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I haven't heard a peep about this in a while. I'm not going to state my personal position because it doesn't matter.
Where is this ball of wax at? Will they get a lesser amount passed? None at all? Are they even still trying?
I think it's unlikely that anything will happen along the lines of student loan forgiveness, and personally, that's just fine with me. After all, these are student LOANS. Everyone who signed the papers to get one understood that the loans were to be paid back... and they should live up to that commitment.
I haven't heard a peep about this in a while. I'm not going to state my personal position because it doesn't matter.
Where is this ball of wax at? Will they get a lesser amount passed? None at all? Are they even still trying?
Watch for the Secure Act 2.0 as it goes thru Congress. The part about college loan debt may allow an employer to make payments for their employee student loan debt. Another part would be for the employee to be automatically enrolled up to 3% into the 401K program. The employer may get tax credit if they do this.
Frankly, if you compare rates of return in a 401K vrs student loan debt it may be best to go with the 401K and pay debt like any other out of income.
The only part of the Secure Act 2.0 I sorta like is gradually pushing the RMD dates to 75 from 72. This would give the employee 3 more years for the 401K to grow. Someone 25 with a 50 year time horizon could have millions in the 401K.
This was never one of Biden's priorities. Other people talked about it, not him, and he eventually said he'd support 10K of forgiveness. I think if Congress sent him a bill to do that, or if it's part of a larger bill, he'd sign it. But otherwise, it's not really a surprise that he's not expending any political capital on it when it wasn't something at the top of his list.
I haven't heard a peep about this in a while. I'm not going to state my personal position because it doesn't matter.
Where is this ball of wax at? Will they get a lesser amount passed? None at all? Are they even still trying?
This is not really an economic issue - this should be under education or politics.
Many have missed it but he already did forgive about $2.3B in student loans for those who are permanently disabled and or those whose college or university defrauded students and were closed permanently because of these issues.
Biden's budget was released about a week ago - it did not include any broad scale student debt relief, that would be where it would be expected to appear. The problem is that a lot of the Dems outside of the coastal blue states don't support this either since it only benefits those with this debt, that is not the average joe so likely would not pass scrutiny in states with lower levels of college attendance.
The second way that has been discussed is executive order but that is likely not possible. Biden has said he doesn’t believe he has the authority to enact student loan cancellation by executive order without authorization from Congress. It would also be required to amend the U.S. Bankruptcy Code - student loans are specifically not discharged in bankruptcy filings so would need to modify to allow discharge of court ordered payments. That is definitely not possible with an executive action.
The other issue is fairness - what is the cutoff for forgiveness. What about those that worked 3 jobs to have no debt. What about those that used it only to pay living expenses like for frat parties. What about those that paid those debts already. The only fair way is for everyone to pay what they agreed to - reduce interest instead of forgiving the debt.
This is not really an economic issue - this should be under education or politics.
Many have missed it but he already did forgive about $2.3B in student loans for those who are permanently disabled and or those whose college or university defrauded students and were closed permanently because of these issues.
Biden's budget was released about a week ago - it did not include any broad scale student debt relief, that would be where it would be expected to appear. The problem is that a lot of the Dems outside of the coastal blue states don't support this either since it only benefits those with this debt, that is not the average joe so likely would not pass scrutiny in states with lower levels of college attendance.
The second way that has been discussed is executive order but that is likely not possible. Biden has said he doesn’t believe he has the authority to enact student loan cancellation by executive order without authorization from Congress. It would also be required to amend the U.S. Bankruptcy Code - student loans are specifically not discharged in bankruptcy filings so would need to modify to allow discharge of court ordered payments. That is definitely not possible with an executive action.
The other issue is fairness - what is the cutoff for forgiveness. What about those that worked 3 jobs to have no debt. What about those that used it only to pay living expenses like for frat parties. What about those that paid those debts already. The only fair way is for everyone to pay what they agreed to - reduce interest instead of forgiving the debt.
I really can't stand the "it's not fair" diversion. If that were the standard, we'd never progress in any way on any thing. Well the car I bought didn't have airbags, why should these other people get airbags?
Gee, my niece is 19 now and the child tax credit is going up, not fair, can't do it.
Golly, my mom doesn't have to take required minimum distributions until 72. Not fair, other people had to do it at 70 and a half.
Your "fair way" has the same problem, those people who worked 3 jobs or whatever your analogy is also had to pay whatever interest rate was there, not some reduced interest. They "agreed" to that part too, you know.
This totally avoids debating the merit of it on its own.
Regardless of one's opinions on student loan cancellation, I'd hope we can all agree that charging 6% interest on these amounts is patently absurd. We're taxing ourselves to pay ourselves. We can put this interest money to far more productive use by allowing it to stay in our pockets.
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