Would forgiving something like 2 Trillion in Student Loans be Inflationary?

[whitehall]

Why not forgive car loans too?

 

[there4eyeM]

Why not forgive car loans too?

Why not immediately and totally turn the everything upside down and start over?

 

[Stormy Daniels]

I don't think it will really be inflationary. But it will largely be a give-away to privileged, well educated, strong earning white people, while lesser educated and lower income minorities will be left behind, even positively hurt, as a result as wealth disparities are amplified and increased.

After being elected into power on the votes of black women, the Democrats shit on minorities. Surprise level zero.

 

[ThisIsMe]

It is not free education, it is investment education.

Investment in what? How does someone getting a degree help society? Unless they are in a field that is in demand, that can create innovation for everyone, a degree is largely a way for the student to earn a higher income for themselves.

What about those who weren't able to go to college for whatever reason? They get to pay for those that did?

 

[Resnic]

The current administration would just take a piece of paper and write any number they want on it and say "there's the money to pay off student debt". They don't care.

Forgiving debt is also damaging because it sets a bad presidenc. It says "go on. Wrack up all kinds of debt and someone else will pay for it". And a whole other generation will run out and wrack up debt and expect someone else to pay for it also.

Then people will want their cars paid for, mortgages paid for, credit card debt and more. All upset they borrowed money and are expected to pay it back.

 

[ThisIsMe]

I would say what happened with the housing industry in 2008 would indicate otherwise. The banks got greedy, gave people loans for houses they damned well knew they couldn't afford. Or you can look at the For Profit Universities that cheated thousands of poor kids who couldn't make it into a real college, and they are still going after those people for debt.

I trust the government a lot more than I do the banking industry...



But only because no one regulated the pricing.

I think it would be interesting do do an audit to find out where all this money goes.

The banks got greedy, gave people loans for houses they damned well knew they couldn't afford

I'd say it wasn't about people who bought houses they couldn't afford, it was about sub prime adjustable mortgages that were great, until those rates went up, and then people's payments skyrocketed.

 

[Resnic]

I don't think it will really be inflationary. But it will largely be a give-away to privileged, well educated, strong earning white people, while lesser educated and lower income minorities will be left behind, even positively hurt, as a result as wealth disparities are amplified and increased.

After being elected into power on the votes of black women, the Democrats shit on minorities. Surprise level zero.

Yeah fuck it right? It won't cause inflation because "someone else can pay for it".

And minorities left behind? Give me a break. We have had blacks like Oprah and bill Cosby come from the ghetto and go on to be millionaires. America has millions of black doctors, lawyers, congressman, business owners, police chiefs and so on. There is no racial disparity because we have millions of examples of that not being the case.

We also have millions of broke, poor, dumb white people. Or do you actually think every single white person in America is rich and well to do and every single black person is all poor and cast aside?

Minorities shit on themselves when they had a bad life, just like whites do, and Mexicans, and everyone in America who isn't getting by.

 

[JoeB131]

You do know that once a mortgage is signed that the money doesn't really come from anywhere..... the Treasury produces New Units that electronically appear in the seller's bank account. Unless the whole thing is a 100% cash deal.

Um, okay.. whatever.

I'd say it wasn't about people who bought houses they couldn't afford, it was about sub prime adjustable mortgages that were great, until those rates went up, and then people's payments skyrocketed.

Only part of the problem. The problem was the banks never should have written many of those loans. But they figured with an inflationary housing market, they could foreclose, keep the downpayments, and still collect all the interest... and it worked fine, until the values of those properties crashed.

 

[ThisIsMe]

Um, okay.. whatever.



Only part of the problem. The problem was the banks never should have written many of those loans. But they figured with an inflationary housing market, they could foreclose, keep the downpayments, and still collect all the interest... and it worked fine, until the values of those properties crashed.

Ok, the housing crisis was a problem, and yes, it could have been avoided given better lending practices, and I can see what you are saying about private lenders being similarly greedy, but, still, government loans have been one of the factors to increased tuition, considering that 90% of student loans are government backed, I'd say they are a large part of the reason.

Maybe the government can give some sort of incentive for private lenders to offer fixed low interest student loans with reasonable repayment options? An incentive that can't be abused. I just think anything with the government attached to it causes problems, because schools have no incentive to keep costs low if they know the government will pay whatever they charge.

Does More Federal Aid Raise Tuition Costs? Not For Most Students, Research Says

Experts say there isn't solid evidence that federal aid drives up college prices, except in one sector: for-profit colleges.

www.npr.org

When the federal government loans more taxpayer money, schools raise their rates.

The research shows federal aid has a strong tie to tuition in one sector: private, for-profit colleges

The evidence? For-profit colleges where students can pay using federal aid have much higher tuitions than those schools that can't accept aid, according to a 2014 study.

In fact, researchers Stephanie Cellini and Claudia Goldin found that the difference in tuition between the eligible schools and the less expensive, non-eligible schools was about the same as the federal aid students received.

 

[Rigby5]

Profting like big dogs

The government GUARANTEES repayment not subject bankrupcy...at market rates.

Jesus you can't FIND a better scam for banks

Students should not have to deal with any financing at all, and banks should not be involved.
We simply should pay teachers with our taxes and keep it simple, without additional costs or interest.

 

[Rigby5]

View attachment 637406

I don't consider a college that pumps out 90% of its graduates as social engineers an improvement in our economy and quality of life.

*****SMILE*****

I doubt any college graduates any "social engineer".
When you take a major, even something like history or medieval literature, you are required to take a full spectrum of math, science, foreign language, physical education, biology, social sciences, chemistry, etc., as well as humanities.

 

[Rigby5]

Quality of life for who? Me? Or the student? How does it improve my quality of life if someone else gets an accounting degree or a business degree and goes off in life to make a good living? It benefits them, but unless they get a degree in one of the stem fields and has some ground breaking discovery, it doesn't affect my life in the slightest.

As far as increased productivity, that's not necessarily true. It depends on what your degree is in. If you get a degree in art history or philosophy, your productivity impact is going to be quite limited to the rest of the world, whereas a sanitation worker or road construction crew will have a much bigger productivity impact, without a college degree. .

Now, I do understand that we need to be able to keep up with the rest of the world in education, bit we need to do it in the right areas. Also, we need to look at why other countries can offer low cost, or free college. What factors play into why they can do that, as opposed to why we can't. We're already taxed highly here in the states, and the government keeps finding ways to take more, so, when they start wanting to give free education to people, it tends not to set well.

Wrong.
It benefits YOU when more people are able to afford college.
It means more local productivity, greater GDP, less offshoring, less crime, more tax revenue,
Those who decide in selecting a degree like art history still are require to take a full breath and depth of college skills and will earn about twice as much as those who do not get a college degree.

The reason almost all countries offer low cost or free college education is that these government run the colleges and prevent colleges from being profit motivated. You don't use banks to finance tuition, but simply do not charge high tuition in the first place. Instead, you just pay teachers from tax money instead of tuition money.

Since the military is over 60% of our federal spending, obviously the military is why we do not have affordable education or health care. And don't try to find a site claiming the military is only 35% of federal spending.
If the site is including Social Security and interest on the national debt, then that is NOT a valid site.
Social security is self funding and the debt interest is actually old military spending.

 

[Rigby5]

I would say what happened with the housing industry in 2008 would indicate otherwise. The banks got greedy, gave people loans for houses they damned well knew they couldn't afford. Or you can look at the For Profit Universities that cheated thousands of poor kids who couldn't make it into a real college, and they are still going after those people for debt.

I trust the government a lot more than I do the banking industry...



But only because no one regulated the pricing.

I think it would be interesting do do an audit to find out where all this money goes.

It is not true that the 2008 housing crash was from home buyers who were not really qualified to pay the mortgage.
First of all, they had successfully paid for 5 years.
Then either a balloon payment came due that they could not refinance because the bubble had burst or their Adustable Rate Mortgage doubled due to it being based on the British LIBOR instead of the US prime.
And in 2011 it all came out how the British LIBOR had deliberately been illegally manipulated.
So no one uses the British LIBOR for US mortgages any more.

The way to do it is not to finance private colleges, but to ensure we have public colleges that pays teachers with tax money instead of banks being involved at all.

 

[Rigby5]

Um, okay.. whatever.



Only part of the problem. The problem was the banks never should have written many of those loans. But they figured with an inflationary housing market, they could foreclose, keep the downpayments, and still collect all the interest... and it worked fine, until the values of those properties crashed.

It is correct the banks used predatory tactics, but it is wrong to say buyers were not qualified.
They had made the payments for 5 years, so clearly were able to afford the properties if the interest rates had not be adjusted up so high.

 

[Rigby5]

Ok, the housing crisis was a problem, and yes, it could have been avoided given better lending practices, and I can see what you are saying about private lenders being similarly greedy, but, still, government loans have been one of the factors to increased tuition, considering that 90% of student loans are government backed, I'd say they are a large part of the reason.

Maybe the government can give some sort of incentive for private lenders to offer fixed low interest student loans with reasonable repayment options? An incentive that can't be abused. I just think anything with the government attached to it causes problems, because schools have no incentive to keep costs low if they know the government will pay whatever they charge.

Does More Federal Aid Raise Tuition Costs? Not For Most Students, Research Says

Experts say there isn't solid evidence that federal aid drives up college prices, except in one sector: for-profit colleges.

www.npr.org

Private lenders should have nothing to do with student tuition.
Government should hire the teachers directly, so there is no separate corporation raking in profit from PELL Grants.

 

[Rigby5]

Ok, the housing crisis was a problem, and yes, it could have been avoided given better lending practices, and I can see what you are saying about private lenders being similarly greedy, but, still, government loans have been one of the factors to increased tuition, considering that 90% of student loans are government backed, I'd say they are a large part of the reason.

Maybe the government can give some sort of incentive for private lenders to offer fixed low interest student loans with reasonable repayment options? An incentive that can't be abused. I just think anything with the government attached to it causes problems, because schools have no incentive to keep costs low if they know the government will pay whatever they charge.

Does More Federal Aid Raise Tuition Costs? Not For Most Students, Research Says

Experts say there isn't solid evidence that federal aid drives up college prices, except in one sector: for-profit colleges.

www.npr.org

Let us not forget that many states like California, Arkansas, Delaware, Hawaii, Indiana, Kentucky, Maryland, Minnesota, Missouri, New York, Montana, Oklahoma, Oregon, Rhode Island, Tennessee, and Washington have some sort of free tuition programs, based on need, first come, STEM programs, etc.
It does not have to involve private lenders or private schools.

 

[Rigby5]

Why not forgive car loans too?

Because cars do not improve society, reduce crime, increase the GDP, etc.

 

[Rigby5]

Investment in what? How does someone getting a degree help society? Unless they are in a field that is in demand, that can create innovation for everyone, a degree is largely a way for the student to earn a higher income for themselves.

What about those who weren't able to go to college for whatever reason? They get to pay for those that did?

We have vast shortages in those with college degrees, so that is why jobs are being offshored.
And that hurts everyone in this whole country.

 

[Rigby5]

Um, okay.. whatever.



Only part of the problem. The problem was the banks never should have written many of those loans. But they figured with an inflationary housing market, they could foreclose, keep the downpayments, and still collect all the interest... and it worked fine, until the values of those properties crashed.

I disagree.
Few defaults were even in the first year.
Most had been paying successfully for up to 5 years when either the balloon payment came due, or the mortgage payment almost doubled.

 

[Stryder50]

There's a few huge piles of bull shite in play here!

First is that if one is smart enough to go to college and get a degree(s), they should be smart enough to know what they are getting into when undertaking loans to finance an education that supposedly will garner them higher person earnings potential after they graduate (a.k.a. funding of personal greed).

They should have the integrity and honesty and character to know the obligation they are committing to and due to repay.

They should know already that it may mean a few to several years before they are "paid off" and can honestly enjoy the life and lifestyle they have sought via the degree(s) they have "earned".

They should be bright enough to know that society owes them nothing that they haven't already earned.

They should be bright/smart enough to know that if they signed on to such an obligation and debt, they are honor bound to pay it off.

They should be bright/smart enough to know the timeline, interest rates, and payoff scale before having agreed to such.

They should be honest enough and have the integrity to not expect others to pay their debts and obligations.

And yes, USA Colleges/Universities should not be charging excessive costs on tuition and other education expenses that are beyond reasonable market costs/rates ~ (expect teachers and staff to take those pay cuts.).

Also, if taxpayers at large are expected to subsidize the cost of college for younger generations then the taxpayers are due a reasonable re-compensation for their subsidy.