This story of loan forgiveness does not sit well with me

[Anonymous]

I don’t believe in loan forgiveness. But I was shocked at the way student loans are ran. Seems to me that interest shouldn’t start until you graduate. My Dh had 50k in loans that ballooned to 80k by the time he paid them off at 27. Ridiculous.

[Anonymous]

Yeah I was bugged by that story too but they mentioned pslf loan forgiveness so I’m assuming he was a music teacher in a public school or something. The real crime is why he was allowed to take out that much in tuition. The problem with loan forgiveness is it’s a giveaway to the schools charging exorbitant tuition at the taxpayers expense. If a school is eligible for student loans the tuition needs to be capped.

[Anonymous]

Anonymous wrote:Yeah I was bugged by that story too but they mentioned pslf loan forgiveness so I’m assuming he was a music teacher in a public school or something. The real crime is why he was allowed to take out that much in tuition. The problem with loan forgiveness is it’s a giveaway to the schools charging exorbitant tuition at the taxpayers expense. If a school is eligible for student loans the tuition needs to be capped.

Agree. Loans are a scandal unto themselves. Pointing finger at higher education across the board. No school has any business admitting students who can't afford to attend without taking out enormous loans. Loans should be directly related to the value of the degree, so it's ok to have higher loans for a medical degree, but not music.

But it's a Democratic fiefdom and heavily protected by Democratic special interests. So nothing will change. They need their diversity deans.

To all the people supporting loan cancellation, what do you say to all the people who slaved and saved diligently to pay off their loans? And now get nothing but a slap to the face? Guess doing the right thing wasn't the right thing after all

[Anonymous]

Anonymous wrote:I don’t believe in loan forgiveness. But I was shocked at the way student loans are ran. Seems to me that interest shouldn’t start until you graduate. My Dh had 50k in loans that ballooned to 80k by the time he paid them off at 27. Ridiculous.

Federal student loans do not start interest until 6 months after you finish education. That's the only loans really available 30-40 years ago. When they added parent loans and unsubsidized loans, those start collecting interest immediately. That is why they are a dumb choice and how people take 100K in loans and have 130k+ left after 15 years. The interest in the 4 years of undergrad was overwhelming and you cannot easily recover.
Yet people continue to take on those ridiculous loans

[Anonymous]

OMG -- I wish someone would create a chart that compares the "cost" of student loan forgiveness against the cost of tax breaks for the wealthy and corporations.

Why do Americans think it's totally unfair to forgive student loans but it's totally fine that most US corporations pay almost nothing in taxes?

When Republicans eliminate taxes for the super rich and for corporations, everyone shrugs.

When Democrats eliminate crippling student loan debt for a few thousand people, everyone goes nuts.

Explain it to me like I'm 5.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yeah I was bugged by that story too but they mentioned pslf loan forgiveness so I’m assuming he was a music teacher in a public school or something. The real crime is why he was allowed to take out that much in tuition. The problem with loan forgiveness is it’s a giveaway to the schools charging exorbitant tuition at the taxpayers expense. If a school is eligible for student loans the tuition needs to be capped.

Agree. Loans are a scandal unto themselves. Pointing finger at higher education across the board. No school has any business admitting students who can't afford to attend without taking out enormous loans. Loans should be directly related to the value of the degree, so it's ok to have higher loans for a medical degree, but not music.

But it's a Democratic fiefdom and heavily protected by Democratic special interests. So nothing will change. They need their diversity deans.

To all the people supporting loan cancellation, what do you say to all the people who slaved and saved diligently to pay off their loans? And now get nothing but a slap to the face? Guess doing the right thing wasn't the right thing after all

They need to start banning universities from receiving pell grants and student loans if the median starting salary is lower than the undergraduate student loan cap.

[Anonymous]

Anonymous wrote:Outliers are everywhere. Look at the big picture, not the person the journalist thought would get the most clicks.

Agree with this. I like the student loan forgiveness. And I speak as someone who was able to pay off my loans AND pay for my kids college. I am fortunate and I realize that

[Anonymous]

Anonymous wrote:

Anonymous wrote:He knew he had to get a better paying job to repay the loan, but he didn't want to give up his passion, which was music.

Now that his almost $250K loan has been paid by us taxpayers, he says he wants to go meditate in India with a guru.

Like what the actual f*.

my nephew has a mild SN and had a hard time finding a job after college; he majored in IT. He found a lowish paying job (like $45K) at a nonprofit and is still paying it off while he lives with his single mom because he can't afford to live on his own and pay off the debt. But, the government didn't pay his debt off. I think it's like $50K. Here's someone who's trying and working a job that has potential for growth, even as he has a hard time of it, and then there's this guy with his music passion, and now he can go meditate because we taxpayers basically gave him $250K.

https://www.yahoo.com/finance/news/gen-xer-got-250-000-181801554.html

Yea, I feel bitter.

OP, you’re kind of being scammed here. You can write this kind of story about any kind of large policy change like this. If you went through all the businesses that got tax cuts in 2017, you’d find a lot to feel bitter about at a much larger scale. You just have to decide if the policy is worth it overall.

There’s no such thing as “loan forgiveness but not for lazy guru musicians.” You definitely don’t want the government to be making those kinds of judgements.

+1 This. Kind of silly to focus on an individual here, when there are tons of businesses getting corporate welfare/bailouts who are paying out huge salaries to their senior executives or even billionaires writing off legitimate debt in bankruptcy and going on to have golden toilets and exactly the same lavish lifestyle (ex: looking at you DJT).

[Anonymous]

Anonymous wrote:I don’t believe in loan forgiveness. But I was shocked at the way student loans are ran. Seems to me that interest shouldn’t start until you graduate. My Dh had 50k in loans that ballooned to 80k by the time he paid them off at 27. Ridiculous.

I don't believe in loan forgiveness either but why is it ridiculous? When you take a loan for your house does the interest on the mortgage start accruing 4 years later? No. If you want to borrow money there is a cost and it's called interest. The facts are anyone who takes out a loan for college is accepting the terms of the loan when they sign. No one holds a gun to their heads forcing them to take out the loan. And then there are HS graduates who forego college and enter the work force right after high school or take a loan to start a business. What a raw deal for those folks. This program is all about Biden and the Democrats buying votes for this upcoming election cycle because their horrendous policies are not enough to get people to vote for them.

[Anonymous]

Anonymous wrote:OMG -- I wish someone would create a chart that compares the "cost" of student loan forgiveness against the cost of tax breaks for the wealthy and corporations.

Why do Americans think it's totally unfair to forgive student loans but it's totally fine that most US corporations pay almost nothing in taxes?

When Republicans eliminate taxes for the super rich and for corporations, everyone shrugs.

When Democrats eliminate crippling student loan debt for a few thousand people, everyone goes nuts.

Explain it to me like I'm 5.

Sure thing just make sure you create a chart comparing the amount of taxes the wealthy pay compared to the taxes students pay. And for the record, corporations don't pay taxes. Never have and never will. Sure they write the checks to the IRS but taxes are paid by the consumers of their products and services as well as employees in the form of lower salaries and benefits.

[Anonymous]

Don't kid yourselves, student loan forgiveness is nothing more than vote buying by the Democrats.

[Anonymous]

Anonymous wrote:Don't kid yourselves, student loan forgiveness is nothing more than vote buying by the Democrats.

And corporate tax cuts and bailouts are vote buying by the Republicans. Pick your constituency.

[Anonymous]

Anonymous wrote:Yeah I was bugged by that story too but they mentioned pslf loan forgiveness so I’m assuming he was a music teacher in a public school or something. The real crime is why he was allowed to take out that much in tuition. The problem with loan forgiveness is it’s a giveaway to the schools charging exorbitant tuition at the taxpayers expense. If a school is eligible for student loans the tuition needs to be capped.

Exactly. I think this article was poorly written as it failed to mention how he qualified. My two friends who received forgiveness are an inner city math teacher and a civilian who has served in Iraq and Afghanistan and paid loans for well over a decade.

[Anonymous]

It’s infuriating. I know some people personally who quit their good paying… but “boring”… jobs to pursue their passions and now live off welfare. At least they don’t live near me so I know my money isn’t going to them

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don’t believe in loan forgiveness. But I was shocked at the way student loans are ran. Seems to me that interest shouldn’t start until you graduate. My Dh had 50k in loans that ballooned to 80k by the time he paid them off at 27. Ridiculous.

I don't believe in loan forgiveness either but why is it ridiculous? When you take a loan for your house does the interest on the mortgage start accruing 4 years later? No. If you want to borrow money there is a cost and it's called interest. The facts are anyone who takes out a loan for college is accepting the terms of the loan when they sign. No one holds a gun to their heads forcing them to take out the loan. And then there are HS graduates who forego college and enter the work force right after high school or take a loan to start a business. What a raw deal for those folks. This program is all about Biden and the Democrats buying votes for this upcoming election cycle because their horrendous policies are not enough to get people to vote for them.

The difference is that when you take out a mortgage in a house, you get the benefit right away-- you own the house and can live in it, rent it out, or sell it. Of course interest accrues immediately.

Education loans are very different different because you are not buying a tangible asset. You are buying a non-transferable credential that you only get the benefit of if you complete the program (which will require lots of labor). Education loans have no collateral,cannot be discharged in bankruptcy, and may result in long term debt for a benefit the borrower never actually receives (if they fail to complete the program). So there are a lot of reasons to treat education loans differently that a mortgage, car loan, credit card, HELOC, etc. They are very unique.