Canceling student loans

[leh-nerd skin-erd]

4 minutes ago, shoshin said:

 

Endowments are complicated. My daughter goes to an Ivy with an endowment in the multi-tens of billions. But that money has to be spent on the terms it was endowed, so it's not like a school can just willy-nilly fund scholarships. This is an annoying part of the endowment management game. 

 

The tuition mutually assured destruction game started when well-intentioned legislatures increased student loans to epic sizes. The thinking was that they made schools more reachable. Schools saw a bunch more cash so they built these cathedrals not to learning but to entertainment. And also administration. Unintended consequences.

 

 

She was an only child with dedicated parents. No trust fund unfortunately!

As you have probably guessed, I'm a simple guy.  Write legislation that forces a change in terms.  Allow the schools to keep 39%, requiring the other 61% to reduce loans.  It's a reverse tax plan.  We need to get away from the concept of sacred cows.  

 

 

[Tiberius]

Sounds nice, but reading the articles and it really doesn't offer much relief to those most in need. 

 

I had the military pay for my college education.  

[PetermansRedemption]

7 hours ago, SoCal Deek said:

No doubt, but what about they’re customers? Do those kids get their SoFi payments forgiven? Or do they just get screwed?

No, that wouldn’t be part of loan forgiveness. As far as I know, the government can’t make private companies forego their loans. Only federally held student loans would be forgiven under any likely congressional plan. 

6 hours ago, wAcKy ZeBrA said:

Interesting perspective from this article about how much more of a burden the cost of education is now compared to 30 years ago

 

http://graphics.wsj.com/marketwatch/college-debt-now-and-then/?adobe_mc=MCMID%3D61736770465453411501234938242485187284|MCORGID%3DCB68E4BA55144CAA0A4C98A5%40AdobeOrg|TS%3D1607702210

This is precisely why, IMO, student loan forgiveness isn’t the “miracle pill” that it’s made out to be. It’s more of a bandaid solution than a true solution. If it accompanies far reaching changes in the education system then it would be far more logical. But you will just be in this same situation in another 30 years, likely a worse situation. All this will do is ensure the cost of college continues to rise at an exorbitant rate. 

Edited December 11, 2020 by PetermansRedemption

[Backintheday544]

Another thing that hasn’t been mentioned is the current talk is Federal loans only. That makes most of these just a timing difference.m for a lot of people. 
 

Federal loans already have a forgiveness feature where the loan is forgiven after 10 years if you work for the government or a non for profit, for almost everyone else it’s forgiven after 20 years.

 

The cancellation of Federal debt just speeds that up, which allows for more money to go into the economy. That addition funds in the economy leads to more jobs, and benefits everyone.

 

Think of it as trickle up economics. 

[PetermansRedemption]

2 hours ago, Backintheday544 said:

Another thing that hasn’t been mentioned is the current talk is Federal loans only. That makes most of these just a timing difference.m for a lot of people. 
 

Federal loans already have a forgiveness feature where the loan is forgiven after 10 years if you work for the government or a non for profit, for almost everyone else it’s forgiven after 20 years.

 

The cancellation of Federal debt just speeds that up, which allows for more money to go into the economy. That addition funds in the economy leads to more jobs, and benefits everyone.

 

Think of it as trickle up economics. 

I’ve been saying for years I think it would be the biggest stimulus in history. Putting aside the morality of it, it would cause a massive spending boon and a humongous influx of suddenly disposable income. 

[TBBills]

11 minutes ago, PetermansRedemption said:

I’ve been saying for years I think it would be the biggest stimulus in history. Putting aside the morality of it, it would cause a massive spending boon and a humongous influx of suddenly disposable income. 

The republican senate does not want to give people money. They would rather watch poverty destroy this country as they take many breaks from their hard job of doing nothing and trying to keep an ego at the age of 78/80... We need to get younger in the senate and house, the old way of doing things doesn't work anymore.

[TH3]

Forgive loans?..how about solving the problem?...Secondary education costs have gone up at 7 plus percent a year for the last thirty years....because the wealthy could afford it and the lesser off could borrow it. Now the entire cost structure of college is out of whack.

 

Hey let’s not solve problems! Just throw it on the credit card🤪

[RaoulDuke79]

I think there  needs to  be some good discussion regarding college tuition fees. I also think blanket loan forgiveness isn't a great idea.

[RaoulDuke79]

48 minutes ago, TBBills said:

The republican senate does not want to give people money. They would rather watch poverty destroy this country as they take many breaks from their hard job of doing nothing and trying to keep an ego at the age of 78/80... We need to get younger in the senate and house, the old way of doing things doesn't work anymore.

Poverty destroy the country? Say what you want about the Republican party, but you can't deny they they are about businesses which create jobs. What's your solution? Just keep printing money?

[TBBills]

18 minutes ago, RaoulDuke79 said:

Poverty destroy the country? Say what you want about the Republican party, but you can't deny they they are about businesses which create jobs. What's your solution? Just keep printing money?

They are about their own business and that's it.

[RaoulDuke79]

1 minute ago, TBBills said:

They are about their own business and that's it.

Not sure how the country will ever get less divisive with attitudes like this. 

[Backintheday544]

1 hour ago, RaoulDuke79 said:

Poverty destroy the country? Say what you want about the Republican party, but you can't deny they they are about businesses which create jobs. What's your solution? Just keep printing money?

Then they should support blanket student loan forgiveness then. If you see the Levy study from page 1 it would literally create millions of jobs each year.

2 hours ago, PetermansRedemption said:

I’ve been saying for years I think it would be the biggest stimulus in history. Putting aside the morality of it, it would cause a massive spending boon and a humongous influx of suddenly disposable income. 

The morality issue is overblown. There’s always some morality to not doing something.

 

When Social Security passed you gave a bunch of old people who didn’t save money. All of a sudden they have money and won’t die in poverty.
What about the people that died in poverty from not having a savings before they passed Social Security? 
 

 

[RaoulDuke79]

2 minutes ago, Backintheday544 said:

Then they should support blanket student loan forgiveness then. If you see the Levy study from page 1 it would literally create millions of jobs each year.

I'll go look at the study, but I can't see how forgiving loans equates to job creation. Here's another study.

https://www.google.com/amp/s/www.forbes.com/sites/robertfarrington/2019/06/25/the-moral-hazard-of-student-loan-forgiveness/amp/

[Backintheday544]

4 minutes ago, RaoulDuke79 said:

I'll go look at the study, but I can't see how forgiving loans equates to job creation. Here's another study.

https://www.google.com/amp/s/www.forbes.com/sites/robertfarrington/2019/06/25/the-moral-hazard-of-student-loan-forgiveness/amp/

Thats not a study, that’s an opinion piece.

 

It’s pretty easy. Joe Taxpayer pays $600 a month to the federal government for student loans a month. Loans are forgiven, now Joe Taxpayer has $600 to spend on goods. Now multiply that by the millions of people with student loans.

 

This then increases demand for goods and services. As demands for goods and services increase, supply needs to keep up. How does supply keep up? Businesses expand. What happens as business expands? Jobs are created and people are needed to fill those jobs.

[RaoulDuke79]

4 minutes ago, Backintheday544 said:

Thats not a study, that’s an opinion piece.

 

It’s pretty easy. Joe Taxpayer pays $600 a month to the federal government for student loans a month. Loans are forgiven, now Joe Taxpayer has $600 to spend on goods. Now multiply that by the millions of people with student loans.

 

This then increases demand for goods and services. As demands for goods and services increase, supply needs to keep up. How does supply keep up? Businesses expand. What happens as business expands? Jobs are created and people are needed to fill those jobs.

Hey I'm on board. Sounds like capitalism, which is just fine fine with me. Business is what keeps the wheels turning. 

[TBBills]

2 hours ago, RaoulDuke79 said:

Not sure how the country will ever get less divisive with attitudes like this. 

You act like I am the senate.

[RaoulDuke79]

5 minutes ago, TBBills said:

You act like I am the senate.

You constantly throw stones in a glass house. 

[TBBills]

7 minutes ago, RaoulDuke79 said:

You constantly throw stones in a glass house. 

Of course b.c the house needs to broken down.

[shoshin]

3 hours ago, TH3 said:

Forgive loans?..how about solving the problem?...Secondary education costs have gone up at 7 plus percent a year for the last thirty years....because the wealthy could afford it and the lesser off could borrow it. Now the entire cost structure of college is out of whack.

 

Hey let’s not solve problems! Just throw it on the credit card🤪

 

Tuition went up BECAUSE of loans. The feds pumped a ton of dough out...and colleges built cathedrals to entertainment and hired like mad.

 

 

[PetermansRedemption]

1 hour ago, Backintheday544 said:

Then they should support blanket student loan forgiveness then. If you see the Levy study from page 1 it would literally create millions of jobs each year.

The morality issue is overblown. There’s always some morality to not doing something.

 

When Social Security passed you gave a bunch of old people who didn’t save money. All of a sudden they have money and won’t die in poverty.
What about the people that died in poverty from not having a savings before they passed Social Security? 
 

 

This seems like comparing apples and oranges to me. Eliminating all student debt right now hurts far more people than it helps. It isn’t like social security where there is a benefit now and in the future. A true comparison would be if the social security system gave money only to retirees retiring during that year it was enacted. That’s why student loan forgiveness is fine, but it has to accompany something that will actually fix the overall problem. Even if it were eliminate all student loan debt and make college free for everyone, that fixes the problem. Especially since the government could then control costs as the single payer. Not saying that’s the way it should go, but simply eliminating all student loan debt does absolutely nothing to abate the problem long term. 

Edited December 12, 2020 by PetermansRedemption