Some Americans will get their student loans canceled in February as Biden accelerates his new plan

[Tuur]

These plans appear to be a fair way to end crippling student debt for those who qualify.

Poor little darlings: They knew the money was a loan when they received it, and that loans must be paid back. If they didn't know you have to pay back a loan, this is an important learning experience.

That includes my own. They took out a loan; they have to pay it back, with interest. They knew in advance they'd have to repay the loan, and that the interest rate wasn't exorbitant, and agreed to do so.

Go ahead and tell me how vile and hard-hearted I am. Then tell me where the money is going to come from to make up what is not repaid the government. Tack it onto our ever growing deficit?

 

[Hans Blaster]

Look student loans are great if you only take out a few k (great way to build credit without needing credit, but you should expect to pay back whatever you barrow. Just like with the pandemic the smart ones paid on the loan anyway ( even if they could not pay he full amount because guess what with no interest being added on they will get that loan paid off faster and cheaper. The ones ( most of them that paid NOTHING just because they could find themselves in the same spot they were now that interest is building back up.

What I want to know is how you're going to pay for the other 7 semesters?

 

[Green Sun]

yes, I do feel the same about PPP loans for companies although I am not sure how they worked in terms of "taking them out" as the pandemic happened as opposed to the company saying we cannot afford x so we will take out basically a planned loan, so in that sense it would make even more sense to forgive those, but yes companies who simply want their loans forgiven should not get it as to fraud that needs to come with HEAVY punishment ( and I am saying that as someone who generally takes a fairly liberal view for punishment of non-violent crime.

I know you feel that way, I'm wondering what Valletta thinks.

The concept behind the PPP loan was "apply for this if you will be unable to meet payroll, so you can keep paying your employees to keep the business open." The problem is that there was virtually no oversight. Not on the application process, not on who should and should not be getting it, not on verifying the amount that a business should receive, and not on if they should actually be forgiven or not.

In effect, it turned into any application was accepted, any amount was payed out, and any forgiveness request was granted with little oversight.

Not aided at all, of course, by Trump removing the Inspector General for the money, which crippled any attempt for oversight.

Trump removes watchdog tapped for $2T virus rescue oversight

Poor little darlings: They knew the money was a loan when they received it, and that loans must be paid back. If they didn't know you have to pay back a loan, this is an important learning experience.

That includes my own. They took out a loan; they have to pay it back, with interest. They knew in advance they'd have to repay the loan, and that the interest rate wasn't exorbitant, and agreed to do so.

Go ahead and tell me how vile and hard-hearted I am. Then tell me where the money is going to come from to make up what is not repaid the government. Tack it onto our ever growing deficit?

Importantly, your loan documents for student loans state the numerous ways that your student loans can be forgiven. When I got mine, I was informed that under the HEROS Act Of 2003, the DoE could waive or modify my loan in the case of a national emergency. That was what I and every other borrower believed was an aspect of our loan, until Republicans got upset over it.

You paid one back, you had the documentation on all the ways your loan could be forgiven too.
If you care about the national debt, surely you care about the 770 billion in debt that the PPP loan program tacked onto the deficit. You should probably be far more concerned over that and the fraud associated with the PPP program. If the point isn't just to feel smug and besmirch borrowers, at least.

 

[Green Sun]

Look student loans are great if you only take out a few k (great way to build credit without needing credit, but you should expect to pay back whatever you barrow. Just like with the pandemic the smart ones paid on the loan anyway ( even if they could not pay he full amount because guess what with no interest being added on they will get that loan paid off faster and cheaper. The ones ( most of them that paid NOTHING just because they could find themselves in the same spot they were now that interest is building back up.

I do want to state that, if someone (like me) had the ability to pay back the loan payments every month during the COVID Freeze, making those payments monthly was an explicitly worse decision financially.

It was a far better financial choice to take the payment you would have made, and put it into a savings account. That would allow some amount of interest, even if small, to generate. When the freeze ended, you could either resume making monthly payments as normal, with an extra cushion built up in your finances, or you could take the full amount you had saved (payments + interests) and make a lump sum payment that would be a greater total amount off of your loan compared to if you had made the payments monthly.

To pre-empt any complaints about that being an "abuse" of the freeze, Trump was the one that froze both interest and payments initially. His DoE even recommended putting the money in savings on the Student Aid site.

Paying off your loan also hurts your credit for a bit. My Credit Score dropped quite a bit when I paid mine off, which is a whole other kind of frustrating. It does recover, but it feels like a slap in the face for doing the "responsible" thing.

 

[dogs4thewin]

I do want to state that, if someone (like me) had the ability to pay back the loan payments every month during the COVID Freeze, making those payments monthly was an explicitly worse decision financially.

It was a far better financial choice to take the payment you would have made, and put it into a savings account. That would allow some amount of interest, even if small, to generate. When the freeze ended, you could either resume making monthly payments as normal, with an extra cushion built up in your finances, or you could take the full amount you had saved (payments + interests) and make a lump sum payment that would be a greater total amount off of your loan compared to if you had made the payments monthly.

To pre-empt any complaints about that being an "abuse" of the freeze, Trump was the one that froze both interest and payments initially. His DoE even recommended putting the money in savings on the Student Aid site.

that too would have been a good option. I was talking mostly about the people who treated that extra money as I do not have to pay on my loan so I can do with this what I want saving the money would have been a great option as well.

 

[Green Sun]

that too would have been a good option. I was talking mostly about the people who treated that extra money as I do not have to pay on my loan so I can do with this what I want saving the money would have been a great option as well.

Sometimes they didn't have a choice. Lots of student borrowers lost their jobs during the pandemic. Bills still come due, and those things still need to be paid. The loan being frozen wasn't used by them to splurge, it was a spare bit of breathing room during an incredibly trying time.

There was no downside to not saving up either, in a way. As far as the total loan amount due, principal, interest, required payments, it was as if it simply picked back up from April 2020. But that doesn't necessarily mean that one's finances were as good as back then.

People tend to immediately paint those in bad financial states as "deserving" of it. That if they did "better" then they'd be rewarded for it. That all their problems are caused by character, not by circumstances outside of their control. I can't comprehend why people think that way.

It is somewhat telling of the political forces involved with the mismatched outcry that programs designed to support individuals are always maliciously painted with that brush, while the same isn't done with welfare for businesses. That is, after all, what thing such like the PPP loans are - Welfare for Companies, at the taxpayer's expense.

 

[comana]

In fact such types of gifts are HURTING people more than helping. As I pointed out before, the Bidens and Pelosis and the Clintons and Obamas and George Soros are not willing to help with their own money, but are using hard earned taxpayer money. Just like Martha's Vineyard when the immigrants showed up and Obama refused to let them use the land on his estate even temporarily. Democrats have kept the prices up at colleges and universities by their tenure policies and not getting rid of the bad teachers. If you have connections like the families of the aforementioned you can get in and afford it, but many cannot and took jobs instead. Where is the compassion for them? Why make them pay their tax money for those who bought various luxuries rather than pay off their loans early?

This isn’t about the personal wealth of the Biden, Clintons, Pelosis, or Soros. This is about ordinary citizens trying to get by.

 

[dogs4thewin]

This isn’t about the personal wealth of the Biden, Clintons, Pelosis, or Soros. This is about ordinary citizens trying to get by.

What the poster is saying is if Biden and company cares so much why do they not use their PERSONAL wealth instead of tax payer money?

 

[Valletta]

Do you feel the same way about PPP loans? Companies with the means to pay them still went for forgiveness. And that's the ones that didn't commit massive amounts of fraud with their PPP loans.

I can guarantee, money given to PPP loans resulted in a lot more of a tax burden on tax payers than any student forgiveness ever has.

Just the fraud alone might be a trillion dollars on PPP loans. I'm very much a libertarian, and am in one of the most progressive areas in the country. My hometown government is currently working on reparations to blacks and paying off people who have high medical bills.

 

[comana]

What the poster is saying is if Biden and company cares so much why do they not use their PERSONAL wealth instead of tax payer money?

Why ask these specific people? I would love to see high wealth taxed more. We are discussing a government program that s funded by taxes, not gifts from individua wealthy families.

 

[Valletta]

This isn’t about the personal wealth of the Biden, Clintons, Pelosis, or Soros. This is about ordinary citizens trying to get by.

There are other ordinary citizens who need help as well, many in much worse situations. We have representatives in Congress who debate and pass laws in order to determine the use of taxpayer funds.

 

[comana]

There are other ordinary citizens who need help as well, many in much worse situations. We have representatives in Congress who debate and pass laws in order to determine the use of taxpayer funds.

Lately they debate nothing but Hunter. If they actually did the job they are paid for then you’d have more of an argument.

 

[dogs4thewin]

What I want to know is how you're going to pay for the other 7 semesters?

Well, it depends on where you go as to how much it is first of all. Second of all there are scholarships, grants, work study ECT to help with cost. My sister for example spent nine semesters in school ( her freshman year was tough with our father being terminally ill and passing in March of that year. Between scholarships state and church and a little bit ( compared to the total of our own funds she left ( graduated not owing a DIME) There is also no law that says that one must go to school all at one time or by full time the entire time.

 

[dogs4thewin]

Why ask these specific people? I would love to see high wealth taxed more. We are discussing a government program that s funded by taxes, not gifts from individua wealthy families.

Not everyone who has a lot of money particularly feels that this is how their money should be spent. If people in the government feel SO strongly that student loans need to be forgiven open up your own pocketbook and do it yourself.

 

[comana]

Not everyone who has a lot of money particularly feels that this is how their money should be spent. If people in the government feel SO strongly that student loans need to be forgiven open up your own pocketbook and do it yourself.

There are a lot of disagreements on where our tax money is spent. It’s not an a la carte option.

 

[Valletta]

Well, it depends on where you go as to how much it is first of all. Second of all there are scholarships, grants, work study ECT to help with cost. My sister for example spent nine semesters in school ( her freshman year was tough with our father being terminally ill and passing in arch of that year. Between scholarships state and church and a little bit ( compared to the total of our own funds she left ( graduated not owing a DIME) There is also no law that says that one must go to school all at one time or by full time the entire time.

Right. I remember one summer there were no jobs, our university classes ended later than others. So i took the next spring off to get a job through the end of the summer.

 

[Green Sun]

Well, it depends on where you go as to how much it is first of all. Second of all there are scholarships, grants, work study ECT to help with cost. My sister for example spent nine semesters in school ( her freshman year was tough with our father being terminally ill and passing in arch of that year. Between scholarships state and church and a little bit ( compared to the total of our own funds she left ( graduated not owing a DIME) There is also no law that says that one must go to school all at one time or by full time the entire time.

Your loans enter full repayment six months after you exit at least half-time student status, which means that any interest accumulated so far capitalizes, and you have to start paying normal monthly payments. On top of that, most schools will not accept too large of a gap in between semesters for a program.

The loans would pause again if you went back into school at least half-time, but that capitalized interest stays on your premium forever. You can't really stretch out a four year degree over a decade or something.

 

[comana]

Your loans enter full repayment six months after you exit at least half-time student status, which means that any interest accumulated so far capitalizes, and you have to start paying normal monthly payments. On top of that, most schools will not accept too large of a gap in between semesters for a program.

The loans would pause again if you went back into school at least half-time, but that capitalized interest stays on your premium forever. You can't really stretch out a four year degree over a decade or something.

Exactly, the traditional 4 year university system is not set up to accommodate the part-time student. Realistically, if one could pay for all, or even a significant portion of their tuition in a semester off or part—time job, it wouldn’t make financial sense to pursue a degree. Just keep going with that high paying job that doesn’t require a degree.

 

[dogs4thewin]

Your loans enter full repayment six months after you exit at least half-time student status, which means that any interest accumulated so far capitalizes, and you have to start paying normal monthly payments. On top of that, most schools will not accept too large of a gap in between semesters for a program.

The loans would pause again if you went back into school at least half-time, but that capitalized interest stays on your premium forever. You can't really stretch out a four year degree over a decade or something.

but if you only take out the loan you need say the semester cost is 15k and you have 10k in other forms of aid then you are not taking out all that much really only 1/3 of the costs. Moreover there is also no law that says that someone must wait for that six months to expire before starting repayment. If you get a job after graduation ( and remember you can start getting the word out before you gradate and you have a job three months after you gradate there is no law that says you have to wait the extra three months before paying on the loan.

 

[dogs4thewin]

Exactly, the traditional 4 year university system is not set up to accommodate the part-time student. Realistically, if one could pay for all, or even a significant portion of their tuition in a semester off or part—time job, it wouldn’t make financial sense to pursue a degree. Just keep going with that high paying job that doesn’t require a degree.

trade schools take a lot less time and make good money as well you know. Also, there are PLENTY of people who choose to go back either full or part time after in life ( usually defined as after their 25th birthday) You think they have an easy time of it probably not, but as long as they still have the mental ability to handle college level work there is no age limit to pursue classes.