any cons in suspended student loans debt?

[Anonymous]

It is a regressive policy.

If ya'll want free college move to Florida. We have Bright Futures that covers college for our young students in Florida.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about a middle ground. Pay back your loans but make it interest free. People should pay back what they take out, not pay back three times what they take out even when faithfully making monthly payments.

What happens to the bond funds holding these student loan asset backed securities? A lot of retirement funds hold these securities.

And what happens to the next group of students who wants to take out a loan but no one will lend to them because there’s no profit incentive to take that risk?

Dp- well hopefully the next group will have fewer students.
College isn’t for everyone. We need to shift back to trade schools and industry trained workforces.
Also: maybe colleges wouldn’t be able to demand so much for tuition. The price of college has skyrocketed because of all the free money.

Well, I think we have our answer then.

Set all existing and future loans at 0% interest active immediately.
The current generation of borrowers will have relief and light at the end of the tunnel.

The next generation will be spared the crisis, as lenders won't be so predatory to unsuspecting 18-year-olds, and in turn colleges will be forced to lower their tuitions. Meanwhile, more students will learn from the crisis of their older brothers and sisters and consider other options unlike what parents in the 1990s did, which is say that college was everything and that if you didn't go to college, your career would be at McDonalds.

I'll also add in the mix that financial literacy must be taught in schools! I hate the argument that it's parents' responsibility. In a perfect world, sure, every parent will be able to inform their children about saving, balancing a budget, loans, and investing. But why perpetuate class structure and poverty? If a child's parents happen to lack financial skills, why should the child inherit the disadvantage with respect to her peers? Financial education from an early age would level the playing field and be a great equalizer for a true meritocracy.

A note about financial literacy. If you fix the student loan rates at 0%, a bank is not going to offer student loans. They have no possibility of offsetting riskier loans that may default. It's a losing proposition for them in the aggregate.

Dp- that would be a good thing in the long run. Too much free money sloshing around has over inflated the cost of higher ed

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about a middle ground. Pay back your loans but make it interest free. People should pay back what they take out, not pay back three times what they take out even when faithfully making monthly payments.

What happens to the bond funds holding these student loan asset backed securities? A lot of retirement funds hold these securities.

And what happens to the next group of students who wants to take out a loan but no one will lend to them because there’s no profit incentive to take that risk?

Dp- well hopefully the next group will have fewer students.
College isn’t for everyone. We need to shift back to trade schools and industry trained workforces.
Also: maybe colleges wouldn’t be able to demand so much for tuition. The price of college has skyrocketed because of all the free money.

Well, I think we have our answer then.

Set all existing and future loans at 0% interest active immediately.
The current generation of borrowers will have relief and light at the end of the tunnel.

The next generation will be spared the crisis, as lenders won't be so predatory to unsuspecting 18-year-olds, and in turn colleges will be forced to lower their tuitions. Meanwhile, more students will learn from the crisis of their older brothers and sisters and consider other options unlike what parents in the 1990s did, which is say that college was everything and that if you didn't go to college, your career would be at McDonalds.

I'll also add in the mix that financial literacy must be taught in schools! I hate the argument that it's parents' responsibility. In a perfect world, sure, every parent will be able to inform their children about saving, balancing a budget, loans, and investing. But why perpetuate class structure and poverty? If a child's parents happen to lack financial skills, why should the child inherit the disadvantage with respect to her peers? Financial education from an early age would level the playing field and be a great equalizer for a true meritocracy.

A note about financial literacy. If you fix the student loan rates at 0%, a bank is not going to offer student loans. They have no possibility of offsetting riskier loans that may default. It's a losing proposition for them in the aggregate.

Dp- that would be a good thing in the long run. Too much free money sloshing around has over inflated the cost of higher ed

Don't worry. The government would step in and mandate that banks must issue some number of loans. And with today's inflation, a 0% loan has a negative real interest rate. That means you should take a loan even if you don't need one. Any investment would repay the loan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A few things would help the situation now and in the future. Immediately. All interest rates need to be lowered to a manageable level. One of my friends has a 20% interest rate. If that was lowered to even five or 8% that would be helpful. I got mine repaid back when they were all 2%.
Next we need to put a cap on college fees and the amount that can be borrowed. Say no more than 10% over an annual tuition cost at that specific college. I have a friend who took out thousands more each semester and now is struggling to pay it back because she didn't understand what she was doing at the time.
Which brings me to third. There needs to be financial education in all high schools and the first year of college talking about interest rates and exactly how to pay back college loans and refinancing options.

This became a "crisis" during Obama's term when the federal government took over student loans.
https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/

Prior to this horrible legislation, the interest rates on loans were much more competitive.
So, you can thank Obama.

Competitive- you mean you could get denied.

[Anonymous]

Anonymous wrote:It is a regressive policy.

If ya'll want free college move to Florida. We have Bright Futures that covers college for our young students in Florida.

Right because when you are 16 you get to choose where you live.

I lived in FL in 10th grade (also birth-5th grade). I know all about Bright Futures. I would have met the qualifications but my parents divorced and I moved to MD. 3 of my good friends received the scholarships and went on to nursing school at FSU.

This is not helpful to the discussion unless you think it should be a national program and if yes, then I would have met the qualifications on the national stage. I hope you vote for someone who makes college free for all who meet the same qualifications as Bright Futures.

[Anonymous]

Anonymous wrote:Cry harder, cons. It's happening - deal with it.

I’m the PP who mentioned profit incentives above, and I’m a liberal Democrat. I don’t think this is going to happen, nor do I want it to happen.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things would help the situation now and in the future. Immediately. All interest rates need to be lowered to a manageable level. One of my friends has a 20% interest rate. If that was lowered to even five or 8% that would be helpful. I got mine repaid back when they were all 2%.
Next we need to put a cap on college fees and the amount that can be borrowed. Say no more than 10% over an annual tuition cost at that specific college. I have a friend who took out thousands more each semester and now is struggling to pay it back because she didn't understand what she was doing at the time.
Which brings me to third. There needs to be financial education in all high schools and the first year of college talking about interest rates and exactly how to pay back college loans and refinancing options.

This became a "crisis" during Obama's term when the federal government took over student loans.
https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/

Prior to this horrible legislation, the interest rates on loans were much more competitive.
So, you can thank Obama.

Competitive- you mean you could get denied.

Competitive with what? The loans I took out under the Bush years were 8.5%, for what was basically a risk free investment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things would help the situation now and in the future. Immediately. All interest rates need to be lowered to a manageable level. One of my friends has a 20% interest rate. If that was lowered to even five or 8% that would be helpful. I got mine repaid back when they were all 2%.
Next we need to put a cap on college fees and the amount that can be borrowed. Say no more than 10% over an annual tuition cost at that specific college. I have a friend who took out thousands more each semester and now is struggling to pay it back because she didn't understand what she was doing at the time.
Which brings me to third. There needs to be financial education in all high schools and the first year of college talking about interest rates and exactly how to pay back college loans and refinancing options.

This became a "crisis" during Obama's term when the federal government took over student loans.
https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/

Prior to this horrible legislation, the interest rates on loans were much more competitive.
So, you can thank Obama.

Competitive- you mean you could get denied.

Perhaps. And, maybe some should have.
But, the interest rates were very low. Like 2%-4%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things would help the situation now and in the future. Immediately. All interest rates need to be lowered to a manageable level. One of my friends has a 20% interest rate. If that was lowered to even five or 8% that would be helpful. I got mine repaid back when they were all 2%.
Next we need to put a cap on college fees and the amount that can be borrowed. Say no more than 10% over an annual tuition cost at that specific college. I have a friend who took out thousands more each semester and now is struggling to pay it back because she didn't understand what she was doing at the time.
Which brings me to third. There needs to be financial education in all high schools and the first year of college talking about interest rates and exactly how to pay back college loans and refinancing options.

This became a "crisis" during Obama's term when the federal government took over student loans.
https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/

Prior to this horrible legislation, the interest rates on loans were much more competitive.
So, you can thank Obama.

Competitive- you mean you could get denied.

Competitive with what? The loans I took out under the Bush years were 8.5%, for what was basically a risk free investment.

So did we. Our loans started at around 4.5% and after 2 years of on-time payments went down to around 2.5%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Student debt relief is highly regressive as higher income families are more likely to borrow and to borrow more than lower income families.

Why not use those funds to subsidize the education or debts of lower income households? Why do I need to subsidize your bad decision making when this same $ could go to those who truly need it?

This is just latte liberal policies.

I have yet to see a progressive address this point.

Progressives routinely use the language of injustice and equity to further their own personal self-interests.

“Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.” ― C. S. Lewis

Wow, is that on point. Bravo.

C S Lewis was a time traveler. Had to be.

[Anonymous]

Anonymous wrote:I’ve been a Dem for 34 years. This loan forgiveness issue is what is starting to make me a one issue voter for the first time (like abortion for some). If a candidate says their goal is to forgive student loans, I’m voting for (and likely campaigning for) the other candidate.

You took on the loan. Pay it back.

That’s noble of you, and I respect that.

But for every one of “you” in your party, there are a hundred or more who want default+forgiveness for loans.

You’re fighting an Alamo.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A few things would help the situation now and in the future. Immediately. All interest rates need to be lowered to a manageable level. One of my friends has a 20% interest rate. If that was lowered to even five or 8% that would be helpful. I got mine repaid back when they were all 2%.
Next we need to put a cap on college fees and the amount that can be borrowed. Say no more than 10% over an annual tuition cost at that specific college. I have a friend who took out thousands more each semester and now is struggling to pay it back because she didn't understand what she was doing at the time.
Which brings me to third. There needs to be financial education in all high schools and the first year of college talking about interest rates and exactly how to pay back college loans and refinancing options.

This became a "crisis" during Obama's term when the federal government took over student loans.
https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/

Prior to this horrible legislation, the interest rates on loans were much more competitive.
So, you can thank Obama.

Competitive- you mean you could get denied.

Perhaps. And, maybe some should have.
But, the interest rates were very low. Like 2%-4%.

No they weren't. https://www.savingforcollege.com/article/historical-federal-student-interest-rates-and-fees

[Anonymous]

Anonymous wrote:A few things would help the situation now and in the future. Immediately. All interest rates need to be lowered to a manageable level. One of my friends has a 20% interest rate. If that was lowered to even five or 8% that would be helpful. I got mine repaid back when they were all 2%.
Next we need to put a cap on college fees and the amount that can be borrowed. Say no more than 10% over an annual tuition cost at that specific college. I have a friend who took out thousands more each semester and now is struggling to pay it back because she didn't understand what she was doing at the time.
Which brings me to third. There needs to be financial education in all high schools and the first year of college talking about interest rates and exactly how to pay back college loans and refinancing options.

And that was in the information that they received BEFORE they took out the loan. They were aware at the time they took the student loan that it would balloon and they still chose to take the loan.

Sorry, but if you don't want to pay the interest, take a different loan or don't take the loan in the first place.

But, once you accept the loan, you accept the terms and you don't get to change the terms because you've already got the degree but you don't want to pay the loans and interest that you took to get it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It is a regressive policy.

If ya'll want free college move to Florida. We have Bright Futures that covers college for our young students in Florida.

Right because when you are 16 you get to choose where you live.

I lived in FL in 10th grade (also birth-5th grade). I know all about Bright Futures. I would have met the qualifications but my parents divorced and I moved to MD. 3 of my good friends received the scholarships and went on to nursing school at FSU.

This is not helpful to the discussion unless you think it should be a national program and if yes, then I would have met the qualifications on the national stage. I hope you vote for someone who makes college free for all who meet the same qualifications as Bright Futures.

You didn't have to go to school immediately. I knew a family like yours, except that they moved because the father's job moved (not due to divorce). The son moved back to Florida after he graduated high school and he took a job working in an office for a year. Then he applied the following year under Bright Futures. You have 2 years after you graduate from HS to apply for Bright Futures.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It is a regressive policy.

If ya'll want free college move to Florida. We have Bright Futures that covers college for our young students in Florida.

Right because when you are 16 you get to choose where you live.

I lived in FL in 10th grade (also birth-5th grade). I know all about Bright Futures. I would have met the qualifications but my parents divorced and I moved to MD. 3 of my good friends received the scholarships and went on to nursing school at FSU.

This is not helpful to the discussion unless you think it should be a national program and if yes, then I would have met the qualifications on the national stage. I hope you vote for someone who makes college free for all who meet the same qualifications as Bright Futures.

You didn't have to go to school immediately. I knew a family like yours, except that they moved because the father's job moved (not due to divorce). The son moved back to Florida after he graduated high school and he took a job working in an office for a year. Then he applied the following year under Bright Futures. You have 2 years after you graduate from HS to apply for Bright Futures.

I’m going to state the obvious here. If you are 18 and can manage to get an office job that allows you to support yourself, why even bother going to college.

Also, what was he doing? When I was “working my way through school” 20 years ago, $10/hr was a great wage. Wages have only gone up recently.