Student Loan Forgiveness

[SumJongGuy]

I'll belabor the point of higher earnings. I was speaking with a contractor I do some work with yesterday. They have five supers making $200k+. Two of them have college degrees. But it's not for everybody.

Lemme guess, the other three have solid family connections to the developers..

[Conundrum]

Probably. They probably don't even work. I mean people without a college degree will never make good money without some type of family help right?

[Trackhead]

Old college buddy in MT got a biology degree but worked construction now builds homes for all the rich folks in Big Sky for past 20 years. He’s got plenty of $$ if that is the definition of “success”. Not sure how much his biology degree contributed to his life’s work.

[bodywhomper]

The PBS Newshour had a multiparty series about working in the trades, all with a positive spin. I think they may have even interviewed people with college degrees that went into the trades after college and were about to quickly pay off debt.

Personally, post-college, I went into the professional-ish job hunting mode because of looming loan debt while a close friend and roommate moved to South Lake Tahoe (no debt). I landed in a pretty cool academic lab and the friend landed in fine-ish dining. I worked 40+ hr weeks. he worked 24-30 hr weeks (only evenings). He made twice my salary and skied over 150 days that first year. No regrets from me in the long run, but it was an interesting paradox.

[Mustonen]

Huh.

These guys reallllly don’t want my money, and I find that I support that.

[dunfree]

It’s to counteract a ‘moral hazard’. It would be too easy for a student to take on student debt, then claim bankruptcy immediately upon graduating when they don’t own anything, so don’t have anything to lose. And you can’t repo the goods they purchased with the loan - everything learned while attending college.

But the current situation sucks.

it’s because some congressional assholes baselessly thought there was a moral hazard. A congressional shart if you will. The actual data behind there being a moral hazard was minimal; removing student loans from east bk discharge meant they proliferated.

lumping “the trades” together is lazy. Big differences in $ and space between things

[Mustonen]

[stuckathuntermtn]

Congrats!

[Danno]

With any luck, mine should be forgiven through PSLF next month.

[rod9301]

I have nothing against it for loan forgiveness, but the supreme Court already ruled against it, and Biden is going ahead anyway. Nice to be able to break the law without consequences.
And he figures this will end up being someone else's problem.

Sent from my moto g 5G using Tapatalk

[Cisco Kid]

Politics is hard. Sorry your head hurts rod. Let me help you.

A landowner went out early in the morning to hire workers for his vineyard. He agreed to pay them $20 for the day and sent them into his vineyard.

About nine in the morning he went out and saw others standing in the marketplace doing nothing. He told them, ‘You also go and work in my vineyard, and I will pay you whatever is right.’ So they went.

“He went out again about noon and about three in the afternoon and did the same thing. About five in the afternoon he went out and found still others standing around. He asked them, ‘Why have you been standing here all day long doing nothing?’

“Because no one has hired us,’ they answered.

He said to them, ‘You also go and work in my vineyard.’

When evening came, the owner of the vineyard said to his foreman, ‘Call the workers and pay them their wages, beginning with the last ones hired and going on to the first.’

The workers who were hired about five in the afternoon came and each received $20. So when those came who were hired first, they expected to receive more. But each one of them also received $20. When they received it, they began to grumble against the landowner. ‘These who were hired last worked only one hour,’ they said, ‘and you have made them equal to us who have borne the burden of the work and the heat of the day.’

But he answered one of them, ‘I am not being unfair to you, friend. Didn’t you agree to work for $20? Take your pay and go."

[Mustonen]

I have nothing against it for loan forgiveness, but the supreme Court already ruled against it, and Biden is going ahead anyway. Nice to be able to break the law without consequences.
And he figures this will end up being someone else's problem.

Sent from my moto g 5G using Tapatalk

The Supreme Court didn’t say he couldn’t do what he’s doing, just that he couldn’t do it the way he was trying to do it before.

Curious to see where this lands. Now that my balance is gone…. Will they undo it? Thinking not, but I’m not assuming anything at this point.

Wasn’t some huge balance, though I certainly appreciate having it gone. Glad I didn’t pay it off a few years ago and chose to put that extra cash toward a down payment instead.

[Mustonen]

Politics is hard. Sorry your head hurts rod. Let me help you.

A landowner went out early in the morning to hire workers for his vineyard. He agreed to pay them $20 for the day and sent them into his vineyard.

About nine in the morning he went out and saw others standing in the marketplace doing nothing. He told them, ‘You also go and work in my vineyard, and I will pay you whatever is right.’ So they went.

“He went out again about noon and about three in the afternoon and did the same thing. About five in the afternoon he went out and found still others standing around. He asked them, ‘Why have you been standing here all day long doing nothing?’

“Because no one has hired us,’ they answered.

He said to them, ‘You also go and work in my vineyard.’

When evening came, the owner of the vineyard said to his foreman, ‘Call the workers and pay them their wages, beginning with the last ones hired and going on to the first.’

The workers who were hired about five in the afternoon came and each received $20. So when those came who were hired first, they expected to receive more. But each one of them also received $20. When they received it, they began to grumble against the landowner. ‘These who were hired last worked only one hour,’ they said, ‘and you have made them equal to us who have borne the burden of the work and the heat of the day.’

But he answered one of them, ‘I am not being unfair to you, friend. Didn’t you agree to work for $20? Take your pay and go."

I have no idea what the fuck this is supposed to mean.

[Cisco Kid]

To me it means that I was ok with the deal I got with my student loans. To be pissed because someone got a better deal later that cost me nothing is dumb. Unless having your shorts twisted in a knot makes your day somehow. It obviously does for a lot of people.

[Mustonen]

To me it means that I was ok with the deal I got with my student loans. To be pissed because someone got a better deal later that cost me nothing is dumb. Unless having your shorts twisted in a knot makes your day somehow. It obviously does for a lot of people.

Ah. Gotcha.

[schuss]

Ultimately I'm ok with it despite my wife and I having paid ours off years ago as it will allow many to buy homes and afford to have kids rather than living as a debt slave, as it's ultimately more productive for society.

[Mustonen]

So all student loans should be subsidized? I agree in subsidizing them in some way, I just think it’s interesting how we twist ourselves into pretzels to make it happen.

Additional thoughts on this: rates and terms should be set to best case. E.g. this kid is successful to the 90th percentile. Set a rate and term that she would be able to get at 30 or whatever, and subsidize repayment terms from there.

Why 90th and not 50th? Because tax dollars are what pay for this, and that’s where the curve starts to get steep. You could set it to some mean income level instead, but I bet you’d end up in about the same place.

Subsidies should impact university funding in some way….

[Todd Zander]

Anybody here borrow less than 12,000 and hit 120 qualifying payments this month besides me?

[Danno]

I borrowed more than that and hit my number 4 months ago.

[CantDog]

Just submitted! Fingers crossed, been waiting on this day for a long time.

[Supermoon]

Good luck!

[Danno]

Just submitted! Fingers crossed, been waiting on this day for a long time.

FKNA! It took them a while but they did zero mine out and refunded me the extra payment I had made.

[Boissal]

First venture in this thread so apologies if this has been covered or if the question below is not really in line with the tone of the thread...

Wifey has been working for a not for profit for ages and recently hit her 120. Then number of payments is showing on both the Fed and loan servicer's website (Mohela). Her payments are certified and her PSLF form was sent in November 2023 I believe. Radio silence since, as expected. She wasn't paying much attention to it since at this point there are no clear timelines on when the loans zero out, and it's just a waiting game. Work's been getting progressively worse for her and she's been looking casually for a potential opportunity, and sure enough it came. She found the offer on LinkedIn Thursday, applied that afternoon, chatted with the gal she'd be replacing Friday afternoon, had an 8AM interview Sat (!!), very strong offer Sat at 3PM, and is shadowing her new boss today with expectation of signing the contract before the end of the day. It is very much a for profit business.

So here's the actual deal. There is some serious lack of clarity on the requirements for forgiveness after the 120 payments are in. The language of the PSLF form and on the Fed's website makes it clear that you have to remain with your not for profit employer until you apply for forgiveness. As in when your 120 payments have been certified and you've sent the request. That suggests the second your request for forgiveness is in and your payments are certified you can leave.
But, there are other portions of the Fed's website that state you need to remain with the employer until the loans are actually zeroed out. The loan servicer agrees, and says they check.

Make a big difference for Ms Boissal, she either quits her job to start her dream gig 3 days a week OR she keeps 2 full time jobs for an unknown period of time and instead of being miserable at 1 job she gets to be miserable a 1 job while getting worked at another. She'll do it too, she's fearless and wants out of her old real bad and into the new one. She's already made a ton of arrangements for that, trading shifts, etc... The oracles of reddit expect a wave of loan forgiveness in the next few days, one in March, more or less monthly. Recent waves include people who submitted their forms 2 months ago, and others 8 months back.

Anyone with actual real life input or real knowledge about this? The internet is as opinionated as ever with about 75% thinking she can leave her current job. Given that it's at least a $200k mistake if we fuck this up, I'd rather not trust a bunch of dogmatic redditors.

[Conundrum]

Given that it's at least a $200k mistake if we fuck this up, I'd rather not trust a bunch of dogmatic redditors.

I thought the forgiveness is up to $20k. How would it be a $200k fuck up? Not that $20k isn't a lot of money.

[Danno]

No idea re your questions, but as a data point, I submitted my form in October, a month later they instituted an administrative forbearance in my account, and a month later zeroed out my loans.