Posted on 05/13/2022 12:04:50 PM PDT by Kaslin
Biden should abandon misguided pursuit of student loan forgiveness
The Biden administration has extended the "pause" on student loan payments for a sixth time. By the time the latest pause ends, those who took out student loans will have been able to go 30 months—two-and-a-half years—without making a single payment nor accruing any new interest.
It’s a raw deal for taxpayers. The Department of Education estimates that, each month, they are losing over $200 billion in repayments and another $5 billion in accrued interest. Since the beginning of the pandemic, the pause has cost taxpayers more than $130 billion in interest payments.
As if that were not sufficient largesse, President Biden is now considering outright "forgiveness" of some portion of all student loan balances. Here, "forgiveness" is a euphemism for a taxpayer-funded bailout. It’s bad policy from any angle.
First, it’s incredibly regressive. The Urban Institute found that "most outstanding student loan debt is held by people with relatively high incomes. … [It] is disproportionately concentrated among the well off." While lower-income households make a up a larger share of borrowers, upper-income households make up a larger share of outstanding student loan debt. That’s because nearly half (48 percent) of student loan debt is held by households whose borrowers earned graduate degrees. Professional degree holders (doctors and lawyers, for example) earn a median annual salary of $96,772, far more than those who did not attend or graduate college.
The more generous student loan forgiveness becomes, the more it benefits upper income earners. The Federal Reserve Bank of New York recently estimated that 30 percent of loan forgiveness would go to borrowers from high-income neighborhoods.
(Excerpt) Read more at foxnews.com ...
Biden wants working class kids who couldn’t afford to go to college pay for their irresponsible ‘betters’ to get thier masters and PhD’s...
How charming of Biden the jerk.
Everything I have heard is that the loans DO continue to accrue interest.
IF ANY loans are ‘forgiven’- that should IMMEDIATELY be INCOME for the person involved.
Buyer beware, right? The student loan disclosures and entrance counseling remind student borrowers that taking out a federal loan is not a guarantee of school quality.
I think one reason student loans aren’t dischargeable in bk is that there is no collateral. But they actually are dischargeable—the debtor just needs to file an adversary showing severe financial hardship.
"First, it’s incredibly regressive. The Urban Institute found that "most outstanding student loan debt is held by people with relatively high incomes. … [It] is disproportionately concentrated among the well off." While lower-income households make a up a larger share of borrowers, upper-income households make up a larger share of outstanding student loan debt. That’s because nearly half (48 percent) of student loan debt is held by households whose borrowers earned graduate degrees. Professional degree holders (doctors and lawyers, for example) earn a median annual salary of $96,772, far more than those who did not attend or graduate college.The more generous student loan forgiveness becomes, the more it benefits upper income earners. The Federal Reserve Bank of New York recently estimated that 30 percent of loan forgiveness would go to borrowers from high-income neighborhoods."
That's the killer, but it would take a well-publicized Blue Dog using that moral argument to eviscerate a Marxist free shit progressive candidate in a very-visible primary, before the Democrats will abandon it.
The Democrats would actually be wise to do so and sacrifice a progressive in this manner because they could stake out a 'middle ground' on repayment and handicap the GOP on this in the general.
Instead, Herschel Walker, Brnovich, even Oz better go hard against this free money bullshit in November.
Student Loans and Why They are Not Dischargeable in Bankruptcy
The students have been had. How do you get billions of dollars to progressive higher education centers that will actually teach your idealism? You trick gullible students into believing the government was helping them get an education. But alas, the students were only being used as mules for government money being transported to liberal colleges in the disguise of tuitions. And now who pays? The duped students. But to be warm and fuzzy, democrats offer to save the children from the terrible debt forced upon them. Besides, the good old American taxpayers will pay the debt because they have no choice. Same democrat play I’ve watched for years. Stupid gullible students who should pay for their obligation and the same dumbed down democrats that have no sense of frugality, budget and self-discipline that continue to vote for their favorite team rather than sanity.
Bingo, you hit the nail on the head. If I had done more homework and discovered my credits wouldn’t transfer, I never would have attended college at the community college. I would have went straight to Purdue or IU. I filed a grievance against the community college, we’ll see where it goes. In the meantime, my payments are in forbearance until 2026. Heck, by then Dementia in Chief could have forgiven them!
This is more on the right track, if we must go down this path.
It's not just about buying votes from deadbeats. The money goes to the banks who made the loans.
Will Joe pay back my student loan circa 1984? I paid it in full and early. The reason I paid it in full is it was for a degree in pharmacy and not those crap degrees in liberal arts that have little worth financially.
I had a good job awaiting when I graduated. Many potential employers lined up to hire me as they valued my skills.
Funny story. A chain pharmacy would come to our school and entice students one year from graduation with money. Most of us were broke by the last year of pharmacy school. Take the money and commit to work two years and the loan was forgiven. I declined as I wanted to work in Texas and this chain was only in Louisiana. If I wanted to stay and work in Louisiana I would have taken the money.
I worked since I was 16 years old to accrue my college money, and worked as a work study student while attending my undergrad alma mater. What’s so special about these latter day louts that I have to pay for their college, too? NOTHING. Pay for your own Womens Studies, Black Studies, Woke Studies, etc. You have no right to ask ME, a taxpayer, to pay for your college.
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