and the millions of us that paid ours back? i didn't go out much, drove used cars, scrimped and saved, took care of a family and paid my student loans... and now i get to pay theirs too???
Posted on 04/28/2012 6:42:37 PM PDT by SeekAndFind
We need to start taking student loan debt seriously, both as a troubling moral issue and as a ticking economic time bomb. By some reports, student loan debt will exceed 1 trillion dollars this year, more than the credit card debt of all Americans.
A whole generation of young Americans is at risk in this excessive borrowing. They fall further and further behind in “servicing their debt” because they have no way to keep up with the payments as many of them are unemployed or underemployed. They will delay starting marriage and families; they dare not take the risk of quitting a paying job (if they have one!) and starting their own business to create jobs, and they certainly cannot save to buy a home. They are trapped.
Jesus teaches his disciples to pray, “And forgive us our debts, as we forgive our debtors.” (Matthew 6:12) Forgiving debt is a moral issue. Forgiving some of the worst of this student debt is crucial literally to save this American generation.
President Obama has recently taken steps to ease student loan debt burdens. But the problem is too big. Some of this student debt needs actual legislation to deal with the whole system of the debt as Robert Applebaum calls for on his Web site, ForgiveStudentLoanDebt.com.
Applebaum contends that executive orders can only do so much. It will take legislation that covers predatory practices as well as other changes to the way student loans are structured such as how interest is compounded. Applebaum also argues persuasively that forgiving student loan debt will stimulate the economy.
The kind of moral equality that Jesus asks us to pray for in the Lord’s Prayer can be seen in Applebaum’s argument. Jesus calls on us to pray, “Forgive us our debts, as we forgive our debtors.”
(Excerpt) Read more at washingtonpost.com ...
and the millions of us that paid ours back? i didn't go out much, drove used cars, scrimped and saved, took care of a family and paid my student loans... and now i get to pay theirs too???
Exactly. The lending institution writes off the debt as a business expense and issues a 1099 in the amount of the debt forgiven to the student. The IRS becomes the worst nightmare of a debt collector that the student could ever imagine.
You left out the part about student loans have special interest rates and delayed payment schedules and they were subsidized by the federal government.
” - - - - Forgiving debt is a moral issue.”
WRONG!!!!!!!!!!!!!!!!!!!!!!
CREATING debt is a moral issue.
Meanwhile, the workers in the cafeteria at UNC-CH, the janitors, the grounds people, the hardworking farmers in NC, any remaining textile workers who haven't already lost their jobs in the past 3 years, and all the other laborers are paying increasing tax rates to subsidize these students, many of whom drive fancy cars, live off mom and dad, and will hope to have great jobs with high salaries--that is, if America elects a President with some real-world job creation experience.
Does that about begin to sum it up?
The reality is that their awe and joy may be over soon, when they leave the campus and move in their unemployed parents' basement, waiting to find a job that's not out there because of government spending, deficit, debt, and taxation policies which have driven employers out of business or overseas.
I should also write that in the US, education is constitutionally the realm of the states. There is no constitutional duties for education at the federal level. All states have state university systems, with large campuses and land often set aside by the state constitutions, along with subsidies at the state level. Having student loans at the federal level should be unconstitutional in the first place, but in practice also gives a green light for states to get as much federal money flowing into their states as they can, using the students as intermediaries.
The first moral factor is to not borrow more than you can repay. Yes, forgiveness is a moral factor, but we must realize that when debts are between private parties, it is the lender who bears the burden alone. The financial costs are isolated and contained. However, what is being advocated here is the forgiveness of a debt that government insured, so the costs will be socialized.
The net result will be the same as if government printed the same amount of money— the wealth that money represents will be taken from all holders of the money by proportionate dilution. There is no free lunch, no matter how many socialist college students may occupy otherwise.
FYI.
Repaying your debts is a moral issue.
I repaid my student loans. They were proportionately large to me given earnings back then.
I think that’s what I’ll tell the IRS next year. See how that works out.
Maybe that’s how Obama plans to deal with our national debt. Just force the rest of the world to just forgive our debt to them. See how that pans out.
If the debt is forgiven, will that fact show up on a credit report? If so, I will make a point to NEVER hire anyone who had their debt forgiven.
Taxpayers should forgive student loans when the IRS is willing to forgive us for not paying our taxes.
All three of my sons are college graduates. They all worked to pay for their education. I don’t see where it did them any harm. One of them even paid his way thru Medical School and is now a Board Certified Surgeon.
What could be better?
“The wicked borroweth, and payeth not again..” Psalm 37:21
Soooo will the schools be giving some of their tuition earnings back too?
I worked my way thru college also...and I believe people who do that appreciate life more, and are able to face challenges better. Those who do not are, in my opinion, usually spoiled brats.
Under IRS rules if the debt were forgiven it would be considered taxable income and, to use an example, a $100,000 student loan would become $100,000 in taxable income –taxes due immediately, with penalties and interest if not paid.
Thanks Vince for your reply - it gives me some understanding of the workings of your system. Seems to me that students would have to be really wise about what courses they took and from which University under your system as a private University could package up any old crap and call it something like ....’Women’s Studies’ and charge through the nose for it.
Still at least a more free market education sector allows for more choice!
Cheers
Mel
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