What is going on with student loans?

[Anonymous]

I support this. But college tuition will keep going up, up, up, and up.

[Anonymous]

Analysts at the University of Pennsylvania’s Penn Wharton Budget Model said the plan will cost roughly $500 billion over a 10-year budget window. Relative to current law, (assuming that the interest moratorium that has been extended until the end of the year does end), the program will add about 0.2 to 0.3 of a percentage point to inflation, said Jason Furman, economics professor at Harvard University and head of former President Barack Obama’s Council of Economic Advisers. Debt-forgiveness policy will, by design, result in millions of households having more discretionary income. That is a boost to demand and thus pushes in the direction of rising prices, and this will drive up the cost of higher education and loans going forward. Biden’s announcement mentioned that the immediate forgiveness will be paired with more generous forgiveness terms on future loans, which essentially subsidizes the very sector whose ballooning pricing got so many people into this predicament. And it means that even more people will take out loans in the future, further pushing up the costs of higher education.

The road to hell is paved with good intentions and bigger government.

[Anonymous]

Anonymous wrote:Analysts at the University of Pennsylvania’s Penn Wharton Budget Model said the plan will cost roughly $500 billion over a 10-year budget window. Relative to current law, (assuming that the interest moratorium that has been extended until the end of the year does end), the program will add about 0.2 to 0.3 of a percentage point to inflation, said Jason Furman, economics professor at Harvard University and head of former President Barack Obama’s Council of Economic Advisers. Debt-forgiveness policy will, by design, result in millions of households having more discretionary income. That is a boost to demand and thus pushes in the direction of rising prices, and this will drive up the cost of higher education and loans going forward. Biden’s announcement mentioned that the immediate forgiveness will be paired with more generous forgiveness terms on future loans, which essentially subsidizes the very sector whose ballooning pricing got so many people into this predicament. And it means that even more people will take out loans in the future, further pushing up the costs of higher education.

The road to hell is paved with good intentions and bigger government.

Regardless of the actual effects on inflation, there will be a perception that this is the cause of future inflation. Jerome Powell has warned there will be pain ahead. The GOP will pin these economic woes on this policy decision. They will dig up quotes by Obama-era economists to further support this perception whether it's correct or not.

[Anonymous]

Is this it with loan forgiveness or just the beginning?

[Anonymous]

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

I’m getting my mortgage forgiven. And car loans. And credit cards. And medical debt.

You aren’t?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Analysts at the University of Pennsylvania’s Penn Wharton Budget Model said the plan will cost roughly $500 billion over a 10-year budget window. Relative to current law, (assuming that the interest moratorium that has been extended until the end of the year does end), the program will add about 0.2 to 0.3 of a percentage point to inflation, said Jason Furman, economics professor at Harvard University and head of former President Barack Obama’s Council of Economic Advisers. Debt-forgiveness policy will, by design, result in millions of households having more discretionary income. That is a boost to demand and thus pushes in the direction of rising prices, and this will drive up the cost of higher education and loans going forward. Biden’s announcement mentioned that the immediate forgiveness will be paired with more generous forgiveness terms on future loans, which essentially subsidizes the very sector whose ballooning pricing got so many people into this predicament. And it means that even more people will take out loans in the future, further pushing up the costs of higher education.

The road to hell is paved with good intentions and bigger government.

Regardless of the actual effects on inflation, there will be a perception that this is the cause of future inflation. Jerome Powell has warned there will be pain ahead. The GOP will pin these economic woes on this policy decision. They will dig up quotes by Obama-era economists to further support this perception whether it's correct or not.

Powell thinks employment is too high. Are you going to agree with him when you lose your job?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

I’m getting my mortgage forgiven. And car loans. And credit cards. And medical debt.

You aren’t?

Bankruptcy covers those items.

[Anonymous]

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

I stopped putting money into my kid’s 529. I didn’t think they would forgive the loans but they did! I had a similar experience with the covid rental assistance program, those who didn’t pay rent got assistance… i learned my lesson!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

I’m getting my mortgage forgiven. And car loans. And credit cards. And medical debt.

You aren’t?

Bankruptcy covers those items.

Then why didn't just allow student loans to be discharged in bankruptcy court versus these giveaways?

[Anonymous]

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

There will be more student loan foregiveness, because there are boomers and cuspXers with a lot of graduate debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

There will be more student loan foregiveness, because there are boomers and cuspXers with a lot of graduate debt.

Fake news. You going to hold your breath for 10 or 20 years? Because everything I’ve read said they only got this done because of Covid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

I stopped putting money into my kid’s 529. I didn’t think they would forgive the loans but they did! I had a similar experience with the covid rental assistance program, those who didn’t pay rent got assistance… i learned my lesson!

So you are betting on a poor people benefit (forgiveness) rather than the UMC 529 tax break. I don't think you've learned many lessons in your impulsive life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

There will be more student loan foregiveness, because there are boomers and cuspXers with a lot of graduate debt.

Nah, Millennials and Gen Z didn't really show they were willing to vote R if forgiveness didn't happen. What's going to happen is the GOP end up restarting payments and taking a big political hit because of it. Biden is just going to extend the payment pause until 2024 just like Boomer parents never really make their Millennial children repay borrowed money

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

There will be more student loan foregiveness, because there are boomers and cuspXers with a lot of graduate debt.

Nah, Millennials and Gen Z didn't really show they were willing to vote R if forgiveness didn't happen. What's going to happen is the GOP end up restarting payments and taking a big political hit because of it. Biden is just going to extend the payment pause until 2024 just like Boomer parents never really make their Millennial children repay borrowed money

This is just like the American Rescue Plan. Conservatives balked, independents grumbled, progressives loved it, and then everyone forgot about it... until inflation got crazy, causing the conservatives/independents/and some progressives to HATE Biden. Same thing will happen in 2023.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is this it with loan forgiveness or just the beginning?

There will be more student loan foregiveness, because there are boomers and cuspXers with a lot of graduate debt.

Fake news. You going to hold your breath for 10 or 20 years? Because everything I’ve read said they only got this done because of Covid.

Right and that's the gamble. It's frustrating to work hard and sacrifice to pay off debt and then just see loans being wiped away. I have the money to pay the last of my loans, but I just don't know. I feel like this country rewards people who don't pay.