What is going on with student loans?

[Anonymous]

According to Penn Wharton's Budget Model the student loan relief primarily helps:

-It would provide disproportionate benefits to working- and middle-class households
-The poorest fifth of Americans, earning less than about $29,000 per year, would get a much smaller boost
-The top 10% would be almost entirely excluded depending on how relief is designed

https://www.bloomberg.com/news/newsletters/2022-08-24/what-s-happening-in-the-world-economy-the-us-student-debt-relief-debate

If you look at the graphic in that article, with $10K relief at $125K max income you see that most of the benefits accrue to the bottom 50% of the income spectrum. It's fine. I don't think $10K forgiveness is really going to change spending behaviors all that much. If you were poor or working class, you didn't pay for the last 2.5 years because of the payment and so you'll just keep doing what you're doing now (increase savings, pay down other debt). If you're at the 80% percentile, you probably have MORE than $10K in student loan debt. Maybe you paid during the pause, maybe you didn't. Either way, your loans are being reactivated in 2023 and you'll have a student loan payment on whatever balance remains. You're not going to go on a spending spree if your balance is lowered by $10K.

I just don't see the hyperbole about the stimulative effects of the $10K forgiveness. The change in spending behavior happened 2.5 years ago when Trump enacted the pause on student loan payments.

[Anonymous]

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Anonymous wrote:Let's be clear.....

There is no such thing as student loan "cancellation" or "forgiveness." He is not cancelling anything.

He is *transferring* the loans to taxpayers who paid off their loans or who didn't take out any loans to begin with.

And, the Dems will pay big for this horrible decision.

So your choice will be the GOP who backed a coup to block an election and who leaders has numerous criminal investigations going or the Democrats who are giving debt relief to those severely struggling under education loans? People who paid theirs off weren’t struggling as much (hence they could pay them off!).

The decision is not even close in my mind. Republicans up and down the ticket. All the way. No regrets.

As one who sacrificed to make sure my loans were paid off.... I'm pissed.

This sure does tell on people who said they cared about democracy.

Shame on all of you.

Oh F off you entitled, whiny t***. People are pissed off because they spent years in delays gratification and consumption paying off the entirety of their loans like a responsible adult. In the end, it looks like they were completely stupid for living within their means and paying off a loan like they contractually agree. A whole bunch of entitle ass***es now get free handouts without having to sacrifice anything. F off with this bs.

God, I hope the Dems get obliterated over this. Savers and people who diligently paid their finances and who had to delay consumption because of it get the raw deal the most.

DP. Are you just as angry with the tax breaks that the wealthy get (these also burden taxpayers)? Or are you only angry at people in middle-income brackets who may get student loan forgiveness? Lots of categories of people get to walk away from debt or tax liability or get indirect subsidies from the government--why does this specific instance bother you so much?

Hey moron, student loan borrowers ALREADY GET TAX BREAKS, duh. Not only do we give entitled often white collar professionals tax breaks for taking out student loans, now we have to give them free handouts too? F off.

This is double dipping, moron. So much entitlement mentality. You make me sick. This country is going down the proverbial sh**er. Generations of people now being created who will expect to suck off the govt teat for their entire lives.

So let me get this straight--you're pissed that "entitled white collar professionals" get tax breaks (and I'm guessing that you hate it when lower-income folks get anything from the government you don't think they deserve). But you're not mad that both parties continue to give massive tax breaks to the people who need them the least--THE WEALTHY? Who is more entitled than the wealthy?! Why not direct your anger towards them and their lobbyists?

[Anonymous]

Anonymous wrote:The college financing process has NEVER favored the financially responsible. It's just how it is and has always been.

My parents scrimped and saved and we lived a very frugal life. When my college time came, they paid in cash.

My college boyfrend's parents were spenders: large house, luxury cars, etc. He was on financial aid (not merit). I remember visiting his hometown at Thanksgiving as a freshman and feeling the burn. Why did his parents get to live in luxury while mine shopped at the Goodwill (literally)?
I didn't care about my own luxury but it really burned me up that my parents had sacrificed so much while others had not.

It's just how it's always been. This is an extension of this.

And people like you who make their arguments based in the idea that there are only two types of people are warped. You act as if only those who paid on full sacrificed. Lots of parents sacrificed and still didn't pay for their kids college. The only people I know who has their college paid for were wealthy kids- parents making over 200k. If your parents were able to pay in cash for college, regardless of scrimping, you are privileged beyond many. Stop being salty.

[Anonymous]

Well, hopefully this 'forgiveness' will be a taxable event and these freeloaders will still be expected to pay taxes on this 'forgiveness'.

[Anonymous]

There are large number of foreign students in US universities. Most of them take out loans as well to pay for tuition and accommodation expenses.
Does this order result in forgiven loans for foreign students as well? Will this create burden on American Tax Payers?

[Anonymous]

Anonymous wrote:Well, hopefully this 'forgiveness' will be a taxable event and these freeloaders will still be expected to pay taxes on this 'forgiveness'.

They're already reporting that it'll be a non taxable event. Democrats FTW! Free Money!

[Anonymous]

Anonymous wrote:There are large number of foreign students in US universities. Most of them take out loans as well to pay for tuition and accommodation expenses.
Does this order result in forgiven loans for foreign students as well? Will this create burden on American Tax Payers?

I certainly don't know all foreign students, but of those many I do know, they did not receive federal loans. They're either wealthy and paid full tuition or received grants from their home countries.

[Anonymous]

Anonymous wrote:Well, hopefully this 'forgiveness' will be a taxable event and these freeloaders will still be expected to pay taxes on this 'forgiveness'.

the irs is hiring

[Anonymous]

Anonymous wrote:

Anonymous wrote:There are large number of foreign students in US universities. Most of them take out loans as well to pay for tuition and accommodation expenses.
Does this order result in forgiven loans for foreign students as well? Will this create burden on American Tax Payers?

I certainly don't know all foreign students, but of those many I do know, they did not receive federal loans. They're either wealthy and paid full tuition or received grants from their home countries.

There are guardians who took on education loans to fund their foreign citizens (brothers and sisters, niece and nephews) who are in US universities. Are these loans forgiven as well?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There are large number of foreign students in US universities. Most of them take out loans as well to pay for tuition and accommodation expenses.
Does this order result in forgiven loans for foreign students as well? Will this create burden on American Tax Payers?

I certainly don't know all foreign students, but of those many I do know, they did not receive federal loans. They're either wealthy and paid full tuition or received grants from their home countries.

There are guardians who took on education loans to fund their foreign citizens (brothers and sisters, niece and nephews) who are in US universities. Are these loans forgiven as well?

Most students in US universities use F1 Visa. But not sure if the loan applications from student / guardian differentiate.

[Anonymous]

so if the system is screwed up and they need to forgive, what about these kids that are about to start college? they are paying the high fees that cant pay back. why dont we do this sh*t every year while we are at it? are things gonna change? no! this is why it was never forgiven until now and thats why it shouldnt be. you cant just write off peoples debt without solving the issues. dems really took advantage of the climate, this will come back to haunt them.

[Anonymous]

I'm thrilled! I did not have any student loans myself, but I am so happy for those for whom this will be life-changing.

I love to see governmental policies that actually affect people for the better!

[Anonymous]

Anonymous wrote:There are large number of foreign students in US universities. Most of them take out loans as well to pay for tuition and accommodation expenses.
Does this order result in forgiven loans for foreign students as well? Will this create burden on American Tax Payers?

No, foreign students in the US cannot avail of US government loans. It's also not true that "most of them take out loans." In order to get a US student visa, they have to prove (with bank statements etc.) that they have enough money to pay for their tuition, room, board, and expenses for the duration of their degree program. Any that do take out loans are getting them from private lenders, so the loan forgiveness being discussed here does not apply to them.

In reality, foreign students are subsidizing US higher ed--both public and private colleges/universities.

[Anonymous]

Anonymous wrote:I still don't understand folks who are angry that middle class people will get (limited) student loan forgiveness, but they are not bothered by the huge tax breaks that the Uber-wealthy get in this country. How are these two things so different in your minds? Not being argumentative--I just want to understand.

Any of you who are so angry want to address PP's question???

[Anonymous]

Anonymous wrote:

Anonymous wrote:I still don't understand folks who are angry that middle class people will get (limited) student loan forgiveness, but they are not bothered by the huge tax breaks that the Uber-wealthy get in this country. How are these two things so different in your minds? Not being argumentative--I just want to understand.

Any of you who are so angry want to address PP's question???

Yeah, get mad at those freeloader rich people like Tom Brady and Kanye who got a lot more than $10k forgiven.