Why is Biden extending the student loan repayment pause?

[Anonymous]

Whooohoo! Maybe he'll pay off my mortgage next! Debt jubilee for all!

S/

[Anonymous]

Anonymous wrote:“Forgiveness” is simply a euphemism for redistribution.

He is redistributing the payment of these loans to people who never went to college and to people who were responsible and paid off their loans.

It is wrong.

So you want to change the tax rates and laws that favor businesses and billionaires? That’s real redistribution, and none of you concerned chads care about it. You just hate Democrats and hate the idea of Democrats following through on their campaign promises.

[Anonymous]

Anonymous wrote:I hope Biden does it so we can watch the collective Boomer meltdown:

"I paid for Dartmouth by life guarding every summer! Why can't you afford $120K for a state university for 4 years?!?! Pay your loans!!!!"

Good point. It needs to be clawed back from the big education gougers.

[Anonymous]

Pp your comment about boomers missss the larger issue. Before federal loans were so available, the cost to go was less. More federal loans and grants has only increased the cost for everyone because the new “zero” assumes you have gotten the loans. There shouldn’t be any more loans or forgiveness available until colleges and universities are forced to tighten their belts. If that doesn’t happen, all that will happen is tuition will continue to ride because the faucet if federal money will just keep flowing. College has been experiencing outpaced inflation for Decades because of the flow of federa money. We are now seeing the same issue across the economy broadly and we are upset. But the same economic forces (federal cash) have resulted in skyrocketing tuition. It wasn’t the intent but it is the outcome. And it needs to be stopped before any more money flows.

[Anonymous]

Anonymous wrote:Pp your comment about boomers missss the larger issue. Before federal loans were so available, the cost to go was less. More federal loans and grants has only increased the cost for everyone because the new “zero” assumes you have gotten the loans. There shouldn’t be any more loans or forgiveness available until colleges and universities are forced to tighten their belts. If that doesn’t happen, all that will happen is tuition will continue to ride because the faucet if federal money will just keep flowing. College has been experiencing outpaced inflation for Decades because of the flow of federa money. We are now seeing the same issue across the economy broadly and we are upset. But the same economic forces (federal cash) have resulted in skyrocketing tuition. It wasn’t the intent but it is the outcome. And it needs to be stopped before any more money flows.

I agree that colleges should be held responsible and tighten their belts. But that would require a bipartisan solution and the GOP isn't playing ball on anything, since they are in the pocket of scam for-profit colleges and behemoth student loan churners like Liberty University.

The solution would be requiring colleges to hold risk retention on 10% of the loans they originate so that students, colleges, and the US taxpayers have aligned incentives. Then make a requirement that participation in federal student loans requires a freeze on tuition and fees for 5 years, after which cost may increase in line with inflation.

The 5 years of budget tightening will drastically downsize the mid-level administrators, plus the bloated salaries for university presidents and major sports coaches.

[Anonymous]

But until their is bipartisan reform legislation, Biden should just forgive everything and start from scratch.

I think people don't realize the degree to which white Republican working class families use student loans for places like Liberty and online universities. Forgiveness will be a massive help to them.

[Anonymous]

The idea that the taxpayers are rewarding the dumbest among us is so insanely idiotic.

[Anonymous]

Anonymous wrote:The idea that the taxpayers are rewarding the dumbest among us is so insanely idiotic.

The taxation is inflation. And pretty soon grandma is going to be eating dog food thanks to Biden.

[Anonymous]

Anonymous wrote:But until their is bipartisan reform legislation, Biden should just forgive everything and start from scratch.

I think people don't realize the degree to which white Republican working class families use student loans for places like Liberty and online universities. Forgiveness will be a massive help to them.

Good point. I remember reading that Liberty received the largest amount of school loan money. I live in ROVA so my kids knew people who went to Liberty. They have a bait and switch routine where they give a student a full tuition scholarship and then don’t renew it the following years.

I’d be happy with forgiveness. We bailed out Wall Street. Let people in their 20s buy houses so they don’t end up as a generation of renters. Home ownership triggers big ticket purchases such as appliances and new cars. The economy would benefit. See the effect of the VA loans after WWII.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The idea that the taxpayers are rewarding the dumbest among us is so insanely idiotic.

The taxation is inflation. And pretty soon grandma is going to be eating dog food thanks to Biden.

One more inflationary move by Biden. All that money instead of paying back loans is going into consuming the dwindling supplies of stuff. More money less stuff.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pp your comment about boomers missss the larger issue. Before federal loans were so available, the cost to go was less. More federal loans and grants has only increased the cost for everyone because the new “zero” assumes you have gotten the loans. There shouldn’t be any more loans or forgiveness available until colleges and universities are forced to tighten their belts. If that doesn’t happen, all that will happen is tuition will continue to ride because the faucet if federal money will just keep flowing. College has been experiencing outpaced inflation for Decades because of the flow of federa money. We are now seeing the same issue across the economy broadly and we are upset. But the same economic forces (federal cash) have resulted in skyrocketing tuition. It wasn’t the intent but it is the outcome. And it needs to be stopped before any more money flows.

I agree that colleges should be held responsible and tighten their belts. But that would require a bipartisan solution and the GOP isn't playing ball on anything, since they are in the pocket of scam for-profit colleges and behemoth student loan churners like Liberty University.

The solution would be requiring colleges to hold risk retention on 10% of the loans they originate so that students, colleges, and the US taxpayers have aligned incentives. Then make a requirement that participation in federal student loans requires a freeze on tuition and fees for 5 years, after which cost may increase in line with inflation.

The 5 years of budget tightening will drastically downsize the mid-level administrators, plus the bloated salaries for university presidents and major sports coaches.

Colleges are already rewarded or dinged on their cohort default rate. I’d argue that should be more severe.

[Anonymous]

Even directional state universities at which a lot of students live at home are very expensive.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pp your comment about boomers missss the larger issue. Before federal loans were so available, the cost to go was less. More federal loans and grants has only increased the cost for everyone because the new “zero” assumes you have gotten the loans. There shouldn’t be any more loans or forgiveness available until colleges and universities are forced to tighten their belts. If that doesn’t happen, all that will happen is tuition will continue to ride because the faucet if federal money will just keep flowing. College has been experiencing outpaced inflation for Decades because of the flow of federa money. We are now seeing the same issue across the economy broadly and we are upset. But the same economic forces (federal cash) have resulted in skyrocketing tuition. It wasn’t the intent but it is the outcome. And it needs to be stopped before any more money flows.

I agree that colleges should be held responsible and tighten their belts. But that would require a bipartisan solution and the GOP isn't playing ball on anything, since they are in the pocket of scam for-profit colleges and behemoth student loan churners like Liberty University.

The solution would be requiring colleges to hold risk retention on 10% of the loans they originate so that students, colleges, and the US taxpayers have aligned incentives. Then make a requirement that participation in federal student loans requires a freeze on tuition and fees for 5 years, after which cost may increase in line with inflation.

The 5 years of budget tightening will drastically downsize the mid-level administrators, plus the bloated salaries for university presidents and major sports coaches.

Colleges are already rewarded or dinged on their cohort default rate. I’d argue that should be more severe.

This is a much more palatable solution.

[Anonymous]

"The solution would be requiring colleges to hold risk retention on 10% of the loans they originate so that students, colleges, and the US taxpayers have aligned incentives. Then make a requirement that participation in federal student loans requires a freeze on tuition and fees for 5 years, after which cost may increase in line with inflation.

The 5 years of budget tightening will drastically downsize the mid-level administrators, plus the bloated salaries for university presidents and major sports"


This is a much more palatable solution.

[Anonymous]

I don't see him doing a $1.6 trillion jubilee. I assume it'll be $10k for all federal borrowers under X household income. But jeez, $10k really isn't much these days with what real estate has done in 28 months, but better late than ever, I guess? Feel sorry for anyone under age 40, it's just been one set back after another since they were in college. The president finally gives you some student loan relief... but a basic starter house costs literally $100k more than it did a year ago!