Biden administration releases formal proposal for new student loan forgiveness plan

[dcsports]

What policy do you support that would address the rising cost of higher education?

Personally, I think there should be much lower caps on the subsidized loans (or get rid of them in favor of grants). For amounts above that - keep the government out of it.

We really should push resources into schools that provide a better value - like state schools. It would also be good find ways to put more responsibility on the schools. It makes no sense to spend $50K a year for a degree leading to a career that can't pay that back.

What won't help is to provide more incentives to schools to charge more, and students to borrow more, and shift the responsibility of paying for it to the taxpayer.

 

[Cardinal]

I specifically talked about the different 'economic' choices that higher education offers.

Did you not understand that basket weaving might be the best economic choice if you show aptitude for being a medical doctor AND basket weaving?

As good a feeling as you might get being a master basket weaver is, it doesn't offer the same earning potential as MD.

Incoherent. Just admit that you're pissed off that Biden is doing something positive for people.

 

[Absentglare]

Biden administration releases formal proposal for new student loan forgiveness plan

The Biden administration released its new proposal to forgive student debt for millions of Americans. It hopes this plan will survive legal challenges.

www.cnbc.com

The highlights of Biden's new plan:

• Cancel "the full amount" of someone's debt that has grown from their original balance, for borrowers earning less than $120K for single people or $240K for married couples.
• Cancel up to $20,000 of unpaid interest, regardless of income.
• Full debt cancelation for borrowers who have been in repayment for 20 years or longer on their undergraduate loans, or more than 25 years on their graduate loans.
• Full debt cancelation for borrowers who enrolled and took out debt to attend low-financial-value schools and programs or institutions that failed to provide sufficient financial value.

I'm on the fence, but I think Biden is on the right track with this. It's more targeted relief than his first effort, and it mainly affects accumulated interest only. Maybe people will find it more palatable if borrowers don't have their principal forgiven, only the interest. My only hesitation is that inflation just came in hot in the latest report, meaning we may not be out of the woods yet. And this would be inflationary and add to the deficit at a time when interest rates are already high.

Still though, on the balance I think it might be worth it. What do you think?

This is another action to try and stop the bleeding.

The source of the problem is the prohibitive cost of education. State schools should offer a high quality education with an affordable tuition for in-state residents. Somehow, we dropped the ball here. We need a larger supply of colleges and we need public dollars to make sure they stay affordable. I’m less concerned of someone going $100k into debt to get a degree from Stanford than I am of someone going $100k into debt to get a degree from Arizona State University.

People will complain about the option of student loans, but the fact is that without student loans, students from lower income families would be priced out of higher education. Then, we’d turn meritocracy on its head, and colleges would be even more full of rich kids.

But now the fact is that student loans are crippling the financial prospects of a generation. The interest payments are obscene, they’re taking advantage of people. We now have to deal with that problem and I am proud that President Biden has the stones to face the headwind generated by the disingenuous frothy mouthed screeching of the GOP. And for good reason, those folks handed out and forgave PPP loans now go hysterical at the prospect of helping the millions of real Americans struggling under student loan debt.

 

[Cardinal]

Personally, I think there should be much lower caps on the subsidized loans (or get rid of them in favor of grants). For amounts above that - keep the government out of it.

We really should push resources into schools that provide a better value - like state schools. It would also be good find ways to put more responsibility on the schools. It makes no sense to spend $50K a year for a degree leading to a career that can't pay that back.

What won't help is to provide more incentives to schools to charge more, and students to borrow more, and shift the responsibility of paying for it to the taxpayer.

Have you lobbied your congressman to pass this legislation?

 

[Bonnot]

the predatory capitalist system forces people to go to college and take out these loans since schooling costs are insane, and without the schooling youre working dead end jobs that pay jack shit in an every increasing expensive cost of living situation. people should have debt forgiveness thanks to how predatory debt is and how people are forced to go to college to make sure they are making some kind of living wage and aren't poor and or homeless considering how piss poor minimum wage jobs pay, how high the cost of living is, and how garbage the safety nets in this country are thanks to the republican party and their conservative voter base. hell, even if you get a college degree, it's not a guarantee you're going to be making bank and not in a bad financial situation, it's just better than working slave wage jobs.

 

[JMB1911A1]

What about the benefit to the national economy as a result of these graduates being able to enter the middle class rather than spend a life under crushing debt? And what about the benefit to these people's lives?

Guess you missed this part:

some longer-term student debt for about 750,000 households making over $312,000 in average household income

If they are making over $312k per a year,they entered middle class a while ago.

 

[ttwtt78640]

Are you getting a bill in the mail because of this? To which you'll say "I pay taxes," to which I respond, "Do you imagine your taxes are going up as a result of this?" And the correct answer is "no." Your position is emotional, non-fact-based fear mongering.

Why have federal taxes at all if simply adding stuff to the national debt is an executive power?

 

[JMB1911A1]

People that have faithfully paid their debt for 20+ years and still can’t get out from underneath it probably DO need some relief.

Student loans weren’t meant to be effectively lifetime indentured servitude - and that’s what some people do seem to be facing.

Jane Doe got her masters in social work and has been working diligently and paying diligently for 20-25 years. Reality is that she’s likely paid back MORE than her original borrowed amount but interest, graduated repayment plans, etc have her buried and perhaps unable to save for retirement, etc.

At some point, the tax payer IS going to foot the bill.

It all seems to boil down to when - and what other impacts that has.

Guess Jane Doe should have spent her money on a degree actually worth something.

 

[BirdinHand]

I specifically talked about the different 'economic' choices that higher education offers.

Did you not understand that basket weaving might be the best economic choice if you show aptitude for being a medical doctor AND basket weaving?

As good a feeling as you might get being a master basket weaver is, it doesn't offer the same earning potential as MD.

Education isn’t supposed to be about producing “widgets” for the economic machine. It’s about attaining knowledge, learning, growing…expanding boundaries of what is known/unknown.

We have turned it into “widget” production, and we can discuss the merits (and short falls of such).

But either way - an educated populace is an advantage to society.

 

[BirdinHand]

Guess Jane Doe should have spent her money on a degree actually worth something.

I see value in people such as social workers, Jane Doe, in my example.

Even when those professions don’t produce wealth.

I’m sorry you don’t.

 

[Cardinal]

Guess you missed this part:

some longer-term student debt for about 750,000 households making over $312,000 in average household income

If they are making over $312k per a year,they entered middle class a while ago.

"Some" is doing a lot of heavy lifting there.

 

[Cardinal]

Why have federal taxes at all if simply adding stuff to the national debt is an executive power?

Ah yes, the age old conservative position: if government does something positive for people, shut down all government and revert to a hunter gatherer society.

 

[Cope]

This is another action to try and stop the bleeding.

The source of the problem is the prohibitive cost of education. State schools should offer a high quality education with an affordable tuition for in-state residents. Somehow, we dropped the ball here. We need a larger supply of colleges and we need public dollars to make sure they stay affordable. I’m less concerned of someone going $100k into debt to get a degree from Stanford than I am of someone going $100k into debt to get a degree from Arizona State University.

To me , it is less about the school and more about the degree.

People will complain about the option of student loans, but the fact is that without student loans, students from lower income families would be priced out of higher education. Then, we’d turn meritocracy on its head, and colleges would be even more full of rich kids.

Student loans are fine, without a government guarantee that you'll get one. Change them so that you can pay it back, with whatever degree plan you are following.
Social work? You can borrow $35k
Lawyers? You can borrow $50k

etc

But now the fact is that student loans are crippling the financial prospects of a generation. The interest payments are obscene, they’re taking advantage of people. We now have to deal with that problem and I am proud that President Biden has the stones to face the headwind generated by the disingenuous frothy mouthed screeching of the GOP. And for good reason, those folks handed out and forgave PPP loans now go hysterical at the prospect of helping the millions of real Americans struggling under student loan debt.

The low interest rates provided by the feds are crippling. Normative 6%
What's crippling is choosing to not pay it, or pay the minimum and pay on it for 20-30 years like its a house.

 

[Boots]

View attachment 67504867

What is this about?

 

[Cope]

Education isn’t supposed to be about producing “widgets” for the economic machine. It’s about attaining knowledge, learning, growing…expanding boundaries of what is known/unknown.

Oh it most definitely is an economic boon. If you want to study or learn about anything, the internet will give you all the knowledge you need without the need for a piece of paper.

We have turned it into “widget” production, and we can discuss the merits (and short falls of such).

But either way - an educated populace is an advantage to society.

Yes, it is and there are MANY ways (which cost very little) to obtain such knowledge.
Read a book.

 

[Cardinal]

Oh it most definitely is an economic boon. If you want to study or learn about anything, the internet will give you all the knowledge you need without the need for a piece of paper.

Yes, it is and there are MANY ways (which cost very little) to obtain such knowledge.
Read a book.

Cool, I'll just go on youtube. I've always wanted to be a doctor.

It's clear to anyone reading this thread that 99% of Biden's detractors have never set foot in a university, and have absorbed all the propaganda that everybody who goes to college gets their degrees in gay gender pronoun basket weaving.

 

[The Mark]

Fine. PASS A ****ING LAW!!!!!

Biden can't just do it on his ****ing say-so.

If the currently republican controlled house was willing to work with him and pass a law, he wouldn't even be trying this.

But they aren't.

 

[BirdinHand]

Oh it most definitely is an economic boon. If you want to study or learn about anything, the internet will give you all the knowledge you need without the need for a piece of paper.

Ah, yes - the good old YouTube University.

That has proven to be SO reliable.

Right up there with Trump’s university

Yes, it is and there are MANY ways (which cost very little) to obtain such knowledge.
Read a book.

 

[ttwtt78640]

Ah yes, the age old conservative position: if government does something positive for people, shut down all government and revert to a hunter gatherer society.

Why pretend these grants were ever loans (which required repayment)?

 

[Cardinal]

Why pretend these grants were ever loans (which required repayment)?

You're just hopping from one random, meaningless question to another, and you never care what the answer is. You have no direction.

 

[Bok Tuklo]

The real issue is the Universities charging ultra high tuition for the sake of paying CEO level wages to politically biased proffesors. That is what needs to change.

What is this about?

Just poking fun at the above.

 

[JMB1911A1]

I see value in people such as social workers, Jane Doe, in my example.

Even when those professions don’t produce wealth.

I’m sorry you don’t.

Well, one of the reasons that college is so expensive is the salaries of the “support” staff who add zero value.

$400k+ for a diversity dean?
A diversity staff?

 

[Cardinal]

Well, one of the reasons that college is so expensive is the salaries of the “support” staff who add zero value.

$400k+ for a diversity dean?
A diversity staff?

Which conservatives legislation is in the works to address this?

 

[BirdinHand]

Well, one of the reasons that college is so expensive is the salaries of the “support” staff who add zero value.

$400k+ for a diversity dean?
A diversity staff?

Senior executives command hefty salaries. Supply and demand.

The president of my initial university Alma mater makes $2.3M annually.



Do you want to talk about executive compensation in general terms - or only the executives whose positions you don’t agree with?

 

[Boots]

People that have faithfully paid their debt for 20+ years and still can’t get out from underneath it probably DO need some relief.

Student loans weren’t meant to be effectively lifetime indentured servitude - and that’s what some people do seem to be facing.

Jane Doe got her masters in social work and has been working diligently and paying diligently for 20-25 years. Reality is that she’s likely paid back MORE than her original borrowed amount but interest, graduated repayment plans, etc have her buried and perhaps unable to save for retirement, etc.

At some point, the tax payer IS going to foot the bill.

It all seems to boil down to when - and what other impacts that has.

One has to wonder why Jane Doe's education was so expensive with an ROI that didn't match up. As an example, one of my roommates was Jane Doe. She dropped out of our private school after 2 years, lived at home, worked, and enrolled in the local state college. She switched her major from accounting to social work. I thought that was a huge mistake from an ROI point of view. It was not. She went on to get an advanced degree in social work, again while working. She now is the CEO of a county wide non-profit for those with disabilities. She makes six figures, I believe. She had student loan debt, but it wasn't oppressive because she chose to cut costs where she could...primarily by disenrolling from a private college and choosing a state school where she could also live at home and save the costs of room and board. Too many students feel that they are entitled to the full "college experience" and there are loans available to do that. They shouldn't. Choices have to be made. We don't all have rich parents. Those are the breaks in life.