Posted on 08/18/2024 6:22:32 AM PDT by karpov
Getting tens of thousands of dollars in student debt canceled isn’t guaranteeing an immediately better financial life for Americans.
So far, about 943,000 people have had their loans eliminated through the federal government’s Public Service Loan Forgiveness plan, with balances averaging $72,000 when they are cleared. Nearly two million more had their student debt erased through programs for disabled borrowers or under income-driven repayment plans.
An additional 1.3 million borrowers with $20 billion in loans have been approved for discharge through a program aimed at students who were misled by their colleges about things like job prospects. Many more are set for relief soon or waiting in limbo as further plans face challenges in the courts.
The plan has been welcomed by advocacy groups and Democrats but has received pushback from Republican lawmakers and some economists, who have criticized the cost of debt cancellation and warn that it could force future spending cuts or tax increases.
In interviews, the borrowers who have had their loans wiped away say the act has given them more freedom or helped them sleep easier at night. But it hasn’t been a panacea for all of their financial stress.
Borrowers who were late on payments or even defaulted on their student debt are often still digging out of other financial problems, including with their credit scores or other forms of debt. And since many weren’t making regular student-loan payments, they don’t find themselves with a new stream of cash just because the monthly bill stopped coming.
“For the typical borrower, the forgiveness is nice but not life-changing,” said Constantine Yannelis, an associate professor of finance at the University of Chicago who studies household finance.
...
[A] July study [...] found that borrowers experiencing student-loan forgiveness largely replaced it with other forms of debt.
(Excerpt) Read more at wsj.com ...
Not to mention that loan forgiveness increases the national debt.
If you don’t think your education was worth enough to honor the debut you incurred to get it, how much hubris does it take for you to assume I and other taxpayers want to pay for it?
Who needs to read this tripe? Of course their money problems didn’t disappear! Common sense. “Give them an inch and they take a mile.” Not to mention the fact that they majored in BS, go nowhere courses. Starbucks, Whole Foods and Trader Joe’s should’ve bailed these bone heads out. That’s where they end up.
“… [student loan] borrowers experiencing student-loan forgiveness largely replaced it with other forms of debt.”
Surprise, surprise, surprise.
I know a guy who is 56 years old.
His Mom has bailed him out of every financial situation he’s gotten himself into.
He’s 56 now and lives, behaves and talks like a teenager as if this were still 1987… Nobody’s “cool” but him.. He’s a mess and nobody likes to be around him. He takes NOTHING seriously in life - except 90’s rock and cartoons…
THIS is the type of society that this “student loan forgiveness for votes” is gonna give us.
This whole thing shows what a scam college is.
Over 1,000,000 college graduates don’t earn enough to pay their debts. What a failure they and these supposed institutes of higher education are.
College should be only for those who endeavor toward hard sciences, not stupid fluff.
My kid is an astronautical engineer. He worked his way through college and earned enough Tommy cash his last two years. (He had a part time job in his field at NASA).
Upon graduation he rented a house with a few friends and they lived cheap and paid their debt. It took him one year to be debt free.
That’s what responsible people do.
“THIS is the type of society that this “student loan forgiveness for votes” is gonna give us.”
That’s the intention.
The WSJ will not allow comments that are too critical of the borrowers and their bad decisions. It’s against their “community standards.
Ah, jeez. The free money from taxpayers doesn’t solve everything for them!
THE AMERICAN PETER PAN ???
I think that the government’s ‘loan-forgiveness’ should be listed as a ‘bad debt’ on their credit reports. It should be required for at least 10 years. If I were a potential lender/creditor, I’d want to know.
ANOTHER LEGACY OF THE “PARTICIPATION TROPHIES”
Lets reward fiscal irresponsibility by expanding the unconstitutional reach of fiscally irresponsible government to buy votes financed by the fiscally responsible who oppose this.
Lets subsidize that behavior. Maybe that will make it go away.
They aren't borrowers, they're thieves. Low down dirty rotten scum of the earth THIEVES. Mr. b and I scrimped and saved and sacrificed to get our tuition paid on time and in full. We did the same for our kids' tuition. I'll be if we have to do the same, which we do every day to pay taxes, for these scammers and grifters.
And while I'm on a roll, Trump's free ride no taxes on tips is chapping my backside as well. NO! That is income so pay your bleepin' taxes like everyone else. It isn't as if that money hasn't been lied and cheated on every April 15th. If McDonald's can pay their employees a straight salary then restaurants, salons or houses of ill repute can as well.
I worked with grad students. Most have no clue about actually working for a living.
Getting a grant for studies is the important thing, while they are students... after that, they are at a loss about how to go out and get employed!
Life isn’t a free ride beginnning to end, and they don’t get it
Does he still live with his mom?
Most of their debt wasn’t just for education, a lot of it was used for spring break and other school frills.
While my son was in college, Bernie was running around promising to pay for everyone’s college. He thought it was a great idea. I told him that if it came to be, it would be years after he got out of school and that he would get the privalege of paying for someone else’s college.
He changed his mind pretty quickly.
Here’s a bigger perspective on this: way back in the 70s when I was in college
I was having a conversation with one of my compsci profs and I said something along the lines of gaining useful info so I could have a good job. He looked at me with great offense and said if I wanted that I should have gone to vocational school. It was his view that nothing about college was about working or getting a job. It was more of a pure academic diversion you could engage in to loll away the time with. That’s the root of useless degrees.
The student loan business needs to be eliminated. Let it go back to banks where analysts can look at the grades and programs to judge whether it’s likely to be paid back. No more government involvement
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