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Student Loan Debt Forgiveness?

KWeezyXB12 said:
If they're going to cancel student debt then college should be free for everyone. I know plenty of people that didn't go because they couldn't afford it and didn't wanna take on the debt. Those people should have the opportunity now to get the college education as the people who took on debt and got useless degrees. (Also not saying everyone got useless degrees)
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absolutely!
 
KWeezyXB12 said:
If they're going to cancel student debt then college should be free for everyone. I know plenty of people that didn't go because they couldn't afford it and didn't wanna take on the debt. Those people should have the opportunity now to get the college education as the people who took on debt and got useless degrees. (Also not saying everyone got useless degrees)
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Not sure about BFE but here in CA we have free community college and recently rolled out “middle class” grant packages for families earning good income but unable to afford exorbitant tuition fees.

The entire UC system was tuition free until 1966 and Ronnie ray gun’s reforms. And that was when the system was much less able to afford it. Our state will probably shift to mostly free college in the near future to keep enrollment up.
 
nakedape said:
Not sure about BFE but here in CA we have free community college and recently rolled out “middle class” grant packages for families earning good income but unable to afford exorbitant tuition fees.

The entire UC system was tuition free until 1966 and Ronnie ray gun’s reforms. And that was when the system was much less able to afford it. Our state will probably shift to mostly free college in the near future to keep enrollment up.
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The problem is when programs effectively put cash in people's hands. I don't care if it is for food or education. There is value in providing both to our society, but that doesn't mean we should be providing choices. That's where opportunists step in and profiteer off it.
 
These stories should be mathematically impossible.

https://www.theguardian.com/commentisfree/2022/aug/25/student-debt-strike-biden-older-people

My school didn’t play fairly with me while I pursued my doctoral degree. The administrators changed the length of my program from three to six years. They actively steered me away from my research interest in the effects of slavery and globalization, adding more time to my program of study. Meanwhile, I continued to pay. From an initial loan payoff of $75,000 per year, my debt rose to $300,000.
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Just needs to be done a little smarter. Feels a bit predatory as is.
 
Educational debt cannot be discharged in bankruptcy, otherwise most people would go bankrupt to discharge this debt and deal with the seven years of bad credit.

It's a lifetime debt.
 
Jammer said:
Educational debt cannot be discharged in bankruptcy, otherwise most people would go bankrupt to discharge this debt and deal with the seven years of bad credit.

It's a lifetime debt.
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Yes it can, multiple ways. But it is harder than a normal BK. The basics are if there is positions available that require your education, and you are able to work, you can’t BK the debt.

I still think this was completely unnecessary. Federal student loans are all eligible for income based repayment plans, and this did nothing to address private loans or the ridiculous cost of education. This doesn’t touch on the fact that there’s PSLF relief where if you make 120 on time payments for 10 years, your debt can be forgiven, or, if you’re 20 years in on the debt on an income driven plan, your debt is also cancelled.
 
msethhunter said:
Yes it can, multiple ways. But it is harder than a normal BK. The basics are if there is positions available that require your education, and you are able to work, you can’t BK the debt.

I still think this was completely unnecessary. Federal student loans are all eligible for income based repayment plans, and this did nothing to address private loans or the ridiculous cost of education. This doesn’t touch on the fact that there’s PSLF relief where if you make 120 on time payments for 10 years, your debt can be forgiven, or, if you’re 20 years in on the debt on an income driven plan, your debt is also cancelled.
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Technically you can get rid of student loan debt with bankruptcy, It's not about not having any career options, you basically need to be destitute to do it and have no way to change that situation, while also somehow affording a bankruptcy lawyer to guide the process along. It's effectively not possible.
The most common test is the Brunner test which requires a showing that 1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if forced to repay the student loans; 2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and 3) the debtor has made good faith efforts to repay the loans.
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The PSLF requirements are similarly insane and stupid.

The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
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The 10 years of payments is already pretty bad, that's a REALLY long period of time to wait for relief. However, the more insane requirement is maintaining full time work at a qualifying employer. Qualifying employers are mostly government and some nonprofits. So this option you need to spend probably a quarter of your working career in a very specific and limiting career path with no hiccups in employment at all, whether or not those hiccups are your fault. The second option. 20 years? that's a complete joke. That's like half of an average person's working career or more, and while the requirements are not quite as strict, it's still basically a situation where if there is any issue keeping up with payments over that 20 year time, you are fucked. These 'solutions are basically meant to be an excuse that politicians can point to while they avoid actually doing anything to solve the problems.

The debt relief is going to be good for our economy, it full got about a 30=40% of people with student loan debt out of that debt completely while substantially lowering the debt of the vast majority of borrowers. It's going to cost less over 10 years than just the 2022 increase in DoD budget will over the same period of time.
 
ScarySpikes said:
Technically you can get rid of student loan debt with bankruptcy, It's not about not having any career options, you basically need to be destitute to do it and have no way to change that situation, while also somehow affording a bankruptcy lawyer to guide the process along. It's effectively not possible.


The PSLF requirements are similarly insane and stupid.



The 10 years of payments is already pretty bad, that's a REALLY long period of time to wait for relief. However, the more insane requirement is maintaining full time work at a qualifying employer. Qualifying employers are mostly government and some nonprofits. So this option you need to spend probably a quarter of your working career in a very specific and limiting career path with no hiccups in employment at all, whether or not those hiccups are your fault. The second option. 20 years? that's a complete joke. That's like half of an average person's working career or more, and while the requirements are not quite as strict, it's still basically a situation where if there is any issue keeping up with payments over that 20 year time, you are fucked. These 'solutions are basically meant to be an excuse that politicians can point to while they avoid actually doing anything to solve the problems.

The debt relief is going to be good for our economy, it full got about a 30=40% of people with student loan debt out of that debt completely while substantially lowering the debt of the vast majority of borrowers. It's going to cost less over 10 years than just the 2022 increase in DoD budget will over the same period of time.
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My exwife was able to get rid of her student loans for legal studies after 10 years. She moved to a different field. She was also on an income based repayment plan, and was paying less than $200 a month. She’s now an ultra sound tech, making significantly more, and still paying less than $200 a month. I don’t do the vacations she does, and I make more than her.

Point being, income based repayment plans were a lot better option (with the new plan) and forcing that upon private lenders to boot, would have been a far better long term solution that gift is family of two, making $250k a year $20k. If you can’t afford 5% of your monthly income to repay your student loans, you’re really bad at budgeting.

This was a short term BS “fix” that doesn’t really fix anything. Everyone that this applies to has had to pay this debt, and won’t, for a long time.
 
msethhunter said:
My exwife was able to get rid of her student loans for legal studies after 10 years. She moved to a different field. She was also on an income based repayment plan, and was paying less than $200 a month. She’s now an ultra sound tech, making significantly more, and still paying less than $200 a month. I don’t do the vacations she does, and I make more than her.

Point being, income based repayment plans were a lot better option (with the new plan) and forcing that upon private lenders to boot, would have been a far better long term solution that gift is family of two, making $250k a year $20k. If you can’t afford 5% of your monthly income to repay your student loans, you’re really bad at budgeting.

This was a short term BS “fix” that doesn’t really fix anything. Everyone that this applies to has had to pay this debt, and won’t, for a long time.
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The debt forgiveness came along with a suggestion to the Education department for new rules that improve/fix the programs we are talking about. it's not just a one time, 10k debt relief EO.

It cuts the percent of discretionary income that borrowers have to pay from 10%, to 5%
It increased what level of income is considered ' non-discretionary'
It halves the time it takes to get loan forgiveness on income based plans, from 20 years, to 10 years.
It covers the interest of loans so long as borrowers make their monthly payments so we won't see crazy situations where people's debt grows even as they make payments.
It allows people on the PSLF to get credit for time when they were working in an applicable career, but not on the PSLF plan.

The top line number is big, and definitely the focus, but the changes he is proposing amount to thousands of dollars saved every year going forward, in a way that helps people at lower incomes, 40, 50, 60, 70k a year, more than it helps those at 125k a year, but all of them would benefit.
 
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Maybe we should have just given out some NFT's? :)
DT
 
Jesus paying for the sins of everyone is an insult to those who paid for their own sins
 
The government should ban giving these huge loans to teens with no knowledge of how finance works. Ban the crazy student loans and the problem will solve itself.
 
Can't wait for all the moaning and crying when these people find out they owe taxes on the forgiven debt :laughing
 
mrzuzzo said:
The government should ban giving these huge loans to teens with no knowledge of how finance works. Ban the crazy student loans and the problem will solve itself.
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You know that teenagers can't apply for loans without someone to cosign...
 
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