Have plenty in 529, but still taking out loans

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I was up late watching TV and eating cookies and saw a commercial for credit card forgiveness so i am going shopping today in hopes some........

We already have that for credit cards. It’s commonly known as bankruptcy.

Yeah, my extended family has figured out how to do this. Chapter 13 bankruptcy. Run up the bills, claim bankrupty, wait 7 years and do it all over again.

Sure they did. My point was that you cannot discharge any federal student loans in bankruptcy. You only can with private loans if you’re basically incapacitated.

I was responding to the post about credit card forgivness. It's called bankruptcy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If Biden forgives loans, I'd not vote for him or Dems in 2024. You borrowed with a promise to pay it back! What's wrong with you people?

I am against rampant loan repayment (though would support some kind of "in kind" repayment, be it as a trade for government service or limiting it to those who suffered from documented predatory lending.) And let those for-profit colleges, many of which ripped off veterans, kick in most of the costs as part of their legal remedies. Like Trump College. ...

We already have that through the Public Service Forgiveness Program, instituted in October 2007. It's been modified this past year to allow a lot of borrowers to receive forgiveness - those who weren't on the "correct" payment plan but worked in public service and paid on the regular. I had federal loans that were finally forgiven, and the amount that was forgiven was more than the original loans, more than 14 years later. I also received a refund for overpayments in the amount of $15K because I hit the 10-year public service mark a few years ago. Parental loans don't qualify for that program, I don't think.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I was up late watching TV and eating cookies and saw a commercial for credit card forgiveness so i am going shopping today in hopes some........

We already have that for credit cards. It’s commonly known as bankruptcy.

Yeah, my extended family has figured out how to do this. Chapter 13 bankruptcy. Run up the bills, claim bankrupty, wait 7 years and do it all over again.

Sure they did. My point was that you cannot discharge any federal student loans in bankruptcy. You only can with private loans if you’re basically incapacitated.

I was responding to the post about credit card forgivness. It's called bankruptcy.

Yeah, I’m aware. So was I.

[Anonymous]

OP was pointing out the moral hazzard of the loan forgiveness approach. It really makes no sense as policy. Estimated cost of the Schumer/Warren approach are $1T. If we want to spend $1T on benefitting US society, this is not remotely how you would do it. Why not give it out in a means-tested way to low income people (or through expanded child tax credit)? Compared to that- student loan forgiveness a) is worse at targeting those with greater need, b) is less stimulatory to the economy, c) has less humanitarian benefit of decreasing child poverty and the long-term gains associated with that, d) creates greater moral hazzards and e) would contribute to price distortions driving up tuition costs. Any change from just giving money should be to target a particular societal benefit, and student loan forgiveness performs worse in every way than just giving money.

[Anonymous]

People like you all make me lose hope for humanity. if we always assume people will act in the most greedy and selfish way, that's what we'll get.

I'm all in favor of loan forgiveness (and think Warren is fantastic) but it's a plan to rectify the past, not a plan for going into the future. The future goal is free college at public institutions. (while of course it remains competitive to get in.)

[Anonymous]

Anonymous wrote:People like you all make me lose hope for humanity. if we always assume people will act in the most greedy and selfish way, that's what we'll get.

I'm all in favor of loan forgiveness (and think Warren is fantastic) but it's a plan to rectify the past, not a plan for going into the future. The future goal is free college at public institutions. (while of course it remains competitive to get in.)

But that is exactly the flaw in most liberal tax-and-spend welfare policies -- Liberals don't take into account the fact that most people "will act in the most greedy and selfish way". It's called human nature.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We saved heavily for our DDs college and have about $250K in the oldest and $210K in the youngest. We should have enough to pay full freight for any school they get into.

However, since it looks like student loan forgiveness is going to happen, I’m inclined to change our plan and have them take out at least some level of loans just in case the next Democratic president decides to do another loan forgiveness right before an election. It looks like the interest will be subsidized while they are school and we can use the 529 funds for grandchildren or even take it out and pay a penalty.

Is anyone else thinking this way?

You think you are a genius, but you are so sleazy.

Why the HELL should my tax dollars pay for your kid's tuition, when you have plenty of money to pay for it yourself?

Most people with college loans never even finished college. They have a slim chance of being able to repay AND secure their own financial footing.

People like you are sickening, and are likely the same ones who complain about government handouts.

By the same token, why should my taxes go to pay for your kid's tuition, when he's 4 years out of school and has a job?

[Anonymous]

Anonymous wrote:OP was pointing out the moral hazzard of the loan forgiveness approach. It really makes no sense as policy. Estimated cost of the Schumer/Warren approach are $1T. If we want to spend $1T on benefitting US society, this is not remotely how you would do it. Why not give it out in a means-tested way to low income people (or through expanded child tax credit)? Compared to that- student loan forgiveness a) is worse at targeting those with greater need, b) is less stimulatory to the economy, c) has less humanitarian benefit of decreasing child poverty and the long-term gains associated with that, d) creates greater moral hazzards and e) would contribute to price distortions driving up tuition costs. Any change from just giving money should be to target a particular societal benefit, and student loan forgiveness performs worse in every way than just giving money.

This, this, a thousand times this. And if you don't like an expanded child tax credit, there are scores of other ways to benefit American society with that $1T+ than student loan forgiveness.

How about paying off ever car loan for someone making less than 3 times the poverty limit? Or paying a rental/mortgage subsidy to those same people?

- A liberal democrat (which is increasingly distinct from a progressive).

[Anonymous]

Anonymous wrote:

Anonymous wrote:We saved heavily for our DDs college and have about $250K in the oldest and $210K in the youngest. We should have enough to pay full freight for any school they get into.

However, since it looks like student loan forgiveness is going to happen, I’m inclined to change our plan and have them take out at least some level of loans just in case the next Democratic president decides to do another loan forgiveness right before an election. It looks like the interest will be subsidized while they are school and we can use the 529 funds for grandchildren or even take it out and pay a penalty.

Is anyone else thinking this way?

You think you are a genius, but you are so sleazy.

Why the HELL should my tax dollars pay for your kid's tuition, when you have plenty of money to pay for it yourself?

Most people with college loans never even finished college. They have a slim chance of being able to repay AND secure their own financial footing.

People like you are sickening, and are likely the same ones who complain about government handouts.

I am 99% sure the bolded is complete and utter nonsense, but I'm willing to look at any support you might muster for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I was up late watching TV and eating cookies and saw a commercial for credit card forgiveness so i am going shopping today in hopes some........

We already have that for credit cards. It’s commonly known as bankruptcy.

Yeah, my extended family has figured out how to do this. Chapter 13 bankruptcy. Run up the bills, claim bankrupty, wait 7 years and do it all over again.

Sure they did. My point was that you cannot discharge any federal student loans in bankruptcy. You only can with private loans if you’re basically incapacitated.

I was responding to the post about credit card forgivness. It's called bankruptcy.

Yeah, I’m aware. So was I.

and neither of you noticed the original post about it was a joke

[Anonymous]

The ignorance about financial aid is astounding.

EVERYONE, regardless of family income, is eligible for an unsubsidized federal Stafford loan.

https://studentaid.gov/understand-aid/eligibility/requirements

Basic Eligibility Criteria

Our basic eligibility requirements are that you must

demonstrate financial need (for most programs);

be a U.S. citizen or an eligible noncitizen;

have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau);

be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program;

be enrolled at least half-time to be eligible for Direct Loan Program funds;

maintain satisfactory academic progress in college or career school;

sign the certification statement on the Free Application for Federal Student Aid(FAFSA®) form stating that
you are not in default on a federal student loan,
you do not owe money on a federal student grant, and
you will use federal student aid only for educational purposes; and

show you’re qualified to obtain a college or career school education by
having a high school diploma or a recognized equivalent such as a General Educational Development (GED) certificate;
completing a high school education in a homeschool setting approved under state law (or—if state law does not require a homeschooled student to obtain a completion credential—completing a high school education in a homeschool setting that qualifies as an exemption from compulsory attendance requirements under state law); or enrolling in an eligible career pathway program and meeting one of the "ability-to-benefit" alternatives described below.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We did the same thing. We have 300K for each kid saved but we are having them take out max student loans because of the democratic idiots running the country (sorry to offend any libs). For example, in a period of record unemployment and huge wage growth and massive inflation, we have a payment freeze on loans. LOL, how stupid is that- lets flood people with more money to buy things that supply chains cant provide.

As someone who put themselves through school with loans and jobs, I am just stunned at this wiping out of debt. Where was this when I was a recent grad? Oh yeah, back then, we paid back what we borrowed in good faith.

So yes, we are also on the student loan gravy train. We told our kids we would pay them off at graduation if they graduated with a 3.5 or higher (gives them a little motivation not to have too much fun) but you arent paying attention if you arent taking out loans that could well be forgiven and have zero payments or interest during the school years.

How much was tuition when you went to college, granny? $600 a pop?

It was $25k/year without living expenses. I took the max in loans, some scholarships, and got this crazy thing called a J-O-B to pay for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We did the same thing. We have 300K for each kid saved but we are having them take out max student loans because of the democratic idiots running the country (sorry to offend any libs). For example, in a period of record unemployment and huge wage growth and massive inflation, we have a payment freeze on loans. LOL, how stupid is that- lets flood people with more money to buy things that supply chains cant provide.

As someone who put themselves through school with loans and jobs, I am just stunned at this wiping out of debt. Where was this when I was a recent grad? Oh yeah, back then, we paid back what we borrowed in good faith.

So yes, we are also on the student loan gravy train. We told our kids we would pay them off at graduation if they graduated with a 3.5 or higher (gives them a little motivation not to have too much fun) but you arent paying attention if you arent taking out loans that could well be forgiven and have zero payments or interest during the school years.

So much for "Compassionate Conservatism." I guess it's all about taking at the expense of others. This demonstrates so much that is wrong with the "winning" mentality of the Right.

So you don't like my interest free loan. Ok, well guess what- I don't like your free money stimulus, or your proposal to pay off other's college debt - both of which are MUCH MUCH MUCH more expensive than an interest free loan. Typical lib.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We did the same thing. We have 300K for each kid saved but we are having them take out max student loans because of the democratic idiots running the country (sorry to offend any libs). For example, in a period of record unemployment and huge wage growth and massive inflation, we have a payment freeze on loans. LOL, how stupid is that- lets flood people with more money to buy things that supply chains cant provide.

As someone who put themselves through school with loans and jobs, I am just stunned at this wiping out of debt. Where was this when I was a recent grad? Oh yeah, back then, we paid back what we borrowed in good faith.

So yes, we are also on the student loan gravy train. We told our kids we would pay them off at graduation if they graduated with a 3.5 or higher (gives them a little motivation not to have too much fun) but you arent paying attention if you arent taking out loans that could well be forgiven and have zero payments or interest during the school years.

How do you demonstrate need to qualify for a federal student loan if you've got 4 years of tuition sitting in a 529?

You don't, the troll is making it up. Although to be frank, I hope she's not.

Idiots here think that federal loans are available to everyone willy nilly.



It's not. If your family EFC covers the cost of attendance, your kid cannot take federal student loans. Someone with $300k in 529 plans is not going to quality of loans at any college in the US.

Your kid could take private student loans, but those won't get forgiven anyways. Lmao.

Fact check, my EFC is 200K+ and every school offered us Stafford loans. Which we took. And if you are smart, you would too since the socialist movement wants to cancel student debt.

[Anonymous]

Anonymous wrote:People like you all make me lose hope for humanity. if we always assume people will act in the most greedy and selfish way, that's what we'll get.

I'm all in favor of loan forgiveness (and think Warren is fantastic) but it's a plan to rectify the past, not a plan for going into the future. The future goal is free college at public institutions. (while of course it remains competitive to get in.)

You are so naive. People respond to incentives. Warren’s “fantastic” plan creates the incentive for EVERYONE that qualifies to take out federal student loans. If the loans are forgiven in 2022, there’s a very good chance that they will be forgiven in future years.