Progressive Democrats are pushing hard to create policy under joe Biden that would cancel student loan debt but have never stopped to really consider who really benefits. Many have remained skeptical of the long-term economic benefits. The loa forgiveness would offer a small positive immediately but not a long-term economic benefit because forgiveness is taxable.
According to the Federal Reserve, there are about 45 million borrowers who owe a collective of roughly $1.6 trillion in federal and private student loan debt as of June 2020. That’s up from $250 billion in 2004.
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The top 40% of U.S. households, however, also owe almost 60% of the outstanding educational debt and make almost three-quarters of the payments, recently released data from the Federal Reserve’s Survey of Consumer Finances shows.
Meanwhile, the lowest-income 40% of households hold just under 20% of the outstanding debt and make only 10% of the payments.
While there is no exact estimate for a student loan forgiveness plan’s price tag, the Congressional Budget Office estimated that just the cancellation of $10,000 in student debt for all borrowers could cost between $250 billion to $300 billion, piling on to the growing national debt of over $27 trillion.
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No forgivneses of loans of any kind !!!!
Nothing comes free , someone is paying for the freeloaders , we must have accountability in life . For every fun there is a price to,pay !
It’s a LAW of life, nothing comes free !!!!!!
Yes, us taxpayers.
Just the DemonRATS trying to buy votes.
I would agree with that for the following exchange:
a. All legislative (political) employees take a 20 percent cut
b. All government employees, especially politicians, have no government retirement – social security.
c. All government employees have same healthcare plan the rest of us do.
All of this would go to making up for the forgiveness.
Of course the politicians could make that up through graft, legal putting money into their own pockets through lobbying companies
WHY do young people think they should get everything free when the education they get for the student debt directly affects their life forever. They need to accept responsibility for themselves, and repay the debts they make ! We older people totally repaid our education debt, and now are expected to pay for the younger people !!!
For decades they have heard the message “YOU DESERVE IT”. And now they believe it. This is the OPPOSITE of Christian work ethic. No real Christian would think of leaching off of others.
Reinstate the Draft. Let the young men and women earn what they deserve.
It didn’t hurt me to learn that I am responsible for my mistakes.
No Loan forgiveness.
People have to grow up and learn accountability for their mistakes.
Like Janine said; It’s a Law of life, nothing comes for free.
Let the universities and colleges (who are essentially the only beneficiaries of the government loans and grants) foot the bill! Time to pay the piper!
When grants, loans and aid increased, the prices the colleges charged increased.
Remember the CASH FOR JUNKERS. The price of cars went up by the exact same amount. The only ones who gained were the dealers.
Remember the assistance for storm windows. The price of those windows went up. The only ones who benefited were the window companies. Remember the subsidies for solar power. The price of solar power went up exactly by the amount of the subsidies.
You get the picture.
Government help does not help.
If you borrow the money YOU pay off the debt! I worked to pay off my student loan and it was my first lesson about borrowing money. And that lesson about borrowing money didn’t cost me anything. Sometimes the best lessons are free!
What about the people who were duped into taking loans for an education that wasn’t worth the paper it was written on? Same as the banks who cheated people with predatory loans, some schools lied to students to get them to take loans for degrees that were an equivalent of toilet paper because that is all that they would be good for. What we should have done was get skills education such as electrician, plumber, carpenter and such but tried for degrees in programming which lead nowhere because computer languages cycle faster than you can keep up with because computers become obsolete before they even leave the store. And before you know it you owe more than you borrowed because interest compounds fast on loans. Just like farmers, students are given easy access to loans but not an easy way to pay them back because you can’t find a job in the field you went to school for. We owe more money than we will ever be able to pay back because of interest and $10,000 isn’t even a drop in the bucket, we are both past 50 and have no hope of paying what we owe even though we want to. We know that nothing comes for free, but we are not freeloaders, we worked until both of us were injured on 2 separate jobs. The only debt we have is student loans, nothing else.
Someone once told me that the Bible says if you owe money, you don’t get into heaven.
Freaking morons. Cancelling loans for those who haven’t paid them cheats those who have already worked hard and paid off their loans. If this were to be fair the government (tax payers) would have to refund to the people who borrowed and already paid off their loans as per their obligation. What a pile of guano.
How about taking the money owed out of their TAX RETURN.
I want to know the individual penalty for failure to pay your Education cost. Do they rescind your Diploma if you finished school and then don’t pay? If I buy a car and don’t pay for it, they come and take it away. If you failed to finish school, don’t pay the loan, not sure you should be able to skate away with no penalty. I’m not aware of an way to not pay back a loan, and escape without some personal unpleasant cost, ruined credit is the worst by my standards. For years you pay higher interest on any loan you may be able to get, some loans you can’t get.
Maybe a lower interest rate would help those that didn’t finish school, but skipping paying can’t be the norm.
100% no tax refund check and continued paying the loan.
Free money baby?????
No such thing as a free lunch. SOMEBODY pays for it no matter what. IF nothing else, we pay for it with MASSIVE INFLATION
Those who want stuff given to them are STUPID. And their lives will NEVER be a succexss.