Is the Student Loan giveaway legal?

[RPC324]

Originally Posted by redguard57

Big question is, what happens to the loans that were given out to students *this year?* Will they be included in the pause? If so, what we have is a clever way to stealth free college into our system.

Loans given out this year would most likely be on an in-school forbearance. I can't say definitively whether they are included under the blanket of zero-interest, but I believe that this is also one of the changes coming next summer.

The overall forgiveness program that's held up in court only covered loans through June of this year.

[jtab4994]

Originally Posted by redguard57

...

Big question is, what happens to the loans that were given out to students *this year?* Will they be included in the pause? If so, what we have is a clever way to stealth free college into our system.

Originally Posted by RPC324

Loans given out this year would most likely be on an in-school forbearance. I can't say definitively whether they are included under the blanket of zero-interest, but I believe that this is also one of the changes coming next summer.

The overall forgiveness program that's held up in court only covered loans through June of this year.

My younger so graduated in 2020 and has never been required to pay a penny on any of his Stafford loans, and no new interest has accrued on those loans. The same applies to anyone who has graduated since then. You can choose to make payments, or not, during the forbearance period.

We took our son's $1400 stimulus payment and applied it to his highest interest loan, thinking the original forbearance was going to end when they said it would. In retrospect, it would have been better to put that money into a CD maturing in June 2023, but who knew, and who knows how many more extensions are still coming?

[MadGuyInWisconsin]

Originally Posted by tnff

I believe you're mixing two different topics. The cost of college and the lack of state support is a legitimate topic for discussion. But it's separate from the one of Biden's attempt to forgive loans for some.

The problem with the whole loan discussion is the vast majority of debt are reasonable amounts. Just as the vast majority of students who took them out are doing the responsible thing. The "horror" stories are always some unusual case with someone who really wasn't acting responsibly for their choices. Like the one that I saw the other day. Young woman graduated with a BA and about $30K debt. Not unreasonable. Then decided to go back to grad school to accumulate another hundred thousand in debt. In a field where she knew going in didn't pay well in charity social work. It's hard to feel sympathy for someone who knowingly grabs hold of an electric fence.

Couldn't agree more. I remember a good friend of mine having a heated discussion on Facebook about this. Her son apparently had been paying off student loans for 20 years and made very little to no dent because he kept taking forbearances due to financial hardship. He decided having 3 kids and taking multiple vacations a year were more important than being responsible and now claims all of this was predatory lending. I also have little to no sympathy. No one forced him to go to college and no one forced him to have 3 kids or take all of these vacations.

The rest of us had to find ways to get them paid off. I remember working two jobs in my late 20s to help when my primary job was an entry level job out of college and the student loan payments started to come due after the grace period. In particular, I remember one stretch where I worked my 8-5 job each day that week, then starting on that Wednesday worked 6 hours, then 6 hours, then 8 hours, then 8 hours at my 2nd job. That ended up being working 44 hours in 3 days on top of the other 24 hours worked throughout the week. I know other people work even more than that. Was it brutal? Yes of course it was, but student loans weren't going anywhere.

[redguard57]

Originally Posted by MadGuyInWisconsin

Couldn't agree more. I remember a good friend of mine having a heated discussion on Facebook about this. Her son apparently had been paying off student loans for 20 years and made very little to no dent because he kept taking forbearances due to financial hardship. He decided having 3 kids and taking multiple vacations a year were more important than being responsible and now claims all of this was predatory lending. I also have little to no sympathy. No one forced him to go to college and no one forced him to have 3 kids or take all of these vacations.

The rest of us had to find ways to get them paid off. I remember working two jobs in my late 20s to help when my primary job was an entry level job out of college and the student loan payments started to come due after the grace period. In particular, I remember one stretch where I worked my 8-5 job each day that week, then starting on that Wednesday worked 6 hours, then 6 hours, then 8 hours, then 8 hours at my 2nd job. That ended up being working 44 hours in 3 days on top of the other 24 hours worked throughout the week. I know other people work even more than that. Was it brutal? Yes of course it was, but student loans weren't going anywhere.

I worked hard too, and paid off my loans in 4 years. Still, most of my college was pre-2008, when it was much cheaper. Today I'd never be able to afford the college I went to, which was a state university in Texas. The loan amount doing the same thing I did would be around 60k today, not to mention that rents have skyrocketed in that area.

I like how NONE of you are addressing the elephant in the room, which is, WHY DOES A YEAR OF STATE COLLEGE COST AS MUCH AS A NEW CAR!?!?! A decent new car at that.

Instead you're all acting like everyone who financed their education did something irresponsible and morally reprehensible. As if they were not just trying to improve themselves, probably no different than any of you were. From what I can tell, the college students of today are the same as my generation, but they are screwed by proportionally much higher costs.

[tnff]

Originally Posted by redguard57

I worked hard too, and paid off my loans in 4 years. Still, most of my college was pre-2008, when it was much cheaper. Today I'd never be able to afford the college I went to, which was a state university in Texas. The loan amount doing the same thing I did would be around 60k today, not to mention that rents have skyrocketed in that area.

I like how NONE of you are addressing the elephant in the room, which is, WHY DOES A YEAR OF STATE COLLEGE COST AS MUCH AS A NEW CAR!?!?! A decent new car at that.

Instead you're all acting like everyone who financed their education did something irresponsible and morally reprehensible. As if they were not just trying to improve themselves, probably no different than any of you were. From what I can tell, the college students of today are the same as my generation, but they are screwed by proportionally much higher costs.

No one is acting like everyone who financed their education did something irresponsible. Most students did and are being responsible. It's those extreme cases that are irresponsible. Just like the one I mentioned who got their bachelors for a reasonable debt, but then turned around and took on another hundred thousand in debt for a master's degree in a job that will never pay off. That's where it becomes irresponsible.

Haven't you said before that you worked or used to work at a college? What's the inside on costs?

[Taggerung]

Of course it's not legal. Does that matter? There is no rule of law anymore, the old playbook has been thrown out completely. It's a total free-for-all out here.

[WestieWhitie]

Of course not but the leftie MO has been ram it through and get the votes right now while it gets mired in courts for the next several years before finally being found illegal. I guarantee Uncle Joe’s magic pen will magically turn the millions upon millions of illegals into US citizens right before the next election…

[redguard57]

Originally Posted by tnff

No one is acting like everyone who financed their education did something irresponsible. Most students did and are being responsible. It's those extreme cases that are irresponsible. Just like the one I mentioned who got their bachelors for a reasonable debt, but then turned around and took on another hundred thousand in debt for a master's degree in a job that will never pay off. That's where it becomes irresponsible.

Haven't you said before that you worked or used to work at a college? What's the inside on costs?

Yes. At a basic level when you average everything out, the cost to deliver college level instruction is approximately the same as what K-12 costs. It's in the neighborhood of 12-15k a year per student depending on overhead. It's somewhat more when you have PhD instructors, labs, equipment costs, etc...

However, that is the unsubsidized cost; what you would pay if paying in cash.

College and university systems get billions of dollars in subsidy. I'd like to know where they put all that. It's certainly not going to the faculty who make about what they always did adjusted for inflation. And it's VERY much not going to staff who are probably paid less adjusted for inflation than in the past. Administrators maybe.