Interesting Tidbit On Student Loan Forgiveness

[Independentthinker]

Federal student loan borrowers are already thinking about what they will do with the money they save should their debt be forgiven. According to the Federal Reserve survey, the majority of borrowers — 57% — say they will use the savings to pay off other debts. That percentage was fairly consistent regardless of age or race/ethnic group.

If Student Loans Are Forgiven, How Will You Spend the Money? Almost Everyone Says They’ll Do This First

Federal student loan borrowers who counted on the Biden administration's loan forgiveness plan to cancel up to $20,000 in debt per borrower will be disappointed if the Supreme Court strikes the plan...

www.yahoo.com

Wait a minute, I thought the whole student loan forgiveness thing was all about they couldn't afford to pay their loans due to the pandemic and inflation? Now they are saying that they could actually afford to pay their loans after all and expect a windfall if they don't have to pay them back anymore and can then use the "saved" money on something else.

 

[Dont Taz Me Bro]

It’s not going to happen

 

[Moonglow]

Yep, should have gotten a free PPP loan and paid off the student loan.

 

[DGS49]

Are we all aware that since March of 2020, monthly payments and interest on student loans have been suspended, and nobody is paying those loans right now? This suspension - now more than three (3) years and counting - was based on the dubious proposition that the Pandemic was making it harder for borrowers to make their payments than it would have been without the Pandemic (or, more accurately, Governors' irrational dictates related to the Pandemic).

So a person with fifty or a hundred thousand in student loan debt, who was hoping for a forgiveness of ten or twenty thousand of that debt, has been paying nothing.

Can anyone let Biden know that the Pandemic is over, and its negative impact on employment is long gone?

What a piece of shit. Maybe someone will also tell him that his pipedream will never happen - but he knew that. He was just buying votes from stupid college-educated pukes. Which seems to have worked.

 

[Augustine_]

Federal student loan borrowers are already thinking about what they will do with the money they save should their debt be forgiven. According to the Federal Reserve survey, the majority of borrowers — 57% — say they will use the savings to pay off other debts. That percentage was fairly consistent regardless of age or race/ethnic group.

If Student Loans Are Forgiven, How Will You Spend the Money? Almost Everyone Says They’ll Do This First

Federal student loan borrowers who counted on the Biden administration's loan forgiveness plan to cancel up to $20,000 in debt per borrower will be disappointed if the Supreme Court strikes the plan...

www.yahoo.com

Wait a minute, I thought the whole student loan forgiveness thing was all about they couldn't afford to pay their loans due to the pandemic and inflation? Now they are saying that they could actually afford to pay their loans after all and expect a windfall if they don't have to pay them back anymore and can then use the "saved" money on something else.

They can't afford to pay their loans because of the crushing debt those loans forced them under. You want a society that can't afford kids or marriage, keep their necks under the boot.

 

[BluesLegend]

They can't afford to pay their loans because of the crushing debt those loans forced them under. You want a society that can't afford kids or marriage, keep their necks under the boot.

How were borrowers "forced"? They willingly borrowed the money and signed a contract. Why should I be forced to work overtime to pay off THEIR debts? I'm also not going to pay off my neighbors boat or 80" flatscreen.

 

[BluesLegend]

I say let the colleges and universities (cough Dem cash cow cough) give the money back to the students.

 

[Augustine_]

How were borrowers "forced"? They willingly borrowed the money and signed a contract. Why should I be forced to work overtime to pay off THEIR debts? I'm also not going to pay off my neighbors boat or 80" flatscreen.

They were tricked into 6 figure loans as children. I know conservatives celebrate that as powerful colleges that behave as corporations squeezing the life out of a bunch of suckers, but the rest of us prefer there to be less misery in the world.

 

[Augustine_]

I say let the colleges and universities (cough Dem cash cow cough) give the money back to the students.

Maybe one day you'll start voting that way

 

[BluesLegend]

They were tricked into 6 figure loans as children.

LOL okay who tricked them, Dem run universities and colleges? Have them return the money, problem solved.

 

[BluesLegend]

Maybe one day you'll start voting that way

Higher Ed is a Dem party cash cow, that's why it's corrupt and that's why students took out loans the size of a home mortgage to buy a half worthless degree on credit. This is a Dem problem, don't come crying to me to bail you out.

 

[Dekster]

Federal student loan borrowers are already thinking about what they will do with the money they save should their debt be forgiven. According to the Federal Reserve survey, the majority of borrowers — 57% — say they will use the savings to pay off other debts. That percentage was fairly consistent regardless of age or race/ethnic group.

If Student Loans Are Forgiven, How Will You Spend the Money? Almost Everyone Says They’ll Do This First

Federal student loan borrowers who counted on the Biden administration's loan forgiveness plan to cancel up to $20,000 in debt per borrower will be disappointed if the Supreme Court strikes the plan...

www.yahoo.com

Wait a minute, I thought the whole student loan forgiveness thing was all about they couldn't afford to pay their loans due to the pandemic and inflation? Now they are saying that they could actually afford to pay their loans after all and expect a windfall if they don't have to pay them back anymore and can then use the "saved" money on something else.

If you have a $500 a month student loan payment, then you will have had about $20K more since the pandemic pause to spend on something. When payments resume, you will have $6K a year less to spend on something. What that is will vary by person. That, however, isn't what the problem is. If you have $100K in student loan debt from say undergrad and grad school, $500 a month isn't going to cover your interest if you are just starting repayment when your rate is set (currently 6. 54%), after 25 years of paying $500 a month, you will have paid $150K in payments and still owe the government $134,000.00 which they will then discharge if you are on an IDR program which you then have to report on your taxes as income and will then have to pay the IRS 7% APR with daily compounding interest until you satisfy the tax liability so you are thrown from the frying pain into the fire if and when they start slapping liens and garnishments on your shit. To pay your $100K back in 25 years, your payments should have been $677.71 per month. Now if you were to get a one time $20K credit, your payment drops to $542.17 a month which gives you $135.54 more a month or $40,662.00 over the life of a 25 year loan to spend. Again, what people do with that will vary by person.


There are borrowers who have paid back more than they were ever supposed to which is one prong of what Biden is trying to fix because their payment histories kept getting lost every time their servicer changed so they may be 18 years into a loan that was supposed to be discharged after 10 (government workers mainly); when people on Income based payments had issues, rather than lower payments as was supposed to happen, their servicer stopped their payments and then capitalized all the unpaid interest so their principal loan amounts ballooned causing them to be even deeper in debt as they are then being charged interest on unpaid interest; and, unfortunately for too many borrowers, the payments were set so low they ran into the scenario I mentioned above where they paid back more than they ever borrowed and still end up owing the government more than even what they borrowed because they went back home to Frog Ass, Idaho with its lower wages to live instead of Chicago.

Now the TLDR take is this---the government should have never gotten into this gig. This inflated the cost of college. Colleges then started financial aid with "What is the most this person can borrow for the year" instead of "Let's make sure this person borrowers as little as possible". But hey, someone has to pay for the basketball coach's million dollar salary and the new aquatic center.

 

[Red Front]

Federal student loan borrowers are already thinking about what they will do with the money they save should their debt be forgiven. According to the Federal Reserve survey, the majority of borrowers — 57% — say they will use the savings to pay off other debts. That percentage was fairly consistent regardless of age or race/ethnic group.

If Student Loans Are Forgiven, How Will You Spend the Money? Almost Everyone Says They’ll Do This First

Federal student loan borrowers who counted on the Biden administration's loan forgiveness plan to cancel up to $20,000 in debt per borrower will be disappointed if the Supreme Court strikes the plan...

www.yahoo.com

Wait a minute, I thought the whole student loan forgiveness thing was all about they couldn't afford to pay their loans due to the pandemic and inflation? Now they are saying that they could actually afford to pay their loans after all and expect a windfall if they don't have to pay them back anymore and can then use the "saved" money on something else.

Education should be tuition-free in public colleges anyways and it would be good for the economy if we canceled the debt of all of these young people. They've already been screwed by the older generation, gutting America of its manufacturing base, breaking up all of the labor unions, and creating the conditions for gross inequality, stagnant wages, and a high cost of living. America has already bailed out the wealthiest people in our society to the tune of trillions of dollars, so the least that we can do is forgive our children's student debts. It would indeed contribute positively to their standard of living, allowing them to save, build their credit and buy a home.

 

[lantern2814]

LOL okay who tricked them, Dem run universities and colleges? Have them return the money, problem solved.

He apparently forgets that the federal government took over the responsibility for student loans a long time ago. So that “predatory lender” would be the US Government. Fleecing their own supporters, as they remain clueless.

 

[Thinker101]

Education should be tuition-free in public colleges anyways and it would be good for the economy if we canceled the debt of all of these young people. They've already been screwed by the older generation, gutting America of its manufacturing base, breaking up all of the labor unions, and creating the conditions for gross inequality, stagnant wages, and a high cost of living. America has already bailed out the wealthiest people in our society to the tune of trillions of dollars, so the least that we can do is forgive our children's student debts. It would indeed contribute positively to their standard of living, allowing them to save, build their credit and buy a home.

Fer Christ sake, every damn thing with you is free, free, free. But you expect them to buy a home?

 

[Dekster]

Education should be tuition-free in public colleges anyways and it would be good for the economy if we canceled the debt of all of these young people. They've already been screwed by the older generation, gutting America of its manufacturing base, breaking up all of the labor unions, and creating the conditions for gross inequality, stagnant wages, and a high cost of living. America has already bailed out the wealthiest people in our society to the tune of trillions of dollars, so the least that we can do is forgive our children's student debts. It would indeed contribute positively to their standard of living, allowing them to save, build their credit and buy a home.

I agree that public college and university should be free or sliding scale. One of the problems though is Biden is really going to worsen some people's situation in the name of helping. The combination of not making discharges permanently tax free while lowering payments from 10% to 5% will put a hell of a lot more people underwater on the loans and slapped with massive tax liability at the end of their 20 years. It also does nothing to put downward pressure on prices. It should look more like "For any of your students to get federal aid, students qualifying for federal aid cannot be charged more than $300 per credit hour (about $8K a year) and cannot be charged any fees beyond that which is strictly required by specific classes".

 

[Red Front]

Fer Christ sake, every damn thing with you is free, free, free. But you expect them to buy a home?

For you capitalists, everything is FREE. You depend on the work of others for your income, you depend on bailouts from the government, contracts, subsidies, grants, non-interest loans, and tax cuts. You capitalist parasites are pathetic. The young workers who are now being burdened with unnecessary student debt are our future, the young generation that will make sure your old crusty ass will have goods and services to buy with your Social Security pension and doctors and nurses to take care of you, who are 20, 30+ years younger than you, and are of working age. The older generation screwed up this economy and the least that we can do is facilitate and better equip/empower them to work and have a decent life.

You right-wing leech loafers should think twice before you continue burdening our nation's youth with unnecessary financial burdens when they're the people who produce everything in this country. They're the American workforce.

 

[Thinker101]

For you capitalists, everything is FREE. You depend on the work of others for your income, you depend on bailouts from the government, contracts, subsidies, grants, non-interest loans, and tax cuts. You capitalist parasites are pathetic. The young workers who are now being burdened with unnecessary student debt are our future, the young generation that will make sure your old crusty ass will have goods and services to buy with your Social Security pension and doctors and nurses to take care of you, who are 20, 30+ years younger than you, and are of working age. The older generation screwed up this economy and the least that we can do is facilitate and better equip/empower them to work and have a decent life.

You right-wing leech loafers should think twice before you continue burdening our nation's youth with unnecessary financial burdens when they're the people who produce everything in this country. They're the American workforce.

Gotta admit, you sure are the one producing the most BS.

 

[Red Front]

Gotta admit, you sure are the one producing the most BS.

You capitalist parasite, leeching off of the labor of others, to generate an income. Who do you think you are? Roll up your sleeves and get to work.

 

[Ray From Cleveland]

They were tricked into 6 figure loans as children. I know conservatives celebrate that as powerful colleges that behave as corporations squeezing the life out of a bunch of suckers, but the rest of us prefer there to be less misery in the world.

Yes, at the cost of putting the country more in a hole.

So if these "children" are not responsible enough to get a lawyer or a bank to explain all this to them, why do we let them vote, or drive an automobile? They're not responsible enough for those things either, isn't that right?