Cancel Student Loans to Stimulate Economy? (bankrupt, percentage, credit card, borrowing)

[Jaxson]

Tell your friend to go back to school and take some classes on finance please.

[goodbyehollywood]

Hey, here's an idea-- if everybody would pay back their loans, instead of expecting their debt to be forgiven or subsidized, banks would be willing to lend and we wouldn't need a pork bill.

Oh, wait, that would never work-- people would actually have to do what they say they would.

[CouponJack]

Sure, lets cancel and forgive ALL loans! What's the big deal? Who cares about personal responsibility anyway? While we're at it, lets cancel mortgages to, since they are a loan and we can stimulate the economy even more.

I think I'll call AMEX and tell them they should do this so the economy could be "stimulated" too....



The people who suggest these things are clueless....

[sskkc]

If they're gonna cancel all student loans, then shouldn't they also reimburse those of us STUPID enough to have been paying on them all along, on time?

[luzianne]

Student loans have a low interest rate. I don't think that's the solution. Personally, I think getting rid of the IRS and instituting a national sales tax instead would stimulate the economy. Just think how much money people would/could spend if they got their ENTIRE paycheck with no taxes taken out. Could eliminate the national sales tax on necessities like food.

[CouponJack]

Originally Posted by luzianne

Personally, I think getting rid of the IRS and instituting a national sales tax instead would stimulate the economy. Just think how much money people would/could spend if they got their ENTIRE paycheck with no taxes taken out. Could eliminate the national sales tax on necessities like food.

Never going to happen for several reasons....

1. There is too much welfare/entitlements out there in the tax code right now benefiting low income earners already (ie EIC, child tax credits, mortgage deduction, etc). This is all free money for people who contribute hardly any federal taxes.

[killer2021]

Student loans these days are the biggest scam. It is legalized slavery. I am not kidding. Especially since you cannot bankrupt them. This type of slavery is called indentured servant. Which is just a fancy term for someone who gets to be free but has to pay the vast majority of their earnings from labor to their master (in the form of student loan payments of course). The only different is that instead of it being for a specific period of time it is for a specific amount of money with interest. That could, technically, be forever. Sure hope going to that ivy league was worth it!

An indentured servant is a form of debt bondage worker. The laborer is under contract of an employer for some period of time, usually three to seven years, in exchange for their transportation, food, drink, clothing, lodging and other necessities. Unlike a slave, an indentured servant is required to work only for a limited term specified in a signed contract

Indentured servant - Wikipedia, the free encyclopedia

[maf763]

Originally Posted by CouponJack

Never going to happen for several reasons....

1. There is too much welfare/entitlements out there in the tax code right now benefiting low income earners already (ie EIC, child tax credits, mortgage deduction, etc). This is all free money for people who contribute hardly any federal taxes.

Do none of these things benefit middle income wage earners? How about high income wage earners? I'm curious to know who you think has a better chance to influence the current tax structure - high income earners or low income earners?

[neil0311]

Originally Posted by AsymptoticFaery

A friend of mine mentioned that a great idea for stimulating the economy would be to cancel all students loans, that way most people definitely get an edge up in the economy and can claim more of their paper net worth.

Geez...sounds like nothing more than someone trying to cash in and slide on the commitment they made to repay a loan. I guess that's the new normal in our country....The United Bailout and Stimulus States of America.

[wheelsup]

Originally Posted by killer2021

Student loans these days are the biggest scam. It is legalized slavery. I am not kidding. Especially since you cannot bankrupt them. This type of slavery is called indentured servant. Which is just a fancy term for someone who gets to be free but has to pay the vast majority of their earnings from labor to their master (in the form of student loan payments of course). The only different is that instead of it being for a specific period of time it is for a specific amount of money with interest. That could, technically, be forever. Sure hope going to that ivy league was worth it!

If you were able to clear student loans in bankruptcy court every college grad would have a bankruptcy on their record. Seriously. They are essentially unsecured loans that the Government "secured" by not letting them be discharged. Otherwise the rates would be 20%-30% APR!