Posted on 06/14/2022 2:23:39 AM PDT by markomalley
OBAMA wanted all the interest directly into the Federal coffers.
Seems to me Biden and dems have signaled they will not canceling student debt right now. However, as massive inflation is already here and and a recession is now looking very possible as it is signaled in the treasury rates, it is possible that decision will change.
We’ve all heard the definition of insanity. It is doing the same thing over and over and and expecting a different result. The student loan program is causing heartburn for two sets of Americans—the students who agreed to repay the loans following graduation but aren’t, and the tax payers that will be on the hook for the loans if they are forgiven. Now why does the government continue to cause all this heartburn. The student loan program should be terminated immediately. If so, watch the cost of tuition drop like a lead balloon.
A drop in the bucket compared to what we will spend on all the "migrants" (formerly illegal aliens). They are going to take their government money and start having children. Meanwhile American citizens saddled with student debt will delay having children.
It's less than what we have spent to bail out wall street multiple times over the past 30 years.
It's less than we spent to bail out companies during the height of the COVID pandemic.
We can give some tax credits to those who paid off their debt over the past 10 years. Even a tax credit for those that did not take on student debt at all. There are ways to make this almost equitable.
Freeing these potentially high earners will be good for the economy allowing them to buy houses instead of renting. Buy a new car instead of stringing a long a 10 year old car. That means more taxes for local communities, lower rent for those just starting out (as people move out of rentals and into home ownership). They will go out more, helping restaurants to thrive, they will travel more supporting airlines and travel industry. They may even decide to start up new companies since they may be more willing to chance a short term job vs a stable income. They may even invest more helping to support the stock market and other people's retirements.
NEED is such a nice word.
ML/NJ
Pharmacy school 1983 tuition per semester about 1400 dollars (about 5000 in today’s dollars).
Today that same pharmacy school is 11000 per semester and then add all the student fees you are looking at about 14000 a semester. This is almost triple in today’s dollars.
This is because of student loans being excessive. Hell yes the University will take the money and they do not need to respond to market forces.
I paid $90k for my kid’s college edjumacation. It really pisses me off that the little snowflakes who majored in gender studies, etc. are getting me to pay for their college time as will as my own child’s college.
Yeah what about those of us who didn’t go to college? Why do we get to pay taxes so that people can go and learn gender studies and how white men are hateful and racist and then they get out of college and find out that they can’t get a job with that kind of “education”. I want $50,000-$100,000 whatever they’re going to forgive them I want it too.
That's exactly what "Student Loan Forgiveness"would be. Taxing the poor to pay for the education indoctrination of the rich.
I joke (to repeat, joke) that the only way I would support "forgiveness" is if they reimburse me the money I paid for my education and my kid's education. With interest.
(I say "joke" because some Dhim would probably say "OK" to that idea...and we don't need that)
Exactly. Economic forces remove the cap from all education.
Funny that whenever I try to find out what a college currently charges for tuition, I have to hunt beyond page after page of "financial aid" information. They try to make it seem that there is no cost to the student or his family.
I wish that the student loan program was eliminated altogether, but if it isn't, SOMEBODY needs to do a cost/benefit analysis with the student and his family.
You want to be an electrical engineer? Here are the kind of things you would be doing and here is where you likely will need to move. Here are the number of vacancies that are projected to exist in 5 years and here is the median starting salary along with the 1-sigma+/- standard deviations. You want to take on student loans worth ___ for your degree? Here's the monthly payment and the number of periods it will take to pay back the loan. You will be able to afford the loan but it will be tough. Do you still want to take that loan out?
You want to be a (gender studies/ethnic studies/anthropology/history/theater) major? ...repeat data above... Unless you are the 0.5% of graduates who are highly successful, you won't be able to pay this loan back. Let me explain to you what happens at that point: we will destroy your credit record to the degree that you won't even be able to rent a property on your own, you won't be able to get a new car loan, you won't be able to get an unsecured credit card. Since the loan can't be discharged in bankruptcy, this situation will continue in perpetuity. We will have the IRS send US your tax refund checks. Your passport will be cancelled and if you are outside the country, it will be valid only for re-entering the US. We will not even allow you to renounce your citizenship until the debt is paid in full. Are you SURE you want to take on this loan?
(BTW, all of the above steps are accurate...even the part about not being able to renounce citizenship)
It would be nice if people were counselled as above before being allowed to sign for student loans.
LOL. They did the right thing, but I bet that they'd feel like suckers if the government did that.
One of the big reasons that medical expenses are as high as they are in the US is because the normal consumer is totally divorced from the cost of the medical care they receive. As a point of interest, insurance companies offer international health insurance (for long term travelers, expats, digital nomads, etc). Every one of them have two sets of prices: international coverage (minus the US) and coverage that includes the US...which is almost triple the premium of coverage excluding the US.
Primarily because of the guaranteed student loan process, the actual cost of college is hidden, allowing tuition to skyrocket without the immediate pain of increase impacting families.
Rather than forgiving loans, tax law could be modified to allow companies to pay for up to "X" percent of a student loan of each employee (treat it as a fringe benefit, sort of like tuition assistance). Tax advantage it like any other fringe benefit. (Obviously, companies would require some kind of a service commitment in exchange, just like they do with TA)
BUT, I would only want such a thing if it was accompanied by some serious independent career / credit counseling was implemented for students before every semester's loan agreement was approved (see a sample in post #32).
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