Why is Biden extending the student loan repayment pause?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Maybe it would be better to stop so many kids from getting fruity degrees from expensive schools

Let’s break this down. The kids who ultimately end up enrolling at elite universities, regardless of their major (note that donut hole kids may turn down elite schools for a full scholarship or instate tuition elsewhere) graduate with little debt. The kids who enroll parents are either paying full fare or getting nearly full financial aid.

The most indebted kids went to the following schools, according to data available online: UIUC, Drexel, Pitt, Penn State, UNH and Rutgers. At least that was the list last time I checked.

If Biden forgives student loans, you can bet that the parents of rich kids at elite schools will stop paying for their kids' education based on the expectation that Biden will forgive loans again. No one going forward will pay anything but the bare minimum on their student loans. Colleges will likely raise tuition with the expectation that Biden will forgive student loans again. Biden will have to forgive loans year after year. If he doesn't, he'll face the wrath of progressives and angry students/parents who understandably want their free handout. Keep in mind that Biden and/or Democrats won't hold the White House forever. What then? Be weary of unintended consequences.

So you think UMC families will stop saving money on the assumption that their kid's future loans will be forgiven? That's fine for them to take a risk like that and saddle their kids with loans. Apparently a lot of MC and UMC don't save anyways.

I'm just saying that if Biden forgives student loans once, people can reasonably and understandably expect him to forgive student loans again. Based on that expectation, most people will be hesitant to pay anything more than the bare minimum on their student loans. I expect even ultra rich parents to be disinclined to pay off their kids' student loans. I mean, why would ultra rich parents pay off their kids' student loans when there is a chance that Biden will forgive student loans? Unfortunately, student loan forgiveness will cause colleges to raise tuition much faster than usual, and that alone will severely harm future generations of students, particularly if student loan forgiveness is a one time thing.

Completely disagree.

The rising cost of education has enabled the wealthy to horde opportunities.

They will continue to pay - if anything they would like to make college more expensive with less loan availability.

It’s an economic moat that benefits their gene pool.

I don't understand what you mean by "[t]hey will continue to pay." Unless a student receives a scholarship, he or she will have to pay for college either through student loans or with the help of their parents. Before, wealthy parents would pay off their student loans once their children graduated. Now, they'll be likely to delay paying off their kids' students loans to see whether student loan forgiveness happens.

Furthermore, the rising cost of education is directly related to the widespread availability of student loans. Because colleges can charge whatever they want, the cost of attendance keeps on going up higher and higher each year. Less loan availability is a good thing to stem rising college costs; however, that will never happen because of concerns with equity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Maybe it would be better to stop so many kids from getting fruity degrees from expensive schools

Let’s break this down. The kids who ultimately end up enrolling at elite universities, regardless of their major (note that donut hole kids may turn down elite schools for a full scholarship or instate tuition elsewhere) graduate with little debt. The kids who enroll parents are either paying full fare or getting nearly full financial aid.

The most indebted kids went to the following schools, according to data available online: UIUC, Drexel, Pitt, Penn State, UNH and Rutgers. At least that was the list last time I checked.

If Biden forgives student loans, you can bet that the parents of rich kids at elite schools will stop paying for their kids' education based on the expectation that Biden will forgive loans again. No one going forward will pay anything but the bare minimum on their student loans. Colleges will likely raise tuition with the expectation that Biden will forgive student loans again. Biden will have to forgive loans year after year. If he doesn't, he'll face the wrath of progressives and angry students/parents who understandably want their free handout. Keep in mind that Biden and/or Democrats won't hold the White House forever. What then? Be weary of unintended consequences.

So you think UMC families will stop saving money on the assumption that their kid's future loans will be forgiven? That's fine for them to take a risk like that and saddle their kids with loans. Apparently a lot of MC and UMC don't save anyways.

I'm just saying that if Biden forgives student loans once, people can reasonably and understandably expect him to forgive student loans again. Based on that expectation, most people will be hesitant to pay anything more than the bare minimum on their student loans. I expect even ultra rich parents to be disinclined to pay off their kids' student loans. I mean, why would ultra rich parents pay off their kids' student loans when there is a chance that Biden will forgive student loans? Unfortunately, student loan forgiveness will cause colleges to raise tuition much faster than usual, and that alone will severely harm future generations of students, particularly if student loan forgiveness is a one time thing.

Completely disagree.

The rising cost of education has enabled the wealthy to horde opportunities.

They will continue to pay - if anything they would like to make college more expensive with less loan availability.

It’s an economic moat that benefits their gene pool.

I forgot to ask you the following questions. If Biden forgives student loans in 2022, what happens to the students who begin college in 2023? These students will incur students loans, but won't have the benefit of student loan forgiveness. Do you expect Biden to forgive student loans every year? What happens if Democrats lose the White House in 2024?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Maybe it would be better to stop so many kids from getting fruity degrees from expensive schools

Let’s break this down. The kids who ultimately end up enrolling at elite universities, regardless of their major (note that donut hole kids may turn down elite schools for a full scholarship or instate tuition elsewhere) graduate with little debt. The kids who enroll parents are either paying full fare or getting nearly full financial aid.

The most indebted kids went to the following schools, according to data available online: UIUC, Drexel, Pitt, Penn State, UNH and Rutgers. At least that was the list last time I checked.

If Biden forgives student loans, you can bet that the parents of rich kids at elite schools will stop paying for their kids' education based on the expectation that Biden will forgive loans again. No one going forward will pay anything but the bare minimum on their student loans. Colleges will likely raise tuition with the expectation that Biden will forgive student loans again. Biden will have to forgive loans year after year. If he doesn't, he'll face the wrath of progressives and angry students/parents who understandably want their free handout. Keep in mind that Biden and/or Democrats won't hold the White House forever. What then? Be weary of unintended consequences.

So you think UMC families will stop saving money on the assumption that their kid's future loans will be forgiven? That's fine for them to take a risk like that and saddle their kids with loans. Apparently a lot of MC and UMC don't save anyways.

I'm just saying that if Biden forgives student loans once, people can reasonably and understandably expect him to forgive student loans again. Based on that expectation, most people will be hesitant to pay anything more than the bare minimum on their student loans. I expect even ultra rich parents to be disinclined to pay off their kids' student loans. I mean, why would ultra rich parents pay off their kids' student loans when there is a chance that Biden will forgive student loans? Unfortunately, student loan forgiveness will cause colleges to raise tuition much faster than usual, and that alone will severely harm future generations of students, particularly if student loan forgiveness is a one time thing.

Completely disagree.

The rising cost of education has enabled the wealthy to horde opportunities.

They will continue to pay - if anything they would like to make college more expensive with less loan availability.

It’s an economic moat that benefits their gene pool.

I forgot to ask you the following questions. If Biden forgives student loans in 2022, what happens to the students who begin college in 2023? These students will incur students loans, but won't have the benefit of student loan forgiveness. Do you expect Biden to forgive student loans every year? What happens if [when] Democrats lose the White House in 2024?

Fixed that for you.

[Anonymous]

Biden needs a forgiveness plan that makes sense. I was very much for the pause, even as a person that scrimped and saved to pay back my six figure loans early. That Washington Post article about black women just about killed it for me - this wasn’t giving people breathing room, it was giving them the opportunity to buy rental properties. Seeing two GS 15 HHI families get two years of free credit toward loan forgiveness - come on.

I’d support something like a $10,000 tax free forgiveness for an up to $150k HHi, with phase outs above that. That would take care of many of the community college dropouts who are in the worst shape to pay it back while also getting broad buy in from the young professionals who are likely struggling with debts exceeding their salaries in high COL areas. I’d also support a proposal to allow all loan interest to be deductible up to something like $400k AGI. It was an expense incurred in order to earn the income. Like a business, people should be able to write it off.

These proposals would be seem very reasonable and fair to me and would not encourage people to take on massive amounts of debt for graduate degrees in poorly performing fields.

I’d couple it with a requirement for every college accepting public loan funds to specify- in all of their marketing materials- the amount of money that is directly attributable to education and the amounts that go toward administrative overhead, athletics, fundraising, job placement, and everything else not directly related to educating students. Like a Nutrition Facts label. You could also require reporting on things like salaries earned by alumni but surveys tend to be biased and the results kind of useless anyway. Maybe DOL data could be used instead.

[Anonymous]

Anonymous wrote:Biden needs a forgiveness plan that makes sense. I was very much for the pause, even as a person that scrimped and saved to pay back my six figure loans early. That Washington Post article about black women just about killed it for me - this wasn’t giving people breathing room, it was giving them the opportunity to buy rental properties. Seeing two GS 15 HHI families get two years of free credit toward loan forgiveness - come on.

I’d support something like a $10,000 tax free forgiveness for an up to $150k HHi, with phase outs above that. That would take care of many of the community college dropouts who are in the worst shape to pay it back while also getting broad buy in from the young professionals who are likely struggling with debts exceeding their salaries in high COL areas. I’d also support a proposal to allow all loan interest to be deductible up to something like $400k AGI. It was an expense incurred in order to earn the income. Like a business, people should be able to write it off.

These proposals would be seem very reasonable and fair to me and would not encourage people to take on massive amounts of debt for graduate degrees in poorly performing fields.

I’d couple it with a requirement for every college accepting public loan funds to specify- in all of their marketing materials- the amount of money that is directly attributable to education and the amounts that go toward administrative overhead, athletics, fundraising, job placement, and everything else not directly related to educating students. Like a Nutrition Facts label. You could also require reporting on things like salaries earned by alumni but surveys tend to be biased and the results kind of useless anyway. Maybe DOL data could be used instead.

There is no such thing as a one time forgiveness of student loan debt. Once a precedent has been set for student loan forgiveness, Biden will be inundated with calls for even more forgiveness. The calls will never stop until Biden forgives all past, present, and future student loan debt. Unless Biden is willing to forgive student loans and keep on forgiving them throughout his presidency, he should not set a precedent for student loan forgiveness.

[Anonymous]

I don't understand why people without federal student loans are so obsessed with the poor people who have them? Maybe you could spend next weekend picketing the maternity wing of your local hospital for all the Medicaid freeloading new moms popping out babies on the taxpayers' dime?

Are you also this obsessed about all of the PPP fraud where rich people lied about fake losses and/or created LLCs for fake businesses and got $50K to millions of dollars scot-free? Do you also harass people in your neighborhood that got a mortgage bailout over the last couple of years & also back during the great recession? [Maybe you benefited from that?!]

Of all the things to care about, low and middle class in federal student loan debt -- over 50% of which didn't even actually graduate from college -- is what makes you seethe?

[Anonymous]

Anonymous wrote:I don't understand why people without federal student loans are so obsessed with the poor people who have them? Maybe you could spend next weekend picketing the maternity wing of your local hospital for all the Medicaid freeloading new moms popping out babies on the taxpayers' dime?

Are you also this obsessed about all of the PPP fraud where rich people lied about fake losses and/or created LLCs for fake businesses and got $50K to millions of dollars scot-free? Do you also harass people in your neighborhood that got a mortgage bailout over the last couple of years & also back during the great recession? [Maybe you benefited from that?!]

Of all the things to care about, low and middle class in federal student loan debt -- over 50% of which didn't even actually graduate from college -- is what makes you seethe?

As discussed in the Washington Post editorial, the biggest beneficiaries of the pause in repayments, and student loan forgiveness, are high earning, highly educated folks. If Biden wants to help the poor, he should reallocate student loan repayments towards programs that actually help poor people. For example, I would be completely supportive of reallocating student loan repayments to fund monthly child payments and/or childcare benefits for poor people.

https://www.washingtonpost.com/opinions/2022/04/08/student-loan-repayment-pause-makes-no-sense/

[Anonymous]

Anonymous wrote:I don't understand why people without federal student loans are so obsessed with the poor people who have them? Maybe you could spend next weekend picketing the maternity wing of your local hospital for all the Medicaid freeloading new moms popping out babies on the taxpayers' dime?

Are you also this obsessed about all of the PPP fraud where rich people lied about fake losses and/or created LLCs for fake businesses and got $50K to millions of dollars scot-free? Do you also harass people in your neighborhood that got a mortgage bailout over the last couple of years & also back during the great recession? [Maybe you benefited from that?!]

Of all the things to care about, low and middle class in federal student loan debt -- over 50% of which didn't even actually graduate from college -- is what makes you seethe?

Are you referring to the majority of Americans who have no student loan debt because they never went to college? Perhaps, they are obsessed and/or angry because they are seeing their standard of living decrease due to inflation. Yet, Democrats seem intent on giving six figure handouts to privileged Americans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't understand why people without federal student loans are so obsessed with the poor people who have them? Maybe you could spend next weekend picketing the maternity wing of your local hospital for all the Medicaid freeloading new moms popping out babies on the taxpayers' dime?

Are you also this obsessed about all of the PPP fraud where rich people lied about fake losses and/or created LLCs for fake businesses and got $50K to millions of dollars scot-free? Do you also harass people in your neighborhood that got a mortgage bailout over the last couple of years & also back during the great recession? [Maybe you benefited from that?!]

Of all the things to care about, low and middle class in federal student loan debt -- over 50% of which didn't even actually graduate from college -- is what makes you seethe?

Are you referring to the majority of Americans who have no student loan debt because they never went to college? Perhaps, they are obsessed and/or angry because they are seeing their standard of living decrease due to inflation. Yet, Democrats seem intent on giving six figure handouts to privileged Americans.

Americans who are struggling with students loan debt are the least deserving of our aid. They didn’t have to go to college or choose an expensive private or take on debt or choose not to work or choose a worthless major with poor job prospects or do poorly in school so they can’t find a job. The number of poor choices that must compound for somebody to have student loan problem is staggering. Why reward the dumbest amongst us?

[Anonymous]

Pay your bills. Take individual accountability. There are jobs literally everywhere.

[Anonymous]

Anonymous wrote:Pay your bills. Take individual accountability. There are jobs literally everywhere.

I hope you didn’t receive a child tax credit.

[Anonymous]

I paid so much interest on my loans. Federal loans consolidated at 7.5% in 1999/ 2000. It makes me sick. I’m so much further behind my peers for paying $800.00 a month for 25 years. Original loan balance around 120k for undergraduate and law school. In total I paid approximately 240 to pay them off. I was able to use the measly tax deduction once. Yes I’m educated and privileged but what people I don’t realized is how the interest is compounded. I’m torn over forgiveness because I missed the boat. I support deductions on taxes over forgiveness.

[Anonymous]

Anonymous wrote:I paid so much interest on my loans. Federal loans consolidated at 7.5% in 1999/ 2000. It makes me sick. I’m so much further behind my peers for paying $800.00 a month for 25 years. Original loan balance around 120k for undergraduate and law school. In total I paid approximately 240 to pay them off. I was able to use the measly tax deduction once. Yes I’m educated and privileged but what people I don’t realized is how the interest is compounded. I’m torn over forgiveness because I missed the boat. I support deductions on taxes over forgiveness.

This is a fair point.

Instead of outright forgiveness, they could offer to restructure people’s loans. Also, don’t forget that the government made it impossible to use bankruptcy to escape student debt. This created the risk-free lender environment that directly led to the astronomical tuition increases. Many of these giant loans would never have been granted if it wasn’t for government meddling.

[Anonymous]

Anonymous wrote:I paid so much interest on my loans. Federal loans consolidated at 7.5% in 1999/ 2000. It makes me sick. I’m so much further behind my peers for paying $800.00 a month for 25 years. Original loan balance around 120k for undergraduate and law school. In total I paid approximately 240 to pay them off. I was able to use the measly tax deduction once. Yes I’m educated and privileged but what people I don’t realized is how the interest is compounded. I’m torn over forgiveness because I missed the boat. I support deductions on taxes over forgiveness.

Yes, people like you will be out of luck if Biden unilaterally forgives student loans. However, I'm more concerned about what student loan forgiveness will do to future generations. Lets say Biden forgives student loans in August 2022. That means that anyone who is currently a high school junior or younger will receive absolutely no benefit from student loan forgiveness. I imagine these folks, along with those who did not go to college, will be pissed at Biden/Democrats for not giving them a free handout. Rather than forgive student loans, I suggest eliminating all interest on student loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pay your bills. Take individual accountability. There are jobs literally everywhere.

I hope you didn’t receive a child tax credit.

Forgiving student loans without reinstating the child tax credit will not be good optics for Democrats.