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Old 09-09-2011, 08:30 PM
 
Location: Keller, TX
5,658 posts, read 6,250,643 times
Reputation: 4111

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So I'm seeing this make the rounds on Facebook -- sign a petition to forgive all student loan debt, which is somewhere around $900B.

Would that entire $900B be actual deficit spending?

Would forgiving student loans be rewarding irresponsible borrowing behavior or rewarding poor educational choices?

Would it set a bad precedent for future loan choices?

Why stop there, why not pay off all credit card debt?

Would this have a true stimulative effect?

Is this in any way a serious proposal?
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Old 09-09-2011, 08:33 PM
 
12,772 posts, read 7,934,622 times
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Of course it wouldnt be "stimulative" and nor is it anywhere near a serious plan. Just because the students wouldnt be the ones paying the debt doesnt mean someone else isnt...meaning the tax payer would be, you cant just make debt vanish and not have an impact. Just more ridiculous wealth shifting propaganda.
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Old 09-09-2011, 09:28 PM
 
47,525 posts, read 69,494,270 times
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Yes, the students go to college to become richer than everyone else and they also expect everyone else should have to pay their way. Of course they should repay their loans.
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Old 09-09-2011, 09:34 PM
 
20,242 posts, read 19,805,952 times
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And in return those who have their debts forgiven will be willing to what for society?
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Old 09-09-2011, 10:26 PM
 
Location: San Antonio, Texas
782 posts, read 1,105,925 times
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I can understand why this would seem reasonable...I saw an expose' on 60 minutes last year about just this...
Alot of people went to those private colleges (University of Phoenix being one) and amassed thousands of dollars in student loans only to find that their training was deficiant and their degree was practically worthless. These former students can't get a job in their fields, they have all this student loan debt and because of this it goes on their credit report and that can makes them unemployable in the public sector...it is a serious downward spiral.
Plus, if you are in default on a student loan you are ineligible to be hired by the government. Maybe it's just me but this seems to be backward thinking..if someone has the skills and training in a field employed by the government say, in nursing or engineering...then I would think it would be wise to hire that person. Then, set up a re-payment program as a condition of employment. The person in default has an income and the opportunity to shore up their skills plus, bring their credit score back up and the government gets their money. Of course the re-payment would come after taxes.
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Old 09-09-2011, 10:28 PM
 
12,772 posts, read 7,934,622 times
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Quote:
Originally Posted by Chanygirl View Post
Plus, if you are in default on a student loan you are ineligible to be hired by the government. Maybe it's just me but this seems to be backward thinking..if someone has the skills and training in a field employed by the government say, in nursing or engineering...then I would think it would be wise to hire that person. Then, set up a re-payment program as a condition of employment. The person in default has an income and the opportunity to shore up their skills plus, bring their credit score back up and the government gets their money.
That would be like hiring someone who tried to steal from your company.
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Old 09-09-2011, 10:32 PM
 
1,019 posts, read 587,734 times
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Quote:
Originally Posted by doc1 View Post
And in return those who have their debts forgiven will be willing to what for society?
I bet they wouldn't even be required to pay income tax on the forgiven debt.
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Old 09-09-2011, 10:33 PM
 
Location: San Antonio, Texas
782 posts, read 1,105,925 times
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Quote:
Originally Posted by t206 View Post
That would be like hiring someone who tried to steal from your company.
I don't see the analogy here in light of what I said..please explain?
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Old 09-09-2011, 10:34 PM
 
Location: California
37,059 posts, read 42,023,443 times
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Quote:
Originally Posted by t206 View Post
That would be like hiring someone who tried to steal from your company.
This is true. You borrow from the government, then pay it back so someone else can borrow too, etc. If we fogive the debt, government loans are a thing of the past. That may or may not be a bad thing since if few people went to college then the bloat would be cut and the prices will fall. We operate under the impression that everyone should go to college and I don't agree. But I'm not sure the deciding factor should be money.
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Old 09-09-2011, 10:45 PM
 
Location: NC
9,984 posts, read 10,360,643 times
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It would have a stimulative effect for sure, those students would likely be able to purchase homes, and start families sooner which would have a positive effect on the economy. However, is it worth $900,000,000,000...that is the bigger question. I would add a moral hazard argument, but after the bank bailouts that is pretty much dead.
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