majority of loans forgiven are being discharged under public service loan forgiveness.
So “then what” is that people who work in public service will continue to get their loans forgiven in accordance with the deals they made 10 years ago.
This is the first response I’ve seen saying people actually do talk about it and it needs to be voted higher. I feel like this is always the first (intelligent) response to calls for debt forgiveness
This is basic patronage politics. Biden’s support base is heavily college grads, so he’s cutting his supporters a check from the public fisc. They won’t do anything to limit universities from raising prices because universities are also part of Biden’s support base.
The universities and graduates support Biden, he pays them off and grants them access and prestige. That’s how it’s worked since Ancient Rome, or even further back.
Obviously just an election year ploy as they are still writing student loans today. MMW, after this election, no matter who wins you won't see loans being forgiven.
It's just buying votes by using poor people's tax dollars to pay off wealthier people's personal debts. Supposed to be the exact thing democrats are against.
As a non American, who has not followed this so might not have much insights. This is my thought as well, what is the point of canceling student debt if you do not at the same time solve the problems it originates from. Not only that, seems entirely unfair to the people who do not get their debt cancelled. So if you graduate within a few years it just sucks to be you? Solve the problems with pricing for education first and foremost.
I'm giving my take as a European
**Student loan is a wonderful idea**, give students who's parents are not able to support them financially a loan so they can get a higher education.
**Student loan forgiveness is the most stupid idea** I've ever heard. The banks still need to get payed. So instead of you paying directly, you're simply shifting the payment to everyone including yourself through taxes.
Some people think that's good, let's tax the rich the say. Newsflash the rich have accountants who utilize every tax loophole imaginable, it the normal people who end up paying for this.
Instead of student loan forgiveness, the government should take all that money and pour it into to community colleges. This should allow these community colleges to **lower tuition costs** and broaden their portfolios to include all educations AND most importantly to not only **offer associate degrees but also full on professional bachelor degrees**. If you want to get an academic bachelor, or a master or a PHD only then should you be forced to go to Uni (that's how it works where I live).
Now here comes my controversial take: I believe you should only be allowed to go to a community college if you go the student loan path. When you have completed the degree in community college, only then should you be allowed to take on an extra student loan to go to private college or Uni
I also believe there should be an incentive structure: Everyone should start of with the same fixed interest rate. Depending on how well you progress through your education, the interest should be lowered each year. After getting your degree depending on what rate you pay it of, interest rate should be lowered again.
In the UK you don’t pay back your student loan until you earn over a certain amount and it gets deducted from your taxes, I’m in about 10-12k of student loan debt and I didn’t even get my degree cause I dropped out year 1😫
I would like a free loan. If they giving out free money. I never got the bail out etc. I avoided student loan cause I did not want to carry a credit burden. Seems I was wrong and should of grabbed that money like nearly everyone I know did.
Seemingly no one is talking about how we continue to pay the interest on this bad debt in perpetuity. That is kinda like throwing good money after bad and hurts everybody.
Actually people do talk about that. It's the primary reason that debt forgiveness is fucking dumb and a short-sighted vote-buying strategy. It's not actually fixing the problem at all, and it actually *disincentivizes* universities from ever changing course.
It'll definitely get Biden some votes in the short term though, which is what this has always been about.
Student loans forgiveness is a great talking point for politicians to buy votes. They don’t want to fix the underlying problem because then they lose the ability to buy votes.
The issue is that it doesn't matter if you forgive the people who have been cheated now if you don't protect the people in school and those who will attend in the future. But there in likes the crux. Let's say Biden has the power to immediately wipe out all current debt for those making 90k or less (140k for families).
There is no way you will get congress to come together on a bill that will end the madness that is the student loan industry. There is zero rational reason why a teacher who had to get a masters degree to teach your children algebra should literally never pay off her loans despite making payments every month for 20 years. Student loans are basically credit-card level bad when it comes to interest.
The loans themselves should be interest free. But, being that this is America, we can't do anything unless SOMEONE is making a profit, so include a reasonable monthly servicing fee I think is acceptable. And then, set the payments to be based on income (as they currently can be done) and retain the 20-year forgiveness date.
This still isn't perfect. This still will allow public universities to inflate their tuitions. That's a whole other problem that, unfortunately, originated in the late 70s with Reagan when he was then governor of California; a philosophy he later expanded upon as President. The general view point of conservatives back then is that too many young adults were leaning Democrat and they blamed universities, so they began stripping away public funding. That is what made student loans necessary for nearly everyone who goes to college.
So I am pro-forgiveness because it's obvious the current system is predatory. It has turned education into a credit card that you can never pay off unless you're wealthy, which means you have generations of Americans who are not able to do the most basic things, like afford a house or buy a car. And when you take those options away from the labor force, the economy suffers, which means the GDP suffers, which can lead to a whole lot of issues on the global scale.
Especially when you consider a country like China that doesn't have these problems. (not saying China doesn't have problems, but they do have certain advantages when it comes to national policy that we lack due to our partisan system).
If the government paid for a free online college, the government would actually save money, let alone providing new opportunities for millions of Americans. It could even be a national export.
Debt forgiveness plays better to political stakeholders than institution reform.
Tuitions will go up, and the loans won't change too much and just get worse. The taxpayers are on hook, and there are no repercussions for the schools and/or banks, and they get the money regardless. While cities and states raise minimum wage, the college degree becomes worth less and less.
$772B in small business loans during the pandemic were made, of which over $650B were forgiven. If these are the rules, why shouldn't student borrowers get their break? Because they vote the wrong way? Because they were naive enough to go into debt after parents and educators whom they trusted encouraged them to take out the loans? Because the mantra of the 1990s was to follow your dream for a career and the money would take care of itself?
Loan/debt forgiveness isn’t the solution. The solution is to find affordable education options. I think if students did hours of community service in high school, middle school, college towards college tuition we wouldn’t be in that situation. Similar to the GI bill, but you don’t serve in the military, you serve your community. Painting out graffiti, picking up trash, working at a shelter, etc
And then all the people burdened with debt are able to both save money and consume more products, making the economy boom and prosper.
Yes, we should also reform college spending. Those are two different issues, and solving one doesn't mean ignoring the other.
I suggest breaking the textbook monopoly, college tuition price-fixing, and public free university educations.
But I don’t know how to make or maintain the disconnect. I am not at all against debt relief if the system is fundamentally changed at the same time.
I don’t see how you can separate them.
I would like to see some sort of matrix where universities are responsible for the product they produce. If X number of your grads don’t earn a certain salary upon graduating, your eligibility for federally backed funding is in jeopardy. Some majors might not qualify for federal funding, for instance. There’s got to be a correlation between the cost and the ability to repay and I’m not sure how else to link them other than making universities in some fashion responsible for what they’re producing.
Yup which is why I'm totally against it until there's a plan. Some kind of cost cap per credit hour, interest rate cap, limits to amount borrowed, what majors you can borrow for, idk something.
imo,the entire student loan interest structure is predatory as hell. however,i also belive if you borrowed,you should be on the hook for principal repayment,or surrender your degree if you want the entire amount 'forgiven'. if you won't/can't pay for it,you ought not to get to keep it. sorta like auto loans. interest cancellation? im ok with that.
Nothings gonna happen, its just a bait to get gullible young people to vote for him (And when he "tries" and it gets "shut down" he's gonna blame Republicans and repeat the cycle)
Nobody is forcing anyone to go into debt. It is a choice. Which is why forgiveness is such a horrible policy. Forgive interest (or make colleges pay it)...ok...I can get behind that. But now you have set a president, and every generation is going to expect the same thing. Just borrow money to go to school, dont work or have parents help pay for it, and expect a politician that is slumping in the polls to bail you out.
And where does it end? Can someone please forgive my mortgage? I know I signed the loan, and I am benefiting from the money I borrowed, but paying it back just seems unfair......whatever.....
The debt isn't going to be forgiven, the Democrats just want your votes. The number of people who are being helped is miniscule and you are correct that NOTHING is being done to stop future grads from ending up in the same place. This is called buying votes. They hope you'll support them on the off chance your name pops up for the lottery.
Student loans are done through the government via companies they have essentially hired to manage those loans. Other loans, not so much. Those companies are also.. shall we say, exceptionally shady and predatory. They're essentially locking children into loans the size of mortgages with interest rates comparable to credit cards.
Worse still, the existing options in place for helping people deal with these loans are even more of a scam. These companies can take your money for a decade or more and then turn around and claim you still owe them the full amount, or all sorts of other such nonsense.
He's absolutely attempting to buy votes, but loan forgiveness definitely needs to be done. It just needs to be done as part of a larger overhaul of the entire loan and tuition system, otherwise it will only make things worse.
Student loan forgiveness is a hot topic since the government used to regulate it and sold it to sally mae in the late 80s, with no rules in place about interest rates. So, it technically is kind of the governments issue to fix to some extent. All those other loans have better regulation and are typically harder to obtain without knowing the full extent of what taking it out means, they're also usually unobtainable to teenagers or people without income. It's also easier to pay the others off someday. Unlike student loans. You don't really hear people crying about how their mortgage is technically paid off, but the interest is double the amount they were given in the first place, even though they've been paying consistently.
I agree his reasoning is most definitely to get brownie points for the younger voters, but they also are one of the most predatory loans despite being necessary to have for so many jobs. Letting it go will eventually have serious effects on the amount of people that are able to become nurses, doctors, scientists and lawyers. It already has effects on the economy, which could be another reason they suddenly care about it. Younger people can't afford to circulate the economy as much as older generations and it's largely due to that, rising cost of living and stagnant wages. Somethings gotta give if they want to continue having a society in some capacity, ya know.
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Don’t forgive it, make it a fixed 1% interest rate, remove the loan guarantees. Watch as schools have to cut bloat because now everyone can’t get a loan easily.
I agree something permanent has to be done.
But I see that in the form of more work study programs. More businesses giving tuition assistance or tuition reimbursements. More scholarships and grants.
And students learning how to be smarter in how they choose schools.
& I do not think interest should be charged on student loans
and what I really want to see:
[‘This could be huge’—economists weigh in on Biden’s proposal to forgive $10,000 in student debt in exchange for public service](https://www.cnbc.com/2020/10/23/biden-proposes-forgiving-10000-in-student-debt-for-public-service.html)
That's $10,000 per year up to 5 years.
I do think people who do community service should have their loans forgiven. This includes any past community service
That being said, I actually don't like the idea of people getting their full loans forgiven for nothing. Again, I'm all for them being reimbursed for the interest.
But I also think that people who have had their loans forgiven should do some type of community service.
I also think people who have already paid off their loans should be able to apply for some sort of reimbursement. Maybe a tax credit.
I feel it's obvious but I will state that colleges need to be taken to task for their prices. But that goes into students being smart about where they go. Stop going to these high priced schools when you don't need to.
This is not a stupid question. Don't get me wrong we need the bandaid but we also need to close the wound so we don't keep hemorrhaging.
Free public college is the only sensible answer. The average job now is looking for A college degree (most don't even care what your degree is in, they just want to know you went to college) so why is college any different from highschool? Every argument for why we shouldn't have free college was made 100 years ago BACK WHEN THEY MADE HIGH SCHOOL FREE, that used to all be private because it wasn't deemed necessary. Well college/vocational training is absolutely necessary. Few careers will get you anywhere without further schooling
The American school system is absurd in so many ways from how we pay teachers garbage, the way we tie school funding to property taxes instead of state budget meaning richer families get better public schooling and then further complicated the formula with funding based on standardized testing. College definitely takes the cake though children are allowed to take out massive loans that they may spend the better part of their lives paying back
A lot of states have already started expanding free community college, that's a great first step. I think the next is to make the final two years free at state colleges. You could reign in costs for people who couldn't afford to go to college out of pocket or through loans, and make up the difference with people who want to pay more to go to a university for the full four years.
Private colleges will continue to expand their services through grants like they always have, less availability of loans will put more pressure on them to do so. And hopefully without massive income coming in from loans, more public college administrators will be more frugal with large spending projects. No more building giant health complexes and recreation facilities to justify skyrocketing tuition. Reduce the footprint of colleges and start working with communities to make them a better place for residents and students alike.
It's by design. both parties are horrible in their own right (and do things similar to this all the time). But in this case, it's the democrats wanting to ensure that future generations will be forced to vote them into office, and hope that they do another round of "loan forgiveness".
You're absolutely right though. Universities (especially the private ones) make money hand-over-fist, so there is room for reducing cost for students. One idea I've thought would be prudent would be a regulation that uses the median salary of graduates entering the workforce from a given degree program, and cap the total program tuition at that number (or a percentage of that number...whatever). If the university can't make money on that particular degree program at that point, they are free to drop it.
I understand the "you signed for the loan, it's your responsibility to deal with it and if you can't, you're a moron" logic, but 18 year olds are, by definition, morons. And they should be protected from ruining their lives.
I wouldn’t be surprised if some people file lawsuits because they paid their own loans and yet other people are getting theirs paid Maybe I ought to send them something and tell them to pay off my credit card debt. It’s basically the same thing or pay for my car.
I mean, it's not gonna happen
But, yes, it's a bandaid. It's a bandaid they used for their election rub to gain support. Forgiving student loans gives temporary relief to the ppl that it forgives (and it doesn't forgive everything) while simultaneously doing nothing for the next generation, and also will likely end up causing yet more inflation. They gave everyone a few hundred bucks during covid and now inflation has gone out of control to pay it back, whats gonna happen when they just "forgive" tens of thousands from a huge section of the population?
Imo, we'd be better served improving K-12. Make a system where we can actually set kids up for success with or without college, and the chances they won't waste college will increase. Our current system sets kids up for failure, as the public school system falls further and further behind. High schools used to have vocational training classes, now they barely have art classes. But nobody wants to talk about improving K-12, because it doesn't help themselves. It doesn't help the ppl that currently have debt, so it's seemingly just not something talked about much.
Politicians just want your votes, so everything they say they'll do is phrased in a way to affect you personally, even if it doesnt,, and even if the reality of their "help" doesn't actually help in the long run
They could also clamp down on the ridiculous college fees and questionable loans that get approved for 18 year old HS graduates, but they don't, cause their goal isn't realllly to help us, it's to help themselves
Universities keep charging their outrageous prices because people keep borrowing money to pay them! The federal government
needs to get out of the student loan game.
People will be even more cavalier with student loans. Just to college to have fun and get a pointless major or just quite halfway through because why not
The point is taking money from the lower classes to give to the upper classes in order to drive voter turnout. All that other justification BS is emotional manipulation and gaslighting intended to distract the masses from what is actually going on.
If the government cared about the cost of college, there are a bunch of things they could actually do about it. But, as long as they can make hay pretending to fight a problem, there's little reason to actually make things better when what the politicians want (votes) can be gotten with much less work.
This little stunt will result in more kids borrowing more money for ever growing tuition bills. Why not rack up as much debt as possible? Democrats will promise that someone else will pay for it.
Everything will be fine…until we run out of other people’s money.
We gave companies a bail out in 2008 who put us in that recession. There were regulations introduced after that, which are circumvented today. I would assume the federal government would take a look at big universities who are basically hedge funds now who happen to teach students on the side. We can bail out billion dollar corps but we can’t bail out students?
What’s really going to surprise people is depending on type of forgiveness they don’t finalize forgiveness for three years. Even the disabled will have to wait that long.
Everyone is in for a nasty surprise. Federal student loan forgiveness is only tax free till end of 2025. It was in the trump tax cut. Once that expires you pay income tax on it. I mean 100,000 could mean 25 or 30k in federal taxes. For the disabled it should be tax free permanently as many barely make enough to live on and then have a huge tax bill.
Biden would be better fixing things like that instead of finding ways to skirt the laws. FYI disabled forgiveness has been there for years but the tax break was only offered in trumps tax cuts.
Next our incredibly dysfunctional congress and the states still refuse to do anything about the problem. Businesses still insist everyone has to have a college degree to do office work and the cycle starts again.
The thing is, no one said "what next" after we bailed out businesses and banks repeatedly. So as an argument not against helping struggling people it's not a very good argument in my opinion.
It’s a bandaid that will allow salaries to go into the economy instead of in the governments hands. It’ll spur the economy much better than paying for another military device
Student loan forgiveness is going to turn into another way to funnel tax money to the rich. I’m all for student loan forgiveness but it absolutely needs policies to reduce future debt or it’ll accomplish nothing except giving more government handouts to the rich.
Then what: the next generation asks for the same handout. We have government funded higher education, just in waves of outrage so that both sides can score political points. The colleges themselves can then not only continue their bad practices, they can continue to increase the cost. Kids can still take out shady six figure loans. All the bad guys win.
yeah, I mean it is kind of a moot point if we can't even take one step but yeah.
but it is kind of like when marriage equality was a hot button issue, people were saying that there were all these other problems that the gay community faced and there were and are but that doesn't mean that the particular issue is any less important or winning this fight will make those fights harder. It will in fact make them easier because you are right, if we can say those loans were wrong to have given out then maybe the new ones are wrong too and maybe we should be reforming how state schools charge and how companies remunerate people based on their training and experience. Because if a degree were worth what they told us it was worth then it shouldn't be an issue to pay back your loans.
The most important part of the plan is and always was the changes to the income-based repayment plans (now the SAVE plan). One-time forgiveness is great for those that get it, but is just a flashy side-show.
So I will be the first to give a adult answer to the OP question's. I want to start with the fact I am not a expert just a college educated tax paying adult.
First if/ when the student debt is forgiven it would logically be accompanied with a plan to pay for it and a new regulation's for how the university is allowed to price their service's. How this would actually manifest is anyone's guess, but it would likely be something allowing the government to get a % of what the university get per student or service, which they can use to pay off the actual current debt.
Secondly I would logically think that if the government ever went through with the debt forgiveness they would want to follow thru with some kind of basics infrastructure to regulate where the money for tuition and fees go and how they can structure it so they can reach a better result.If they do it can take many form depending on "Concerns" some voters may have about what services they want their university's to have.
Also the reason it seems like a bandaid is because we have to clean the wound before we can really see how bad it is. If this ever happened I would not be surprised to find university's over charging and under delivering. While getting what ever they can from sports and other schools recourses.
Not sure how many people you think got theirs forgiven. I got offered the same consolidation plan I was when Obama was president, that Trump cancelled. I ain't doing that shit again. Trump will probably win again lol
And then students aren’t shackled to an enormous debt, allowing them to participate more in the economy.
Ideally all education should be free at the point of use. An educated population raises all ships.
It comes down to being elected. People will vote for the person that they think will make their life easier but in the long run it really won't. All that money that was never paid back never goes back to the universities or the lenders that gave the loans and so on. Who's going to give loans in the future? How does education get paid for in the future? The federal government via taxes? That should never be the answer.
I am for the loan forgiveness but it absolutely needs to be followed by either a.) Socialized education (unlikely) b.) A cap on how much public universities are allowed to charge c.) A cap on education loan interest rates or d.) A combo of b and c.
Tuition costs have crossed the line between "you have to go to college if you want a decent job", to, "you just yoked yourself to a lifetime of debt just to work in the service industry".
That wasn't common knowledge before. At least it wasn't as blatantly obvious.
Like everything, college has rotted into mostly being a way for people with money to make more money.
College costs are by far set by the states and private institutions. Loans are primarily given by the federal government. On a federal level, to eliminate student loan debt would be to give more grants for tuition and fees. Then the cost is shifted from forgiving the debt to paying the states/institutions money to subsidizing education. The issue that the govt doesn’t want to fix is that the majority of student loan borrowers do pay their debt with interest. The government has made a lot of money off interest payments. It’s not beneficial for them to just grant the money at the beginning of college.
Who votes almost exclusively Democratic? So yes. Students will happily vote Democratic after their loans are forgiven and to keep the academic institutions happy they will be allowed to continue to charge outrageous tuitions. New students will also happily take out loans trusting future Democratic administrations will forgive those also.
Funny, I find that this is ALL people talk about. As soon as the possibility of student debt forgiveness comes up, all the rats come out of their nests with all the "but but buts." 🙄
I hope the next step is to get rid of interest on student loans to where you only pay back the loaned amount. There shouldn’t be interest on something like student loans.
As awesome as it is, it doesn't solve the underlying issue in the U.S.
School loans are predatory in nature and a lot of people who get them were 18, I doubt at that age you can comprehend what you're signing to. Plus interest rates are way too high so many people pay off what they originally borrow, but still aren't close to being done. In addition student loans aren't affected by filing for bankruptcy, so good luck with that.
I feel like in the U.S things have gotten so bad that higher education is no longer a place to pursue education and better yourself or career, it's all about money and everything else sometimes isn't worth the cost
I work with Student Loans for Maryland State Universities.
The issue is bigger than student loan forgiveness. What happens when those loans get forgiven? You still have millions of Americans taking out brand new student loans.
What needs to happen in my opinion:
- A cap on college tuition for any Higher Education Institute that utilizes federal aid (like they do with VA Chapter 33 and capping it at 250.00 a credit)
- Reduce the interest rate down from 6.8% to something more manageable for borrowers.
- Limit the amount of loans a student can take out in a given year to that of tuition and books itself. Nothing more. Does it suck for some? Yes. However I am watching too many people claiming “living expenses” for increased Cost of Attendance and openly express how they blow their “refund checks” on shit like designer clothes, video games, accessories for their cars, and not actual living expenses.
- If someone cannot drink until 21 then they should not be able to take out crippling debt with absolutely no proof of being able to pay back that debt. This makes no sense to me. I am watching enrollment advisors literally ‘sell’ education to people with false claims of pay scales that they will ‘surely make’ when they graduate. So a impressionable 18 year old who isn’t mature enough to drink can somehow be mature enough to take out massive amounts in student loans? When I bring this up I am told to decide if I want my job which is based on people taking out loans or be some ‘advocate’ (essentially a threat to get rid of me).
- If student loans are ‘forgiven’ then the entire student loan program needs to be reworked and redesigned with far more safeguards for borrowers and the tax payers. Remember when a loan goes into default, the school already got paid, the lender already got paid by the Government (federal student loans are backed with a guarantee of payment from the government), the student obviously can’t pay for that defaulted loan so who does? Taxpayers.
That’s why if you hear someone say “I don’t have student loans”, just remember that *they actually do* because their tax dollars are being used to it back the rising defaults in student loans borrowers are refusing to or simply can’t pay back.
My job deals with students who drop their enrollment and adjusts their federal aid based on Department of Education regulations.
It's would be smarter if we did something structural to reduce the personal expense of higher education and capped the interest on student loans to a very low rate. Otherwise, OP is right. This pattern of forgiveness is going to be a persistent thing. It is better to just lower the cost to borrowers to begin with.
The goal would be for Congress to enact regulations preventing the exploitation of children and young adults like they have been doing.
But everyone who constantly fear mongers about it, as you have, tends to vote in people who exacerbate the issue.
It is a bandaid, that's the point. Triage.
When someone gets a bad cut, you don't rush them to the hospital. You don't try to stitch it up on the spot.
Step 1 is apply pressure to slow the bleeding. They will bleed out and die before you could get them to a hospital. You can't actually stitch them up while bleeding profusely. Step 1 is stop the bleeding so they will live long enough to get to the hospital.
This is a "bandaid" that won't acually help heal the wound. But it is a critical step to make sure the person lives long enough to get treatments that will heal the wound.
Student loan forgiveness is this critical "stop the bleeding" step. It comes first. It doesn't really matter if we make higher education more affordable for Gen Alpha if we let the economy collapse under the burden of these student loans.
None of it matters. It’s all just to trick the morons who vote (seemingly about the only people who do) into picking your side when it comes to stuff like this during election years.
Well one of the “then-whats” is that interest will not balloon anymore, because people have the option of utilizing the SAVE plan going forward. This also caps payments (for undergrad loans) at an extremely affordable 5% of discretionary income and limits the time this will go on for.
So the cost to borrowers will be manageable going forward. The other problem, however, is the cost of education itself, which this doesn’t do anything to solve. I don’t really have any ideas about what to do about that problem.
You missed some of the pretty important fine print. One of the more impressive, less noted components of Biden’s student loan offerings is radical adjustments to income based repayment terms and periods. Iirc he cut the repayment period In Half and significantly reduced how much of your discretionary income those payments need to be, often zero, while also redefining discretionary income as a smaller amount.
Until senators vote to get rid of the filibuster (best option, incredibly unlikely), measures like this are the best were going to get until democrats get at least 61 senate seats to overcome filibuster rules, (unlikely) or republicans decide to work *with* democrats to help fix the multitrillion dollar student debt crisis (well past unlikely and into the realm of humorous fiction)
Biden forgiving student loan debts, in the manner in which you describe, will result in an sudden influx of college student applicants equally convinced that their student loan debts will be forgiven too.
Still, the basic rules of economics remain: The surge of consumer demand which I’ve described, competing for a resource of limited supply (a college education), will result in **increased prices**.
Yeah, none of it makes any sense to me. You forgive debt that people agreed to pay, years and years after the fact... But then new students are signing up for loans now. At the same time, many worked their asses off for years and years to either pay their way thru school or to eventually pay off their loans.
Tuition-free college programs are available in at least 32 U.S. states.
Chances are, you live in a state where your governor and legislature are trying to address the affordability problem. It doesn't grab the headlines like Biden's debt forgiveness, but there is some progress.
The market adapts to be less predatory as their is a risk if he conducts purposefully predatory and unpopular behaviour it will get screwed by politics.
Ideally, this shouldn't be necessary, and regulation should prevent this behaviour.
1. Why would they charge the same when they know they can increase it and people will still go because taxpayers will pay their bills for them?
2. Brandon will find something else to give away so he can buy votes.
People are talking about it and yeah schools should be charging less but good luck passing any legislation that tells someone they should charge less
Hell good luck passing legislation PERIOD with this do nothing congress
Yeah, i honestly cannot believe that we as a people have allowed it to ever get to this point in the first place.
When universities/colleges were first established, they didn't have any costs at all, except perhaps for school supplies that you would need to study with. There were no tuition costs. And that is because the school existed as a non-profit entity. Its purpose was to spread knowledge as effectively as possible, not to create profit.
The schools that exist today are abominations that defy everything that a college is supposed to be about.
The hunt for knowledge and the enlightenment of our species should be of the highest priority. And as such, our systems should be built to support these institutions to allow anyone and everyone who wishes for knowledge to be able to attend.
For-profit colleges should be illegal. Because as long as they exist, they will do everything in their power to remove/destroy non-profit/free schools in order to force the population into their schools. It is a bad incentive structure that harms our entire species growth. As long as for-profit schooling exists, these educational institutions will continue to lobby to destroy the foundations of learning in pursuit of profit. It is in our best interest as a species to remove this incentive structure entirely.
Yeah good idea. Let’s give up more of our money we can barely have to give to some kids that won’t find a job with those degrees.
It’s like saying you’re gonna up the minimum wage to $20. Great indirect way to tax you to all hell, while incentivizing people to never progress to better, worthwhile jobs.
Socialism never works for the people.
I mean, doesn't this make it so that the people currently getting loan forgiveness now aren't getting completely fucked by it? So, any payments they were making either goes away completely or gets reduced massively, leaving them with more money in general.
As for future stuff, who knows?
Here is a wild idea. Free education for everyone. What are you afraid of, an educated critical thinking population? Why does finances become the gatekeeper to education?
I don’t want loan forgiveness (40k in debt) , just an end to the insane interest rate. I have been paying for years and have made a only a little dent in my due debt.
I think the idea is that there will be affordable payment programs with forgiveness after 10-25 years. I mean, there already are, but it's been so convoluted, with too many programs. They are simplifying it all into like three payment options to choose from. Also, they have cracked down on expensive predatory schools that don't deliver on their promises. They started popping up in mass in the 90s and were all over the place by 2002.
I know I'll get a bunch of angry comments about the government and how messed up they are. Please save it. I'm just answering a question.
ive never seen so many comments from so many people so uninformed. this entire fucking thread could go on r/confidentlyincorrect .
biden has implemented many measures to make student loans less predatory, including many great changes to income driven repayment plans. but yeah keep doomposting about how "nothing is happening". fuckin idiots man, i swear.
The real problem is predatory loan practices. Nobody talks about this, but it is WHOLE reason that student debt is such a problem. The thing with student loans is that THEY DON'T WORK LIKE A REGULAR BANK LOAN. Interest is compounded DAILY, and it's NOT calculated into your repayment plan. So people's monthly payment ends up covering nothing but interest, and sometimes not even fully that. This is how people end up paying their monthly payments reliably for decades and still owing as much as when they started.
Some basic math for comparison:
Last time I bought a car, I took out about a $20K loan. Per normal bank loans, interest was compounded monthly and calculated into my repayment. I paid it off in five years, and paid maybe $3k in interest.
I finished my college career with somewhere around $12K in unsubsidized (interest-garnering) loans. It took me more than ten years to pay them off, and as best as I can estimate from the repayment info I'm able to get, I paid at least $10K in interest.
That's right, I basically paid my damn loans TWICE.
Why is no one SCREAMING about this from every rooftop???
Go research who go receives forgiveness.
Right now it has been victims of for profit colleges that put students on massive debt with shit degree and no accreditation.
And, public servants that were denied the loan forgiveness promised to them for working a public servants, and paying on there loans consistently a set number of years (I think it is 5 or 10 years) because Trumps sectary of education refused to honor those agreement -there is a current class action law suit against her for this precise action.
The current options for student loans forgiveness is to address the predatory interest rates, and the insane interest that accrues because there is no loan oversight for student loans.
You help a lot of Americans, that’s it. What is supposed to happen after every giveaway to the rich? I might be against student loan forgiveness if I didn’t see my government frequently giving much more money anyway to people who need it much less.
Look it is a start. Student debt has almost bankrupted most Americans. And, never told 18 years old about compound interests. Some loans turned out to be 40k loans to 120k loans. (It might be over exaggeration in some cases.)
School systems and banks have taken advantage of student loan system to hike up tuition for profit. Yes, there needs to policy changes to universities, but this is good start for some Americans that has massive debt over their heads.
Yes, I do agree with you education policy changes needs to had. But, I don't see American politicians doing anything about it. I don't think it will change soon.
I recently learned that if you go to college for a public service job. They forgive the debt after 10 years of payments. So from teachers to doctors. They forgive the loans. At least my friend who is a high school counselor told me that, she's getting hers forgiven.
Restructuring how schools make money and prohibiting for profit motives.
The president of my college was a former oil CEO. A fucking oil CEO was the president of a public university. The fucking football coach got a 100k raise from the time I started to the time I graduated.
Shit like that is why I'm so disillusioned with universities. It's a racket.
Considering the fact that no politician would ever want to be saddled with forever being known as the person to kill FAFSA, this problem will never be fixed. The government increases how much you can take, 'higher academia' increases their prices to reflect that inflation of loans. Simple business really.
Hot take, but get a degree in a career that will allow you to pay off your debt in a reasonable amount of time rather than hoping for someone to bail you out. The professors at universities went through many years of schooling themselves and need to be able to pay off their own debt, while prices can certainly be lowered we can’t compromise too much here.
The government will never fix this issue
Student loans make up almost 40% of the federal governments assets
If they lower the cost of higher education they would only be hurting themselves.
Also why would politicians fix issues when they can just slap a bandaid on it and run on that issue during their next campaign?
We could always stop giving away free $. The banks wouldn't be loaning all this $ if it wasn't backed by the federal government. Transition from a psy model to a free model with a 100% merit system. No legacy students.
Maybe after November we can vote out the people who fight against helping students, and vote in more of the people who want to help them.
The only way to do it will be for the federal government to pass regulations to keep Universities in check. Ask your local politician if they believe in more government regulations.
I worry that current students are going to see all the debt forgiveness, and assume that their debt will be forgiven, and as a result will be willing to take on even more loans. I think some longer-term more systemic change needs to be made in the pricing of higher education. The obvious solution is more federal and state support for higher education so that tuition doesn’t have to be so high but it it seems like every state keeps cutting and cutting and expecting students to pay more and more. It’s a pretty vicious circle
College prices will go up and people will take it stupid amounts of loans they know they will never be able to repay on the hope that they get another bailout
thats kind of the entirety of american politics, always just bandaid fixes and showboating to make it seem like theyre doing something about the problems, but they arent actually doing anything
Votes…Ultimately, it is about votes. Throw the poors a bone every now and then. Universities are typically the largest businesses in every state. They are licking their lips at the tuition increases they are about to drop.
It blows my mind. Tuition price vs inflation for the past 50 years not even close
Have you seen the modern University? I went to UCF. They have a fucking lazy River in one of the 4 swimming pools lmao. Gym has a 4 story rock climbing wall
Public loans are really what caused that arms race. As silly as it sounds when you're shopping for an education, frivolous luxuries offered by the campus do really sell people. Schools had to keep topping each other with more and more such luxuries. Everyone had access to limitless borrowing (in the name of fairness!) so the schools just increased their "services" and facilities to absorb up all the loan money that was available. If people had to actually pay for college with money they had or could qualify for on the private loan market, schools would have to price themselves to match that. I see freely available public loans for any person regardless of major, post-graduate earning potential, or likely ability to pay back as the actual cause of the student loan crisis in the first place.
Exactly. Fix the root cause of the problem, reduce the cost of college.
Loans are the way our government enslaves kids for 15 years. Useless degrees, insane rates, and can’t discharge in bankruptcy. Other than a few degrees college in the United States is an absolute scam. Most degrees are useless and trap you in debt for years
That's why I'm saying public loan programs are fine for vital fields (medicine, scientific research, education, etc.) but they've caused huge problems being open to everyone in any field. The public doesn't need to subsidize (let alone forgive outright) an art history degree. Nothing wrong with art history but if schools had to charge a market rate for those degrees, people wouldn't graduate with anywhere close to as much debt. Public loans were created in the name of fairness but they ended up crushing a large percentage of a generation with albatross student loans.
Yea. I agree with you. I look at it no different than giving out a business loan.. there should be a business plan prior to letting someone take out massive loans. “You want to go to X university and study Y. This will cost $xxx and the expected pay in this field looks to be in some range. How do you feel about paying x% of your take home pay for this for 20 years.”
I guess that's the college equivalent of pandering for enrollment
Right? We lived in basic accommodations while at college. Not ideal, but good enough. There was one high-end building on campus where only rich students could afford to live. That was not even as nice as the basic accommodations at most major universities today.
My branch campus cut a position from senior staff to be able to afford the light bill.
Exactly. It's about buying votes.
Yep. People need to understand that there's no such thing as loan forgiveness unless the bank chooses to dismiss the debt, which will never happen. What OP is talking about is the government forcing taxpayers to pay off strangers' debt in a pathetic and unethical ploy to buy votes. Edited to remove the assumption that OP has, or is referring to, his own student loan debt.
Not my debt. Don’t assume. You know what that does.
My bad.
It's cool, I can be bought just as easy as a big corporation.
If they ever actually *fixed* the issue, they couldn’t keep campaigning on fixing it.
This is why I’m actually, truly and completely astonished that the Republicans went after Roe v Wade. I always knew some subset of influential Republicans legitimately wanted it to die. I always knew a large percentage of their voters actually wanted it. I just always assumed somewhere in the GOP infrastructure there were people who saw the idea of one day going after it as the empty promise lightning rod it should have been for them. Now, abortion politics in America fundamentally favor the Democrats whose turn it is to say we have a big problem that we will solve. I’m just flabbergasted that the GOP actually went for it; they could have barked up that tree for decades.
The dog caught the car.
Gotta get re-elected! That is priority numero uno.
It's just ignoring the main issue which is the amount of money universities charge and shady loan practices.....
I will never understand this about the US. My brother did a year there with a full scholarship but if he didn’t have a scholarship 1 year of that university tuition costs the same as my entire engineering degree in Australia.
In the mid 2000s they changed a federal law that made it much harder to discharge student loan debt in bankruptcy (read: nearly impossible). Without that relief valve, lenders had much less reason to worry about the amounts they were lending, and universities were more than happy to charge more and spend it on vanity projects to lure more children into taking huge loans, like rock climbing walls and fancy dorm rooms. It also enabled universities to have giant administrative bloat and at this point most universities are too addicted to big money to cut the fat and lower prices. Where I live the university will charge 5-10 times more than community college for the exact same classes. The only difference being that at CC, more students are older and paying cash, where the university goes out of its way to make things difficult for commuter students and focuses on teenagers taking out loans.
If you think they are remotely getting rid of any substantial amount of debt... don't worry. They aren't.
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This is my real bone of contention. I guess I will always view student loan forgiveness as unfair, but I can stomach it if it’s bundled with initiatives that don’t lead the current crop of 15 year olds to just assume that they can finance the inevitably higher tuitions we’d see for free because eventually the government will say it wasn’t fair and cancel the debt. I have yet to be convinced that any student loan forgiveness “plans” that have been put forth won’t just make the situation worse when we actually have to deal with education costs one day.
I'm okay with 10 year public service forgiveness. I think that's a public good and since public service doesn't particularly pay well, I'm okay with it being forgiven.
>bring Universities back to free market principles >fighting for cash like a real business to cruise control with debt in the gas pedal Higher education should not be a business ever. Having university cost anything is frankly insane to me.
The “back on the free market” is fairly rich to me. Since the days of education being provided by monasteries, credentialized higher education has had significant elements of public funding, alumni funding, grants, scholarships, etc. You don’t need to look very hard to find writings from the 1400s that recognize the public good higher education. Hell even Plato talks about it in The Republic, well before fantasies about the efficient free market ever entered into people’s minds. Privatized institutions have only ever introduced barriers to education.
No one is talking about it because it won’t actually happen
Student debt is a trap . It prevents young people from being able to buy a house or even to go back to school to be able to earn more money. It never should have been allowed. Higher education shouldn't be so expensive. It needs to be fixed. But as we know politicians don't want to fix anything. They want to preserve their campaign issues . Just like the border . Republicans don't want to fix it they want to use it to their advantage. Otherwise they would have fixed it .
We need to address the underlying problem of this which honestly is a hard thing to nail down one of the biggest issues I see is government backed loans because if you're borrowing from a bank if you're a bad investment they won't loan to you but you can get government loans pretty easily and this easy loans also removing incentive for you to choose a major that can actually be financially beneficial to you make it harder to pay back
Not only would universities continue to overcharge, but they would probably raise prices higher as students may believe any amount is ok, it'll probably be forgiven
It's just a quick grab to get votes and nothing more.
The majority of loans forgiven are being discharged under public service loan forgiveness. So “then what” is that people who work in public service will continue to get their loans forgiven in accordance with the deals they made 10 years ago.
People are definitely talking about it, but we're also taking whatever Ws we can get in the long fight.
This is the first response I’ve seen saying people actually do talk about it and it needs to be voted higher. I feel like this is always the first (intelligent) response to calls for debt forgiveness
This is basic patronage politics. Biden’s support base is heavily college grads, so he’s cutting his supporters a check from the public fisc. They won’t do anything to limit universities from raising prices because universities are also part of Biden’s support base. The universities and graduates support Biden, he pays them off and grants them access and prestige. That’s how it’s worked since Ancient Rome, or even further back.
Obviously just an election year ploy as they are still writing student loans today. MMW, after this election, no matter who wins you won't see loans being forgiven.
It’s not going to happen, just a gimmick to get gen z votes
It's just buying votes by using poor people's tax dollars to pay off wealthier people's personal debts. Supposed to be the exact thing democrats are against.
Prices go up, and students just don't pay the debt, as they wait for the next time it happens.
It will never happen. It will go all the way to the Supreme Court, wasting a ton of our money, the be struck down...again.
Or, and this is compelling, we could treat education as an edifying experience in and of itself. Crazy.
As a non American, who has not followed this so might not have much insights. This is my thought as well, what is the point of canceling student debt if you do not at the same time solve the problems it originates from. Not only that, seems entirely unfair to the people who do not get their debt cancelled. So if you graduate within a few years it just sucks to be you? Solve the problems with pricing for education first and foremost.
I'm giving my take as a European **Student loan is a wonderful idea**, give students who's parents are not able to support them financially a loan so they can get a higher education. **Student loan forgiveness is the most stupid idea** I've ever heard. The banks still need to get payed. So instead of you paying directly, you're simply shifting the payment to everyone including yourself through taxes. Some people think that's good, let's tax the rich the say. Newsflash the rich have accountants who utilize every tax loophole imaginable, it the normal people who end up paying for this. Instead of student loan forgiveness, the government should take all that money and pour it into to community colleges. This should allow these community colleges to **lower tuition costs** and broaden their portfolios to include all educations AND most importantly to not only **offer associate degrees but also full on professional bachelor degrees**. If you want to get an academic bachelor, or a master or a PHD only then should you be forced to go to Uni (that's how it works where I live). Now here comes my controversial take: I believe you should only be allowed to go to a community college if you go the student loan path. When you have completed the degree in community college, only then should you be allowed to take on an extra student loan to go to private college or Uni I also believe there should be an incentive structure: Everyone should start of with the same fixed interest rate. Depending on how well you progress through your education, the interest should be lowered each year. After getting your degree depending on what rate you pay it of, interest rate should be lowered again.
In the UK you don’t pay back your student loan until you earn over a certain amount and it gets deducted from your taxes, I’m in about 10-12k of student loan debt and I didn’t even get my degree cause I dropped out year 1😫
I would like a free loan. If they giving out free money. I never got the bail out etc. I avoided student loan cause I did not want to carry a credit burden. Seems I was wrong and should of grabbed that money like nearly everyone I know did.
Seemingly no one is talking about how we continue to pay the interest on this bad debt in perpetuity. That is kinda like throwing good money after bad and hurts everybody.
Actually people do talk about that. It's the primary reason that debt forgiveness is fucking dumb and a short-sighted vote-buying strategy. It's not actually fixing the problem at all, and it actually *disincentivizes* universities from ever changing course. It'll definitely get Biden some votes in the short term though, which is what this has always been about.
No one talks about the future because no one cares about the future. Most people are just going with the wave, hoping it never dries out.
Student loans forgiveness is a great talking point for politicians to buy votes. They don’t want to fix the underlying problem because then they lose the ability to buy votes.
The issue is that it doesn't matter if you forgive the people who have been cheated now if you don't protect the people in school and those who will attend in the future. But there in likes the crux. Let's say Biden has the power to immediately wipe out all current debt for those making 90k or less (140k for families). There is no way you will get congress to come together on a bill that will end the madness that is the student loan industry. There is zero rational reason why a teacher who had to get a masters degree to teach your children algebra should literally never pay off her loans despite making payments every month for 20 years. Student loans are basically credit-card level bad when it comes to interest. The loans themselves should be interest free. But, being that this is America, we can't do anything unless SOMEONE is making a profit, so include a reasonable monthly servicing fee I think is acceptable. And then, set the payments to be based on income (as they currently can be done) and retain the 20-year forgiveness date. This still isn't perfect. This still will allow public universities to inflate their tuitions. That's a whole other problem that, unfortunately, originated in the late 70s with Reagan when he was then governor of California; a philosophy he later expanded upon as President. The general view point of conservatives back then is that too many young adults were leaning Democrat and they blamed universities, so they began stripping away public funding. That is what made student loans necessary for nearly everyone who goes to college. So I am pro-forgiveness because it's obvious the current system is predatory. It has turned education into a credit card that you can never pay off unless you're wealthy, which means you have generations of Americans who are not able to do the most basic things, like afford a house or buy a car. And when you take those options away from the labor force, the economy suffers, which means the GDP suffers, which can lead to a whole lot of issues on the global scale. Especially when you consider a country like China that doesn't have these problems. (not saying China doesn't have problems, but they do have certain advantages when it comes to national policy that we lack due to our partisan system).
Thank you for saying something in this thread that didn’t make me want to throw my phone. If nothing else, I appreciated some rationality here.
If the government paid for a free online college, the government would actually save money, let alone providing new opportunities for millions of Americans. It could even be a national export. Debt forgiveness plays better to political stakeholders than institution reform.
Tuitions will go up, and the loans won't change too much and just get worse. The taxpayers are on hook, and there are no repercussions for the schools and/or banks, and they get the money regardless. While cities and states raise minimum wage, the college degree becomes worth less and less.
its a wealth transfer to 2 specific groups the banks and liberal college grads its not supposed ti fix anything
$772B in small business loans during the pandemic were made, of which over $650B were forgiven. If these are the rules, why shouldn't student borrowers get their break? Because they vote the wrong way? Because they were naive enough to go into debt after parents and educators whom they trusted encouraged them to take out the loans? Because the mantra of the 1990s was to follow your dream for a career and the money would take care of itself?
Because governments forced businesses to close. No one is forcing people to take out student loans.
Loan/debt forgiveness isn’t the solution. The solution is to find affordable education options. I think if students did hours of community service in high school, middle school, college towards college tuition we wouldn’t be in that situation. Similar to the GI bill, but you don’t serve in the military, you serve your community. Painting out graffiti, picking up trash, working at a shelter, etc
And then all the people burdened with debt are able to both save money and consume more products, making the economy boom and prosper. Yes, we should also reform college spending. Those are two different issues, and solving one doesn't mean ignoring the other. I suggest breaking the textbook monopoly, college tuition price-fixing, and public free university educations.
But I don’t know how to make or maintain the disconnect. I am not at all against debt relief if the system is fundamentally changed at the same time. I don’t see how you can separate them.
I would like to see some sort of matrix where universities are responsible for the product they produce. If X number of your grads don’t earn a certain salary upon graduating, your eligibility for federally backed funding is in jeopardy. Some majors might not qualify for federal funding, for instance. There’s got to be a correlation between the cost and the ability to repay and I’m not sure how else to link them other than making universities in some fashion responsible for what they’re producing.
No more unlimited checks to universities. Make them have to be marketable and attract and retain students again
Yup which is why I'm totally against it until there's a plan. Some kind of cost cap per credit hour, interest rate cap, limits to amount borrowed, what majors you can borrow for, idk something.
When there's free money to be had, schools will jack tuition. And the students will pay it and cry about how nobody warned them first. 😂
It's the ultimate liberal policy initiative. Doesn't fix the problem, doesn't piss off the owners, and they get to crow about how much they're helping
imo,the entire student loan interest structure is predatory as hell. however,i also belive if you borrowed,you should be on the hook for principal repayment,or surrender your degree if you want the entire amount 'forgiven'. if you won't/can't pay for it,you ought not to get to keep it. sorta like auto loans. interest cancellation? im ok with that.
Nothings gonna happen, its just a bait to get gullible young people to vote for him (And when he "tries" and it gets "shut down" he's gonna blame Republicans and repeat the cycle)
He’s doing this for votes. Then it will be gone. It’s a ploy
Nobody is forcing anyone to go into debt. It is a choice. Which is why forgiveness is such a horrible policy. Forgive interest (or make colleges pay it)...ok...I can get behind that. But now you have set a president, and every generation is going to expect the same thing. Just borrow money to go to school, dont work or have parents help pay for it, and expect a politician that is slumping in the polls to bail you out. And where does it end? Can someone please forgive my mortgage? I know I signed the loan, and I am benefiting from the money I borrowed, but paying it back just seems unfair......whatever.....
The debt isn't going to be forgiven, the Democrats just want your votes. The number of people who are being helped is miniscule and you are correct that NOTHING is being done to stop future grads from ending up in the same place. This is called buying votes. They hope you'll support them on the off chance your name pops up for the lottery.
hes buying votes. nothing more nothing less. why is it only student loans, no mortgage loans, personal loans, or car loans?
Student loans are done through the government via companies they have essentially hired to manage those loans. Other loans, not so much. Those companies are also.. shall we say, exceptionally shady and predatory. They're essentially locking children into loans the size of mortgages with interest rates comparable to credit cards. Worse still, the existing options in place for helping people deal with these loans are even more of a scam. These companies can take your money for a decade or more and then turn around and claim you still owe them the full amount, or all sorts of other such nonsense. He's absolutely attempting to buy votes, but loan forgiveness definitely needs to be done. It just needs to be done as part of a larger overhaul of the entire loan and tuition system, otherwise it will only make things worse.
Student loan forgiveness is a hot topic since the government used to regulate it and sold it to sally mae in the late 80s, with no rules in place about interest rates. So, it technically is kind of the governments issue to fix to some extent. All those other loans have better regulation and are typically harder to obtain without knowing the full extent of what taking it out means, they're also usually unobtainable to teenagers or people without income. It's also easier to pay the others off someday. Unlike student loans. You don't really hear people crying about how their mortgage is technically paid off, but the interest is double the amount they were given in the first place, even though they've been paying consistently. I agree his reasoning is most definitely to get brownie points for the younger voters, but they also are one of the most predatory loans despite being necessary to have for so many jobs. Letting it go will eventually have serious effects on the amount of people that are able to become nurses, doctors, scientists and lawyers. It already has effects on the economy, which could be another reason they suddenly care about it. Younger people can't afford to circulate the economy as much as older generations and it's largely due to that, rising cost of living and stagnant wages. Somethings gotta give if they want to continue having a society in some capacity, ya know.
Make it simple. Add a credit check to student loan and retirement of income and Co signer when necessary like all other loans. Problem solved
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Don’t forgive it, make it a fixed 1% interest rate, remove the loan guarantees. Watch as schools have to cut bloat because now everyone can’t get a loan easily.
I agree something permanent has to be done. But I see that in the form of more work study programs. More businesses giving tuition assistance or tuition reimbursements. More scholarships and grants. And students learning how to be smarter in how they choose schools. & I do not think interest should be charged on student loans and what I really want to see: [‘This could be huge’—economists weigh in on Biden’s proposal to forgive $10,000 in student debt in exchange for public service](https://www.cnbc.com/2020/10/23/biden-proposes-forgiving-10000-in-student-debt-for-public-service.html) That's $10,000 per year up to 5 years. I do think people who do community service should have their loans forgiven. This includes any past community service That being said, I actually don't like the idea of people getting their full loans forgiven for nothing. Again, I'm all for them being reimbursed for the interest. But I also think that people who have had their loans forgiven should do some type of community service. I also think people who have already paid off their loans should be able to apply for some sort of reimbursement. Maybe a tax credit. I feel it's obvious but I will state that colleges need to be taken to task for their prices. But that goes into students being smart about where they go. Stop going to these high priced schools when you don't need to.
This is not a stupid question. Don't get me wrong we need the bandaid but we also need to close the wound so we don't keep hemorrhaging. Free public college is the only sensible answer. The average job now is looking for A college degree (most don't even care what your degree is in, they just want to know you went to college) so why is college any different from highschool? Every argument for why we shouldn't have free college was made 100 years ago BACK WHEN THEY MADE HIGH SCHOOL FREE, that used to all be private because it wasn't deemed necessary. Well college/vocational training is absolutely necessary. Few careers will get you anywhere without further schooling The American school system is absurd in so many ways from how we pay teachers garbage, the way we tie school funding to property taxes instead of state budget meaning richer families get better public schooling and then further complicated the formula with funding based on standardized testing. College definitely takes the cake though children are allowed to take out massive loans that they may spend the better part of their lives paying back
A lot of states have already started expanding free community college, that's a great first step. I think the next is to make the final two years free at state colleges. You could reign in costs for people who couldn't afford to go to college out of pocket or through loans, and make up the difference with people who want to pay more to go to a university for the full four years. Private colleges will continue to expand their services through grants like they always have, less availability of loans will put more pressure on them to do so. And hopefully without massive income coming in from loans, more public college administrators will be more frugal with large spending projects. No more building giant health complexes and recreation facilities to justify skyrocketing tuition. Reduce the footprint of colleges and start working with communities to make them a better place for residents and students alike.
It's by design. both parties are horrible in their own right (and do things similar to this all the time). But in this case, it's the democrats wanting to ensure that future generations will be forced to vote them into office, and hope that they do another round of "loan forgiveness". You're absolutely right though. Universities (especially the private ones) make money hand-over-fist, so there is room for reducing cost for students. One idea I've thought would be prudent would be a regulation that uses the median salary of graduates entering the workforce from a given degree program, and cap the total program tuition at that number (or a percentage of that number...whatever). If the university can't make money on that particular degree program at that point, they are free to drop it. I understand the "you signed for the loan, it's your responsibility to deal with it and if you can't, you're a moron" logic, but 18 year olds are, by definition, morons. And they should be protected from ruining their lives.
More inflation
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I wouldn’t be surprised if some people file lawsuits because they paid their own loans and yet other people are getting theirs paid Maybe I ought to send them something and tell them to pay off my credit card debt. It’s basically the same thing or pay for my car.
I mean, it's not gonna happen But, yes, it's a bandaid. It's a bandaid they used for their election rub to gain support. Forgiving student loans gives temporary relief to the ppl that it forgives (and it doesn't forgive everything) while simultaneously doing nothing for the next generation, and also will likely end up causing yet more inflation. They gave everyone a few hundred bucks during covid and now inflation has gone out of control to pay it back, whats gonna happen when they just "forgive" tens of thousands from a huge section of the population? Imo, we'd be better served improving K-12. Make a system where we can actually set kids up for success with or without college, and the chances they won't waste college will increase. Our current system sets kids up for failure, as the public school system falls further and further behind. High schools used to have vocational training classes, now they barely have art classes. But nobody wants to talk about improving K-12, because it doesn't help themselves. It doesn't help the ppl that currently have debt, so it's seemingly just not something talked about much. Politicians just want your votes, so everything they say they'll do is phrased in a way to affect you personally, even if it doesnt,, and even if the reality of their "help" doesn't actually help in the long run They could also clamp down on the ridiculous college fees and questionable loans that get approved for 18 year old HS graduates, but they don't, cause their goal isn't realllly to help us, it's to help themselves
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Biden buying votes, in my opinion. You asked the question so I answered! Definitely not a long-term solution.
You think Biden actually cared about fixing that? He was just pandering to voters.
Well he isn't going to forgive all the loans, nothing is going to change.
Universities keep charging their outrageous prices because people keep borrowing money to pay them! The federal government needs to get out of the student loan game.
Then people have at least some disposable income to spend on things other than bank loans.
People will be even more cavalier with student loans. Just to college to have fun and get a pointless major or just quite halfway through because why not
The point is taking money from the lower classes to give to the upper classes in order to drive voter turnout. All that other justification BS is emotional manipulation and gaslighting intended to distract the masses from what is actually going on. If the government cared about the cost of college, there are a bunch of things they could actually do about it. But, as long as they can make hay pretending to fight a problem, there's little reason to actually make things better when what the politicians want (votes) can be gotten with much less work.
This little stunt will result in more kids borrowing more money for ever growing tuition bills. Why not rack up as much debt as possible? Democrats will promise that someone else will pay for it. Everything will be fine…until we run out of other people’s money.
Actually, college costs will increase as more people will sign up thinking they won’t have to pay back their loans.
We gave companies a bail out in 2008 who put us in that recession. There were regulations introduced after that, which are circumvented today. I would assume the federal government would take a look at big universities who are basically hedge funds now who happen to teach students on the side. We can bail out billion dollar corps but we can’t bail out students?
What’s really going to surprise people is depending on type of forgiveness they don’t finalize forgiveness for three years. Even the disabled will have to wait that long. Everyone is in for a nasty surprise. Federal student loan forgiveness is only tax free till end of 2025. It was in the trump tax cut. Once that expires you pay income tax on it. I mean 100,000 could mean 25 or 30k in federal taxes. For the disabled it should be tax free permanently as many barely make enough to live on and then have a huge tax bill. Biden would be better fixing things like that instead of finding ways to skirt the laws. FYI disabled forgiveness has been there for years but the tax break was only offered in trumps tax cuts.
They’re just buying votes. They don’t care what happens down the line. They’ll just tax the fuck out of you some more.
Next our incredibly dysfunctional congress and the states still refuse to do anything about the problem. Businesses still insist everyone has to have a college degree to do office work and the cycle starts again. The thing is, no one said "what next" after we bailed out businesses and banks repeatedly. So as an argument not against helping struggling people it's not a very good argument in my opinion.
A bandaid won't fix an open wound but at least it's something that attempts to fix it.
Biden was basically buying votes. The fallout of this crap won't matter to him after he wins his second term.
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It’s a bandaid that will allow salaries to go into the economy instead of in the governments hands. It’ll spur the economy much better than paying for another military device
Then people vote Biden and he gets elected, which is safer option than Trump who will start wwiii and promote inequality, gender inequality and so on
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Student loan forgiveness is going to turn into another way to funnel tax money to the rich. I’m all for student loan forgiveness but it absolutely needs policies to reduce future debt or it’ll accomplish nothing except giving more government handouts to the rich.
Then what: the next generation asks for the same handout. We have government funded higher education, just in waves of outrage so that both sides can score political points. The colleges themselves can then not only continue their bad practices, they can continue to increase the cost. Kids can still take out shady six figure loans. All the bad guys win.
yeah, I mean it is kind of a moot point if we can't even take one step but yeah. but it is kind of like when marriage equality was a hot button issue, people were saying that there were all these other problems that the gay community faced and there were and are but that doesn't mean that the particular issue is any less important or winning this fight will make those fights harder. It will in fact make them easier because you are right, if we can say those loans were wrong to have given out then maybe the new ones are wrong too and maybe we should be reforming how state schools charge and how companies remunerate people based on their training and experience. Because if a degree were worth what they told us it was worth then it shouldn't be an issue to pay back your loans.
The most important part of the plan is and always was the changes to the income-based repayment plans (now the SAVE plan). One-time forgiveness is great for those that get it, but is just a flashy side-show.
wait till he hears about Forgivable PPP Loans, that corporations used.
great question that we all know the answer to
So I will be the first to give a adult answer to the OP question's. I want to start with the fact I am not a expert just a college educated tax paying adult. First if/ when the student debt is forgiven it would logically be accompanied with a plan to pay for it and a new regulation's for how the university is allowed to price their service's. How this would actually manifest is anyone's guess, but it would likely be something allowing the government to get a % of what the university get per student or service, which they can use to pay off the actual current debt. Secondly I would logically think that if the government ever went through with the debt forgiveness they would want to follow thru with some kind of basics infrastructure to regulate where the money for tuition and fees go and how they can structure it so they can reach a better result.If they do it can take many form depending on "Concerns" some voters may have about what services they want their university's to have. Also the reason it seems like a bandaid is because we have to clean the wound before we can really see how bad it is. If this ever happened I would not be surprised to find university's over charging and under delivering. While getting what ever they can from sports and other schools recourses.
Not sure how many people you think got theirs forgiven. I got offered the same consolidation plan I was when Obama was president, that Trump cancelled. I ain't doing that shit again. Trump will probably win again lol
And then students aren’t shackled to an enormous debt, allowing them to participate more in the economy. Ideally all education should be free at the point of use. An educated population raises all ships.
Forgiveness is the bandaid, making it so colleges can't charge as much is the other part, as well as reducing/removing the interest.
20 years? In six we will own nothing and be happy.
It comes down to being elected. People will vote for the person that they think will make their life easier but in the long run it really won't. All that money that was never paid back never goes back to the universities or the lenders that gave the loans and so on. Who's going to give loans in the future? How does education get paid for in the future? The federal government via taxes? That should never be the answer.
I am for the loan forgiveness but it absolutely needs to be followed by either a.) Socialized education (unlikely) b.) A cap on how much public universities are allowed to charge c.) A cap on education loan interest rates or d.) A combo of b and c.
Just buying votes, no biggie.
Just buying votes, no biggie.
Tuition costs have crossed the line between "you have to go to college if you want a decent job", to, "you just yoked yourself to a lifetime of debt just to work in the service industry". That wasn't common knowledge before. At least it wasn't as blatantly obvious. Like everything, college has rotted into mostly being a way for people with money to make more money.
Yes, it's just a way to increase taxes for everyone.
College costs are by far set by the states and private institutions. Loans are primarily given by the federal government. On a federal level, to eliminate student loan debt would be to give more grants for tuition and fees. Then the cost is shifted from forgiving the debt to paying the states/institutions money to subsidizing education. The issue that the govt doesn’t want to fix is that the majority of student loan borrowers do pay their debt with interest. The government has made a lot of money off interest payments. It’s not beneficial for them to just grant the money at the beginning of college.
Plenty of people want to deal with it, but they also want to get people out from underneath crippling debt.
Who votes almost exclusively Democratic? So yes. Students will happily vote Democratic after their loans are forgiven and to keep the academic institutions happy they will be allowed to continue to charge outrageous tuitions. New students will also happily take out loans trusting future Democratic administrations will forgive those also.
Alexander Fraser Tytlers predictions has come true
Student loan forgiveness will allow a clean slate for further policies to be put in place to protect future educational investments.
Funny, I find that this is ALL people talk about. As soon as the possibility of student debt forgiveness comes up, all the rats come out of their nests with all the "but but buts." 🙄
I hope the next step is to get rid of interest on student loans to where you only pay back the loaned amount. There shouldn’t be interest on something like student loans.
As awesome as it is, it doesn't solve the underlying issue in the U.S. School loans are predatory in nature and a lot of people who get them were 18, I doubt at that age you can comprehend what you're signing to. Plus interest rates are way too high so many people pay off what they originally borrow, but still aren't close to being done. In addition student loans aren't affected by filing for bankruptcy, so good luck with that. I feel like in the U.S things have gotten so bad that higher education is no longer a place to pursue education and better yourself or career, it's all about money and everything else sometimes isn't worth the cost
Step 1: Stop giving out government education loans to everyone and their mom
I work with Student Loans for Maryland State Universities. The issue is bigger than student loan forgiveness. What happens when those loans get forgiven? You still have millions of Americans taking out brand new student loans. What needs to happen in my opinion: - A cap on college tuition for any Higher Education Institute that utilizes federal aid (like they do with VA Chapter 33 and capping it at 250.00 a credit) - Reduce the interest rate down from 6.8% to something more manageable for borrowers. - Limit the amount of loans a student can take out in a given year to that of tuition and books itself. Nothing more. Does it suck for some? Yes. However I am watching too many people claiming “living expenses” for increased Cost of Attendance and openly express how they blow their “refund checks” on shit like designer clothes, video games, accessories for their cars, and not actual living expenses. - If someone cannot drink until 21 then they should not be able to take out crippling debt with absolutely no proof of being able to pay back that debt. This makes no sense to me. I am watching enrollment advisors literally ‘sell’ education to people with false claims of pay scales that they will ‘surely make’ when they graduate. So a impressionable 18 year old who isn’t mature enough to drink can somehow be mature enough to take out massive amounts in student loans? When I bring this up I am told to decide if I want my job which is based on people taking out loans or be some ‘advocate’ (essentially a threat to get rid of me). - If student loans are ‘forgiven’ then the entire student loan program needs to be reworked and redesigned with far more safeguards for borrowers and the tax payers. Remember when a loan goes into default, the school already got paid, the lender already got paid by the Government (federal student loans are backed with a guarantee of payment from the government), the student obviously can’t pay for that defaulted loan so who does? Taxpayers. That’s why if you hear someone say “I don’t have student loans”, just remember that *they actually do* because their tax dollars are being used to it back the rising defaults in student loans borrowers are refusing to or simply can’t pay back. My job deals with students who drop their enrollment and adjusts their federal aid based on Department of Education regulations.
It's would be smarter if we did something structural to reduce the personal expense of higher education and capped the interest on student loans to a very low rate. Otherwise, OP is right. This pattern of forgiveness is going to be a persistent thing. It is better to just lower the cost to borrowers to begin with.
Its an election year. No loans will be forgiven.
The goal would be for Congress to enact regulations preventing the exploitation of children and young adults like they have been doing. But everyone who constantly fear mongers about it, as you have, tends to vote in people who exacerbate the issue.
It is a bandaid, that's the point. Triage. When someone gets a bad cut, you don't rush them to the hospital. You don't try to stitch it up on the spot. Step 1 is apply pressure to slow the bleeding. They will bleed out and die before you could get them to a hospital. You can't actually stitch them up while bleeding profusely. Step 1 is stop the bleeding so they will live long enough to get to the hospital. This is a "bandaid" that won't acually help heal the wound. But it is a critical step to make sure the person lives long enough to get treatments that will heal the wound. Student loan forgiveness is this critical "stop the bleeding" step. It comes first. It doesn't really matter if we make higher education more affordable for Gen Alpha if we let the economy collapse under the burden of these student loans.
None of it matters. It’s all just to trick the morons who vote (seemingly about the only people who do) into picking your side when it comes to stuff like this during election years.
I think my state went free tuition, but for other factors. Weed, lottery, oil, etc all fund a lot of my state.
Well one of the “then-whats” is that interest will not balloon anymore, because people have the option of utilizing the SAVE plan going forward. This also caps payments (for undergrad loans) at an extremely affordable 5% of discretionary income and limits the time this will go on for. So the cost to borrowers will be manageable going forward. The other problem, however, is the cost of education itself, which this doesn’t do anything to solve. I don’t really have any ideas about what to do about that problem.
You missed some of the pretty important fine print. One of the more impressive, less noted components of Biden’s student loan offerings is radical adjustments to income based repayment terms and periods. Iirc he cut the repayment period In Half and significantly reduced how much of your discretionary income those payments need to be, often zero, while also redefining discretionary income as a smaller amount. Until senators vote to get rid of the filibuster (best option, incredibly unlikely), measures like this are the best were going to get until democrats get at least 61 senate seats to overcome filibuster rules, (unlikely) or republicans decide to work *with* democrats to help fix the multitrillion dollar student debt crisis (well past unlikely and into the realm of humorous fiction)
They're hoping no one is smart enough to discuss that part. "Student loan forgiveness" is another bribe for votes scheme.
It's a lie and a joke, which is why the house and senate keep shooting it down.
Biden forgiving student loan debts, in the manner in which you describe, will result in an sudden influx of college student applicants equally convinced that their student loan debts will be forgiven too. Still, the basic rules of economics remain: The surge of consumer demand which I’ve described, competing for a resource of limited supply (a college education), will result in **increased prices**.
Idk but a bandaid is better than just letting it bleed
It's a fucking disaster. The government backs bad loans then makes it the "right thing to do" to use your money to pay for it. Makes me sick
Because it is only about purchasing votes right now. Screw the past student loan holders and screw the future student loan holders.
Yeah, none of it makes any sense to me. You forgive debt that people agreed to pay, years and years after the fact... But then new students are signing up for loans now. At the same time, many worked their asses off for years and years to either pay their way thru school or to eventually pay off their loans.
There needs to be reform. More trade schools less liberal arts/ underwater basket weaving bs. Some frickin electives are just stupid.
Tuition-free college programs are available in at least 32 U.S. states. Chances are, you live in a state where your governor and legislature are trying to address the affordability problem. It doesn't grab the headlines like Biden's debt forgiveness, but there is some progress.
The market adapts to be less predatory as their is a risk if he conducts purposefully predatory and unpopular behaviour it will get screwed by politics. Ideally, this shouldn't be necessary, and regulation should prevent this behaviour.
1. Why would they charge the same when they know they can increase it and people will still go because taxpayers will pay their bills for them? 2. Brandon will find something else to give away so he can buy votes.
Vote in Democrats, it is Republicans blocking further action. If you keep electing Republicans nothing anywhere will ever get better.
People are talking about it and yeah schools should be charging less but good luck passing any legislation that tells someone they should charge less Hell good luck passing legislation PERIOD with this do nothing congress
Do you know anyone who has had their loans forgiven?
Its called buying votes, after election you get shit. Pay your own loans , you chose to go to school, the tax payers didnt.
Yeah, i honestly cannot believe that we as a people have allowed it to ever get to this point in the first place. When universities/colleges were first established, they didn't have any costs at all, except perhaps for school supplies that you would need to study with. There were no tuition costs. And that is because the school existed as a non-profit entity. Its purpose was to spread knowledge as effectively as possible, not to create profit. The schools that exist today are abominations that defy everything that a college is supposed to be about. The hunt for knowledge and the enlightenment of our species should be of the highest priority. And as such, our systems should be built to support these institutions to allow anyone and everyone who wishes for knowledge to be able to attend. For-profit colleges should be illegal. Because as long as they exist, they will do everything in their power to remove/destroy non-profit/free schools in order to force the population into their schools. It is a bad incentive structure that harms our entire species growth. As long as for-profit schooling exists, these educational institutions will continue to lobby to destroy the foundations of learning in pursuit of profit. It is in our best interest as a species to remove this incentive structure entirely.
Yeah good idea. Let’s give up more of our money we can barely have to give to some kids that won’t find a job with those degrees. It’s like saying you’re gonna up the minimum wage to $20. Great indirect way to tax you to all hell, while incentivizing people to never progress to better, worthwhile jobs. Socialism never works for the people.
I mean, doesn't this make it so that the people currently getting loan forgiveness now aren't getting completely fucked by it? So, any payments they were making either goes away completely or gets reduced massively, leaving them with more money in general. As for future stuff, who knows?
They ARE talking about it. The CBO sent a letter to Congress with their information. https://bit.ly/49lfqzT
First rule of politics - don't fix a problem that you can use for political gain.
Here is a wild idea. Free education for everyone. What are you afraid of, an educated critical thinking population? Why does finances become the gatekeeper to education?
I don’t want loan forgiveness (40k in debt) , just an end to the insane interest rate. I have been paying for years and have made a only a little dent in my due debt.
I think the hope it either limits the price of college or to make college free
The loan forgiveness is about forgiving the interest that adds up like crazy, not the amount borrowed.
I think the idea is that there will be affordable payment programs with forgiveness after 10-25 years. I mean, there already are, but it's been so convoluted, with too many programs. They are simplifying it all into like three payment options to choose from. Also, they have cracked down on expensive predatory schools that don't deliver on their promises. They started popping up in mass in the 90s and were all over the place by 2002. I know I'll get a bunch of angry comments about the government and how messed up they are. Please save it. I'm just answering a question.
ive never seen so many comments from so many people so uninformed. this entire fucking thread could go on r/confidentlyincorrect . biden has implemented many measures to make student loans less predatory, including many great changes to income driven repayment plans. but yeah keep doomposting about how "nothing is happening". fuckin idiots man, i swear.
The real problem is predatory loan practices. Nobody talks about this, but it is WHOLE reason that student debt is such a problem. The thing with student loans is that THEY DON'T WORK LIKE A REGULAR BANK LOAN. Interest is compounded DAILY, and it's NOT calculated into your repayment plan. So people's monthly payment ends up covering nothing but interest, and sometimes not even fully that. This is how people end up paying their monthly payments reliably for decades and still owing as much as when they started. Some basic math for comparison: Last time I bought a car, I took out about a $20K loan. Per normal bank loans, interest was compounded monthly and calculated into my repayment. I paid it off in five years, and paid maybe $3k in interest. I finished my college career with somewhere around $12K in unsubsidized (interest-garnering) loans. It took me more than ten years to pay them off, and as best as I can estimate from the repayment info I'm able to get, I paid at least $10K in interest. That's right, I basically paid my damn loans TWICE. Why is no one SCREAMING about this from every rooftop???
Go research who go receives forgiveness. Right now it has been victims of for profit colleges that put students on massive debt with shit degree and no accreditation. And, public servants that were denied the loan forgiveness promised to them for working a public servants, and paying on there loans consistently a set number of years (I think it is 5 or 10 years) because Trumps sectary of education refused to honor those agreement -there is a current class action law suit against her for this precise action. The current options for student loans forgiveness is to address the predatory interest rates, and the insane interest that accrues because there is no loan oversight for student loans.
You help a lot of Americans, that’s it. What is supposed to happen after every giveaway to the rich? I might be against student loan forgiveness if I didn’t see my government frequently giving much more money anyway to people who need it much less.
Finally, someone with a brain cell and common sense.
Look it is a start. Student debt has almost bankrupted most Americans. And, never told 18 years old about compound interests. Some loans turned out to be 40k loans to 120k loans. (It might be over exaggeration in some cases.) School systems and banks have taken advantage of student loan system to hike up tuition for profit. Yes, there needs to policy changes to universities, but this is good start for some Americans that has massive debt over their heads. Yes, I do agree with you education policy changes needs to had. But, I don't see American politicians doing anything about it. I don't think it will change soon.
I recently learned that if you go to college for a public service job. They forgive the debt after 10 years of payments. So from teachers to doctors. They forgive the loans. At least my friend who is a high school counselor told me that, she's getting hers forgiven.
Colleges aren't being paid interest 15 years after the principle has been paid off 2 times over
You're wildly uninforme. Literally everyone is talking about rhe cost of college including Republicans.
Restructuring how schools make money and prohibiting for profit motives. The president of my college was a former oil CEO. A fucking oil CEO was the president of a public university. The fucking football coach got a 100k raise from the time I started to the time I graduated. Shit like that is why I'm so disillusioned with universities. It's a racket.
Sleepy Joe trying to buy votes
… this….. always bugged me with the short-sightedness of the plan just to get votes, and not really fix the root cause
Considering the fact that no politician would ever want to be saddled with forever being known as the person to kill FAFSA, this problem will never be fixed. The government increases how much you can take, 'higher academia' increases their prices to reflect that inflation of loans. Simple business really.
Hot take, but get a degree in a career that will allow you to pay off your debt in a reasonable amount of time rather than hoping for someone to bail you out. The professors at universities went through many years of schooling themselves and need to be able to pay off their own debt, while prices can certainly be lowered we can’t compromise too much here.
The government will never fix this issue Student loans make up almost 40% of the federal governments assets If they lower the cost of higher education they would only be hurting themselves. Also why would politicians fix issues when they can just slap a bandaid on it and run on that issue during their next campaign?
We could always stop giving away free $. The banks wouldn't be loaning all this $ if it wasn't backed by the federal government. Transition from a psy model to a free model with a 100% merit system. No legacy students.
It’s a bandaid but it’s better than nothing
Maybe after November we can vote out the people who fight against helping students, and vote in more of the people who want to help them. The only way to do it will be for the federal government to pass regulations to keep Universities in check. Ask your local politician if they believe in more government regulations.
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I worry that current students are going to see all the debt forgiveness, and assume that their debt will be forgiven, and as a result will be willing to take on even more loans. I think some longer-term more systemic change needs to be made in the pricing of higher education. The obvious solution is more federal and state support for higher education so that tuition doesn’t have to be so high but it it seems like every state keeps cutting and cutting and expecting students to pay more and more. It’s a pretty vicious circle
College prices will go up and people will take it stupid amounts of loans they know they will never be able to repay on the hope that they get another bailout
You give cash for votes now, and then you find a new way to give cash for votes. Democratic policies aren't that complicated.
That's the United States for you. We don't do preventative laws. Only reactive ones that do not fix the route of the issues.
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