Student loans
- Thread starter msstate7
- Start date
I think it’d be so massively unpopular that it’d never happen, but I think this would absolutely solve the problem.
acesfull86
Well-known member
https://www.washingtonpost.com/opinions/2022/04/13/16-trillion-student-debt-is-monument-destructive-assumptions/
Anyone who has taken a swig from the flask of recent history knew President Biden was going to decree another extension of the pause on federal student loan payments. While celebrating the economy’s health — 3.6 percent unemployment, 2 percent unemployment for college graduates — he has announced a sixth extension, through Aug. 31, to give borrowers relief from current economic conditions.
The Constitution, which modern presidents treat as a tissue of suggestions to be complied with when doing so is not inconvenient, says: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” The Committee for a Responsible Federal Budget (if the committee has 20 members or so, it has about half of the Americans who care about responsible budgeting) is not amused. It says this will bring to more than $115 billion the effective disbursement, granted by executive largesse, of funds that otherwise would have flowed into the treasury in payments of principal and interest. Now four more months, at about $5 billion per month in non-accrued interest, will fuel consumption in the overheated economy.
…
Twenty-eight days into his presidency, Biden, responding in a CNN town hall to a question-cum-exhortation about loan forgiveness of “$50,000 minimum,” embarked on a syntax-defying 648-word ramble that included an almost decipherable vow not to forgive “the billions of dollars in debt for people who have gone to Harvard and Yale and Penn.” Now, however, he has again given such people, included in the about 41 million borrowers, relief. Otherwise, he says, a resumption of loan payments in May could produce a cascade of delinquencies and defaults that would “threaten Americans’ financial stability.” It is remarkable that the economy can be both as robust and as fragile as he says it is.
The loan payment pause is progressives’ second-favorite regressive policy, second only to raising (if not abolishing) the cap on their affluent voters’ deductions of blue states’ high state and local taxes. A Brookings Institution study says about a third of student debt is owed by the wealthiest 20 percent of households (only 8 percent by the bottom quintile), and it is disproportionately held by those with advanced degrees, who have especially high lifetime earning potential.
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Will speaking truth
Anyone who has taken a swig from the flask of recent history knew President Biden was going to decree another extension of the pause on federal student loan payments. While celebrating the economy’s health — 3.6 percent unemployment, 2 percent unemployment for college graduates — he has announced a sixth extension, through Aug. 31, to give borrowers relief from current economic conditions.
The Constitution, which modern presidents treat as a tissue of suggestions to be complied with when doing so is not inconvenient, says: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” The Committee for a Responsible Federal Budget (if the committee has 20 members or so, it has about half of the Americans who care about responsible budgeting) is not amused. It says this will bring to more than $115 billion the effective disbursement, granted by executive largesse, of funds that otherwise would have flowed into the treasury in payments of principal and interest. Now four more months, at about $5 billion per month in non-accrued interest, will fuel consumption in the overheated economy.
…
Twenty-eight days into his presidency, Biden, responding in a CNN town hall to a question-cum-exhortation about loan forgiveness of “$50,000 minimum,” embarked on a syntax-defying 648-word ramble that included an almost decipherable vow not to forgive “the billions of dollars in debt for people who have gone to Harvard and Yale and Penn.” Now, however, he has again given such people, included in the about 41 million borrowers, relief. Otherwise, he says, a resumption of loan payments in May could produce a cascade of delinquencies and defaults that would “threaten Americans’ financial stability.” It is remarkable that the economy can be both as robust and as fragile as he says it is.
The loan payment pause is progressives’ second-favorite regressive policy, second only to raising (if not abolishing) the cap on their affluent voters’ deductions of blue states’ high state and local taxes. A Brookings Institution study says about a third of student debt is owed by the wealthiest 20 percent of households (only 8 percent by the bottom quintile), and it is disproportionately held by those with advanced degrees, who have especially high lifetime earning potential.
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Will speaking truth
sturg33
I
An honest question is whether I can go take out a huge loan today for a graduate degree.
Or what about my wife's medical school loans. She makes 1% money, they gonna forgive that?
What happens next year... Do 2023 freshmen have to take out loans and have to pay them back?
I assume no recourse for the people who saved and sacrificed to pay their back?
What about the poor black person who chose to work at a mechanic shop instead of going into massive debt?
Are there any reforms to the lending system?
Or what about my wife's medical school loans. She makes 1% money, they gonna forgive that?
What happens next year... Do 2023 freshmen have to take out loans and have to pay them back?
I assume no recourse for the people who saved and sacrificed to pay their back?
What about the poor black person who chose to work at a mechanic shop instead of going into massive debt?
Are there any reforms to the lending system?
Jaw
It's OVER 5,000!
I feel like there should be a German word for an act that you wholly disagree with but also would be seriously helped by.
zitothebrave
Connoisseur of Minors
There's a better way to handle student debt beside eliminating it. Pass UBI. It's system agnostic, people who spent money paying off their loans aren't ****ed. People who elected to not go to college isn't ****ed, you could income cap it to say an annual income of under 10X for individuals and 20x for household. So if the payment is 1K a month, it would be for individuals who make under 120K individual or 240 household.
With some amount of increase overtime of course to adjust for inflation.
With some amount of increase overtime of course to adjust for inflation.
sturg33
I
Ahh yes... Instead of giving just rich people free money, let's give everyone free money!
Do y'all not understand what is happening with inflation right now?
If you're going to forgive student loans, every penny should be raised from the college endowments first, taxes should be raised on the benefiting people to cover the difference, and the federal government must stop giving loans going forward.
Not a penny should be printed or taken from tax payers. And the universities should be punished for selling a useless product
Jaw
It's OVER 5,000!
We've seen easier college loans create skyrocketing tuition costs. During the same time that endowments experience record growth. It's pretty clear that universities are about as efficient and self restraining as the federal government. That doesn't inspire me to basically write them a blank check.
acesfull86
Well-known member
Nothing more than a desperate attempt to buy votes by a sinking administration.
acesfull86
Well-known member
Instead, the loudest supporters of forgiveness are going in the other direction…college should be “free!”