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Old 08-25-2022, 12:22 PM
 
Location: Somewhere in America
15,479 posts, read 15,629,860 times
Reputation: 28463

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Quote:
Originally Posted by chattyneighbor View Post
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?

Really only interested in the opinions of people who HAVE student loan debt - I'd rather not hear from the bitter people - I already paid my loans, this isn't fair - wah wah wah. Leave that for another thread. Thanks.
How were people over 55 neglected? They're eligible for the forgiveness. If you're in default, then you have bigger problems. You can request so many different forbearances which helps prevent defaulting. I know some people who just blew off their loans and never made any payments. They didn't apply for forbearance or anything. I can't feel sorry for them.

Any little bit helps most people with student loans. Is this perfect for everyone? No. No solution will be perfect for everyone. I really believe the interest needs to be completely overhauled. I have student loans where the interest is almost 9%. I owe almost double in interest than I do in the actual loans. I hope this is the beginning of overhauling the student loan system.
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Old 08-25-2022, 12:24 PM
 
Location: Somewhere in America
15,479 posts, read 15,629,860 times
Reputation: 28463
Quote:
Originally Posted by modest View Post
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.
Lawyers, doctors, dentists, veterinarians, other medical professions, etc. Many colleges charge far more for tuition, fees, books, and room & board than the limits of federal student loans.
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Old 08-25-2022, 12:32 PM
 
Location: Somewhere in America
15,479 posts, read 15,629,860 times
Reputation: 28463
Quote:
Originally Posted by TexasLawyer2000 View Post
It's called trickle down economics. The banks are paid back and that money flows back into the economy.
There are no banks involved in federal student loans. The money comes from the federal government not a bank. Trickle down economics has been shown time and time again to not work.
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Old 08-25-2022, 12:33 PM
 
Location: Somewhere in America
15,479 posts, read 15,629,860 times
Reputation: 28463
Quote:
Originally Posted by codeninja View Post
When I first went to college, back in the early 90s, when I balked at student loan debt I was assured that "it's an investment". I heard those exact words over and over and over. That seems to have been the automatic reply or mantra of everyone in the financial aid field back then. I'm so glad the narrative has changed.
I remember this! There were brochures given to us at orientation about our investment.
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Old 08-25-2022, 12:39 PM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,225,683 times
Reputation: 57822
I only know one person still with graduate school loan debt, and it won't help her with the $1,100/month payments. They live on her husband's pay, hers goes almost exclusively to the student loan. No, the MA didn't land her a great, high paying job.
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Old 08-25-2022, 12:49 PM
 
7,358 posts, read 4,142,168 times
Reputation: 16811
So I don't have student loans. I paid for my kids' liberal arts undergrad degrees.

However, my kids took out student loans for their grad school degrees - not only for tuition but also for living expenses.

A couple of years after graduating with their masters, both kids are employed. Contrary to CD's anti-liberal arts rants, both kids make more than $50,000 a year and are able to pay their loans.

Here's the crazy thing: after paying the absolute minimum on their student loans, their loans will be forgiven entirely.

Quote:
Public Service Loan Forgiveness or PSLF is the well-known holy grail of loan forgiveness programs. Unlike most other loan forgiveness programs, PSLF offers tax-free loan forgiveness. Also, Public Service Loan Forgiveness has no cap on the loan amount forgiven.

Any borrower who has a chance of working at a nonprofit should definitely be considering the program, even if you earn more than you borrowed for college. Yes, we’ve all seen the multitude of articles professing the dismal success rate and the subpar loan servicing which has backed the program. But with recent changes to the program, there’s significant momentum pushing up the success rate, and it should be on more people’s radar.

In this post we’ll discuss how the program works, its inception, success, and some speculation/projection for the future.

Public Service Loan Forgiveness Program

The PSLF program was created as part of the College Cost Reduction and Access Act of 2007 to provide tax-free loan forgiveness to indebted professionals who work as public servants. It was formed to benefit nurses, teachers, military, law enforcement, government workers, and others employed at nonprofits.

PSLF can help encourage borrowers to pursue careers in lower-paying jobs than they would otherwise by entering the private sector.

What Is Public Service Loan Forgiveness?

Public Service Loan Forgiveness is a student loan forgiveness program that provides tax-free loan forgiveness.

PSLF has four requirements:

Qualifying Federal Student Loans—Direct Stafford (unsubsidized and subsidized), direct plus graduate and direct consolidation loans

Qualifying Repayment Plan—IBR, PAYE, REPAYE, ICR, or the standard 10-year repayment plan

120 on-time, qualifying monthly payments—not required to be continuous

Full-time employment at a qualifying employer such as a nonprofit or 501(c)(3)
https://www.whitecoatinvestor.com/su...n-forgiveness/

We'll see if it works and if the federal government expands it.

-----------------------------------

On a personal note - printing money for wars and student loan debt is lead us into the Weimar Republic 2.0

Quote:
Hyperinflation affected the German Papiermark, the currency of the Weimar Republic, between 1921 and 1923, primarily in 1923. It caused considerable internal political instability in the country, the occupation of the Ruhr by France and Belgium as well as misery for the general populace.
https://en.wikipedia.org/wiki/Hyperi...eimar_Republic

This is something I don't want.

Last edited by YorktownGal; 08-25-2022 at 12:59 PM..
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Old 08-25-2022, 12:55 PM
 
31,910 posts, read 26,999,286 times
Reputation: 24816
Quote:
Originally Posted by AnywhereElse View Post
I think it is very obvious that it is for show, the mid-terms show! Hopefully, they used their other stimulus checks to pay toward their student loans.
Anyone who made payments to their federal student loans that were paused during covid (set to restart 1 January 2023), and are eligible for Biden's gravy train can request a refund of all monies paid. If the t $10k or $20k given will pay off entire balance of loan or more, that is what it will do.
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Old 08-25-2022, 01:06 PM
 
Location: Oregon, formerly Texas
10,069 posts, read 7,243,961 times
Reputation: 17146
No one has had to make payments for 2.5 years, nor did interest accrue. The inflationary effect is already priced in.

It's more accurate to say that student loans will not be an ANTI-inflationary tool, which they could be if we demanded repayment on a strict schedule.
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Old 08-25-2022, 01:53 PM
 
Location: NMB, SC
43,125 posts, read 18,290,317 times
Reputation: 34995
Quote:
Originally Posted by TexasLawyer2000 View Post
It's called trickle down economics. The banks are paid back and that money flows back into the economy.
Student loans were nationalized under Obama. That's taxpayer money, not bank money.
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Old 08-25-2022, 02:26 PM
 
2,579 posts, read 2,071,973 times
Reputation: 5689
Quote:
Originally Posted by redguard57 View Post
I paid off my loans 8 years ago. But I support the forgiveness because I am not a sociopath who wants other people to suffer because I did.

Also my college was much cheaper by virtue of me going in a more favorable time.
No help for me. But I attended at a time in a state whose legislators funded state colleges and universities at a much higher rate than they - and most states - do now. So for both my undergraduate (help from parents, worked part-time) and graduate (got a GA that covered tuition and paid a stipend for work), I was lucky.

Or should I say that the leaders at that time were smart. It is a win-win-win ... the individuals, the communities and the employers benefit greatly. A better educated public leads to them getting better jobs, which leads to better salaries, which leads more tax revenue, which leads to better schools, infrastructure, parks, safety nets and better pools of employees for employers.

This addresses a symptom of the problem, but not the problem. But it is also sooooo much more than simply loan forgiveness. And the people who are targeted to benefit are the people who will still spend that money ... for homes, for cars, for their children's clothing and activities. It is not like they will stash it in an off-shore account. It will enter the economy and recirculate to local businesses for goods and services.

Hopefully, just a first step. Because the much of the economic policy practiced for much of the past 50 years has only benefited those at the very top, while the working and middles classes have accumulated debt for that.

Last edited by WoodburyWoody; 08-25-2022 at 02:56 PM..
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