Canceling $10k of student loan debt is stupid.

[Anonymous]

I do not think they should cancel the loans.

Our loans were 6.5% interest and they also front load the interest and structure it so that you don't pay anything towards the principal in the beginning and the principal starts ballooning.

I would suggest that we offer lower interest loans for certain majors and careers. Nursing, teaching, engineering, etc. Generic liberal arts majors- no. (And I was a liberal arts major). I also think they should be structured differently with the interest throughout the loan instead of front loaded. Front loading the interest on a mortgage is different because they assume you'll sell within 7 years. But with student loans, you can't discharge. We also weren't able to consolidate and lower the interest rate.

[Anonymous]

Anonymous wrote:I do not think they should cancel the loans.

Our loans were 6.5% interest and they also front load the interest and structure it so that you don't pay anything towards the principal in the beginning and the principal starts ballooning.

I would suggest that we offer lower interest loans for certain majors and careers. Nursing, teaching, engineering, etc. Generic liberal arts majors- no. (And I was a liberal arts major). I also think they should be structured differently with the interest throughout the loan instead of front loaded. Front loading the interest on a mortgage is different because they assume you'll sell within 7 years. But with student loans, you can't discharge. We also weren't able to consolidate and lower the interest rate.

Seriously, the government has no way of knowing what majors people are going into. This is so complicated. People change their major all the time in college after they get the loan. They can barely figure out who qualifies for the stimulus correctly.

[Anonymous]

Anonymous wrote:I do not think they should cancel the loans.

Our loans were 6.5% interest and they also front load the interest and structure it so that you don't pay anything towards the principal in the beginning and the principal starts ballooning.

I would suggest that we offer lower interest loans for certain majors and careers. Nursing, teaching, engineering, etc. Generic liberal arts majors- no. (And I was a liberal arts major). I also think they should be structured differently with the interest throughout the loan instead of front loaded. Front loading the interest on a mortgage is different because they assume you'll sell within 7 years. But with student loans, you can't discharge. We also weren't able to consolidate and lower the interest rate.

This is why they need to teach personal finance 101 as a required course in college across all institutions in order for students to graduate. It's called amortization.

The reason you get an amortized loan for everything from a mortgage, to an auto loan, to a student loan is because it allows the borrower to have a fixed payment over the course of the entire loan. An unamortized loan requires balloon payments that could really mess people up.

Truly shocking people can leave university with their $250k degrees and not even know about the basic concept of an amortized loan. What the hell do they teach these days at university? Apparently a bunch of useless stuff.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Canceling any new or old measly $10k of student loan debt is the dumbest idea. What is the payment on that, a mere $100/month?

Instead, the struggling folks need help - the ones buried under 75k, 100k, 300k of debt for over 20 years who, because it's been 20 years, obviously they can't pay it! And I mean 20 years since school completion, not 20 years of qualifying payments, huge difference.

my 2 cents

I would be ok with wiping out accumulated interest over some reasonable amount but think the policy is misguided for multiple reasons including lack of efficacy on a macro or microeconomic level, equity (slap in the face to savers and those who never went to college because it was unaffordable) and moral hazard (and yeah, I know we bailed out the banks — that was dumb too, so why should we do another dumb thing?)

It isn’t enough to make me vote for Republicans— not by a long stretch — but it’s not my favorite cause of progressives.

Abolishing usury, on the other hand — I am ok with that.

There's folks who made payments equal to the total principal loan balance, but never touched the principal!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Canceling any new or old measly $10k of student loan debt is the dumbest idea. What is the payment on that, a mere $100/month?

Instead, the struggling folks need help - the ones buried under 75k, 100k, 300k of debt for over 20 years who, because it's been 20 years, obviously they can't pay it! And I mean 20 years since school completion, not 20 years of qualifying payments, huge difference.

my 2 cents

I would be ok with wiping out accumulated interest over some reasonable amount but think the policy is misguided for multiple reasons including lack of efficacy on a macro or microeconomic level, equity (slap in the face to savers and those who never went to college because it was unaffordable) and moral hazard (and yeah, I know we bailed out the banks — that was dumb too, so why should we do another dumb thing?)

It isn’t enough to make me vote for Republicans— not by a long stretch — but it’s not my favorite cause of progressives.

Abolishing usury, on the other hand — I am ok with that.

There's folks who made payments equal to the total principal loan balance, but never touched the principal!

That only happens when they go into forbearance or miss payments and fees and/or rate hikes get tacked on. Those people shouldn't be so irresponsible. Holy crap, you mean my interest builds on my loan if I leave it in forbearance? Who knew!!! I guess people are too stupid and lazy to read the terms and conditions of a contract they signed on their own freewill. Idiots.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Canceling any new or old measly $10k of student loan debt is the dumbest idea. What is the payment on that, a mere $100/month?

Instead, the struggling folks need help - the ones buried under 75k, 100k, 300k of debt for over 20 years who, because it's been 20 years, obviously they can't pay it! And I mean 20 years since school completion, not 20 years of qualifying payments, huge difference.

my 2 cents

I would be ok with wiping out accumulated interest over some reasonable amount but think the policy is misguided for multiple reasons including lack of efficacy on a macro or microeconomic level, equity (slap in the face to savers and those who never went to college because it was unaffordable) and moral hazard (and yeah, I know we bailed out the banks — that was dumb too, so why should we do another dumb thing?)

It isn’t enough to make me vote for Republicans— not by a long stretch — but it’s not my favorite cause of progressives.

Abolishing usury, on the other hand — I am ok with that.

There's folks who made payments equal to the total principal loan balance, but never touched the principal!

That only happens when they go into forbearance or miss payments and fees and/or rate hikes get tacked on. Those people shouldn't be so irresponsible. Holy crap, you mean my interest builds on my loan if I leave it in forbearance? Who knew!!! I guess people are too stupid and lazy to read the terms and conditions of a contract they signed on their own freewill. Idiots.

That's just not true. What's 20 years of 7% interest on 100k? 140k.

[Anonymous]

^^^^ we need accountants looking at these issues, not basket weaving majors. Where's the biz school folks?

[Anonymous]

Yeah no I’m a democrat and will vote in the other direction. Your debt, your problem. I couldn’t afford big loads SO I DIDN’T GET BIG LOANS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Canceling any new or old measly $10k of student loan debt is the dumbest idea. What is the payment on that, a mere $100/month?

Instead, the struggling folks need help - the ones buried under 75k, 100k, 300k of debt for over 20 years who, because it's been 20 years, obviously they can't pay it! And I mean 20 years since school completion, not 20 years of qualifying payments, huge difference.

my 2 cents

I would be ok with wiping out accumulated interest over some reasonable amount but think the policy is misguided for multiple reasons including lack of efficacy on a macro or microeconomic level, equity (slap in the face to savers and those who never went to college because it was unaffordable) and moral hazard (and yeah, I know we bailed out the banks — that was dumb too, so why should we do another dumb thing?)

It isn’t enough to make me vote for Republicans— not by a long stretch — but it’s not my favorite cause of progressives.

Abolishing usury, on the other hand — I am ok with that.

There's folks who made payments equal to the total principal loan balance, but never touched the principal!

That only happens when they go into forbearance or miss payments and fees and/or rate hikes get tacked on. Those people shouldn't be so irresponsible. Holy crap, you mean my interest builds on my loan if I leave it in forbearance? Who knew!!! I guess people are too stupid and lazy to read the terms and conditions of a contract they signed on their own freewill. Idiots.

That's just not true. What's 20 years of 7% interest on 100k? 140k.

Taking 20 years is your problem in the first place.

Stop with the histrionics. The average size for student loan debt is less than $30k. The average interest rate is 5.8%.

https://www.bestcolleges.com/research/average-student-loan-debt/

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiytYWxvt_5AhXaMlkFHczzCPUQFnoECBYQAw&url=https%3A%2F%2Feducationdata.org%2Faverage-student-loan-interest-rate&usg=AOvVaw2TwNUC-9RMlD13lnp8b9i5

Who in the world would take 20 years to payoff a loan that costs less than most new cars? Make priorities people, jeez.

[Anonymous]

Only in America do people whine about being gifted $10K. I mean, if someone handed you $10K, you'd say no?

This is why I have no sympathy for the "cancel my loans" folks. And in particular, the high loan holders. Most of those are professionals anyway (e.g., drs, lawyers, etc.) and I'm not pro giving any of them aid.

I paid my $100K+ loans. You can pay yours. And I explicitly chose a public undergrad and a public law school to ensure lower costs than privates. Why should we reward those who think Columbia MFA is worth it?

[Anonymous]

Anonymous wrote:Yeah no I’m a democrat and will vote in the other direction. Your debt, your problem. I couldn’t afford big loads SO I DIDN’T GET BIG LOANS.

+1. This country has a problem with math.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Canceling any new or old measly $10k of student loan debt is the dumbest idea. What is the payment on that, a mere $100/month?

Instead, the struggling folks need help - the ones buried under 75k, 100k, 300k of debt for over 20 years who, because it's been 20 years, obviously they can't pay it! And I mean 20 years since school completion, not 20 years of qualifying payments, huge difference.

my 2 cents

I would be ok with wiping out accumulated interest over some reasonable amount but think the policy is misguided for multiple reasons including lack of efficacy on a macro or microeconomic level, equity (slap in the face to savers and those who never went to college because it was unaffordable) and moral hazard (and yeah, I know we bailed out the banks — that was dumb too, so why should we do another dumb thing?)

It isn’t enough to make me vote for Republicans— not by a long stretch — but it’s not my favorite cause of progressives.

Abolishing usury, on the other hand — I am ok with that.

There's folks who made payments equal to the total principal loan balance, but never touched the principal!

That only happens when they go into forbearance or miss payments and fees and/or rate hikes get tacked on. Those people shouldn't be so irresponsible. Holy crap, you mean my interest builds on my loan if I leave it in forbearance? Who knew!!! I guess people are too stupid and lazy to read the terms and conditions of a contract they signed on their own freewill. Idiots.

That's just not true. What's 20 years of 7% interest on 100k? 140k.

Taking 20 years is your problem in the first place.

Stop with the histrionics. The average size for student loan debt is less than $30k. The average interest rate is 5.8%.

https://www.bestcolleges.com/research/average-student-loan-debt/

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiytYWxvt_5AhXaMlkFHczzCPUQFnoECBYQAw&url=https%3A%2F%2Feducationdata.org%2Faverage-student-loan-interest-rate&usg=AOvVaw2TwNUC-9RMlD13lnp8b9i5

Who in the world would take 20 years to payoff a loan that costs less than most new cars? Make priorities people, jeez.

1) Some people have grad degrees.

2) Some people's interest is over 7%

3) Most people don't drive $100,000 cars.

[Anonymous]

Anonymous wrote:Only in America do people whine about being gifted $10K. I mean, if someone handed you $10K, you'd say no?

This is why I have no sympathy for the "cancel my loans" folks. And in particular, the high loan holders. Most of those are professionals anyway (e.g., drs, lawyers, etc.) and I'm not pro giving any of them aid.

I paid my $100K+ loans. You can pay yours. And I explicitly chose a public undergrad and a public law school to ensure lower costs than privates. Why should we reward those who think Columbia MFA is worth it?

$10k is hardly a drop in the bucket. I'm sorry but if the wealthy can get loop holes and avoid taxes I just don't see the problem. It's technically all wrong in my book, but this is America.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Canceling any new or old measly $10k of student loan debt is the dumbest idea. What is the payment on that, a mere $100/month?

Instead, the struggling folks need help - the ones buried under 75k, 100k, 300k of debt for over 20 years who, because it's been 20 years, obviously they can't pay it! And I mean 20 years since school completion, not 20 years of qualifying payments, huge difference.

my 2 cents

I would be ok with wiping out accumulated interest over some reasonable amount but think the policy is misguided for multiple reasons including lack of efficacy on a macro or microeconomic level, equity (slap in the face to savers and those who never went to college because it was unaffordable) and moral hazard (and yeah, I know we bailed out the banks — that was dumb too, so why should we do another dumb thing?)

It isn’t enough to make me vote for Republicans— not by a long stretch — but it’s not my favorite cause of progressives.

Abolishing usury, on the other hand — I am ok with that.

There's folks who made payments equal to the total principal loan balance, but never touched the principal!

That only happens when they go into forbearance or miss payments and fees and/or rate hikes get tacked on. Those people shouldn't be so irresponsible. Holy crap, you mean my interest builds on my loan if I leave it in forbearance? Who knew!!! I guess people are too stupid and lazy to read the terms and conditions of a contract they signed on their own freewill. Idiots.

That's just not true. What's 20 years of 7% interest on 100k? 140k.

Taking 20 years is your problem in the first place.

Stop with the histrionics. The average size for student loan debt is less than $30k. The average interest rate is 5.8%.

https://www.bestcolleges.com/research/average-student-loan-debt/

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiytYWxvt_5AhXaMlkFHczzCPUQFnoECBYQAw&url=https%3A%2F%2Feducationdata.org%2Faverage-student-loan-interest-rate&usg=AOvVaw2TwNUC-9RMlD13lnp8b9i5

Who in the world would take 20 years to payoff a loan that costs less than most new cars? Make priorities people, jeez.

1) Some people have grad degrees.

2) Some people's interest is over 7%

3) Most people don't drive $100,000 cars.

So now we have to forgive student loans for people with graduate degrees who overwhelmingly makeup the portion of the population who make the most money.

Give me a break. Here's the world's smallest violin playing for all of those doctors, lawyers, and other white collar professionals making 6 figs: ____

[Anonymous]

Anonymous wrote:

Anonymous wrote:Only in America do people whine about being gifted $10K. I mean, if someone handed you $10K, you'd say no?

This is why I have no sympathy for the "cancel my loans" folks. And in particular, the high loan holders. Most of those are professionals anyway (e.g., drs, lawyers, etc.) and I'm not pro giving any of them aid.

I paid my $100K+ loans. You can pay yours. And I explicitly chose a public undergrad and a public law school to ensure lower costs than privates. Why should we reward those who think Columbia MFA is worth it?

$10k is hardly a drop in the bucket. I'm sorry but if the wealthy can get loop holes and avoid taxes I just don't see the problem. It's technically all wrong in my book, but this is America.

All I hear is "Waaaaahhhhh, it's only $10K". WTF. TEN THOUSAND DOLLARS. And you're still not happy because YOU made bad choices?