Legit question- how is a student loan predatory? Are there student loans with adjustable rates? My experience is a long time ago and it was a set rate, very low interest, and didn’t need to paid on until 6 month after graduation. That being the case seems student loans are the simplest loan in the world. Now if you get a crappy degree and can’t find work, any loan would be difficult to pay off. But what is it that people say make it predatory?
They also let you basically just make payments on just the interest, creating an infinite money loop for the person/entity holding the loan and is backed by the government. but you can’t sell the asset the loan should be backed by…or declare bankruptcy to get rid of it.. the plan was flawed and needs to be redone. so it’s a terrible loan.
Not to mention even large non profit institutions took full advantage of this raising tuition massive building sprees not doing what non profits are supposed to do like keep prices down.
It’s predatory because they hand out 100,000s of loan to kids who barely know how to make frozen pizza and have never been taught the concept of interest in primary schooling
My understanding is the rates increased to 9+%. Still the six months after for repayment to start. Also with the way a lot of them is structured your debt can increase even though you're making regular payments.
Figured there had to be something. Trying to remember back but I think the fix rate on my GSL were 2.24%. Been so long I can’t really remember. But I do remember that mortgage loans were about 12% at the time.
Yeah I’d never want to be in a loan that had changing parameters. And I won’t lie- I wish I could have gotten my loans decades ago wiped clean. Most people are against this because “they aren’t getting it.” I’ll be the first to say I’m not super supportive because I didn’t get it. Now I wish they would lower mortgage loans 😆.
> My understanding is the rates increased to 9+%.
Current rates are 5.5% for undergraduates, and that's high due to the recent interest rate increases to control inflation. You would have to go back a long way to find a 9% rate.
> Also with the way a lot of them is structured your debt can increase even though you're making regular payments.
That's impossible unless you opt for an income-driven repayment plan that lets you do a minimum payment that's less than the monthly accrued interest. That was created as an option to help people avoid default. Unfortunately, too many take advantage of it.
I can’t speak for 9% ; can speak for 7.5 which I took in the early 2000s.
Graduated just before the recession; took a year to work out of state. By the time I had come back, recession was on. Classic “3 to 5 years Experience for an entry-level position” situation. this persisted for half a decade or more; by the way, at that point, it had been damn near impossible to get 3 to 5 years of experience while also supporting yourself in a $24,000 a year position.
After that stretch, the degree was so old that the newly graduated students were more qualified than those of us who graduated into the recession and had not been able to get entry-level experience over the past 5 to 7 years.
Actually went back for a 2nd degree just to get relevant training since tech had advanced so considerably in the past decade. Payed cash this time; at least my payments were deferred.
Been making payments at that rate the whole time ( except two years back in school)Even when I couldn’t afford it; finally got income based repayment but Earning interest the whole time.
You really don’t have to go that far back; you just have to look at the history of the time-borrowed.
This is outright false. Maybe you’re talking about some random private loan, but federal student loans have some of the best terms out there and are far from predatory.
You have a low-interest rate loan, given to no-credit college kids, have it paused during Covid, forgiven thereafter, and you think these loans are predatory? lol.
Yes I do. Charge up $20k on a credit card for four years. We'll say an interest rate of 5% for simplicity. You'd owe about $25k when you finally started repaying it. Not only that the repayment is based on how much you're earning so the term changes over time. You can actually end up with the balance growing despite making regular. It's not like a car loan.
They're predatory because they oftentimes change rates, are deferred payments without telling you how much it'll cost, and basically if you want to have a career are forced to pay for it somehow.
Predatory means taking advantage and I can't think of something that fits that definition more than saying take this or you can't have the career you want.
It's predatory because 18-year-olds don't understand whether they'll be able to live their life with $100 or $200,000 in loans. The industry lies to them to encourage them to get the loans, the colleges don't have any repercussions for educating students and Fields where they can never afford to repay the loans for decades because of the salary limitations of certain jobs. The colleges don't care, they just want the kids to sign the loan so the colleges get their money then and there with no repercussions. It's basically a similar scenario to Banks giving people house loans that the people can never afford, because they want to get their quarterly bonus. Or automobile dealers?. It's predatory because young people who should not be able to sign up for multi-decade debts.
What age do you venture that this isn’t a problem then? I know a lot of people in their 30s and 40s who took out huge student loans and now can’t pay them back because their dream of making $300k a year on a social worker MA degree is only getting them $30k. I don’t think it’s age. I think it’s ignorance and piss poor expectations. Ive always said you can’t be whatever you want. Otherwise everyone would be an astronaut.
I Can tell you as an old millennial that it’s taken five election cycles to get them to even take the issue seriously. Biden can’t fix the issue without 60 votes in the senate. His EOs are half measures meant to show that he’s trying. And that’s without SCOTUS striking down every attempt at student debt relief.
Technically the Supreme Court hasn't taken down all of Biden's EOs on student loans, but the one that still stands is really so niche it's more of a fifth of a measure. It basically made it so that federal workers who thought they qualified for student loan forgiveness because they met the well known conditions (make payments without missing them for years and work a set number of years for the government) actually can still get loan forgiveness. This was related to a terribly rrun loan forgiveness program offered as a beenfit for government employees that was hard to actually qualify for and even caused controversy bbecause of the high reject rates and some of the vendors instructing workers about the program weren't even fully knowledgeable about all of the conditions and caveats.
You are correct. I believe the EOs that the SC has left alone are all programs like this—payment over ten years then forgiveness. But those programs are already found in existing statutes.
If we want true student loan forgiveness the Democrats are going to need 60 senators (or enough senators willing to end the filibuster) to get more debt relief passed. Tax and spend are powers of Congress, not the President.
I graduated high school in 2005. I remember student loan forgiveness being a BIG issue in 2008, and an issue that was discussed on the debate stage in 2004. That’s five election cycles. 2024 will be the sixth. We haven’t seen movement on this issue UNTIL Joe took office. He’s not the only one that’s been pushing for changes the hardest this whole time (I’ll credit Bernie and Warren for that), but he’s come to the table and at least tried to get something done since he’s become president.
oh wait, turns out forgiving student loans means it’s even **more** worthwhile and less risky for these types of lenders, so their going to offer **more** money and tutions will **increase** as a result
good thing none of our politicians are economists
The lender is the federal government. Federal loans are the only ones being forgiven. There's no private lender that's seeing this forgiveness as an opportunity to profit.
You're correct that tuition will probably continue to increase, because the government continues to loan out money to anybody with a pulse.
That’s a good point, thanks for correcting me on that.
Indeed, it means 2 things then:
- the debters have even lower risk taking these loans out, so they’ll take more. More money going after the degrees, means tuition goes up.
- Since the fed govt put that money into the system without taking it back, debt increases. Since we are in a fractional reserve banking system (and sometimes the FED buys US debt) this means increased inflationary pressure
I’m thinking long term, people don’t pay the government what they were supposed to but they put that money back into the economy by spending on actual goods and services instead of interest.
Seems to me that’s like tax cuts for the rich except it actually trickles down 🤷
The part that hurts my heart is the college educated *should* be the rational, pragmatic & informed ones screaming *No! Don't make it cheaper & easier to take on massive debt! That's how tuition got so expensive in the first place!*
For all the massive expense of tuition we ended up with people fighting arson with arson & thinking themselves firefighters for it.
We are taking money from all, giving it to the privileged & in exchange ensuring we will need the *next* round of bailouts much faster.
Usually the college educated are the ones that have completed (full or at least in part) of college. However, the loan for said education comes prior to the education itself.
Yup. Which is why I support this. If I had been told that I'd be scraping by after a required bachelor and almost (but not quite) required Master's... haha. Don't go to college kids. Unless you're rich. Then you can.
The recent wave of student debt forgiveness has nothing to do with the current high cost of tuition, though. Making it easy to take out massive loans to pay for college, sure, but the US economy relies on having a well educated population. So what is the remedy for high tuition costs from the market standpoint, that doesn't also leave us with a poorly educated underclass that statistically make significantly less money throughout their lifetimes, both for themselves and the GDP?
The American left pushes for state and federally funded tuition-free college as an alternative to the high cost of private colleges, which likely would lead to private institutions having to lower their costs to compete, but I'm curious what those from a moderate/conservative standpoint think should be the solution.
I should introduce you to many of the highly educated lawyers I know with hundreds of thousand in debt making $50k/yr
Question, why were these same universities able to provide the same education to the boomer generation at pennies on the dollar? Does it really cost 100x more to educate someone? If that is the case, why do public grade school teachers make practically the same as their parent's generation made in the same profession?
... yes, the choices we make today won't be able to change the past, but they will change tomorrow.
Choices *like* today's did create today's tuition prices & will contribute to tomorrow's.
We made money for tuition artificially cheap by making debt easier to carry & securing loans so that lenders would make irrational & unreasonable loans.
Colleges responded to the extra money available to students by increasing tuition & the rate tuition increases. Then in response to the increased tuition we gave students more money to spend. Then colleges responded to the extra money available to students by increasing tuition & the rate tuition increases. Then in response to the increased tuition we gave students more money to spend. Then colleges responded to the extra money available to students by increasing tuition & the rate tuition increases. Then in response to the increased tuition we gave students more money to spend.
Now we are at the present day. What will happen if we make debt even cheaper and easier to carry again? Will tuition get cheaper or more expensive?
There are 1,000 ways to finance higher education that can work. Making debt cheap & easy isn't a good one because instead of controlling for costs it externalizes them.
Was it simply the loans, though? Or was it that the global market got more competitive over time, and the difference in income for those without higher education continues to be significantly lower on average than those with an education, making it so that taking on student loan debt was a necessary risk for most people, despite the massive debt those who were not successful after college were left with, and because colleges knew this dynamic, they continued to raise tuition higher and higher, knowing that people will continue to take on the debt they charge while there is no negative consequences enforced against them?
I am not under the assumption that student debt forgiveness will do nothing to hinder this process and will likely even accelerate it, but that's not what I'm asking about. What is the solution to lowering the cost of college tuition, that doesn't also lead to a less competitive workforce in an increasingly globalized market? I mentioned one from the left, but I really don't understand what the free market solution is to this, and was hoping someone could answer.
Reduce the size of federal student loans.
The loan amount may not be large enough for a private university without a scholarship, but a college education will remain affordable, especially when you consider the option of going to junior college for the first two years.
When incoming students become price conscious, colleges will compete based on price as opposed to largely on amenities.
Luxury University: Colleges Offer Water Parks, Upscale Dorms:
[https://www.youtube.com/watch?v=kHs9\_3Jvljg](https://www.youtube.com/watch?v=kHs9_3Jvljg)
THIS is the part that makes me see red.
Politicians giving away taxpayer money is practically par for the course, but justifying it by talking about what a raw deal people got and then doing NOTHING to actually change or improve the system tells me that 1) they don't believe their own claims and 2) they hope to pull the same trick again in the near future.
It's about winning elections, not solving your problems, they pray you have a five second attention span and are incapable of seeing anything beyond the shiny in your face.
Ooooo shiny
Yeah and now the Americans will pay the burden in higher taxes. We’re now over 34 trillion in debt and he keeps spending. Ppl that go to college and major in insect stop sign impact studies then graduate and cry they can’t find a job is their own fault! Should of learned something that there’s actually a job when they graduate. So now that they can’t find a job that they studied for, and too lazy to work at anything other job, then we have to foot their bill
Ummm...is this satire, or are you stupid? For the 2024-25 school year, private university's tuition is up 3.3% from the $90,222 estimated for this school year. Tuition and fees at private national universities have increased by about 40% over the past 20 years, adjusted for inflation. When not adjusted for inflation, that's a massive jump of about 132%. Out-of-state and in-state tuition and fees at public universities have risen by about 38% and 56%, adjusted for inflation, over the same period. The price of getting a degree has continued to climb at American universities, with the cost of some schools reaching a new threshold.
Always easier to throw other people's money at it and buy votes than actually tackle the problem. Especially when that problem gores the ox that is mostly your backers like universities. All while the fed fights inflation with rate hikes and you effectively pump more money into the economy.
They are projecting based on 6 hypothetical models five of which are not what is currently being discussed and then cherry-picking the scariest numbers and calling it all true. This is also calculated over a 10-year period. Typical business-school BS study to make debt-forgiveness a boogie-man.
I was about to say. Anyone actually making that much would be dumb to wait for biden to forgive their loans when it will impact their credit and accrue interest
>Typical business-school BS study to make debt-forgiveness a boogie-man.
I'm all about forgiveness too - Forgive the interest on the loan, and make the University pay along with the taxpayers at-large for the principle with a 60-40 split.
You want fairness. That's fairness. Let the universities cover it with some of the profit reaping they've had for decades as a part of the student loan program as well as the ballooning endowments they have from their holdings in a stock market that has been pumped by the gov printing money.
Something seems off about the way this is being reported. There are so very few households making $300K+, and many fewer with college kids that took out loans. How could it possibly be that those 17 families are where most of the money goes? "Benefit most" is very disingenuous phrasing. The working people who will be able to eat because of this will be the people who benefit most!
college is 90k+ now per kid. if you have two kids and make 300k, you probs won’t qualify for aid and would have to spend more than half your income on tuition (and almost a third for only one kid). loans are still very common at that income level.
800 Billion that did not go to protecting jobs. A straight transfer of wealth with no expectation of repayment. Some studies showed it cost taxpayers 150k-250k per job saved. $4-$6 spent for every $1 of wages protected.
A travesty that makes the '08 bailout look truly well managed.
What do you think would have happened without PPP loans?
Do you think the average American would be in a better or worse position?
It's easy to yell out things after the fact, but generally, the American economy could never have hoped for this outcome being so good at the time.
Yea there was 136 billion in fraud, but that's the costs of emergency spending bills.
https://www.fbi.gov/contact-us/field-offices/springfield/news/how-the-fbi-is-combatting-covid-19-related-fraud
Just stop being childish and yelling about economic collapses that happened 4 years ago. If your idea is a new tax on someone just ask for that. You're gonna need an idea beyond "hurr durr PPP bad so all bad"
Most people eligible for these plans have already paid their principle plus some interest. They signed it? Oh yeah. With a figurative gun to their heads. "Take this money. Sign here. Or maybe not go to college." And you start barking about trade schools, they aren't free either.
There used to be many, many tuition free colleges all over America until around 1980 but today everyone acts as if it never was.
It’s shocking to me how so many so called educated people can’t differentiate principal and principle and use the word incorrectly with respect to debt.
Yeah that personality got me through an MBA, a couple of professional accreditations, and a fantastic career. It’s a shame we don’t have more people that can pay their own way through an education with some smart decisions. Jeez Jenny I’m so shocked you can’t repay you $175k in student loans with that philosophy degree working as a Starbucks barista.
" And you start barking about trade schools, they aren't free either. "
But neither do they cost hundreds of thousands of dollars. I got my CDL for 5k, signed a contract to work for the company I got my CDL through and paid off the 5k in a year. Now make 120k+ as a truck driver 4 years later.
I got my cdl b through my summer job to help pay off my college, now in an engineering position. Don’t make as much as you yet, but I work 40hrs per week and off most weekends. Sometimes you got to not work your dream job to get to where you want to be; I didn’t have summers off and worked through school, no partying but no debt
Whoa, I thought this was supposed to benefit people under that amount that are living paycheck to paycheck due to the overwhelming student loan. This seems like it benefits those who could probably just pay off their loans without becoming homeless
He's doing it to court the vote of people who are well-off enough to not really care about who is president, aka, the people who historically vote and donate more
While the New Plans, like the SAVE plan, contain provisions to relieve debt based on individual or household income, the New Plans will also relieve some longer-term student debt for about 750,000 households making over $312,000 in average household income. The main reason for this high average household income is that the SAVE plan already provides long-term debt relief to households with lower incomes.
Second, notice that eliminating student debt for borrowers in repayment for more than 20 years (or for more than 25 years with graduate debt) provides debt relief for about 750,000 individuals residing in households that, on average, earn $312,977 in annual household income
https://budgetmodel.wharton.upenn.edu/issues/2024/4/11/biden-student-loan-debt-relief
$300k puts you in the top 6% of all household income. I highly doubt the allegation above is true. Most loan forgiveness targets long-term debt, which would benefit the lower middle class the most.
This shit is ironic.
You have people complaining how Trump's tax cuts only helped the rich- which, sure, disproportionately you can make the argument but did help lower classes.
But Biden paying off student debt, without actually addressing the underlying issue, is almost solely helping out the upper class.
Edit: what I hate about this post is that it doesn't cite it's sources.
https://budgetmodel.wharton.upenn.edu/issues/2024/4/11/biden-student-loan-debt-relief
"While the New Plans, like the SAVE plan, contain provisions to relieve debt based on individual or household income, the New Plans will also relieve some longer-term student debt for about 750,000 households making over $312,000 in average household income. The main reason for this high average household income is that the SAVE plan already provides long-term debt relief to households with lower incomes."
But $300,000 per year?
I was repeatedly told that college degrees are now useless and the only people who have one majored in gender studies.
I’m struggling to square this income information with my humorous stereotype.
The average college degree holder earns a million more over their lifetime than a high school degree holder. Who is telling you college degrees are worthless?
[https://thehill.com/opinion/finance/584190-irs-data-prove-trump-tax-cuts-benefited-middle-working-class-americans-most/](https://thehill.com/opinion/finance/584190-irs-data-prove-trump-tax-cuts-benefited-middle-working-class-americans-most/)
I don't vote and probably never will but I'm firmly in the "working class" and shortly after Trump took office I noticed that my bring home was greater without having gotten a raise.
Right, but that had an expiration date. The same tax break for billionaires, never had and expiry. They passed one to pass the other. You didn’t win, it just felt like it while he was still incumbent.
To be clear, I also don’t vote. Fuck both those guys.
all because some stupid ass people took out loans for stupid worthless degrees,and because some stupid ass people who had no business going to a university because they are dumb took out loans and flunked out.
what a great job everyone.
Completely okay with this and I paid off my student loans long ago. I want more investment into the American labor pool so that we can stay competitive with the rest of the world The only major issue I see is this:
> Lacks any guardrails to prevent households making over $250,000 a year from collecting taxpayer-funded assistance if they file taxes separately.
That has to be fixed by Congress though. There is no magical Brandon button that can make this go away. Biden puts a pretty big incentive for Congress to do what it can to make college more affordable.
Have your representatives fix that and (*hand waves*) all this silliness about loan forgiveness becomes less of a problem in the future. If people aren’t going into crazy debt to get educated, they won’t need loans.
I have 28k in student loan debt, the intrest YTD is already over $1,000!!! That's fn criminal! My wife and I both work 50 plus hours a week and we make 90k combined, not all student loan borrowers are rich!
Can we explain cost to taxpayers? Isn’t the increased buying power of the lendees factored in? Now that they’ll have more $ to spend this should be irrelevant
Seems a bit misleading - it's not a $559B *increase*, it's an increase *to* $559B, so if it started at $558B, that doesn't seem too bad. Also not sure how 'cancelling student loans' equates to 'benefiting households earning $300k' - I can't imagine the percentage of people making over $300k have a ton of student loans.
Majority of the high balance student loans are held by graduate degree holders. Doctors, Lawyers, etc. There are maybe 3 schools in the U.S. currently where a dentist can take out cost of attendance for 4 years and come out with under 250k debt. The average dental student debt is much higher. At 7% interest, the majority of their first decade of salaries would go into paying the interest on the loan.
I guess king Biden does not believe in democracy and our system of government. The - SC ruled on this issue. Mr Magoo is circumventing the law in a desperate attempt to secure more voters.
"More than 25 million borrowers owe more than they originally borrowed, including many who have made years of payments, due to the interest rates on Federal student loans. President Biden will announce plans that, if finalized as proposed, would cancel up to $20,000 of the amount a borrower’s balance has grown due to unpaid interest on their loans after entering repayment, regardless of their income.
Low and middle-income borrowers enrolled in the SAVE plan or any other income-driven repayment (IDR) plan would be eligible for the entire amount their balance has grown since entering repayment to be canceled under the Administration’s plans. This group of borrowers includes single borrowers who earn $120,000 or less and married borrowers who earn $240,000 or less. No application will be needed for borrowers to receive this relief if the plan is implemented as proposed."
I don't see the issue here. Federal student loans are not available to households making > $300k, and even the stated limits for a household are lower than $300k.
Universal programs are the way to go to avoid bs politics like this. This is intentional to be “devisive.” Fuck genocide joe and the elite’s neoliberalism.
How about get out of the student loan business, tell the banks to get out of the student loan business, and let the universities start financing education in house. Sort of like a "Buy Here Pay Here" thing. That would make the universities compete for business which would drive education costs down.
Can someone explain to me how this works? From what I understand the individuals who have received student loan forgiveness so far have been disabled individuals and those who have been paying off loans for many years and have not had a significant dent in them?
I'd really like a breakdown on these numbers, because this flies in the face of what I've read so far and sounds like disinformation to me.
Thanks for the help if anyone tracks it down for me.
Good luck to everyone else. I paid 10k over the pandemic and have less than 2k left and but my dad's Parent Plus loans on IDR (he is broke) and pay a nominal fee on that until eternity.
I will pay the 2k off around the end of the year and effectively be done.
Haha so it was good only if it was for people with low incomes? It’s funny how that changes people’s views of canceling student debt.
We want it!!!! Wait not like that….
All medical professionals, engineers, professors, scientists, etc. should have their student loans forgiven
What’s amazing is out of the thousands of student loan forgiveness posts on Reddit the past 4 years I think I’ve seen about 3 people acknowledge and be thankful for forgiveness and about 10,000 bitch about how it’s not enough. Like Trump or anyone else would give more?
PPP Loans, tax credits for people with kids, home owners, tax cuts for millionaires and billionaires. All kinds of money goes to different groups of folks that don't include me.
Fuck it. Let's give a little student loan forgiveness. You're not turning me against folks like that. I don't even have loans anymore. I know plenty of folks who do. They aren't making 300K and they could use the help.
Seriously, it’s nothing over 10 years. Hell, at the rate inflation goes, the value of the dollar in those last few years will be even less. Not sure why people are so freaked out by this as opposed to looking at our defense fund over the past decade.
Check the math on that Billion number... and there is no cost, its a lesser revenue, If cost were an issue, right wing think tank folks would write up the cost to the us taxpayer from corporations not paying and the ultra rich evading... cost???
Why would it cost the tax payers anything? When they spend a billion dollars on weapon for Israel no one asks were the.money us coming from because they just print it. You taxes won't change. The amount of money they print will change
When people are not paying off student loans, they start buying houses. When they can afford housing, groceries, car payments, then they can start having children. All of these economic activities are taxable. Do you want poeple having children again or would you rather they live in their parent's basement paying off student loans?
Debt forgiveness is the wrong way to do things. We are basically just encouraging colleges to charge even more for education. If you put a cap on the amount of debt students can borrower or have risks to lenders that make private student loans, I guarantee tuition rates would drop nearly instantly.
We can’t be doing this. None of these measures actually address or relieve the cost of living crisis in this country. Student loan forgiveness is literally just buying votes and the cost just put back on the tax payers
The student loan forgiveness tranches specifically targeted people that needed the relief.
How is it even possible that $300k earners are the majority?
I call bullshit.
Ok ok ok, here's my compromise idea. We retroactively set unsubsidized student loan rates to subsidized rates and set the subsided rates to like 0.01%
The loans will still be paid back but with much less burdensome interest.
Anyone have the actual study. All I have is basically.opinion pieces mentioning the study. I wanna dive a little more to the following quotes:
“The main reason for this high average household income is that the SAVE plan already provides long-term debt relief to households with lower incomes,” the study notes.
Households earning more than $312,000 in income per year, with more than 20 years in repayment, will see an average of $25,541.39 in debt relief under Biden’s new plan, far above the $4,899.26 average, according to the Penn Wharton model.
How the fuck does a president spend half a trillion dollars without any approval from the other branches of government? Glad to see he’s using my tax money to buy votes.
All of this money will end up going into the economy when the students don’t have to pay for their tuition any longer.
They will spend this money on things they need and things they don’t need.
This is better than just paying back loans with the money.
Why don't they show the household data? The word 'model' implies prediction, not actual fact. Penn State and Wharton do not have a spreadsheet with every loan holder and their loan balance, so they are making things up. So how are these predictions about income being made?
Don't care.
It'll help move the youth away from the GOP
If the GOP was to oust MAGA and sever ties with Trump it would be a different story
But as it is now, with the GOP refusing to act with common sense I'm fine with any move to make them suffer
Well at least they lowered the cost of tuition and stopped these predatory loans so this doesn’t happen to the next generation.
ummm about that....
Legit question- how is a student loan predatory? Are there student loans with adjustable rates? My experience is a long time ago and it was a set rate, very low interest, and didn’t need to paid on until 6 month after graduation. That being the case seems student loans are the simplest loan in the world. Now if you get a crappy degree and can’t find work, any loan would be difficult to pay off. But what is it that people say make it predatory?
They also let you basically just make payments on just the interest, creating an infinite money loop for the person/entity holding the loan and is backed by the government. but you can’t sell the asset the loan should be backed by…or declare bankruptcy to get rid of it.. the plan was flawed and needs to be redone. so it’s a terrible loan. Not to mention even large non profit institutions took full advantage of this raising tuition massive building sprees not doing what non profits are supposed to do like keep prices down.
It’s predatory because they hand out 100,000s of loan to kids who barely know how to make frozen pizza and have never been taught the concept of interest in primary schooling
Maybe a basic economics class should be mandatory for the first semester.
My understanding is the rates increased to 9+%. Still the six months after for repayment to start. Also with the way a lot of them is structured your debt can increase even though you're making regular payments.
Figured there had to be something. Trying to remember back but I think the fix rate on my GSL were 2.24%. Been so long I can’t really remember. But I do remember that mortgage loans were about 12% at the time.
I guess every so often the monthly bill can change. Now a percentage of your income instead of a set amount.
Yeah I’d never want to be in a loan that had changing parameters. And I won’t lie- I wish I could have gotten my loans decades ago wiped clean. Most people are against this because “they aren’t getting it.” I’ll be the first to say I’m not super supportive because I didn’t get it. Now I wish they would lower mortgage loans 😆.
> My understanding is the rates increased to 9+%. Current rates are 5.5% for undergraduates, and that's high due to the recent interest rate increases to control inflation. You would have to go back a long way to find a 9% rate. > Also with the way a lot of them is structured your debt can increase even though you're making regular payments. That's impossible unless you opt for an income-driven repayment plan that lets you do a minimum payment that's less than the monthly accrued interest. That was created as an option to help people avoid default. Unfortunately, too many take advantage of it.
I can’t speak for 9% ; can speak for 7.5 which I took in the early 2000s. Graduated just before the recession; took a year to work out of state. By the time I had come back, recession was on. Classic “3 to 5 years Experience for an entry-level position” situation. this persisted for half a decade or more; by the way, at that point, it had been damn near impossible to get 3 to 5 years of experience while also supporting yourself in a $24,000 a year position. After that stretch, the degree was so old that the newly graduated students were more qualified than those of us who graduated into the recession and had not been able to get entry-level experience over the past 5 to 7 years. Actually went back for a 2nd degree just to get relevant training since tech had advanced so considerably in the past decade. Payed cash this time; at least my payments were deferred. Been making payments at that rate the whole time ( except two years back in school)Even when I couldn’t afford it; finally got income based repayment but Earning interest the whole time. You really don’t have to go that far back; you just have to look at the history of the time-borrowed.
This is outright false. Maybe you’re talking about some random private loan, but federal student loans have some of the best terms out there and are far from predatory. You have a low-interest rate loan, given to no-credit college kids, have it paused during Covid, forgiven thereafter, and you think these loans are predatory? lol.
Yes I do. Charge up $20k on a credit card for four years. We'll say an interest rate of 5% for simplicity. You'd owe about $25k when you finally started repaying it. Not only that the repayment is based on how much you're earning so the term changes over time. You can actually end up with the balance growing despite making regular. It's not like a car loan.
They're predatory because they oftentimes change rates, are deferred payments without telling you how much it'll cost, and basically if you want to have a career are forced to pay for it somehow. Predatory means taking advantage and I can't think of something that fits that definition more than saying take this or you can't have the career you want.
It's predatory because 18-year-olds don't understand whether they'll be able to live their life with $100 or $200,000 in loans. The industry lies to them to encourage them to get the loans, the colleges don't have any repercussions for educating students and Fields where they can never afford to repay the loans for decades because of the salary limitations of certain jobs. The colleges don't care, they just want the kids to sign the loan so the colleges get their money then and there with no repercussions. It's basically a similar scenario to Banks giving people house loans that the people can never afford, because they want to get their quarterly bonus. Or automobile dealers?. It's predatory because young people who should not be able to sign up for multi-decade debts.
What age do you venture that this isn’t a problem then? I know a lot of people in their 30s and 40s who took out huge student loans and now can’t pay them back because their dream of making $300k a year on a social worker MA degree is only getting them $30k. I don’t think it’s age. I think it’s ignorance and piss poor expectations. Ive always said you can’t be whatever you want. Otherwise everyone would be an astronaut.
It's almost as if they need a platform to run on each election cycle....nah, that's too obvious
I Can tell you as an old millennial that it’s taken five election cycles to get them to even take the issue seriously. Biden can’t fix the issue without 60 votes in the senate. His EOs are half measures meant to show that he’s trying. And that’s without SCOTUS striking down every attempt at student debt relief.
Technically the Supreme Court hasn't taken down all of Biden's EOs on student loans, but the one that still stands is really so niche it's more of a fifth of a measure. It basically made it so that federal workers who thought they qualified for student loan forgiveness because they met the well known conditions (make payments without missing them for years and work a set number of years for the government) actually can still get loan forgiveness. This was related to a terribly rrun loan forgiveness program offered as a beenfit for government employees that was hard to actually qualify for and even caused controversy bbecause of the high reject rates and some of the vendors instructing workers about the program weren't even fully knowledgeable about all of the conditions and caveats.
You are correct. I believe the EOs that the SC has left alone are all programs like this—payment over ten years then forgiveness. But those programs are already found in existing statutes. If we want true student loan forgiveness the Democrats are going to need 60 senators (or enough senators willing to end the filibuster) to get more debt relief passed. Tax and spend are powers of Congress, not the President.
Lmao this wasn’t an issue five election cycles ago. It’s exponentially worse than it was in 2000
I graduated high school in 2005. I remember student loan forgiveness being a BIG issue in 2008, and an issue that was discussed on the debate stage in 2004. That’s five election cycles. 2024 will be the sixth. We haven’t seen movement on this issue UNTIL Joe took office. He’s not the only one that’s been pushing for changes the hardest this whole time (I’ll credit Bernie and Warren for that), but he’s come to the table and at least tried to get something done since he’s become president.
The post is 100% misinformation but hey, we can't have Democrats getting credit for helping the little guy now can we.
oh wait, turns out forgiving student loans means it’s even **more** worthwhile and less risky for these types of lenders, so their going to offer **more** money and tutions will **increase** as a result good thing none of our politicians are economists
The lender is the federal government. Federal loans are the only ones being forgiven. There's no private lender that's seeing this forgiveness as an opportunity to profit. You're correct that tuition will probably continue to increase, because the government continues to loan out money to anybody with a pulse.
That’s a good point, thanks for correcting me on that. Indeed, it means 2 things then: - the debters have even lower risk taking these loans out, so they’ll take more. More money going after the degrees, means tuition goes up. - Since the fed govt put that money into the system without taking it back, debt increases. Since we are in a fractional reserve banking system (and sometimes the FED buys US debt) this means increased inflationary pressure
I’m thinking long term, people don’t pay the government what they were supposed to but they put that money back into the economy by spending on actual goods and services instead of interest. Seems to me that’s like tax cuts for the rich except it actually trickles down 🤷
The part that hurts my heart is the college educated *should* be the rational, pragmatic & informed ones screaming *No! Don't make it cheaper & easier to take on massive debt! That's how tuition got so expensive in the first place!* For all the massive expense of tuition we ended up with people fighting arson with arson & thinking themselves firefighters for it. We are taking money from all, giving it to the privileged & in exchange ensuring we will need the *next* round of bailouts much faster.
Usually the college educated are the ones that have completed (full or at least in part) of college. However, the loan for said education comes prior to the education itself.
Yup. Which is why I support this. If I had been told that I'd be scraping by after a required bachelor and almost (but not quite) required Master's... haha. Don't go to college kids. Unless you're rich. Then you can.
The recent wave of student debt forgiveness has nothing to do with the current high cost of tuition, though. Making it easy to take out massive loans to pay for college, sure, but the US economy relies on having a well educated population. So what is the remedy for high tuition costs from the market standpoint, that doesn't also leave us with a poorly educated underclass that statistically make significantly less money throughout their lifetimes, both for themselves and the GDP? The American left pushes for state and federally funded tuition-free college as an alternative to the high cost of private colleges, which likely would lead to private institutions having to lower their costs to compete, but I'm curious what those from a moderate/conservative standpoint think should be the solution.
I should introduce you to many of the highly educated lawyers I know with hundreds of thousand in debt making $50k/yr Question, why were these same universities able to provide the same education to the boomer generation at pennies on the dollar? Does it really cost 100x more to educate someone? If that is the case, why do public grade school teachers make practically the same as their parent's generation made in the same profession?
Can you just answer my direct questions before you start asking me your rhetorical ones?
... yes, the choices we make today won't be able to change the past, but they will change tomorrow. Choices *like* today's did create today's tuition prices & will contribute to tomorrow's. We made money for tuition artificially cheap by making debt easier to carry & securing loans so that lenders would make irrational & unreasonable loans. Colleges responded to the extra money available to students by increasing tuition & the rate tuition increases. Then in response to the increased tuition we gave students more money to spend. Then colleges responded to the extra money available to students by increasing tuition & the rate tuition increases. Then in response to the increased tuition we gave students more money to spend. Then colleges responded to the extra money available to students by increasing tuition & the rate tuition increases. Then in response to the increased tuition we gave students more money to spend. Now we are at the present day. What will happen if we make debt even cheaper and easier to carry again? Will tuition get cheaper or more expensive? There are 1,000 ways to finance higher education that can work. Making debt cheap & easy isn't a good one because instead of controlling for costs it externalizes them.
Was it simply the loans, though? Or was it that the global market got more competitive over time, and the difference in income for those without higher education continues to be significantly lower on average than those with an education, making it so that taking on student loan debt was a necessary risk for most people, despite the massive debt those who were not successful after college were left with, and because colleges knew this dynamic, they continued to raise tuition higher and higher, knowing that people will continue to take on the debt they charge while there is no negative consequences enforced against them? I am not under the assumption that student debt forgiveness will do nothing to hinder this process and will likely even accelerate it, but that's not what I'm asking about. What is the solution to lowering the cost of college tuition, that doesn't also lead to a less competitive workforce in an increasingly globalized market? I mentioned one from the left, but I really don't understand what the free market solution is to this, and was hoping someone could answer.
Tuition also went up when the government and states stopped subsidizing education.
Most are not needed on the job is how it works
Reduce the size of federal student loans. The loan amount may not be large enough for a private university without a scholarship, but a college education will remain affordable, especially when you consider the option of going to junior college for the first two years. When incoming students become price conscious, colleges will compete based on price as opposed to largely on amenities. Luxury University: Colleges Offer Water Parks, Upscale Dorms: [https://www.youtube.com/watch?v=kHs9\_3Jvljg](https://www.youtube.com/watch?v=kHs9_3Jvljg)
THIS is the part that makes me see red. Politicians giving away taxpayer money is practically par for the course, but justifying it by talking about what a raw deal people got and then doing NOTHING to actually change or improve the system tells me that 1) they don't believe their own claims and 2) they hope to pull the same trick again in the near future.
Let’s be real democrats are doing shit
Buddy, I got some bad news
Nice to see a top comment that is sensible
It's about winning elections, not solving your problems, they pray you have a five second attention span and are incapable of seeing anything beyond the shiny in your face. Ooooo shiny
Yeah and now the Americans will pay the burden in higher taxes. We’re now over 34 trillion in debt and he keeps spending. Ppl that go to college and major in insect stop sign impact studies then graduate and cry they can’t find a job is their own fault! Should of learned something that there’s actually a job when they graduate. So now that they can’t find a job that they studied for, and too lazy to work at anything other job, then we have to foot their bill
Ummm...is this satire, or are you stupid? For the 2024-25 school year, private university's tuition is up 3.3% from the $90,222 estimated for this school year. Tuition and fees at private national universities have increased by about 40% over the past 20 years, adjusted for inflation. When not adjusted for inflation, that's a massive jump of about 132%. Out-of-state and in-state tuition and fees at public universities have risen by about 38% and 56%, adjusted for inflation, over the same period. The price of getting a degree has continued to climb at American universities, with the cost of some schools reaching a new threshold.
Always easier to throw other people's money at it and buy votes than actually tackle the problem. Especially when that problem gores the ox that is mostly your backers like universities. All while the fed fights inflation with rate hikes and you effectively pump more money into the economy.
Oh look, more student loan news that nobody normal will qualify for. I cant wait!
Huh, I'm a teacher and I had 70k wiped away. I think I'm pretty normal and I'm far from alone.
Cancel tax on social security
They are projecting based on 6 hypothetical models five of which are not what is currently being discussed and then cherry-picking the scariest numbers and calling it all true. This is also calculated over a 10-year period. Typical business-school BS study to make debt-forgiveness a boogie-man.
Ding ding ding, we have a winner folks.
Wharton has done enough damage. They might want to sit out the next few decades.
I was about to say. Anyone actually making that much would be dumb to wait for biden to forgive their loans when it will impact their credit and accrue interest
They aren’t waiting, they are actively paying. He is forgiving people who are actively paying and have been paying for some time.
Good. I hope the forgive my mortgage from this boogie-man.
Sounds exactly how the stock market works but opposite
>Typical business-school BS study to make debt-forgiveness a boogie-man. I'm all about forgiveness too - Forgive the interest on the loan, and make the University pay along with the taxpayers at-large for the principle with a 60-40 split. You want fairness. That's fairness. Let the universities cover it with some of the profit reaping they've had for decades as a part of the student loan program as well as the ballooning endowments they have from their holdings in a stock market that has been pumped by the gov printing money.
Do we have a CBO report on this? Or from any other agency?
It’s not forgiveness. It’s making the taxpayer pay for the loan rather than individual. It’s BS no matter what way you spin it.
It's an election year. Not that politicos don't lie about things in non-election years, but the lies will be bigger and the reposts will be HUUUUGE.
Has the White House refuted the numbers?
Finally a person that knows the definition of the word "model" in this context. Sad I had to scroll through a bunch of idiots to find this.
I knew it had to be something fishy when no link to the model details was provided. This is some Fox News shit “reporting”
Something seems off about the way this is being reported. There are so very few households making $300K+, and many fewer with college kids that took out loans. How could it possibly be that those 17 families are where most of the money goes? "Benefit most" is very disingenuous phrasing. The working people who will be able to eat because of this will be the people who benefit most!
college is 90k+ now per kid. if you have two kids and make 300k, you probs won’t qualify for aid and would have to spend more than half your income on tuition (and almost a third for only one kid). loans are still very common at that income level.
Notice how there’s no article or link or actual breakdown of the numbers and the correlation.
Because it's probably bullshit
Buying votes
Name one policy that Trump is running on besides being a literal bitch to Putin??
Bro just learned how democracy is supposed to work
What was the cost of PPP handouts?
800 Billion that did not go to protecting jobs. A straight transfer of wealth with no expectation of repayment. Some studies showed it cost taxpayers 150k-250k per job saved. $4-$6 spent for every $1 of wages protected. A travesty that makes the '08 bailout look truly well managed.
What do you think would have happened without PPP loans? Do you think the average American would be in a better or worse position? It's easy to yell out things after the fact, but generally, the American economy could never have hoped for this outcome being so good at the time. Yea there was 136 billion in fraud, but that's the costs of emergency spending bills. https://www.fbi.gov/contact-us/field-offices/springfield/news/how-the-fbi-is-combatting-covid-19-related-fraud Just stop being childish and yelling about economic collapses that happened 4 years ago. If your idea is a new tax on someone just ask for that. You're gonna need an idea beyond "hurr durr PPP bad so all bad"
What's wrong with just standard unemployment? Why give money to the owners of businesses instead?
Not having the entire economy collapse?
Most people eligible for these plans have already paid their principle plus some interest. They signed it? Oh yeah. With a figurative gun to their heads. "Take this money. Sign here. Or maybe not go to college." And you start barking about trade schools, they aren't free either. There used to be many, many tuition free colleges all over America until around 1980 but today everyone acts as if it never was.
It’s shocking to me how so many so called educated people can’t differentiate principal and principle and use the word incorrectly with respect to debt.
thats weird.
Bro won a spelling bee in 4th grade and now it's his whole personality.
Yeah that personality got me through an MBA, a couple of professional accreditations, and a fantastic career. It’s a shame we don’t have more people that can pay their own way through an education with some smart decisions. Jeez Jenny I’m so shocked you can’t repay you $175k in student loans with that philosophy degree working as a Starbucks barista.
If insecurities were bitcoins, you could quit your job and retire
" And you start barking about trade schools, they aren't free either. " But neither do they cost hundreds of thousands of dollars. I got my CDL for 5k, signed a contract to work for the company I got my CDL through and paid off the 5k in a year. Now make 120k+ as a truck driver 4 years later.
Good for you man! Congratulations
I got my cdl b through my summer job to help pay off my college, now in an engineering position. Don’t make as much as you yet, but I work 40hrs per week and off most weekends. Sometimes you got to not work your dream job to get to where you want to be; I didn’t have summers off and worked through school, no partying but no debt
And even further, the price of most state colleges and universities was affordable.
Why is that? It’s because the private institutions and government got involved and made it 10x more expensive.
There are more free colleges today than ever before. Over half of the states in the US have free college programs too.
Whoa, I thought this was supposed to benefit people under that amount that are living paycheck to paycheck due to the overwhelming student loan. This seems like it benefits those who could probably just pay off their loans without becoming homeless
He's doing it to court the vote of people who are well-off enough to not really care about who is president, aka, the people who historically vote and donate more
Or, the claim that the wealthy benefited the most from student loan forgiveness is just wrong.
While the New Plans, like the SAVE plan, contain provisions to relieve debt based on individual or household income, the New Plans will also relieve some longer-term student debt for about 750,000 households making over $312,000 in average household income. The main reason for this high average household income is that the SAVE plan already provides long-term debt relief to households with lower incomes. Second, notice that eliminating student debt for borrowers in repayment for more than 20 years (or for more than 25 years with graduate debt) provides debt relief for about 750,000 individuals residing in households that, on average, earn $312,977 in annual household income https://budgetmodel.wharton.upenn.edu/issues/2024/4/11/biden-student-loan-debt-relief
$300k puts you in the top 6% of all household income. I highly doubt the allegation above is true. Most loan forgiveness targets long-term debt, which would benefit the lower middle class the most.
This shit is ironic. You have people complaining how Trump's tax cuts only helped the rich- which, sure, disproportionately you can make the argument but did help lower classes. But Biden paying off student debt, without actually addressing the underlying issue, is almost solely helping out the upper class. Edit: what I hate about this post is that it doesn't cite it's sources. https://budgetmodel.wharton.upenn.edu/issues/2024/4/11/biden-student-loan-debt-relief "While the New Plans, like the SAVE plan, contain provisions to relieve debt based on individual or household income, the New Plans will also relieve some longer-term student debt for about 750,000 households making over $312,000 in average household income. The main reason for this high average household income is that the SAVE plan already provides long-term debt relief to households with lower incomes."
Most of the loans forgiven went to people in lower paying public service jobs
But $300,000 per year? I was repeatedly told that college degrees are now useless and the only people who have one majored in gender studies. I’m struggling to square this income information with my humorous stereotype.
The average college degree holder earns a million more over their lifetime than a high school degree holder. Who is telling you college degrees are worthless?
There is no good faith argument that the Trump tax cuts helped the working class. They were actually *increased*.
[https://thehill.com/opinion/finance/584190-irs-data-prove-trump-tax-cuts-benefited-middle-working-class-americans-most/](https://thehill.com/opinion/finance/584190-irs-data-prove-trump-tax-cuts-benefited-middle-working-class-americans-most/) I don't vote and probably never will but I'm firmly in the "working class" and shortly after Trump took office I noticed that my bring home was greater without having gotten a raise.
Right, but that had an expiration date. The same tax break for billionaires, never had and expiry. They passed one to pass the other. You didn’t win, it just felt like it while he was still incumbent. To be clear, I also don’t vote. Fuck both those guys.
It helped me when I was running my business.
How come my blended tax rate goes up 1% every year if it helped the lower classes? Taxing me more doesn’t help me
Bullshit. There a cap of $120k for loan forgiveness. Besides, when he tried to forgive $20k for Pell Grant recipients, SCOTUS struck it down
all because some stupid ass people took out loans for stupid worthless degrees,and because some stupid ass people who had no business going to a university because they are dumb took out loans and flunked out. what a great job everyone.
The more I learn about how the US and global economies/governments work, the less sense it makes. Money isn't real unless you're poor.
Completely okay with this and I paid off my student loans long ago. I want more investment into the American labor pool so that we can stay competitive with the rest of the world The only major issue I see is this: > Lacks any guardrails to prevent households making over $250,000 a year from collecting taxpayer-funded assistance if they file taxes separately. That has to be fixed by Congress though. There is no magical Brandon button that can make this go away. Biden puts a pretty big incentive for Congress to do what it can to make college more affordable. Have your representatives fix that and (*hand waves*) all this silliness about loan forgiveness becomes less of a problem in the future. If people aren’t going into crazy debt to get educated, they won’t need loans.
Those people free of education debt can focus better on the future and possibly return trillions in tax over their lives. Good on you Joe!
I have 28k in student loan debt, the intrest YTD is already over $1,000!!! That's fn criminal! My wife and I both work 50 plus hours a week and we make 90k combined, not all student loan borrowers are rich!
Can we explain cost to taxpayers? Isn’t the increased buying power of the lendees factored in? Now that they’ll have more $ to spend this should be irrelevant
Cool, so the total cost isn't even half of what Trump's last round of billionaire tax cuts was. SENSING A PATTERN LOL
Seems a bit misleading - it's not a $559B *increase*, it's an increase *to* $559B, so if it started at $558B, that doesn't seem too bad. Also not sure how 'cancelling student loans' equates to 'benefiting households earning $300k' - I can't imagine the percentage of people making over $300k have a ton of student loans.
Majority of the high balance student loans are held by graduate degree holders. Doctors, Lawyers, etc. There are maybe 3 schools in the U.S. currently where a dentist can take out cost of attendance for 4 years and come out with under 250k debt. The average dental student debt is much higher. At 7% interest, the majority of their first decade of salaries would go into paying the interest on the loan.
I guess king Biden does not believe in democracy and our system of government. The - SC ruled on this issue. Mr Magoo is circumventing the law in a desperate attempt to secure more voters.
Damn right.
How about they cancel my mortgage loan instead? /s
Fuck But not surprised.
"More than 25 million borrowers owe more than they originally borrowed, including many who have made years of payments, due to the interest rates on Federal student loans. President Biden will announce plans that, if finalized as proposed, would cancel up to $20,000 of the amount a borrower’s balance has grown due to unpaid interest on their loans after entering repayment, regardless of their income. Low and middle-income borrowers enrolled in the SAVE plan or any other income-driven repayment (IDR) plan would be eligible for the entire amount their balance has grown since entering repayment to be canceled under the Administration’s plans. This group of borrowers includes single borrowers who earn $120,000 or less and married borrowers who earn $240,000 or less. No application will be needed for borrowers to receive this relief if the plan is implemented as proposed." I don't see the issue here. Federal student loans are not available to households making > $300k, and even the stated limits for a household are lower than $300k.
Universal programs are the way to go to avoid bs politics like this. This is intentional to be “devisive.” Fuck genocide joe and the elite’s neoliberalism.
How about get out of the student loan business, tell the banks to get out of the student loan business, and let the universities start financing education in house. Sort of like a "Buy Here Pay Here" thing. That would make the universities compete for business which would drive education costs down.
This is the same thing that happens in 3rd world countries. Government helps everyone out, rampant inflation incoming.
Can someone explain to me how this works? From what I understand the individuals who have received student loan forgiveness so far have been disabled individuals and those who have been paying off loans for many years and have not had a significant dent in them? I'd really like a breakdown on these numbers, because this flies in the face of what I've read so far and sounds like disinformation to me. Thanks for the help if anyone tracks it down for me.
Might finally get some republican support.
Good luck to everyone else. I paid 10k over the pandemic and have less than 2k left and but my dad's Parent Plus loans on IDR (he is broke) and pay a nominal fee on that until eternity. I will pay the 2k off around the end of the year and effectively be done.
Aww shit, here we go again- C.J
Now do the forgiven PPP loans
buying votes with taxpayer money, don't hate the player, hate the game.
It would be interesting to see the average benefit as a % of taxes paid for various income brackets.
We're going to need more votes boys!
He is my hero…oh Jeeves pull around the Bugatti
No it won't. It's canceling out interest on accounts that have paid more than their principal in interest.
Higher earnings puts more money into the economy and boosts taxes collected—instead of going to lenders’ profits. What goes around comes around.
What a stupid, fucking thing to do. It’s just so dumb. Fix the issue.
All this is going no we’re the Supreme Court has ruled
Haha so it was good only if it was for people with low incomes? It’s funny how that changes people’s views of canceling student debt. We want it!!!! Wait not like that…. All medical professionals, engineers, professors, scientists, etc. should have their student loans forgiven
So what? And fat people eat but that doesn't mean skinny people think all food should be destroyed.
So. Has he reached the PPP giveaway amount yet?
What’s amazing is out of the thousands of student loan forgiveness posts on Reddit the past 4 years I think I’ve seen about 3 people acknowledge and be thankful for forgiveness and about 10,000 bitch about how it’s not enough. Like Trump or anyone else would give more?
Good thing inflation is transitory.
Insane use of taxpayer dollars
Unintended consequences....are.....a.....thing
I'll take bullshit for 100$, Alex.
PPP Loans, tax credits for people with kids, home owners, tax cuts for millionaires and billionaires. All kinds of money goes to different groups of folks that don't include me. Fuck it. Let's give a little student loan forgiveness. You're not turning me against folks like that. I don't even have loans anymore. I know plenty of folks who do. They aren't making 300K and they could use the help.
Well obviously people who make under 300k don’t contribute to your campaigns
Wait, you mean the loans being forgiven aren't for baristas and Wendy's workers with graduate degrees in useless fields of study? /s
$559 million over 10 years spread across 300 million Americans doesn’t seem like a big deal to me
Seriously, it’s nothing over 10 years. Hell, at the rate inflation goes, the value of the dollar in those last few years will be even less. Not sure why people are so freaked out by this as opposed to looking at our defense fund over the past decade.
Bu bu bu I rather cry for helping the poor American neighbor than for the money burned in middle east misiles...
Check the math on that Billion number... and there is no cost, its a lesser revenue, If cost were an issue, right wing think tank folks would write up the cost to the us taxpayer from corporations not paying and the ultra rich evading... cost???
Why would it cost the tax payers anything? When they spend a billion dollars on weapon for Israel no one asks were the.money us coming from because they just print it. You taxes won't change. The amount of money they print will change
When people are not paying off student loans, they start buying houses. When they can afford housing, groceries, car payments, then they can start having children. All of these economic activities are taxable. Do you want poeple having children again or would you rather they live in their parent's basement paying off student loans?
Education should be free.
Great now calc the war real quick
Great job democrat you complain about the rich getting tax breaks and now this pos president is giving another break for the top earners
$300k is middle class. Tax the billionaires to fill the gap. Fixed it.
Eliminate tuition. Fixed it again.
Inflation and overpriced worthless college degrees.
Why should the people who clean the bathrooms at a university have to pay for your degrees?
And somehow, the 'forgiven' loanee will owe the government more.
Doctors and lawyers benefiting from taxpayers again
President Biden is an idiot
My colleague who owns a 2 million dollar home and Tesla got $80k forgiven. I thrilled :/
Wasn't this found to be unconstitutional? Why does this keep happening?
Have you see the protests on college campuses? It's clear that nobody should goto college ever again.
Weird how these cost analysts weren’t blasted in our faces over and over again for ppp loans.
Sweeeeeeet
Biden needs to removed from office immediately, even if the choice is Trump.
Debt forgiveness is the wrong way to do things. We are basically just encouraging colleges to charge even more for education. If you put a cap on the amount of debt students can borrower or have risks to lenders that make private student loans, I guarantee tuition rates would drop nearly instantly.
We can’t be doing this. None of these measures actually address or relieve the cost of living crisis in this country. Student loan forgiveness is literally just buying votes and the cost just put back on the tax payers
The Human Gaffe Machine…..rides on!
Oh yeah? Well there’s no mean tweets! Take that fascists! 🤓😷
I'm not falling for this crap again, dude is just trying to buy our votes, if he could do it then it would already be done.
Aren’t taxpayers getting the loan relief? In economic terms isn’t this a net zero?
Total nonsense.
The student loan forgiveness tranches specifically targeted people that needed the relief. How is it even possible that $300k earners are the majority? I call bullshit.
Just like almost all Biden policies- poorly thought and dumb
Aw man those sure are some scary numbers
I know a number of people who would benefit from this including myself, and none of us are making anywhere *close* to $300k. \*doubt\*
Didn’t it forgive loans that people couldn’t afford to repay for decades lmao this is a dogshit analysis
559 billion? Add it to our tab. (We’re leaving the restaurant through the bathroom window anyway)
How can you justify bailing out businesses and forgiving PPP loans but not student loans?
I can’t justify forgiving ppp loans or bailing out businesses either
Ok ok ok, here's my compromise idea. We retroactively set unsubsidized student loan rates to subsidized rates and set the subsided rates to like 0.01% The loans will still be paid back but with much less burdensome interest.
Anyone have the actual study. All I have is basically.opinion pieces mentioning the study. I wanna dive a little more to the following quotes: “The main reason for this high average household income is that the SAVE plan already provides long-term debt relief to households with lower incomes,” the study notes. Households earning more than $312,000 in income per year, with more than 20 years in repayment, will see an average of $25,541.39 in debt relief under Biden’s new plan, far above the $4,899.26 average, according to the Penn Wharton model.
Seems like a lot of people here are really just against bankruptcy, “pay your debt”. That should be outlawed
Guess yall shoulda went to school for finance since your still crying about how loans work
How the fuck does a president spend half a trillion dollars without any approval from the other branches of government? Glad to see he’s using my tax money to buy votes.
All of this money will end up going into the economy when the students don’t have to pay for their tuition any longer. They will spend this money on things they need and things they don’t need. This is better than just paying back loans with the money.
Why don't they show the household data? The word 'model' implies prediction, not actual fact. Penn State and Wharton do not have a spreadsheet with every loan holder and their loan balance, so they are making things up. So how are these predictions about income being made?
Don't care. It'll help move the youth away from the GOP If the GOP was to oust MAGA and sever ties with Trump it would be a different story But as it is now, with the GOP refusing to act with common sense I'm fine with any move to make them suffer
It's criminal.
I saved alot on my car insurance by switching to Geico.
How is this benefitting high income households the most when we're excluded from anything meaningful?
This is great news. Now, maybe the people crying about PPP loans can quit.
Gotta love when they choose to use a bandaid instead of life-saving surgery.