Trump Details Student Loan Policies, 15 Year Forgiveness Program

WIP-FM ^ | October 13, 2016 | Jeremy Diamond

[RFEngineer]

“Why should I have to pay for their college? No one paid for mine.”

Congratulations for being an adult. I paid for mine, and my kids.

Guess what? Pretending kids will pay back debt that can’t be paid back is a matter for bankruptcy courts, not electioneering.

Bankruptcy courts can sort through the issue quickly if they wished to.

That is the only viable answer.

The additional questions like “where do all the university administrators and professors find jobs after their institutions close” is another matter.

Universities will be “fee for service” entities in the future.

[sockhead]

I meant “you’re” done. Haha. Yes, my education was paid for back in the dark ages when it was only about $300 a semester.

[HamiltonJay]

Yes, my wife drew a paycheck for 2 years doing something that isn’t possible and doesn’t exist.

I am telling you, this happens, and it happens routinely...

Folks would want to return to school, they had defaulted student loans from earlier in life.. they would set up repayment plans and after about 6 months of repayment they requested and got their loans forgiven.. Not forbearance, not modified, completely forgiven.

You can believe whatever you like, this is indeed true and factual, just because you don’t choose to believe it is not my problem.

[Wally_Kalbacken]

What is to negotiate? These are federally guaranteed student loans, for the most part (roughly 85% of the $1.3T outstanding, the rest is private, with no recourse to the taxpayer.) The money was disbursed. Paid to the college, the campus bookstore, the apartment landlord, whatever. It's a loan from a lender like, say Wells Fargo. It conforms to the Department of Education requirements, and has a federal guarantee that the lender will be repaid. Does Trump imagine that by personal suasion he is going to get the lender to accept 59 cents when it is presently guaranteed $1? I don't think so. The loans that are outstanding are cast. The only thing that pandering politicians (Obama, in his forgiveness program for public service employees, Hillary in her pronouncements on the trail, and now Trump) are offering is that instead of the borrower repaying the amount owed, the Federal government (read: general revenue taxpayer) will pay some portion. They can argue amongst themselves over the portions, but the point remains that it is entirely unfair to the federal taxpayers, many of whom never went to college, to be tasked, retrospectively, with this burden. Education is, for most people, enhancement of personal capital. It is portable and follows you where you go, within a career, geographically, etc. It is nearly the antithesis of a public good.

I realize it may be a bit late to argue this point, since we have long since slid down the slope to free everything, for everyone. I just think it is sad to see Trump getting on the bandwagon. It seems a strategic mistake - for every student debt laden millennial he might gain the vote of, he probably loses 2-3 among conservative voters who can see where the free money comes from.

[Wally_Kalbacken]

Then you are talking about something other than federally guaranteed student loans originated in the last 30 years. Which are about 85% of the $1.3T in outstanding student loan balances at present.

[Scythian_Reborn]

Free Market people, let colleges fail, they suck anyway ...

[HereInTheHeartland]

My exact situation.
Let’s hope this isn’t true.

When people take out debt. They need to pay it back.
Colleges need to get rid of the frills.
Expensive living arrangements and club like workout facilities are two small examples

[NorthMountain]

seems like a great idea to me.

Yeah ... let the suckers taxpayers pick up the tab. Or create more government debt to replace it.

Great idea. It'll be Yuuuuuuge.

Yuuuuuge debt, at least.

How 'bout we get the government OUT of the student loan business entierly?

WHERE THE HELL IS THE CONSTITUTIONAL AUTHORITY FOR THE CONGRESS TO GET INVOLVED IN ISSUING OR GUARANTEEING STUDENT LOANS???

It doesn't exist, of course. Everybody knows that.

[HamiltonJay]

No, I am talking about federally guaranteed loans.

[9YearLurker]

If you and your major have such good loan repayment prospects, the public sector ought to be willing to fund it.

No reason for taxpayers to do so.

[Fai Mao]

“Full Disclosure......

I have never taken a student loan in my life.”

I did and bought a DeRosa bicycle just like Eddy Mercks rode and called it “transportation”

But I paid it back

[Reddy]

I was talking about future student loans, not those already contracted. Is Trump talking about current loans? I misspoke.

[RockyTx]

the real issue here is bankruptcy laws.

I advocate that normal bankruptcy laws should
apply to student loans.

5 or 10 years ago, brain-dead Republicans changed the law to favor banks.

[cableguymn]

and they come out the other end commies with doctorates in basket weaving wondering why no one will hire them.

[MaxFlint]

Student loans are a racket. Of course I'd combine any debt forgiveness with the abolition of government guaranteed loans. Student loans should also be treated the same as any other loans in bankruptcy court. That would increase the incentive of lenders to examine the specific returns of particular courses of study to avoid defaults.

[MaxFlint]

Does Trump imagine that by personal suasion he is going to get the lender to accept 59 cents when it is presently guaranteed $1?

If the alternative is getting nothing? Yeah, I think he could pull it off. Of course there are all kinds of dirty tricks the lenders can pull, but in the end the sovereign trumps (ha!) the banks, especially when he has the people on his side.