Student Loan Forgiveness

[Cisco Kid]

I was thinking about this very thing last night. Catholics are great and donating a few bucks to have their sins absolved.

Martin Luther put a stop to that 500 years ago. Now it's free to get sins forgiven if you do it right. I should start a thread.

[Dantheman]

Agree with all of this. And highlighted the last part because I think that's what irritates me about the reaction I am seeing. This doesn't fix a goddam thing from a structural POV, but I'd at least rather see individuals receive some benefit than large corporations. And while Summit is super irritated that some people who make decent or even good money might get a benefit, there simply aren't many, and the bulk of the "poor decision makers" receiving this benefit are people who are FAR from well off. I get nothing, but I am ok with that.

Seriously.

[riser4]

There should be a higher bar to clear besides "have a loan". Ex: Unfinished degrees are still eligible for forgiveness. I'd argue "Put skin in the game, finish your degree, and then cash your check".
No doubt, PPP's bar was too low. It has been covered hundreds of times.

What if you don't have the skin left to finish the degree? This gives you some skin back.

[hatchgreenchile]

What if you don't have the skin left to finish the degree? This gives you some skin back.

You're paying for it in depressed earnings.
I like timed based incentive programs and hope we fund more of them.
Loan credits for bachelor degrees, bonus credits for graduate diplomas and expedited loan dismissal for public servants all strike my interest.

[californiagrown]

My comment was more about post graduation earnings, and how you choose to prioritize assets and liabilities.
"Appropriate financial wisdom"...This is a failure of K-12 education. The concept of principal and interest is not some 300 level course.

Ironically, a mandatory class in the engineering curriculum at my mediocre state school was a 300 level math class about personal finance pretty much exclusively devoted to principal and interest calculations. It drove home thepoint pretty well that we should pay our loans off asap, and starting investing in our 401k asap.

[uglymoney]

Agree with all of this. And highlighted the last part because I think that's what irritates me about the reaction I am seeing. This doesn't fix a goddam thing from a structural POV, but I'd at least rather see individuals receive some benefit than large corporations. And while Summit is super irritated that some people who make decent or even good money might get a benefit, there simply aren't many, and the bulk of the "poor decision makers" receiving this benefit are people who are FAR from well off. I get nothing, but I am ok with that.

If you do change your mind MAGA has cleared your inner victim snowflake tears for takeoff. Add young indebted profesionals serving your needs to your list of societal deep state suppressors along with immigrants, LGBT folk, city dwellers, journalists, scientists, Fauci, anyone not wearing a red hat lapping their tongue over a fat fascists boots.

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[Danno]

If you do change your mind MAGA has cleared your inner victim snowflake tears for takeoff. Add young indebted profesionals serving your needs to your list of societal deep state suppressors along with immigrants, LGBT folk, city dwellers, journalists, scientists, Fauci, anyone not wearing a red hat lapping their tongue over a fat fascists boots.

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Your post is clearly oozing with wit, but I'm too thick to get your point. Do you want a cookie?

[uglymoney]

Your post is clearly oozing with wit, but I'm too thick to get your point. Do you want a cookie?

I'll take a cookie sure.

Just using your concise point as a reflector to get todays right wing victim mentality observation off of my chest.

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[skifishbum]

i think he was just jerkin your poliasshat antennas

[uglymoney]

I think it is funny that I almost 100 percent agree with Danno's writings but the shit I write always leaves him shaking his head. Lol.

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[SumJongGuy]

Your post is clearly oozing with wit, but I'm too thick to get your point. Do you want a cookie?

I'll take a cookie sure.

Just using your concise point as a reflector to get todays right wing victim mentality observation off of my chest.

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NOPE! If you give UM a cookie you have to give EVERYONE a cookie.. and customized by gluten free, sugar free, vegan, etc..

[Mustonen]

Well fuck. I already bought myself a cookie. And now some people are going to get a free cookie too?

[californiagrown]

Yeah, and I mean, the initial decision comes at 17, while in school, having everyone tell you college is the way to go. They can't buy a beer, or rent a car, but we want to hold them accountable for a $100k financial decision made under pressure from authority figures they trust?

College is a great choice for most. How folks do college is the problem, and it really comes down to lots of folks putting off their problems till later. From stacking debt, to choosing an easy major to allow more time for fun... college is a way to put off adulthood for many. It needs to be the start of adulthood.

[Danno]

I think it is funny that I almost 100 percent agree with Danno's writings but the shit I write always leaves him shaking his head. Lol.

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I am not a smart man.

[uglymoney]

Whateva. If I was handing out common sense cookies you'd win.

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[J. Barron DeJong]

Maybe we should all get our life’s lessons from ‘Dogman’ books:

[Danno]

Whateva. If I was handing out common sense cookies you'd win.

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wait, there are cookies????

[riser4]

Cookie?!?!?!

[skaredshtles]

No one told *me* there were going to be cookies.

[Supermoon]

I don’t even like cookies, but I’m mad other people get free cookies.

[LongShortLong]

I see no one discussing the going forward implications.

If you weren't considering student loans, it may be worth considering them. In the "income driven repayment" plans, the government proposes to subsidize your payment when your income is insufficient to cover the standard payment. That's a lot of words for "free money." There's 2 subsidies. First, the minimum payment is reduced to 5% of disposable income. Second, the government makes up the difference required so your loan decreases as if you'd paid the amortized amount. There may be a third subsidy to retire the loan when it reaches term, it's not clear.

In theory, today's college student can take out loans, and party while earning a shitty degree. On graduation, they can get a shitty job, and continue to party or surf while the government pays most of their loan. 10 (or 20) years later, the loan is gone.

Also, as near as I can tell, none of this policy is implemented. It's proposed, expected implementation by EOY.

[LongShortLong]

I don’t even like cookies, but I’m mad other people get free cookies.

Check your browser cache - I gave you a cookie. For free.

[Core Shot]

What kind of cookies are we getting?
Store bought. Fresh baked. Or those magic cookies in the back of the freezer?

[dunfree]

I see no one discussing the going forward implications.

If you weren't considering student loans, it may be worth considering them. In the "income driven repayment" plans, the government proposes to subsidize your payment when your income is insufficient to cover the standard payment. That's a lot of words for "free money." There's 2 subsidies. First, the minimum payment is reduced to 5% of disposable income. Second, the government makes up the difference required so your loan decreases as if you'd paid the amortized amount. There may be a third subsidy to retire the loan when it reaches term, it's not clear.

In theory, today's college student can take out loans, and party while earning a shitty degree. On graduation, they can get a shitty job, and continue to party or surf while the government pays most of their loan. 10 (or 20) years later, the loan is gone.

Also, as near as I can tell, none of this policy is implemented. It's proposed, expected implementation by EOY.

why are people obsessed with moral hazard and student loans? The loans are already subsidized often - both in reduced interest rates, and by the policy decision to make them non dischargeable (which was done for the same bullshit fears you outlined)

party it up for four years and work shit job for the next 10-20 means you are in the shit income bracket for life most likely.

edit: it’s 10 years only if your initial balance is <$12k, and the discretionary income necessary for no monthly payment is $30.5k a year currently (225% of the poverty level)

[The AD]

I haven't been following this thread today, so apologize if already posted:

WASHINGTON — The big winners from President Biden’s plan to forgive hundreds of billions of dollars in student loans are not rich graduates of Harvard and Yale, as many critics claim.

In fact, the benefits of Mr. Biden’s proposals will fall squarely on the middle class. According to independent analyses, the people eligible for debt relief are disproportionately young and Black. And they are concentrated in the middle band of Americans by income, defined as households earning between $51,000 and $82,000 a year

Nearly 90 percent of affected borrowers earn $75,000 a year or less, the Education Department projects

https://www.nytimes.com/2022/08/25/u...dle-class.html