What is going on with student loans?

[Anonymous]

Anonymous wrote:Have to hand it to GOP strategists. Biden's plan was to forgive loans for 50% of borrowers and then have the rich borrowers enter repayment again in August. When SCOTUS strikes this down then Biden will be resuming payments for about 45 million borrowers of all income levels which is going to create major problems for Democrats.

“Rich borrowers” is an oxymoron.

[Anonymous]

Anonymous wrote:How about getting a job for a year or two? I know people who did that. Go to community college, too.

That really helps in hindsight I’m sure

[Anonymous]

Anonymous wrote:How about getting a job for a year or two? I know people who did that. Go to community college, too.

Delaying retirement contributions and future earnings. I made $80k at my first job out of undergrad (which I realize can be out of the norm), at 22.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:If the government is footing the bill for college, what incentive do colleges have to keep costs down? What stops them from just putting everyone they want on payroll and giving themselves big raises?

Well that’s been happening for 30 years without the government so it’s not like we can’t try a new approach based on that singular point.

Ah, but the government IS involved. Thanks to Obama.
And, I would argue that once the government took over the student loan program, the colleges saw no reason to rein in costs since they knew students would have easy access to money since it was given out by the govt. and not private lenders.

My son had a college loan from a private lender. It was about 2.8%. This was back in 2005. Obama ruined that.

In 2010, Obama eliminated the federal guaranteed loan program, which let private lenders offer student loans at low interest rates. Now, the Department of Education is the only place to go for such loans.

Obama sold this government takeover as a way to save money — why bear the costs of guaranteeing private loans, he said, when the government could cut out the middleman and lend the money itself?

The cost savings didn't happen. In fact, the Congressional Budget Office just increased its 10-year forecast for the loan program's costs by $27 billion, or 30%.

What did happen was an explosive growth in the amount of federal student loan debt. President Clinton phased in direct federal lending in 1993 as an option, but over the next 15 years the amount of loans was fairly stable. The result of Obama's action is striking. In each of the past six years, federal direct student loan debt has climbed by more than $100 billion. (See chart.)

And since Obama keeps making it easier and easier to avoid repaying those loans, it's a problem that taxpayers will eventually have to shoulder.

Through words and actions, Obama has encouraged irresponsibility on the part of student borrowers. He constantly talks as if student debt were an unfair burden they unknowingly had foisted upon them.

At the same time, he's made it easier and easier to avoid paying back student loans in full. Earlier this year, for example, Obama expanded eligibility for his "pay as you earn" program, which limits loan payments to 10% of income, with any debt left after 20 years forgiven.

Students got the message. The St. Louis Fed reports that 27.3% of student loans in repayment are at least a month behind in payments. That's a far higher delinquency rate than any other kind of debt, and it's significantly higher than the delinquency rate 10 years ago.

https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/

And you were privileged to get that loan. Part of the problem is that some families could not get them and neither could their kids.

Which is a good thing, because underprivileged families would and do end up struggling mightily to pay such loans back. It does them no good.

So poor families shouldn't go to college? Wow. Marie....is that you?

Where did I say that?

I believe all this access to loans drives up tuition to extreme levels, making it harder for families of all income levels to pay as they go in cash.

All families cant pay in cash regardless of "all this access" to loans. THe worst part are the rich people- you can find many on this website- that obscure their wealth for x number of years for FAFSA calculations. If colleges instituted a sliding scale for tuition would that be fair?

The worst part is the FAFSA almost always giving insanely high EFCs.

Like sure, a family with one parent a teacher and the other a nurse should have enough disposable income to be able to afford buying a new Mercedes every year. The EFCs ARE insane.

[Anonymous]

Anonymous wrote:

Anonymous wrote:There's always ROTC. Pays tuition, books, and stipend. Plus a job when you graduate.

Yep that's a fair exchsbge. If you are poor, you can be cannon fodder for all the wealthy elite kids who went to college and are in charge of policy.
Not to mention it is only recently that the government started programs to correlate veteran experience with private sector.

Poverty was much less of a problem decades ago before you demanded so many aspects of the economy be engineered by our masterminds in Washington DC.

60% of Americans live paycheck to paycheck regardless of how much they make! We went from 24 million Americans on foodstamps to 47 million overnight under Obama and democrats were still telling us everyone was starving.

The more "help" you demand, the worse things get. Why is that?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Have to hand it to GOP strategists. Biden's plan was to forgive loans for 50% of borrowers and then have the rich borrowers enter repayment again in August. When SCOTUS strikes this down then Biden will be resuming payments for about 45 million borrowers of all income levels which is going to create major problems for Democrats.

“Rich borrowers” is an oxymoron.

Haha no.
It is cheap debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How about getting a job for a year or two? I know people who did that. Go to community college, too.

Delaying retirement contributions and future earnings. I made $80k at my first job out of undergrad (which I realize can be out of the norm), at 22.

Then you probably didn’t have too hard of a time paying the loans.

[Anonymous]

Anonymous wrote:None of the arguments for leaving people saddled with college debt is compelling. None.

All people? All debt?
There are compelling reasons to forgive SOME debt for SOME people.
I didn’t go to grad school because I could not afford it (or see a way that anything I personally could study would result in a high paying career)
I don’t owe you yours.
Most degrees are BS. The ones that aren’t, the borrowers will be able to pay back.

[Anonymous]

We should "forgive" it by clawing it back from the schools. Oh wait. That's a democrat constituency. Probably not gonna happen.

[Anonymous]

We don’t care about forgiveness one way or another. My child would not have qualified for subsidized loans, so took out all subsidized ones. Dc is a junior and has taken out about $16k so far in unsubsidized stafford loans, but interest has been charged on them yet due to COVID. Child put $2k toward them from money they earned during an internship, so they’re down to $14k. Child will probably graduate with $20k in loans, assuming now forgiveness, and should be able to pay them off by 2025. Excellent investment; we don’t have the cash on hand for this.

[Anonymous]

just need one more vote to toss it on standing and get the people paid!

[Anonymous]

Anonymous wrote:just need one more vote to toss it on standing and get the people paid!

Paid by who? Answer: the tax payer.

Nothing is free.

[Anonymous]

Anonymous wrote:

Anonymous wrote:There's always ROTC. Pays tuition, books, and stipend. Plus a job when you graduate.

Yep that's a fair exchsbge. If you are poor, you can be cannon fodder for all the wealthy elite kids who went to college and are in charge of policy.
Not to mention it is only recently that the government started programs to correlate veteran experience with private sector.

And don’t forget their wealthy Moms and Dads got PPP loans forgiven. Thousands+ much more.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's always ROTC. Pays tuition, books, and stipend. Plus a job when you graduate.

Yep that's a fair exchsbge. If you are poor, you can be cannon fodder for all the wealthy elite kids who went to college and are in charge of policy.
Not to mention it is only recently that the government started programs to correlate veteran experience with private sector.

And don’t forget their wealthy Moms and Dads got PPP loans forgiven. Thousands+ much more.

The PPP loans went to businesses so they could pay their employees when they were shut down. (In reality a lot of it went to fraud overseas--especially that dispersed in California.) But, it wasn't "hadouts" to pocket the money.
This is a big difference.

Loan payments have been deferred without additional interest. Jobs are available. There is no reason not to pay back the loans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's always ROTC. Pays tuition, books, and stipend. Plus a job when you graduate.

Yep that's a fair exchsbge. If you are poor, you can be cannon fodder for all the wealthy elite kids who went to college and are in charge of policy.
Not to mention it is only recently that the government started programs to correlate veteran experience with private sector.

And don’t forget their wealthy Moms and Dads got PPP loans forgiven. Thousands+ much more.

The PPP loans went to businesses so they could pay their employees when they were shut down. (In reality a lot of it went to fraud overseas--especially that dispersed in California.) But, it wasn't "hadouts" to pocket the money.
This is a big difference.

Loan payments have been deferred without additional interest. Jobs are available. There is no reason not to pay back the loans.

You are very naive if you think it all went to paying employees.