Backintheday544 Posted September 7, 2022 Share Posted September 7, 2022 4 hours ago, Chef Jim said: Here is the thing that really pisses me off about this forgiveness. Those that put in place forgiveness plans that were already offered such as Income Based Repayment will have their loan forgiveness taxed whereas these will not be. And some of these plans? The tax hit could be huge seeing they only pay based on their income. Almost all of those don't cover P&I so the balance grows and I've seen some plans where the forgiven/taxable portion could be a few hundred thousand dollars. Those people just got the ***** shaft. Those plans are not taxable Federally through 2026 as part of the recent bill that makes this not taxed. Those amounts under the 20 year IBR rules always had the taxable income as an issue. It’s generally been assumed Congress would pass something once the first people would be affected (and they did through 2026). The PSFL never had the tax issue. The people who have hundreds and thousands of negative amortization due to IBR will most likely not pay tax on all of that as the portion where they are insolvent is not taxed. The plan Biden released fixes the negative amortization issue going forward but would be nice to see it retroactively fixed. Link to comment Share on other sites More sharing options...
Chef Jim Posted September 7, 2022 Share Posted September 7, 2022 4 hours ago, reddogblitz said: Agreed. Since these are government owned loans why can't they lower the interest rate to 1% or heck, even 0%? Would help a lot of people AND be more cost effective. Because they (the Biden Administration) are not looking to give by all this. They are looking to receive. 1 Link to comment Share on other sites More sharing options...
reddogblitz Posted September 7, 2022 Share Posted September 7, 2022 20 minutes ago, Chef Jim said: Because they (the Biden Administration) are not looking to give by all this. They are looking to receive. Amen. Link to comment Share on other sites More sharing options...
Tiberius Posted September 27, 2022 Share Posted September 27, 2022 A public interest lawyer in Indiana is suing to block President Biden’s plan to cancel some student debt, arguing that the policy will force him to pay state taxes on the forgiven amount. The lawsuit, filed in U.S. District Court for the Southern District of Indiana Tuesday, is the first significant legal action seeking to invalidate Biden’s policy before it takes effect. https://www.washingtonpost.com/education/2022/09/27/lawsuit-student-loan-forgiveness/ Link to comment Share on other sites More sharing options...
B-Man Posted September 27, 2022 Share Posted September 27, 2022 The Congressional Budget Office has set forth the direct economic cost of the illegal Biden student loan giveaway in a letter to Senator Richard Burr and Rep. Virginia Foxx. The letter is posted online here. Following up, Republicans on the House Budget Committee issued this press release. The press release highlights these key points: • $400 billion cost to taxpayers from Biden’s decision to cancel student loan debt for families earning up to $250,000. • $20 billion cost to taxpayers from Biden’s decision to extend the student loan repayment moratorium another four months. ○ $105 billion total cost to taxpayers from loan repayment moratorium since Biden took office. • $4+ billion per month cost to U.S. taxpayers from loan and interest repayment moratorium. The press release adds that the CBO score does not include a cost estimate of the changes the Biden administration also made to student loan income-driven repayment plans, “which other analyses have projected could cost American taxpayers over $450 billion.” The press release then provides this assessment of the distribution of the benefits and burdens of the loan and interest repayment moratorium: • 87% of adults without student loans will be forced to pay for the 13% of adults who chose to take on loans. • 70% of the benefit from canceling student loan debt will go to those in the top half of the income spectrum. • 56% of all student loan debt is owed by the 14.3% of individuals with advanced degrees. The argument served up by the administration to support the legality of the giveaway is a glorified joke. https://www.powerlineblog.com/archives/2022/09/analyze-this-44.php https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf https://republicans-budget.house.gov/press-release/cbo-reports-400-billion-price-tag-for-bidens-welfare-for-the-wealthy-student-loan-cancelation-scheme/#:~:text=“President Biden's transfer of student,security and peace of mind%2C” https://www.justice.gov/olc/file/1528451/download Link to comment Share on other sites More sharing options...
dpberr Posted September 27, 2022 Share Posted September 27, 2022 Just now, B-Man said: The Congressional Budget Office has set forth the direct economic cost of the illegal Biden student loan giveaway in a letter to Senator Richard Burr and Rep. Virginia Foxx. The letter is posted online here. Following up, Republicans on the House Budget Committee issued this press release. The press release highlights these key points: • $400 billion cost to taxpayers from Biden’s decision to cancel student loan debt for families earning up to $250,000. • $20 billion cost to taxpayers from Biden’s decision to extend the student loan repayment moratorium another four months. ○ $105 billion total cost to taxpayers from loan repayment moratorium since Biden took office. • $4+ billion per month cost to U.S. taxpayers from loan and interest repayment moratorium. The press release adds that the CBO score does not include a cost estimate of the changes the Biden administration also made to student loan income-driven repayment plans, “which other analyses have projected could cost American taxpayers over $450 billion.” The press release then provides this assessment of the distribution of the benefits and burdens of the loan and interest repayment moratorium: • 87% of adults without student loans will be forced to pay for the 13% of adults who chose to take on loans. • 70% of the benefit from canceling student loan debt will go to those in the top half of the income spectrum. • 56% of all student loan debt is owed by the 14.3% of individuals with advanced degrees. The argument served up by the administration to support the legality of the giveaway is a glorified joke. https://www.powerlineblog.com/archives/2022/09/analyze-this-44.php https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf https://republicans-budget.house.gov/press-release/cbo-reports-400-billion-price-tag-for-bidens-welfare-for-the-wealthy-student-loan-cancelation-scheme/#:~:text=“President Biden's transfer of student,security and peace of mind%2C” https://www.justice.gov/olc/file/1528451/download I'd say most previous POTUS would have had that information in hand before making the decision. There were lots of better ways to address this problem than the way selected. 1 Link to comment Share on other sites More sharing options...
SoCal Deek Posted September 27, 2022 Share Posted September 27, 2022 I don’t oppose this stunt on the grounds of it being bad fiscal policy. I oppose it on the grounds that it’s really bad life skills policy. Link to comment Share on other sites More sharing options...
Chef Jim Posted September 27, 2022 Share Posted September 27, 2022 20 minutes ago, SoCal Deek said: I don’t oppose this stunt on the grounds of it being bad fiscal policy. I oppose it on the grounds that it’s really bad life skills policy. Just the opposite here. It's not up the the government to teach good or bad life skills however it is up to the government to create and maintian good fiscal policy. Link to comment Share on other sites More sharing options...
SoCal Deek Posted September 27, 2022 Share Posted September 27, 2022 2 minutes ago, Chef Jim said: Just the opposite here. It's not up the the government to teach good or bad life skills however it is up to the government to create and maintian good fiscal policy. I didn’t say it was the government’s job to teach life skills. I said it’s why I oppose it. If they want to give people the opportunity to have their loan erased then the people who took the loan need to return their degree. Now THAT would be good policy! Link to comment Share on other sites More sharing options...
Chef Jim Posted September 27, 2022 Share Posted September 27, 2022 3 hours ago, SoCal Deek said: I didn’t say it was the government’s job to teach life skills. I said it’s why I oppose it. If they want to give people the opportunity to have their loan erased then the people who took the loan need to return their degree. Now THAT would be good policy! They have the opportunity to erase their loans. Pay them off quicker. If a family making up to $250k a year can’t throw a little more to the principal then I can’t help them. How about we have them pay back the $10-$20k out of future inheritance? 🤷🏻♂️ Link to comment Share on other sites More sharing options...
SoCal Deek Posted September 27, 2022 Share Posted September 27, 2022 3 minutes ago, Chef Jim said: They have the opportunity to erase their loans. Pay them off quicker. If a family making up to $250k a year can’t throw a little more to the principal then I can’t help them. How about we have them pay back the $10-$20k out of future inheritance? 🤷🏻♂️ How about they just honor the commitment they made or return their degree? Link to comment Share on other sites More sharing options...
Chef Jim Posted September 27, 2022 Share Posted September 27, 2022 12 minutes ago, SoCal Deek said: How about they just honor the commitment they made or return their degree? Return their degree? When did you ever get asked or ask when hiring for proof of a degree? Link to comment Share on other sites More sharing options...
SoCal Deek Posted September 27, 2022 Share Posted September 27, 2022 3 minutes ago, Chef Jim said: Return their degree? When did you ever get asked or ask when hiring for proof of a degree? Proof? So you believe that people should be able to commit fraud on their resume now? Yikes! Link to comment Share on other sites More sharing options...
Chef Jim Posted September 27, 2022 Share Posted September 27, 2022 1 minute ago, SoCal Deek said: Proof? So you believe that people should be able to commit fraud on their resume now? Yikes! Good lord dude. Where did I say that? Don’t bother because I didn’t. Link to comment Share on other sites More sharing options...
SoCal Deek Posted September 27, 2022 Share Posted September 27, 2022 Just now, Chef Jim said: Good lord dude. Where did I say that? Don’t bother because I didn’t. You asked when I was asked for proof of my degrees. No? The assumption is that you’re advocating for people to simply list a degree that they never earned. Did I misunderstand? Not sure where you’re going here. Link to comment Share on other sites More sharing options...
Chef Jim Posted September 27, 2022 Share Posted September 27, 2022 3 minutes ago, SoCal Deek said: You asked when I was asked for proof of my degrees. No? The assumption is that you’re advocating for people to simply list a degree that they never earned. Did I misunderstand? Not sure where you’re going here. Ok I’ll explain. You said if their loans are forgiven they should just give up their degree. My point is how will that change anything? People could still list their degree on their resume. I advocated for nothing. Link to comment Share on other sites More sharing options...
SoCal Deek Posted September 27, 2022 Share Posted September 27, 2022 Just now, Chef Jim said: Ok I’ll explain. You said if their loans are forgiven they should just give up their degree. My point is how will that change anything? People could still list their degree on their resume. I advocated for nothing. If they didn’t fulfill the terms of the agreement they signed them they should reap the reward. If you don’t pay off your car loan, you don’t get to keep the car. Link to comment Share on other sites More sharing options...
Chef Jim Posted September 27, 2022 Share Posted September 27, 2022 1 minute ago, SoCal Deek said: If they didn’t fulfill the terms of the agreement they signed them they should reap the reward. If you don’t pay off your car loan, you don’t get to keep the car. Sorry but you can’t take away a person’s knowledge. Education and knowledge are not tangible things. At some point, and typically pretty quickly, your level of experience in any given field outweigh your degree. After 2 years I got a hell of a lot more traction on my resume based on where I worked vs where I got my degree. And my degree is from one of the most recognizable culinary school in world. That and the fact the people can easily fudge their resume takes almost all the teeth out of you wanting to swap a degree for their loan. Link to comment Share on other sites More sharing options...
SoCal Deek Posted September 27, 2022 Share Posted September 27, 2022 4 minutes ago, Chef Jim said: Sorry but you can’t take away a person’s knowledge. Education and knowledge are not tangible things. At some point, and typically pretty quickly, your level of experience in any given field outweigh your degree. After 2 years I got a hell of a lot more traction on my resume based on where I worked vs where I got my degree. And my degree is from one of the most recognizable culinary school in world. That and the fact the people can easily fudge their resume takes almost all the teeth out of you wanting to swap a degree for their loan. We agree there. But the loan was to purchase a degree, not to purchase knowledge. Now…the government can do whatever they want with the loan. My point is that there should be a trade. If you choose to not pay back the loan, the trade is that you cannot claim the degree (or knowledge…if that makes you feel better). Link to comment Share on other sites More sharing options...
Chef Jim Posted September 27, 2022 Share Posted September 27, 2022 Just now, SoCal Deek said: We agree there. But the loan was to purchase a degree, not to purchase knowledge. Now…the government can do whatever they want with the loan. My point is that there should be a trade. If you choose to not pay back the loan, the trade is that you cannot claim the degree (or knowledge…if that makes you feel better). And people will continue to list their degrees on their resume. So you accomplish nothing. My idea of taking right off the top of any inheritance in essence pays the loan back. Link to comment Share on other sites More sharing options...
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