Student Loan Forgiveness

[jazzy]

$20k for people who were issued pells

$10k for people who weren't

 

Federal loans only, some other specifics apply.

 

Income Based Repayment plan changes, 5% discretionary income/month.

 

Guessing this will be challenged in court immediately by those from FL/TX/KY within seconds of being signed to hold it up.

 

No long term fix for incoming students, but then again, sleepy Joe can't as much there. Congress should act on that piece.

 

Quote from some article:

We estimate that President Biden’s proposed student loan debt cancellation alone will cost between $469 billion to $519 billion over the 10-year budget window, depending on whether existing and new students are included. About 75% of the benefit falls to households making $88,000 or less per year.

[All Ts]

There's definitely a gap in logic in the US encouraging people to get degrees by getting involved to begin with and now they've had to backpedal on the idea that these degrees were actually an "investment" in our economy. If the government getting involved and driving up the price of college to begin with worked then everyone would be generating so much excess value that these loans would be paying off themselves. Having an educated, well-informed, free-thinking populace is paramount to our country keeping it's current quality of life but we're becoming a country that is highly susceptible to propaganda and that's going to become a huge issue when more of these very expensive, very badly executed plans continue to pop up. With all that being said, I think the hit job on US students was pretty insane and I don't think half a trillion is being wasted if we recognize this monumental error & don't make it again. 

[jazzy]

The problem is many universities really have nothing to do with education whatsoever. A lot of the FAFSA aid given out doesn't go towards classes either. Most state schools require outbound HS graduates to live on campus/forced meal plans for 1-2 years. This isn't always the case, but it happens in the majority of cases. So this drives up the cost of school because universities are setting the prices for the housing/meal plans, and the government is footing that bill. The concept of putting someone's rent on credit is the most atrocious design I've ever seen, and that should've been prevented the day it started.

 

Additionally, the intermingling of sports programs and universities is beyond suspect for a drive up of costs. Universities need to be barred from spending federal/state aid money on administrative positions that are for sports programs. None of the aid money can go towards a dime of sports programs.

 

No more party schools. No more sports full rides and wasted money on sports buildings. You can still have these things if you're a private school and receive no federal/state funding, including grants for research, but if you receive a single dime from the government, you are there to educate students. Not let them go out and concuss each other.

[All Ts]

20 minutes ago, jazzy said:

The problem is many universities really have nothing to do with education whatsoever. A lot of the FAFSA aid given out doesn't go towards classes either. Most state schools require outbound HS graduates to live on campus/forced meal plans for 1-2 years. This isn't always the case, but it happens in the majority of cases. So this drives up the cost of school because universities are setting the prices for the housing/meal plans, and the government is footing that bill. The concept of putting someone's rent on credit is the most atrocious design I've ever seen, and that should've been prevented the day it started.

 

Additionally, the intermingling of sports programs and universities is beyond suspect for a drive up of costs. Universities need to be barred from spending federal/state aid money on administrative positions that are for sports programs. None of the aid money can go towards a dime of sports programs.

 

No more party schools. No more sports full rides and wasted money on sports buildings. You can still have these things if you're a private school and receive no federal/state funding, including grants for research, but if you receive a single dime from the government, you are there to educate students. Not let them go out and concuss each other.

Unironically the best post I've ever read in this section god bless you. 

[Gentoo]

I've been thinking this since highschool, every teacher, parent and adult figure in your life is constantly pounding into your head that you need to spend the price of a house on going to school. That's money that could easily kickstart 10 businesses. If the government spent half the money they spend on sending kids to school on small business grants, the economy would be crazy.

 

I don't think this is the right move for us to see any form of real change. The message it sends is that the economy did an oopsie in the wake of a global pandemic and big important war and the government man is here to help you out of your unforseen hole.

 

The government needs to pull every penny out of schools. We need a generation of people that understand that they have been dumped and are going to be honest with themselves and the generations below them that they have been scammed.

 

Schools need to face a mass exodus of sorts to introduce real competition into the market, driving prices down and garnering the involvement of larger corporations who could potentially face a shortage of workers. Unlike Uncle Sam, businesses will absolutely not put up with their money being wasted where it doesn't belong or educations not being worthwhile if they could just pluck 18 year olds out of highschool and get them trained in a year to do precisely what they need.

[Phoenix_]

So glad all my loans aren't federal! Yippee! 

[Wawa]

[jazzy]

On 8/27/2022 at 8:49 AM, Gentoo said:

I've been thinking this since highschool, every teacher, parent and adult figure in your life is constantly pounding into your head that you need to spend the price of a house on going to school.

For undergrad dependents the FAFSA can only dole out $31k in Direct loans though. What 'house' can I buy at $31k lol?

Many people push college because the statistics don't lie that getting a career from a college degree typically accelerates pay, benefits, and working conditions. Personally even at $10k/yr I would still recommend many who show promise to go to school in STEM.

On 8/27/2022 at 8:49 AM, Gentoo said:

I don't think this is the right move for us to see any form of real change. The message it sends is that the economy did an oopsie in the wake of a global pandemic and big important war and the government man is here to help you out of your unforseen hole.

I mean let's call it what it really is- a chess move.

 

Most people in America can evaluate the cost of college and see the inflated costs don't accurately scale from where they started. But a one time forgiveness is the limit of Joe's power. Congress needs to act in order to make any real change, but with a gridlocked senate due to the filibuster, there will be no change.

 

All this one time forgiveness does is amp up incoming college students to pressure their elected officials into making valuable change in the system. Republicans for decades have been fine with the status quo, but now there is going to be significant pressure for people coming into college to ask themselves why in 2022, a group of individuals got a helping hand, but they won't?

 

The democrats made a pretty aggressive play, this could mean an even bigger jump in young democrat voters in 3-5 years if nothing changes. All democrats have to do is point the fingers at the GOP and say "look, we want to do more, but see how the GOP is blocking us?"