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It hurts me as I am a hard working upper middle and hanging on to that status until the direction of our country defeats me as upper middle gets crushed by such things. I paid my kid's loan off as hard working parents try to do. So now I will be paying on the $500 billion our current leaders want to impose upon me. Does this benefit me? Um, nope, it will send me to the middle and then lower middle is next stop. I work 6-7 days a week as it is!
My retirement is going to be a mess due to the massive spending of this current leadership! Oh well, you can't beat them. They have all media sowed up.
There is absolutely zero chance that the forgiven debt monies will be put in people's savings accounts. All of it will be spent. At the store, at the car dealer, at the art museum. All of it will be plowed back into the economy, and nearly all of it will be taxed--oftentimes at a higher rate than student loans accrued. Society will not lose a penny.
This $10k forgiveness is nothing more than another covid related perk. It's not gonna do much for those who have the debt. If you have $10k left, congrats it's paid for sooner. If you still have more than $50k in debt, you're still have to work on paying it off.
But this does nothing to fix the price of education cost and inflation.
That’s correct.
This was an empty gesture, window dressing, and pandering.
$10K doesn’t solve the root cause of the student loan debt problem, which is students who take out loans for unmarketable degrees.
Tuition is not getting cheaper, and bad majors still exist that students will still take out loans to study.
Hopefully this is the beginning of revamping the student loan system. The interest really needs to be changed. It's ridiculous! It's designed so that it can't be paid off by most people. The rates are far too high. I have some triple my mortgage and double my auto loan rates.
The scam that many don't realize is if you go with an "income based" repayment plan, your payments don't cover the full amount of principal and interest accrued. The cycle never ends until you get a decent paying job.
Also, the state governments should have a say in setting prices for public universities. Put the teachers on government pay scales.
I won't be holding my breath about them revamping the interest.
My son's loan was paid off pretty quick from memory. I paid the parent plus, he paid his, we banged them out. It wasn't cheap either, over $500 a month, he's 37 now, so this was 20 years ago.
We paid the PPL during his college, he started paying when he got out. He had about $20k for 3 quarters of college. I'm thankful he got out when he did. Quitting the Art Institute in Philly was the smartest decision he made.
He loved to draw, was very good at it but the world was moving away from drawing, into the digital world and animation which was not his calling. To think that some with Art Institute loans have been forgiven is a hard pill to swallow. Thy misled everyone saying they'd help them get wonderful, high paying jobs. His two roommates stuck it out, last we heard, they weren't making much with their degree. Wish I could recall specifics.
He started doing DirecTV when my stepson had found them willing to train and hiring back in early 2006. He was with them about 7 years, now with Comcast about the same. He loves doing it. If anyone has issues, he your diagnosing guy. He's very good at problem situations. Doesn't like installing which I can't blame him.
The interest is my6 biggest gripe. They should not be making so much on each loan/person.
I'm glad you'll at least get $10k taken off of your loan.
Aren't yours almost written off? I thought you were really close to being done.
I agree, interest needs to be a number that will actually get loans paid, not so much that it costs three times as much. They plug higher education because they make a killing on it.
I also agree colleges need more responsibility in the students they graduate or don't graduate. They have nothing to lose. They raise rates because they can.
I'd also like to see it so that loans can't be used to party or fund vacations maybe by having a credit card that is only taken at certain places such as for books, to colleges for tuition and housing. If housing off campus there should be some other type of funding specific to where it pays the landlord direct or something.
I had a neighbor who lived off of the wifes student loans because he was out of work. I tried to warn they they could never claim bankruptcy but they didn't want to hear it. She did an accounting degree, We lost touch, he's now disabled, I don't know if she ever got a job doing it. I'd assume they would qualify.
Yep. I'll have less than 3 years once the pause is lifted. My 10 year mark will be September of 2025.
It includes graduate student loans, too. You'll just get the $10k of forgiveness since grad students can't get Pell Grants.
Right, but I should have been clearer. My point is that my graduate student loans are hefty (average graduate student loan debt is over $80k). So taking reducing my loans from, as an example, $220k to $210k when I am enrolled in the PSLF program and set to have my loans forgiven in roughly 3 years time doesn't benefit me.
Last edited by prospectheightsresident; 08-27-2022 at 05:20 AM..
Hopefully this is the beginning of revamping the student loan system. The interest really needs to be changed. It's ridiculous! It's designed so that it can't be paid off by most people. The rates are far too high. I have some triple my mortgage and double my auto loan rates.
It must have been terrifying when the money lenders put a gun to your head and forced you to sign.
Honest question, other than loan consolidation, why were people taking private loans to finance education? I never had any issues getting federal loans either for undergrad or grad school.
For parents, it was cheaper. I did not have the money to save for my daughter's college because of her father's addiction issues, divorce, debt from the marriage, single mother with no child support, blah blah blah, you know the story.
But by the time she went to college, my income had leapt significantly and her father had gotten himself together enough that he was making a decent salary with free rent as a building super. All of a sudden, together we made too much money to qualify for anything. All she was eligible for was the limited federal student loans she could take on her own.
Her father and I each took out those Parents Plus loans at 8.5% because we didn't know any better. The next year someone clued us in that daughter should apply for private loans and have us cosign and it would be cheaper. It was.
I paid off my share of those private loans years ago, having consolidated them with the Parents Plus loan, but my daughter still has some federal loans. She went on to get a Masters and a PhD, and that was on her alone. I don't know what her remaining debt load is, but I know she has been making payments.
Anyway, that's one answer to your bolded question.
People over 55 were completely neglected - people in default were also neglected.
Young kids who have their whole life ahead of them - may be helped.
People with graduate loan debts were not helped.
People earning over $125K were not helped.
Forgiveness without waiver of the accumulated interest and debt collection fees makes this plan hollow.
My opinion is that this was a lot of show - without any real teeth. Anybody else?
Currently, the Penn-Wharton Budget Model estimates that the student debt forgiveness program plus the income related repayment program might easily top $1 TRILLION.
I dunno, a trillion here, a trillion there, pretty soon it adds up to real money.
Essentially every university across the nation is evaluating, as a result of this student loan forgiveness program, how much more they will raise tuition & fees as a result of this student loan forgiveness program.
Tuition going up in ... 3 ... 2 ... 1...
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