Canceling $10k of student loan debt is stupid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

For me, canceling $10k of my debt would have halved my monthly payment. I’m one of the teachers who got screwed over under the last administration. I was supposed to have my debt entirely forgiven.

Why is your student loan my responsibility to pay off?

Because the ballooning of federal student loans was a product of ill-guided federal policy (under both Dems and Republicans), student loan debt is hindering US economic growth, and college graduates are a benefit to an industrial/post-industrial society not just a private benefit. Also, student loans are the product of the divesting of support from state governments for public education that prior generations benefitted from. Think of it as a scholarship for completing college rather than a forgiveness of loan. I don't have student loans--but it was federal and state policies that created the student loan mess and I'm all for having them help clean it up. It will benefit everyone--student loan holders and not.

Bless your heart. If I thought about it as a scholarship for finishing college, I would be wealthy. I finished a PhD with zero debt by working my A$$ off and I am not getting a scholarship for graduating college and grad school. I understood the impact of taking out $100k worth of loans on my future, even at 18.
Explain how it benefits me or my children? I have been saving for their college since before they have been born, not hoping for loan forgiveness. I have worked jobs I don't particularly liked, lived in a house that is less than dcum standards, and driven by many a starbucks to save a dollar so that they can have a college education. Again, how is giving away 10k when there is no other clean up of the college cost mess included benefiting anyone but the people before them? I don't understand the logic.

You are not directly benefitted by many of the ways society gives out tax breaks, credits, benefits etc. but you want to participate in that society. You are getting some benefits somewhere--most PhD programs are subsidized by master's and undergraduate programs to pay for RAships, TAships and their associated benefits such as tuition remission, health insurance credits, stipends. This is because society values having experts and recognizes that PhD programs represent a long investment that may not make financial sense. Government agencies allow that sort of distribution of costs to reflect that--but it's not particularly "fair" on any individual level.

In your savings for your kids, did you benefit from the tax break of a 529 plan? Those tend to privilege those who have a HHI of 100k or higher a year, which is far above the median. Why should all the those making 60k pay for your tax break? (Because whether we call it a credit, a break, forgiveness, etc. it's all coming from the same pot).

I'm sure since you have finished a PhD (as have I) you have had the good fortune of more intelligence than average--I trust you can be aware that not everyone had the same intellectual resources to work with. You likely (though not necessarily) have some family background that helps you (even if your parents didn't go to college, and didn't contribute financially to your undergraduate education, they likely had higher than average intelligence if they have a kid who completed a PhD) I think it is problematic that we have drifted into being a society that encourages families to believe that every kid--regardless of their aptitude--will do better if they go to college, and I have no problem with correcting that. I am glad that the student loan forgiveness is being built on an earlier initiative for far greater investment in community college which makes sense for more students. I see the loan forgiveness as an effort to help clean up some of the mess that the government contributed to around college costs/encouragement of 4 year college for all, and I want it followed up with continued investment in community college, greater support for trade education and on-the-job training, and significant public investment in excellent 4 year colleges rather than treating it primarily as an individual good that people purchase.

Thank you. There are so many ways people are benefiting from government handouts. They are mad about $10k in forgiveness but paid for their kids education with a 529 that they got a tax break for. Ugh make it make sense!!!

Getting a tax break is not the same thing as getting paid. In the former, you are just paying less into something, in the later, you are getting money that you never earned in the first place. It's the difference between carrying a bit less of the burden, and becoming a burden to be carried by others.

Are you the kind of person who doesn't believe tax cuts contribute to the deficit?

Don't be dense, of course tax cuts contribute to the deficit. Deficit = Expenses - Tax Revenue. Therefore, expenses also contribute to the deficit. But note that getting $10k loan forgiveness is being a part of the "Expense" side of the equation, which is different from getting a tax break, which is still on the "Tax Revenue" side. Again, these are not the same thing, or even the same in nature.

Revenue and expenses are fungible. As far as the balance sheet is concerned, you mortgage deduction is no different from any other expense

LOL, according to what accounting principle?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

For me, canceling $10k of my debt would have halved my monthly payment. I’m one of the teachers who got screwed over under the last administration. I was supposed to have my debt entirely forgiven.

Why is your student loan my responsibility to pay off?

Because the ballooning of federal student loans was a product of ill-guided federal policy (under both Dems and Republicans), student loan debt is hindering US economic growth, and college graduates are a benefit to an industrial/post-industrial society not just a private benefit. Also, student loans are the product of the divesting of support from state governments for public education that prior generations benefitted from. Think of it as a scholarship for completing college rather than a forgiveness of loan. I don't have student loans--but it was federal and state policies that created the student loan mess and I'm all for having them help clean it up. It will benefit everyone--student loan holders and not.

Bless your heart. If I thought about it as a scholarship for finishing college, I would be wealthy. I finished a PhD with zero debt by working my A$$ off and I am not getting a scholarship for graduating college and grad school. I understood the impact of taking out $100k worth of loans on my future, even at 18.
Explain how it benefits me or my children? I have been saving for their college since before they have been born, not hoping for loan forgiveness. I have worked jobs I don't particularly liked, lived in a house that is less than dcum standards, and driven by many a starbucks to save a dollar so that they can have a college education. Again, how is giving away 10k when there is no other clean up of the college cost mess included benefiting anyone but the people before them? I don't understand the logic.

You are not directly benefitted by many of the ways society gives out tax breaks, credits, benefits etc. but you want to participate in that society. You are getting some benefits somewhere--most PhD programs are subsidized by master's and undergraduate programs to pay for RAships, TAships and their associated benefits such as tuition remission, health insurance credits, stipends. This is because society values having experts and recognizes that PhD programs represent a long investment that may not make financial sense. Government agencies allow that sort of distribution of costs to reflect that--but it's not particularly "fair" on any individual level.

In your savings for your kids, did you benefit from the tax break of a 529 plan? Those tend to privilege those who have a HHI of 100k or higher a year, which is far above the median. Why should all the those making 60k pay for your tax break? (Because whether we call it a credit, a break, forgiveness, etc. it's all coming from the same pot).

I'm sure since you have finished a PhD (as have I) you have had the good fortune of more intelligence than average--I trust you can be aware that not everyone had the same intellectual resources to work with. You likely (though not necessarily) have some family background that helps you (even if your parents didn't go to college, and didn't contribute financially to your undergraduate education, they likely had higher than average intelligence if they have a kid who completed a PhD) I think it is problematic that we have drifted into being a society that encourages families to believe that every kid--regardless of their aptitude--will do better if they go to college, and I have no problem with correcting that. I am glad that the student loan forgiveness is being built on an earlier initiative for far greater investment in community college which makes sense for more students. I see the loan forgiveness as an effort to help clean up some of the mess that the government contributed to around college costs/encouragement of 4 year college for all, and I want it followed up with continued investment in community college, greater support for trade education and on-the-job training, and significant public investment in excellent 4 year colleges rather than treating it primarily as an individual good that people purchase.

Thank you. There are so many ways people are benefiting from government handouts. They are mad about $10k in forgiveness but paid for their kids education with a 529 that they got a tax break for. Ugh make it make sense!!!

Getting a tax break is not the same thing as getting paid. In the former, you are just paying less into something, in the later, you are getting money that you never earned in the first place. It's the difference between carrying a bit less of the burden, and becoming a burden to be carried by others.

No one is getting paid though. It's wiping out part of a balance. It's not like they are sending $10k to someone's bank account.

What do you think a loan account is? It's a type of bank account.

The account is not going into anyone's hands. If the government gives a credit to a student loan balance it's a credit. No one is getting paid $10k into their hands where they can use that money to buy something. Now the stimulus check allowed that.

Yes it is, the loan account is owned by the borrower. Money paid into the loan account is for the benefit of the borrower.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

For me, canceling $10k of my debt would have halved my monthly payment. I’m one of the teachers who got screwed over under the last administration. I was supposed to have my debt entirely forgiven.

Why is your student loan my responsibility to pay off?

Because the ballooning of federal student loans was a product of ill-guided federal policy (under both Dems and Republicans), student loan debt is hindering US economic growth, and college graduates are a benefit to an industrial/post-industrial society not just a private benefit. Also, student loans are the product of the divesting of support from state governments for public education that prior generations benefitted from. Think of it as a scholarship for completing college rather than a forgiveness of loan. I don't have student loans--but it was federal and state policies that created the student loan mess and I'm all for having them help clean it up. It will benefit everyone--student loan holders and not.

Bless your heart. If I thought about it as a scholarship for finishing college, I would be wealthy. I finished a PhD with zero debt by working my A$$ off and I am not getting a scholarship for graduating college and grad school. I understood the impact of taking out $100k worth of loans on my future, even at 18.
Explain how it benefits me or my children? I have been saving for their college since before they have been born, not hoping for loan forgiveness. I have worked jobs I don't particularly liked, lived in a house that is less than dcum standards, and driven by many a starbucks to save a dollar so that they can have a college education. Again, how is giving away 10k when there is no other clean up of the college cost mess included benefiting anyone but the people before them? I don't understand the logic.

You are not directly benefitted by many of the ways society gives out tax breaks, credits, benefits etc. but you want to participate in that society. You are getting some benefits somewhere--most PhD programs are subsidized by master's and undergraduate programs to pay for RAships, TAships and their associated benefits such as tuition remission, health insurance credits, stipends. This is because society values having experts and recognizes that PhD programs represent a long investment that may not make financial sense. Government agencies allow that sort of distribution of costs to reflect that--but it's not particularly "fair" on any individual level.

In your savings for your kids, did you benefit from the tax break of a 529 plan? Those tend to privilege those who have a HHI of 100k or higher a year, which is far above the median. Why should all the those making 60k pay for your tax break? (Because whether we call it a credit, a break, forgiveness, etc. it's all coming from the same pot).

I'm sure since you have finished a PhD (as have I) you have had the good fortune of more intelligence than average--I trust you can be aware that not everyone had the same intellectual resources to work with. You likely (though not necessarily) have some family background that helps you (even if your parents didn't go to college, and didn't contribute financially to your undergraduate education, they likely had higher than average intelligence if they have a kid who completed a PhD) I think it is problematic that we have drifted into being a society that encourages families to believe that every kid--regardless of their aptitude--will do better if they go to college, and I have no problem with correcting that. I am glad that the student loan forgiveness is being built on an earlier initiative for far greater investment in community college which makes sense for more students. I see the loan forgiveness as an effort to help clean up some of the mess that the government contributed to around college costs/encouragement of 4 year college for all, and I want it followed up with continued investment in community college, greater support for trade education and on-the-job training, and significant public investment in excellent 4 year colleges rather than treating it primarily as an individual good that people purchase.

Thank you. There are so many ways people are benefiting from government handouts. They are mad about $10k in forgiveness but paid for their kids education with a 529 that they got a tax break for. Ugh make it make sense!!!

Getting a tax break is not the same thing as getting paid. In the former, you are just paying less into something, in the later, you are getting money that you never earned in the first place. It's the difference between carrying a bit less of the burden, and becoming a burden to be carried by others.

It's semantics. The tax base is what the government has to work with to pay for our common resources.
Okay, how about they call it a 10k credit for federal student loan borrowers who make under 125k. Now it's a federal tax credit. Like the child tax credit. Or opportunity zone tax credit. Or a zillion others.

I agree it's a credit.

You can call it whatever you want, just like they called it an inflation reduction act even though it does not actually reduce inflation. If a "credit" does not offset tax liabilities, but is instead a direct payment into someone's account, then it's not a tax credit by definition.

[Anonymous]

Anonymous wrote:There is a silent, sizable number of Americans who didn’t get PPP, any stimulus checks, took no mortgage/rental forbearance, and have dutifully sacrificed and paid their student loans. Both Republicans and Democrats. And we will remember this in November. Honestly, this is the type of thinking that you get from an 80 year old man who has only ever received a government paycheck. Rather than do the hard and necessary work of forcing colleges to lower tuition, he instead goes for the easy band aid solution, again.

You hurt my feelings, and you will pay for this dearly. /s

[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

For me, canceling $10k of my debt would have halved my monthly payment. I’m one of the teachers who got screwed over under the last administration. I was supposed to have my debt entirely forgiven.

Why is your student loan my responsibility to pay off?

Because the ballooning of federal student loans was a product of ill-guided federal policy (under both Dems and Republicans), student loan debt is hindering US economic growth, and college graduates are a benefit to an industrial/post-industrial society not just a private benefit. Also, student loans are the product of the divesting of support from state governments for public education that prior generations benefitted from. Think of it as a scholarship for completing college rather than a forgiveness of loan. I don't have student loans--but it was federal and state policies that created the student loan mess and I'm all for having them help clean it up. It will benefit everyone--student loan holders and not.

Bless your heart. If I thought about it as a scholarship for finishing college, I would be wealthy. I finished a PhD with zero debt by working my A$$ off and I am not getting a scholarship for graduating college and grad school. I understood the impact of taking out $100k worth of loans on my future, even at 18.
Explain how it benefits me or my children? I have been saving for their college since before they have been born, not hoping for loan forgiveness. I have worked jobs I don't particularly liked, lived in a house that is less than dcum standards, and driven by many a starbucks to save a dollar so that they can have a college education. Again, how is giving away 10k when there is no other clean up of the college cost mess included benefiting anyone but the people before them? I don't understand the logic.

You are not directly benefitted by many of the ways society gives out tax breaks, credits, benefits etc. but you want to participate in that society. You are getting some benefits somewhere--most PhD programs are subsidized by master's and undergraduate programs to pay for RAships, TAships and their associated benefits such as tuition remission, health insurance credits, stipends. This is because society values having experts and recognizes that PhD programs represent a long investment that may not make financial sense. Government agencies allow that sort of distribution of costs to reflect that--but it's not particularly "fair" on any individual level.

In your savings for your kids, did you benefit from the tax break of a 529 plan? Those tend to privilege those who have a HHI of 100k or higher a year, which is far above the median. Why should all the those making 60k pay for your tax break? (Because whether we call it a credit, a break, forgiveness, etc. it's all coming from the same pot).

I'm sure since you have finished a PhD (as have I) you have had the good fortune of more intelligence than average--I trust you can be aware that not everyone had the same intellectual resources to work with. You likely (though not necessarily) have some family background that helps you (even if your parents didn't go to college, and didn't contribute financially to your undergraduate education, they likely had higher than average intelligence if they have a kid who completed a PhD) I think it is problematic that we have drifted into being a society that encourages families to believe that every kid--regardless of their aptitude--will do better if they go to college, and I have no problem with correcting that. I am glad that the student loan forgiveness is being built on an earlier initiative for far greater investment in community college which makes sense for more students. I see the loan forgiveness as an effort to help clean up some of the mess that the government contributed to around college costs/encouragement of 4 year college for all, and I want it followed up with continued investment in community college, greater support for trade education and on-the-job training, and significant public investment in excellent 4 year colleges rather than treating it primarily as an individual good that people purchase.

Thank you. There are so many ways people are benefiting from government handouts. They are mad about $10k in forgiveness but paid for their kids education with a 529 that they got a tax break for. Ugh make it make sense!!!

Many people already get tax breaks for paying student loans, you dumb @$$.


You get a tax break for interest on student loans. Forgiveness is on top of that. You want to double dip because you are an entitled bum. Wow, how can someone with a college degree be this stupid?

[Anonymous]

Anonymous wrote:An incredible amount of student debt is not from regular white kid going to college and completing their degree; it's from predatory online and for-profit schools. Just like a loan shark, they preyed on the most vulnerable and don't care if the student and their families are saddled in debt there is no chance they will ever repay.

+1

Who complain the loudest: people who studied "arts" and can't find a job to pay off their six figure student loans.
Who hold the majority of loan balances in the US: Doctors, lawyers, and other high earners
Who actually benefits the most from $10k forgiveness: Middle-class or upper-middle-class college students with modest loan balances

[Anonymous]

I get it, it sucks when people get something for free that you worked for or did without. The maternity/ paternity leave at my work and my husband’s changed drastically since we had our first and we would have really enjoyed the extra 4-6 weeks with our baby.

It also sucks when people get off the hook for a decision they already made. Realistically, we’d have a better education system overall that made quality college affordable for all and not a caste system that rewards rich, privileged kids.

It also sucks that it’s forgiveness of student loans, not rent relief, subsidized daycare, free preschool, or forgiveness of medical debt. Especially medical debt because it’s hard to claim people made a choice or understood what the consequences would be.

However it’s a matter of practicality. I did not appreciate this until recently. Student loans are mostly held by the Dept of Ed - so there is one single payer to negotiate with and to handle the forgiveness. Additionally student loan debt overwhelmingly impacts women of color and a lot of people do have loan balances under $30k where $10 makes a big difference. It especially makes a big difference for people who dropped out after 1-2 semesters and don’t have any earning power to show for the debt. It is way too complicated to negotiate with dozens of health insurance companies and thousands of medical providers. It takes too long and costs a lot of administrative overhead to implement new federal programs and then they exists in perpetuity. A one time $10k forgiveness is actually less expensive for tax payers administratively, easiest to execute, and will make a significant impact to a population that needs help - women of color. The fact that it also helps middle class and UMC rich white kids is collateral damage.

$10k forgiveness is not the best solution. It’s a good enough bandage to a bigger, long term problem.

[Anonymous]

Anonymous wrote:

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

For me, canceling $10k of my debt would have halved my monthly payment. I’m one of the teachers who got screwed over under the last administration. I was supposed to have my debt entirely forgiven.

Why is your student loan my responsibility to pay off?

Because the ballooning of federal student loans was a product of ill-guided federal policy (under both Dems and Republicans), student loan debt is hindering US economic growth, and college graduates are a benefit to an industrial/post-industrial society not just a private benefit. Also, student loans are the product of the divesting of support from state governments for public education that prior generations benefitted from. Think of it as a scholarship for completing college rather than a forgiveness of loan. I don't have student loans--but it was federal and state policies that created the student loan mess and I'm all for having them help clean it up. It will benefit everyone--student loan holders and not.

Bless your heart. If I thought about it as a scholarship for finishing college, I would be wealthy. I finished a PhD with zero debt by working my A$$ off and I am not getting a scholarship for graduating college and grad school. I understood the impact of taking out $100k worth of loans on my future, even at 18.
Explain how it benefits me or my children? I have been saving for their college since before they have been born, not hoping for loan forgiveness. I have worked jobs I don't particularly liked, lived in a house that is less than dcum standards, and driven by many a starbucks to save a dollar so that they can have a college education. Again, how is giving away 10k when there is no other clean up of the college cost mess included benefiting anyone but the people before them? I don't understand the logic.

You are not directly benefitted by many of the ways society gives out tax breaks, credits, benefits etc. but you want to participate in that society. You are getting some benefits somewhere--most PhD programs are subsidized by master's and undergraduate programs to pay for RAships, TAships and their associated benefits such as tuition remission, health insurance credits, stipends. This is because society values having experts and recognizes that PhD programs represent a long investment that may not make financial sense. Government agencies allow that sort of distribution of costs to reflect that--but it's not particularly "fair" on any individual level.

In your savings for your kids, did you benefit from the tax break of a 529 plan? Those tend to privilege those who have a HHI of 100k or higher a year, which is far above the median. Why should all the those making 60k pay for your tax break? (Because whether we call it a credit, a break, forgiveness, etc. it's all coming from the same pot).

I'm sure since you have finished a PhD (as have I) you have had the good fortune of more intelligence than average--I trust you can be aware that not everyone had the same intellectual resources to work with. You likely (though not necessarily) have some family background that helps you (even if your parents didn't go to college, and didn't contribute financially to your undergraduate education, they likely had higher than average intelligence if they have a kid who completed a PhD) I think it is problematic that we have drifted into being a society that encourages families to believe that every kid--regardless of their aptitude--will do better if they go to college, and I have no problem with correcting that. I am glad that the student loan forgiveness is being built on an earlier initiative for far greater investment in community college which makes sense for more students. I see the loan forgiveness as an effort to help clean up some of the mess that the government contributed to around college costs/encouragement of 4 year college for all, and I want it followed up with continued investment in community college, greater support for trade education and on-the-job training, and significant public investment in excellent 4 year colleges rather than treating it primarily as an individual good that people purchase.

Thank you. There are so many ways people are benefiting from government handouts. They are mad about $10k in forgiveness but paid for their kids education with a 529 that they got a tax break for. Ugh make it make sense!!!

Wealthy people somehow dont see tax breaks as handouts. They can bemoan 10k a kid while ignoring how much they aren't paying on not only their 529s, but their IRAs and 401ks not to mention their mortgage deductions.

You get tax breaks for paying student loans in the same way you get a tax break for paying a mortgage dum dum. What you call for would be like a home owner not only being able to write off mortgage interest, but also getting a portion of their mortgage principal reduced. That's not the same like you are trying to equate. Jeez you are really obtuse and willfully ignore the fact that millions of student loan borrowers already get tax breaks for borrowing.

[Anonymous]

Anonymous wrote:I get it, it sucks when people get something for free that you worked for or did without. The maternity/ paternity leave at my work and my husband’s changed drastically since we had our first and we would have really enjoyed the extra 4-6 weeks with our baby.

It also sucks when people get off the hook for a decision they already made. Realistically, we’d have a better education system overall that made quality college affordable for all and not a caste system that rewards rich, privileged kids.

It also sucks that it’s forgiveness of student loans, not rent relief, subsidized daycare, free preschool, or forgiveness of medical debt. Especially medical debt because it’s hard to claim people made a choice or understood what the consequences would be.

However it’s a matter of practicality. I did not appreciate this until recently. Student loans are mostly held by the Dept of Ed - so there is one single payer to negotiate with and to handle the forgiveness. Additionally student loan debt overwhelmingly impacts women of color and a lot of people do have loan balances under $30k where $10 makes a big difference. It especially makes a big difference for people who dropped out after 1-2 semesters and don’t have any earning power to show for the debt. It is way too complicated to negotiate with dozens of health insurance companies and thousands of medical providers. It takes too long and costs a lot of administrative overhead to implement new federal programs and then they exists in perpetuity. A one time $10k forgiveness is actually less expensive for tax payers administratively, easiest to execute, and will make a significant impact to a population that needs help - women of color. The fact that it also helps middle class and UMC rich white kids is collateral damage.

$10k forgiveness is not the best solution. It’s a good enough bandage to a bigger, long term problem.

But that's precisely the points against it. People that would benefit the most from a $10k forgiveness typically have no problems paying the whole balance. The ones who are actually complaining and in real trouble are those with high five figure or six figure loans who can't make enough money to pay off the loans. To them, this $10k payment is inconsequential. It solves nothing. It's not even a bandage. The underlying problem is easy access to student loans backed by the government, resulting in excessively high tuition for degrees that do not provide sufficient economic value. The fix for this is to remove easy access to student loans backed by the government.

[Anonymous]

Anonymous wrote:

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.

It needs to be in high school BEFORE 18yo KIDS take out these loans. Because unfortunately a lot of times the parents are not all that financially literate either.

But still, the cost of college increases every year, outpacing increases in inflation, wages, etc. That needs to be addressed too, even state universities have gotten out of control.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I get it, it sucks when people get something for free that you worked for or did without. The maternity/ paternity leave at my work and my husband’s changed drastically since we had our first and we would have really enjoyed the extra 4-6 weeks with our baby.

It also sucks when people get off the hook for a decision they already made. Realistically, we’d have a better education system overall that made quality college affordable for all and not a caste system that rewards rich, privileged kids.

It also sucks that it’s forgiveness of student loans, not rent relief, subsidized daycare, free preschool, or forgiveness of medical debt. Especially medical debt because it’s hard to claim people made a choice or understood what the consequences would be.

However it’s a matter of practicality. I did not appreciate this until recently. Student loans are mostly held by the Dept of Ed - so there is one single payer to negotiate with and to handle the forgiveness. Additionally student loan debt overwhelmingly impacts women of color and a lot of people do have loan balances under $30k where $10 makes a big difference. It especially makes a big difference for people who dropped out after 1-2 semesters and don’t have any earning power to show for the debt. It is way too complicated to negotiate with dozens of health insurance companies and thousands of medical providers. It takes too long and costs a lot of administrative overhead to implement new federal programs and then they exists in perpetuity. A one time $10k forgiveness is actually less expensive for tax payers administratively, easiest to execute, and will make a significant impact to a population that needs help - women of color. The fact that it also helps middle class and UMC rich white kids is collateral damage.

$10k forgiveness is not the best solution. It’s a good enough bandage to a bigger, long term problem.

But that's precisely the points against it. People that would benefit the most from a $10k forgiveness typically have no problems paying the whole balance. The ones who are actually complaining and in real trouble are those with high five figure or six figure loans who can't make enough money to pay off the loans. To them, this $10k payment is inconsequential. It solves nothing. It's not even a bandage. The underlying problem is easy access to student loans backed by the government, resulting in excessively high tuition for degrees that do not provide sufficient economic value. The fix for this is to remove easy access to student loans backed by the government.

Do you really think congress is capable of a comprehensive solution? Any legislation would require votes from both parties in the Senate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I get it, it sucks when people get something for free that you worked for or did without. The maternity/ paternity leave at my work and my husband’s changed drastically since we had our first and we would have really enjoyed the extra 4-6 weeks with our baby.

It also sucks when people get off the hook for a decision they already made. Realistically, we’d have a better education system overall that made quality college affordable for all and not a caste system that rewards rich, privileged kids.

It also sucks that it’s forgiveness of student loans, not rent relief, subsidized daycare, free preschool, or forgiveness of medical debt. Especially medical debt because it’s hard to claim people made a choice or understood what the consequences would be.

However it’s a matter of practicality. I did not appreciate this until recently. Student loans are mostly held by the Dept of Ed - so there is one single payer to negotiate with and to handle the forgiveness. Additionally student loan debt overwhelmingly impacts women of color and a lot of people do have loan balances under $30k where $10 makes a big difference. It especially makes a big difference for people who dropped out after 1-2 semesters and don’t have any earning power to show for the debt. It is way too complicated to negotiate with dozens of health insurance companies and thousands of medical providers. It takes too long and costs a lot of administrative overhead to implement new federal programs and then they exists in perpetuity. A one time $10k forgiveness is actually less expensive for tax payers administratively, easiest to execute, and will make a significant impact to a population that needs help - women of color. The fact that it also helps middle class and UMC rich white kids is collateral damage.

$10k forgiveness is not the best solution. It’s a good enough bandage to a bigger, long term problem.

But that's precisely the points against it. People that would benefit the most from a $10k forgiveness typically have no problems paying the whole balance. The ones who are actually complaining and in real trouble are those with high five figure or six figure loans who can't make enough money to pay off the loans. To them, this $10k payment is inconsequential. It solves nothing. It's not even a bandage. The underlying problem is easy access to student loans backed by the government, resulting in excessively high tuition for degrees that do not provide sufficient economic value. The fix for this is to remove easy access to student loans backed by the government.

So then families take out private loans instead?? I guess over time universities would find a way to reduce costs but it’s not going to happen immediately.

[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.

I am a Democrat who disagrees with this but it’s not something I would go vote for anti-American traitors over. The Republican Party is evil.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get it, it sucks when people get something for free that you worked for or did without. The maternity/ paternity leave at my work and my husband’s changed drastically since we had our first and we would have really enjoyed the extra 4-6 weeks with our baby.

It also sucks when people get off the hook for a decision they already made. Realistically, we’d have a better education system overall that made quality college affordable for all and not a caste system that rewards rich, privileged kids.

It also sucks that it’s forgiveness of student loans, not rent relief, subsidized daycare, free preschool, or forgiveness of medical debt. Especially medical debt because it’s hard to claim people made a choice or understood what the consequences would be.

However it’s a matter of practicality. I did not appreciate this until recently. Student loans are mostly held by the Dept of Ed - so there is one single payer to negotiate with and to handle the forgiveness. Additionally student loan debt overwhelmingly impacts women of color and a lot of people do have loan balances under $30k where $10 makes a big difference. It especially makes a big difference for people who dropped out after 1-2 semesters and don’t have any earning power to show for the debt. It is way too complicated to negotiate with dozens of health insurance companies and thousands of medical providers. It takes too long and costs a lot of administrative overhead to implement new federal programs and then they exists in perpetuity. A one time $10k forgiveness is actually less expensive for tax payers administratively, easiest to execute, and will make a significant impact to a population that needs help - women of color. The fact that it also helps middle class and UMC rich white kids is collateral damage.

$10k forgiveness is not the best solution. It’s a good enough bandage to a bigger, long term problem.

But that's precisely the points against it. People that would benefit the most from a $10k forgiveness typically have no problems paying the whole balance. The ones who are actually complaining and in real trouble are those with high five figure or six figure loans who can't make enough money to pay off the loans. To them, this $10k payment is inconsequential. It solves nothing. It's not even a bandage. The underlying problem is easy access to student loans backed by the government, resulting in excessively high tuition for degrees that do not provide sufficient economic value. The fix for this is to remove easy access to student loans backed by the government.

Do you really think congress is capable of a comprehensive solution? Any legislation would require votes from both parties in the Senate.

That may be, but it's no justification to waste money on something that doesn't contribute to solving the problem. In fact, this may worsen the problem: the schools will now know they can increase their tuition by $10k for a 4-year degree.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

For me, canceling $10k of my debt would have halved my monthly payment. I’m one of the teachers who got screwed over under the last administration. I was supposed to have my debt entirely forgiven.

Why is your student loan my responsibility to pay off?

Because the ballooning of federal student loans was a product of ill-guided federal policy (under both Dems and Republicans), student loan debt is hindering US economic growth, and college graduates are a benefit to an industrial/post-industrial society not just a private benefit. Also, student loans are the product of the divesting of support from state governments for public education that prior generations benefitted from. Think of it as a scholarship for completing college rather than a forgiveness of loan. I don't have student loans--but it was federal and state policies that created the student loan mess and I'm all for having them help clean it up. It will benefit everyone--student loan holders and not.

Bless your heart. If I thought about it as a scholarship for finishing college, I would be wealthy. I finished a PhD with zero debt by working my A$$ off and I am not getting a scholarship for graduating college and grad school. I understood the impact of taking out $100k worth of loans on my future, even at 18.
Explain how it benefits me or my children? I have been saving for their college since before they have been born, not hoping for loan forgiveness. I have worked jobs I don't particularly liked, lived in a house that is less than dcum standards, and driven by many a starbucks to save a dollar so that they can have a college education. Again, how is giving away 10k when there is no other clean up of the college cost mess included benefiting anyone but the people before them? I don't understand the logic.

You are not directly benefitted by many of the ways society gives out tax breaks, credits, benefits etc. but you want to participate in that society. You are getting some benefits somewhere--most PhD programs are subsidized by master's and undergraduate programs to pay for RAships, TAships and their associated benefits such as tuition remission, health insurance credits, stipends. This is because society values having experts and recognizes that PhD programs represent a long investment that may not make financial sense. Government agencies allow that sort of distribution of costs to reflect that--but it's not particularly "fair" on any individual level.

In your savings for your kids, did you benefit from the tax break of a 529 plan? Those tend to privilege those who have a HHI of 100k or higher a year, which is far above the median. Why should all the those making 60k pay for your tax break? (Because whether we call it a credit, a break, forgiveness, etc. it's all coming from the same pot).

I'm sure since you have finished a PhD (as have I) you have had the good fortune of more intelligence than average--I trust you can be aware that not everyone had the same intellectual resources to work with. You likely (though not necessarily) have some family background that helps you (even if your parents didn't go to college, and didn't contribute financially to your undergraduate education, they likely had higher than average intelligence if they have a kid who completed a PhD) I think it is problematic that we have drifted into being a society that encourages families to believe that every kid--regardless of their aptitude--will do better if they go to college, and I have no problem with correcting that. I am glad that the student loan forgiveness is being built on an earlier initiative for far greater investment in community college which makes sense for more students. I see the loan forgiveness as an effort to help clean up some of the mess that the government contributed to around college costs/encouragement of 4 year college for all, and I want it followed up with continued investment in community college, greater support for trade education and on-the-job training, and significant public investment in excellent 4 year colleges rather than treating it primarily as an individual good that people purchase.

Thank you. There are so many ways people are benefiting from government handouts. They are mad about $10k in forgiveness but paid for their kids education with a 529 that they got a tax break for. Ugh make it make sense!!!

Getting a tax break is not the same thing as getting paid. In the former, you are just paying less into something, in the later, you are getting money that you never earned in the first place. It's the difference between carrying a bit less of the burden, and becoming a burden to be carried by others.

Are you the kind of person who doesn't believe tax cuts contribute to the deficit?

Don't be dense, of course tax cuts contribute to the deficit. Deficit = Expenses - Tax Revenue. Therefore, expenses also contribute to the deficit. But note that getting $10k loan forgiveness is being a part of the "Expense" side of the equation, which is different from getting a tax break, which is still on the "Tax Revenue" side. Again, these are not the same thing, or even the same in nature.

The term for spending via tax breaks is “expenditure.”

The Congressional Joint Committee on Taxation tracks them.

The biggest ones involve health insurance.