AOC knocks Biden plan for student loan interest to kick in during ‘on-ramp’ period

[highroller]

Again, can you give me a good reason why the student's loans should be forgiven (i.e. paid for by the rest of us) and the small business person and his creditors stiffed?

They shouldn’t be forgiven. They SHOULD be bankrupt-able.

 

[GOP Hippo]

What's the real problem with student loans?

Are Universities fleecing students?

Maybe colleges across the country should absorb the $400 billion loss because obviously the product they are selling is over priced.

 

[jpevans]

If that's what he meant, then I repeat what I said earlier. We shouldn't throw good money after bad; both groups should repay their loans.

Or as in the PPP loans, prove that the majority of the money went to employees, as it was supposed to.

 

[jpevans]

What's the real problem with student loans?

Are Universities fleecing students?

Maybe colleges across the country should absorb the $400 billion loss because obviously the product they are selling is over priced.

Some schools are selling a brand, while a quality education can be had at less prestigious citadels of higher learning. Being a alum of the Ivy greases ones career path.

 

[NatMorton]

What's the real problem with student loans?

Are Universities fleecing students?

Maybe colleges across the country should absorb the $400 billion loss because obviously the product they are selling is over priced.

You've absolutely put your finger on the principle reason why the cost of higher education is so expensive. Why go through the very hard and painful work of making your service more efficient when we, i.e. the government, keep underwriting each and every price increase?

 

[NatMorton]

Or as in the PPP loans, prove that the majority of the money went to employees, as it was supposed to.

Sure, but that's just not Washington's style. They've got a single recipe they use to cook up a solution for every problem: throw money at it first and ask questions later.

 

[jpevans]

Sure, but that's just not Washington's style. They've got a single recipe they use to cook up a solution for every problem: throw money at it first and ask questions later.

Well obviously, if the grifters also get a vote on the disposition. Why look into oneself? They know what they did.

 

[Superfly]

If you're trying to convince me that PPP was a disaster don't bother. I already agree with you.

Let's get back to the point. I think people, including students and businessmen, should pay their debts and not be a financial burden to others. Why don't you?

Because some people are just unable to pay back their debt. It’s a verifiable fact, whether you agree with it or not. That’s why we have bankruptcy options for people who get in over their head.

Plus you can start taking out student loans as soon as you are able to sign a contract, which is 18 years old. The loans are predatory, they prey on young kids, and there is literally no way out.

Please stop comparing student loans to small businesses, because I’ve already told you that small businesses can file for bankruptcy. Student loan recipients can’t.

 

[Superfly]

I agree. Biden's proposal will cost the government approximately $400B. We could find that much waste, fraud and abuse in the Pentagon's budget every year.
Besides that, I can assure everyone that your taxes won't go up if this was to go through.

The government is handing out massive tax rebates to medium size companies who retained employees through Covid. Up to $26K per employee. Who's paying for all those billions?

And I'll make another small point. As my business went through Covid, I easily lost $26K. But the program doesn't apply to sole proprietors. So, I'm shit out of luck. I'd much rather see the money go toward higher education.

If for no other reason, this forum alone and the 2016 election proves why a good, solid education is invaluable.

 

[The AntiDonald]

What's the real problem with student loans?

Are Universities fleecing students?

Maybe colleges across the country should absorb the $400 billion loss because obviously the product they are selling is over priced.

I've always thought that. Congress should be working on ways to lower the cost of our education instead of having taxpayers do it. The same thing goes for healthcare.

That would be in another world at another time. We're stuck with what we have. And it's all driven by too much money in politics.

 

[NatMorton]

Well obviously, if the grifters also get a vote on the disposition. Why look into oneself? They know what they did.

Not sure what you're trying to say here.

The larger question remains, is loan forgiveness could public policy? I say it is not.

 

[NatMorton]

Because some people are just unable to pay back their debt. It’s a verifiable fact, whether you agree with it or not. That’s why we have bankruptcy options for people who get in over their head.

I'm not disputing that people run into financial difficulties, and suggested that bankruptcy be the solution. . So what point do you think you're contradicting?

Plus you can start taking out student loans as soon as you are able to sign a contract, which is 18 years old. The loans are predatory, they prey on young kids, and there is literally no way out.

Those loans are not predatory. That is hyperbole, and these are, by definition, adults, not kids.

Please stop comparing student loans to small businesses, because I’ve already told you that small businesses can file for bankruptcy. Student loan recipients can’t.

No, I will keep comparing them, thank you.

 

[jpevans]

Not sure what you're trying to say here.

The larger question remains, is loan forgiveness could public policy? I say it is not.

That is the nature of this site that it doesn't include the question responded to. So sometimes the quote above doesn't give sense to the answer. You might have to remember what you wrote or go back & check. If it still doesn't make sense to you, oh well...

 

[Superfly]

I'm not disputing that people run into financial difficulties, and suggested that bankruptcy be the solution. . So what point do you think you're contradicting?

Because you are comparing apples to oranges. You can’t compare student loans to the loans you are mentioning, because they are not the same. One can be written off in bankruptcy, the other cannot.

Those loans are not predatory. That is hyperbole, and these are, by definition, adults, not kids.

Accepting the fact that you may or may not know about brain development, the frontal lobe of the brain, which is the decision-making part, does not fully develop until you’re around 25 years old. They may be adults, by definition, but they simply do not always make the best decisions at that age, because they are biologically unable to.

I believe the age of signing contracts should be raised to 25, for that very reason.

No, I will keep comparing them, thank you.

Then you are being disingenuous, and I’m finished here. You are literally comparing things that are incomparable. Have a fabulous day.

 

[holbritter]

I agree with AOC on this. I was always fairly lukewarm about student debt forgiveness as a matter of policy, but I don't see any reason the government needs to make a profit from student loans. Just provide no-interest (or at least low-interest) loans. And if the low/no interest rates aren't enough to cover the losses from people defaulting, that's OK. The government can just eat the cost of those. If we aren't going to forgive the debt, let's at least help people go to college with no-interest loans.

Absolutely would like to see this.

 

[holbritter]

In the same vein, I think a way out for these student loan "deadbeats" (lol) is:

* no interest
* flexible, extended repayment plans (with the proviso that no new student loan borrowing until current debts are serviceable)
* allow the really hard of luck to discharge in bankruptcy

And make Republicans, Joe Manchin, and Kristen Sinema vote on that shit and then hammer them over the head with it if they vote against it. We're still talking loan repayment and moral hazard and all that shit; just using the tax code to cut a sucka a break, the same way we do for corporations.

 

[NatMorton]

Because you are comparing apples to oranges. You can’t compare student loans to the loans you are mentioning, because they are not the same. One can be written off in bankruptcy, the other cannot.

What are you not getting? If what you say is true I'm advocating we change how student loans are treated.

Accepting the fact that you may or may not know about brain development, the frontal lobe of the brain, which is the decision-making part, does not fully develop until you’re around 25 years old. They may be adults, by definition, but they simply do not always make the best decisions at that age, because they are biologically unable to.

Then if what you say is true the legal age of adulthood should be moved to 25 and 18 year olds, not being of legally sound mind, should be forbidden to sign contracts. For now, 18 year olds are adults and should be treated as such.

I believe the age of signing contracts should be raised to 25, for that very reason.

As I said above, I'm okay with that, which would shift the debt obligation to a parent or guardian. Either way, the debt should be paid.

Then you are being disingenuous, and I’m finished here. You are literally comparing things that are incomparable. Have a fabulous day.

Bullshit. What I say here I mean, and you're in no position to challenge that credibly.

You have a lovely day, too. Come back when you're ready to defend your position without resorting to personal attacks. I'll be here.

 

[dcsports]

I agree with AOC on this. I was always fairly lukewarm about student debt forgiveness as a matter of policy, but I don't see any reason the government needs to make a profit from student loans. Just provide no-interest (or at least low-interest) loans. And if the low/no interest rates aren't enough to cover the losses from people defaulting, that's OK. The government can just eat the cost of those. If we aren't going to forgive the debt, let's at least help people go to college with no-interest loans.

Student loans already have very low interest rates. And the government doesn't make a profit - they lose money on student loans. People with student loans have enjoyed a three year break on interest, as well as the inflationary advantage provided by Biden inflation. Most didn't lose their jobs (and employment recovered long ago). If someone kept making payments they would have something like a 5 year repayment over the last three years. Time to stop treating this as a covid issue and move on.

 

[dcsports]

In the same vein, I think a way out for these student loan "deadbeats" (lol) is:

* no interest
* flexible, extended repayment plans (with the proviso that no new student loan borrowing until current debts are serviceable)
* allow the really hard of luck to discharge in bankruptcy

And make Republicans, Joe Manchin, and Kristen Sinema vote on that shit and then hammer them over the head with it if they vote against it. We're still talking loan repayment and moral hazard and all that shit; just using the tax code to cut a sucka a break, the same way we do for corporations.

They've had no interest for three years - giving a tremendous bonus to people who didn't lose their jobs. Student loans have always had a mechanism for deferral for hardship, and yes, a mechanism for discharge for the really hard of luck.

 

[NatMorton]

Left-wing logic: 18 year-olds are too immature to be held to loan contracts they sign. Third-graders, however, are mature enough to choose their gender.

 

[gdgyva]

Because some people are just unable to pay back their debt. It’s a verifiable fact, whether you agree with it or not. That’s why we have bankruptcy options for people who get in over their head.

Plus you can start taking out student loans as soon as you are able to sign a contract, which is 18 years old. The loans are predatory, they prey on young kids, and there is literally no way out.

Please stop comparing student loans to small businesses, because I’ve already told you that small businesses can file for bankruptcy. Student loan recipients can’t.

easy solution

government gets out of the college loan business

you want a loan...you go through a bank or a credit union

if your family cant swing it, then i guess you WORK your way through school

Or go the military or other routes where they will pay for your education

That way the loans can be put in BK if needed, but just fewer will be given

 

[Grizzly Adams]

Like Congresscritters who had COVID loans forgiven?

Why do people seem to be incapable of remembering that the PPP "loans" were designed to be converted into grants after fulfilling conditions?

 

[dcsports]

I agree. Biden's proposal will cost the government approximately $400B. We could find that much waste, fraud and abuse in the Pentagon's budget every year.
Besides that, I can assure everyone that your taxes won't go up if this was to go through.

The government is handing out massive tax rebates to medium size companies who retained employees through Covid. Up to $26K per employee. Who's paying for all those billions?

And I'll make another small point. As my business went through Covid, I easily lost $26K. But the program doesn't apply to sole proprietors. So, I'm shit out of luck. I'd much rather see the money go toward higher education.

Given that the defense budget is around $700B, probably not.

The taxpayer is paying for covid relief, and that was intentional. It was cheaper to help business retain employees, and led to a quicker recovery, than letting them fail and put employees out of work.

Small businesses did have a program. Did you not take advantage of this?

 

[Greenbeard]

I agree with AOC on this. I was always fairly lukewarm about student debt forgiveness as a matter of policy, but I don't see any reason the government needs to make a profit from student loans. Just provide no-interest (or at least low-interest) loans. And if the low/no interest rates aren't enough to cover the losses from people defaulting, that's OK. The government can just eat the cost of those. If we aren't going to forgive the debt, let's at least help people go to college with no-interest loans.

FACT SHEET: President Biden Announces New Actions to Provide Debt Relief and Support for Student Loan Borrowers

The Biden-Harris Administration today also finalized the most affordable repayment plan ever created, called the Saving on a Valuable Education (SAVE) plan. This income-driven repayment plan will cut borrowers’ monthly payments in half, allow many borrowers to make $0 monthly payments, save all other borrowers at least $1,000 per year, and ensure borrowers don’t see their balances grow from unpaid interest.

Specifically, the plan will:

• For undergraduate loans, cut in half the amount that borrowers have to pay each month from 10% to 5% of discretionary income.
• Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment under this plan.
• Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with original loan balances of $12,000 or less. The Department estimates that this reform will allow nearly all community college borrowers to be debt-free within 10 years.
• Not charge borrowers with unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.

All student borrowers in repayment will be eligible to enroll in the SAVE plan. They will be able to enroll later this summer, before any monthly payments are due. Borrowers who sign up or are already signed up for the current Revised Pay as You Earn (REPAYE) plan will be automatically enrolled in SAVE once the new plan is implemented. To learn more about the new SAVE plan, visit the Department of Education’s website.

 

[coyote505]

Because you are comparing apples to oranges. You can’t compare student loans to the loans you are mentioning, because they are not the same. One can be written off in bankruptcy, the other cannot.



Accepting the fact that you may or may not know about brain development, the frontal lobe of the brain, which is the decision-making part, does not fully develop until you’re around 25 years old. They may be adults, by definition, but they simply do not always make the best decisions at that age, because they are biologically unable to.

I believe the age of signing contracts should be raised to 25, for that very reason.



Then you are being disingenuous, and I’m finished here. You are literally comparing things that are incomparable. Have a fabulous day.

How about the voting age?