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Your student loan will never be forgiven?.....and why should it?
Because we are talking about degrees required for much-needed and extremely underpaid professions like teachers and social workers, not a $450,000 MFA in cannabis consumption studies or inuit interpretive dance appreciation studies.
Not a teacher, but I’m sure you heard about the medical student in California who had $444K of his medical debt forgiven. I said medical “student” and not “doctor” because he went to a less competitive med school in Puerto Rico and was never able to get into a residency program, so he never became a licensed “doctor.” He was working retail jobs, living with his parents, and couldn’t even make a dent on the interest, let alone the loans. I’m pretty sure I read he graduated a good while ago (2007), when tuition was much lower. He probably had like ~$200 k loans (just a guess) but by not paying them, I’m sure it ballooned to what is was now ($444K). Most med students graduate with $300-500K debt nowadays. If he had graduated with that, his debt would have probably been close to $1 million if he had been in the same situation.
*All that said, he had almost all of his loans forgiven. I think he owes about 10K now. A lot better than $400K.
I seriously doubt the US government will enact a law that will blanket reduce school loan debt. There will always be niche programs where some effort on the part of the borrower is bartered for some level of loan forgiveness.
The government isn't going to 'no strings' attached hand students sacks of cash for outstanding loans. Loan forgiveness will be added to the list of other promised programs like repartitions, winning the war on drugs and citizenship for dreamers. Unfulfilled promises.
The smart move would be to address college tuition costs. Tie increases to some sort of index after adjusting them down to realistic levels.
I seriously doubt the US government will enact a law that will blanket reduce school loan debt. There will always be niche programs where some effort on the part of the borrower is bartered for some level of loan forgiveness.
The government isn't going to 'no strings' attached hand students sacks of cash for outstanding loans. Loan forgiveness will be added to the list of other promised programs like repartitions, winning the war on drugs and citizenship for dreamers. Unfulfilled promises.
The smart move would be to address college tuition costs. Tie increases to some sort of index after adjusting them down to realistic levels.
Agree. I don’t think $50,000 loan forgiveness or any amount will pass. There’s too many complications with that. What happens to people who already paid all their loans?
I see a more realistic solution as doing something with the interest that balloons. Maybe they freeze the interest rate or eliminate the interest.
I seriously doubt the US government will enact a law that will blanket reduce school loan debt. There will always be niche programs where some effort on the part of the borrower is bartered for some level of loan forgiveness.
The government isn't going to 'no strings' attached hand students sacks of cash for outstanding loans. Loan forgiveness will be added to the list of other promised programs like repartitions, winning the war on drugs and citizenship for dreamers. Unfulfilled promises.
The smart move would be to address college tuition costs. Tie increases to some sort of index after adjusting them down to realistic levels.
The government could take the existing program and expand to private sector fields in need, like Healthcare and engineering/infrastructure jobs. Put a cap on forgiveness based on salary.
But they also need to fix the system of loans in general. My suggestion is to cap guarantees at the level of in-state tuition at the public university. Colleges will lower tuition when the flow of free money stops.
The government could take the existing program and expand to private sector fields in need, like Healthcare and engineering/infrastructure jobs. Put a cap on forgiveness based on salary.
But they also need to fix the system of loans in general. My suggestion is to cap guarantees at the level of in-state tuition at the public university. Colleges will lower tuition when the flow of free money stops.
Lowering tuition is just not in the DNA of colleges. It's like they'd be struck with a thunderbolt if they did it.
Just lower the damn interest rates in half where they should be. Then students, pay off the loans that you signed for. With our federal interest rates where it is, there is no reason for student loan interest to be this high.
At least Biden is resisting the "squad" and the rest of the far left on this total student loan forgiveness thing. He's proposing $ 10,000. I'm not even for that as I'm with the "why should the taxpayers bail out just one group" crowd. We just can't seem to race our country to bankruptcy fast enough. We're not that far away from not being able to cover the interest on our national debt.
If there is any student loan forgiveness programs, I'd like to see the states administer it to cover specific needs. Examples being to entice doctors for rural areas and of course, to fill needs in education.
I know a number of people - teachers, lawyers, doctors - who had chosen to work in such areas where their student debts became forgiven after certain number of years in service. They had to live in places and take job they would never take, but the decided in order to get rid of student loans.
Some of above mentioned degrees such as law or medical will accumulate larger loans, however teachers should get so much in loans. The part of the problem is everyone knows how high their interest rates will be but they still take WAY more than they actually need for school. I personally know people who purchased brand new cars, rented more expensive apartments, travel to Europe - all on student loan money. And now I see these people crying out loud about student loans and why government needs forgive it. On another hand, while I was in school full time, I also worked full time, rented with roommates, had older car and didn't travel much. My student loan was manageable so I paid it off rather quick. That's why I feel many students spent money on something not really school related and complaining about debts. I wish if student loans are forgiven, it's the same for all to be fair.
First of all, loans under the PSLF program weren't eligible to be forgiven until 2017, so I don't know why some like to point to the 2007 program inception.
Moreover, only certain loan types and job types are eligible for forgiveness. People who actually follow the recommendations like me and recertify their employment every year with FedLoan will be in for no surprise come forgiveness time as FedLoan calculates how many qualifying payments you have made to date once you recertify.
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