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I dont feel bad for the student loan places either, they have been raping students for years, they are set up more like payday loan places or even Mafia bookmakers.
The "student loan places" are the United States Government. The government cannot cancel private loans, only federal loans will be canceled. They have already shut off interest and payments on federal government student loans. He might be able to say that no interest will be change and no payments collected on the first $50,000 of every federal student loan. This would effectively cancel them at least as long as his EO remained in effect. It is possible they might come back someday, but that could happen in a lot of ways. Actually cancelled loans are considered income, so instead of making loan payments, everyone would owe taxes on $50,000 of income. For us that would be about $11,000. We would have to take out a loan to pay it. It would be worth doing so, even if the tax loan was at a higher interest rate than the student loan, because we would still have $39,000 cancelled. However this would give the government a nearly instant short term influx of cash.
The tax payers would be on the hook for even more. And the welcher want to bes will never a learn a basic business lesson.-You honor the contract or suffer the consequences.
On Thursday, at a Politico Playbook event, White House Chief of Staff Ron Klain reported that Biden asked Education Secretary Miguel Cardona to figure out if the President has the legal authority (Executive Order) to wipe out up to $50K of student debt per person.
How can anyone believe this is a good thing? How is it going to be paid? Probably with more tax increases on the same responsible people who worked extra hard and made large financial sacrifices to pay off their children's and their own college costs... like me!
Mine will be starting college in the fall so does he get a 50K credit for expenses?
In 2007, as a part of the College Cost Reduction Act, Congress voted to forgive outstanding qualified student loan balances after 10 years of payments when the debtor was a full time employee of the federal, state, county or municipal government including most 501(c) 3 corporations. This act received strong bipartisan support.
The forgiveness is not predicated upon a degree, grades, area of study or relationship to the employee’s job. There is NO CAP on the amount of loan forgiveness. It was applicable only to new debt acquired post the legislation and therefore the first round of forgiveness did not occur till 2017.
Some private employers continue to offer a benefit of tuition reimbursement to employees. The value of the benefit is variable. McDonalds offers up to $2500 per year to any employee who works at least 15 hours a week. That comes to an equivalent of a $166/ hr benefit. Sweet.
Trump was clear he was open to a similar forgiveness initiative for qualified student debt, provided a solid 10-15 year history of payments. Then again, politicians say a lot of things when running for office.
That Biden has asked if an EO could be used to forgive a portion of outstanding qualified student loan debt does not mean there is a clear path to do so or what, if any, limitations would be necessary.
Any attempt to broadly forgive qualified student debt will be DOA.
What an idiot. Does he not realize this will make the situation worse long term? The schools will just continue to invent ways to increase tuition and this will basically give them carte blanche to do so.
Additionally, what about those of us who have worked our butts off and sacrificed to pay ours off. I wasn't about to pay for the full term, so we skipped vacation, eating out, bought cheap phones and phone service, no boat, motorcycle, etc etc to pay them off as quickly as we could. This young generation is so weak and pathetic. Want government to bail them out instead of sacrifice like generations before. No my debt is paid off, and I have freedom, and I know that I was not a mooch to anyone else in society to do so.
If he goes through with this, this will be the nail in the coffin for the dems in 2022 and 2024. No way most of the country supports this.
I agree, and I am not even a Republican. This would simply be unacceptable. Plus, student loan holders actually make up quite a small number of Americans (about 20%). That would be too much money to waive for too few Americans. It shouldn't be waived, anyways.
Why should we have to foot the bill for future doctors and lawyers? Because it is pretty much grad students who rack up that much debt from public schools.
I agree, and I am not even a Republican. This would simply be unacceptable. Plus, student loan holders actually make up quite a small number of Americans (about 20%). That would be too much money to waive for too few Americans. It shouldn't be waived, anyways.
Why should we have to foot the bill for future doctors and lawyers? Because it is pretty much grad students who rack up that much debt from public schools.
**** off 80% to make 20% happy. I’m sure that will go over really well.
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