Biden's plan for student loan

[BigDawgs2010]

Biden's plan for student loan forgiveness will effectively do nothing for the people. He wants to forgive 10k for everyone. Let me explain:

People that owe 10-20k in student loans and are on income based repayments are not getting killed by their payments. It's the people who have 50-100k+ in student loans. Once you get to the 50kish in student loans, you usually max out with your maximum payment. So if you have 50, 100 or 150k in student loan your payment is the same because they can only require you to pay 10 percent of your discretionary income. So 10k forgiveness does nothing as far as people's monthly payment but it sounds good to people who do not know anything about student loans.

The thing that helps the people the most is the temporary suspensions that we have had since March, not forgiving 10k.

 

[LT Dawg07]

The long term solution is getting the government out of student loans and making loan percentages in line with the risk (ie a loan interest rate for French poetry is a far higher percentage than a loan for mechanical engineering)

This would vastly slow the ever increasing costs of college as the colleges know their is currently unlimited funds for tuition.

 

[BigDawgs2010]

The long term solution is getting the government out of student loans and making loan percentages in line with the risk (ie a loan interest rate for French poetry is a far higher percentage than a loan for mechanical engineering)

This would vastly slow the ever increasing costs of college as the colleges know their is currently unlimited funds for tuition.

Right, but forgiving 10k is a not going to help the people. Only an election ploy.

 

[Spe77]

The long term solution is getting the government out of student loans and making loan percentages in line with the risk (ie a loan interest rate for French poetry is a far higher percentage than a loan for mechanical engineering)

This would vastly slow the ever increasing costs of college as the colleges know their is currently unlimited funds for tuition.

Excellent point! What better lesson to teach college students than the realities of the world? Decisions have consequences and they are responsible for the decisions they make and the bills they accrue.

 

[LT Dawg07]

Excellent point! What better lesson to teach college students than the realities of the real world? Decisions have consequences and they are responsible for the decisions they make and the bills they accrue.

One party doesn’t believe in personal responsibility at all though so that makes this difficult.

 

[BigDawgs2010]

One party doesn’t believe in personal responsibility at all though so that makes this difficult.

I think I tried to like this and reported it instead. Sorry if I did man. Lol.

 

[dirtytoeddawg]

The “student loan crisis” has one cause & one cause only.

The federal government taking the lending away from the private sector allowing a system where taxpayer backed loans with little to no risk/reward judgement stifling competition & allowing the suppliers to set prices without market recourse.

 

[BigDawgs2010]

The “student loan crisis” has one cause & one cause only.

The federal government taking the lending away from the private sector allowing a system where taxpayer backed loans with little to no risk/reward judgement stifling competition & allowing the suppliers to set prices without market recourse.

And charging near 7 percent interest.

 

[accountingdawg2012]

The “student loan crisis” has one cause & one cause only.

The federal government taking the lending away from the private sector allowing a system where taxpayer backed loans with little to no risk/reward judgement stifling competition & allowing the suppliers to set prices without market recourse.

We have a winner! College cost rising are explicitly linked to federal borrowing.

 

[dirtytoeddawg]

We have a winner! College cost rising are explicitly linked to federal borrowing.

A few years ago I recall Maxine Waters, chairwoman of the financial services committee no less, attempt to grill top banking execs about what they were willing to do about student loan debt. They quickly pointed out that the federal government had taken that out of the private sector & they had no control or loans in that sector for years.

She had no idea. Chairwoman mind you.

 

[accountingdawg2012]

A few years ago I recall Maxine Waters, chairwoman of the financial services committee no less, attempt to grill top banking execs about what they were willing to do about student loan debt. They quickly pointed out that the federal government had taken that out of the private sector & they had no control or loans in that sector for years.

She had no idea. Chairwoman mind you.

Even people who study higher education will tell you the start of the crisis centers on the entry of the federal government into the loan business. Colleges felt empowered to charge more than was needed because they knew students had access to easy credit.

 

[BigDawgs2010]

Even people who study higher education will tell you the start of the crisis centers on the entry of the federal government into the loan business. Colleges felt empowered to charge more than was needed because they knew students had access to easy credit.

Financial aid advisors getting these students way to much for loans so they get refunds is a problem too. I know kids should be smarter but they are not going to turn down cash that is termed a "refund".

 

[accountingdawg2012]

Financial aid advisors getting these students way to much for loans so they get refunds is a problem too. I know kids should be smarter but they are not going to turn down cash that is termed a "refund".

That’s like when the bank approves you for $500,000 but you can only afford $375,000 worth of house. Well what the hell? The bank approved me for $500,000 so that’s what we’re getting.

 

[BigDawgs2010]

That’s like when the bank approves you for $500,000 but you can only afford $375,000 worth of house. Well what the hell? The bank approved me for $500,000 so that’s what we’re getting.

Lol yes

 

[mikul1]

The long term solution is getting the government out of student loans and making loan percentages in line with the risk (ie a loan interest rate for French poetry is a far higher percentage than a loan for mechanical engineering)

This would vastly slow the ever increasing costs of college as the colleges know their is currently unlimited funds for tuition.

Look at the cost of tuition Increase 7 years before and 7 years after Obama and Committee Chairman Waters started signing everyone’s loan app.

 

[Kylo Ren]

That’s like when the bank approves you for $500,000 but you can only afford $375,000 worth of house. Well what the hell? The bank approved me for $500,000 so that’s what we’re getting.

yeah i used to work for a company that provided PMI and I took a number of classes and learned a lot about the home loan industry so when I went to buy a house I got approved out in California to buy a 650k home.. I was like "are you serious? You realize even with our combined incomes there is no way I can afford long term that monthly payment".. LOL she was like well if you want to buy a house that much we will help.. hahaha.. that was back in 2002.. so i moved back to Georgia and bought a house that was well over 1 million in cali for 180k.. However I know of many people who took those loans and lost their homes because of it.. It's just ridiculous.

regarding student loans my wife went to kennesaw and she got halfway through her degree and we owed 20k.. she still has 15 classes to go.. when she is done she would owe up to 40k of loans so she stopped and we are almost done paying our loans off. I decided to go back to school and finish my degree and my company pays for tuition and fees so I owe nothing thank goodness and just finished up my degree this past Thursday. the amount of student loan debt is just incredible right now..

 

[ibdawg78]

What ever happened to risk analysis? What are the odds that a kid getting a bachelor degree in interpretive folk dance will default on their loan?

Pretty damn sure there’s about a 125% or higher chance of default.

 

[Opus X Dawg]

At this point borrow away. Do not worry about the future. Eventually, student loan debt will be forgiven. Let somebody else pay for your "free" college.

 

[brad79]

Help me understand something here. Why are tax payers responsible because someone decided to take a loan out to pay for college? Taking a loan is a choice, and wasn’t forced on anyone.

 

[mikul1]

yeah i used to work for a company that provided PMI and I took a number of classes and learned a lot about the home loan industry so when I went to buy a house I got approved out in California to buy a 650k home.. I was like "are you serious? You realize even with our combined incomes there is no way I can afford long term that monthly payment".. LOL she was like well if you want to buy a house that much we will help.. hahaha.. that was back in 2002.. so i moved back to Georgia and bought a house that was well over 1 million in cali for 180k.. However I know of many people who took those loans and lost their homes because of it.. It's just ridiculous.

regarding student loans my wife went to kennesaw and she got halfway through her degree and we owed 20k.. she still has 15 classes to go.. when she is done she would owe up to 40k of loans so she stopped and we are almost done paying our loans off. I decided to go back to school and finish my degree and my company pays for tuition and fees so I owe nothing thank goodness and just finished up my degree this past Thursday. the amount of student loan debt is just incredible right now..

Way to go man, Hell I don’t even know you and still feel glad for you ,such an accomplishment. I really mean it, I started after marriage so go crow awhile.

 

[atlanta cock#]

Help me understand something here. Why are tax payers responsible because someone decided to take a loan out to pay for college? Taking a loan is a choice, and wasn’t forced on anyone.

Screaming Libs claim college is a right and attending Oberlin is a sacred right. Don’t worry. I’ll loan you the money after I take it from Celtic.

 

[phoenixdawg]

Another stupid policy by Barack

 

[Artmcollins]

The long term solution is getting the government out of student loans and making loan percentages in line with the risk (ie a loan interest rate for French poetry is a far higher percentage than a loan for mechanical engineering)

This would vastly slow the ever increasing costs of college as the colleges know their is currently unlimited funds for tuition.

This would also kill bullshat majors that are to blame for the woke movement which needs to die hard.

 

[Artmcollins]

Every high schooler in the country should listen to this:

I will say that I was told multiple times by people that I trust that student loan was “good” debt, including my College advisors. I wish I would have not listened. The truth is there is no good debt! Needless to the say, I’m telling my kids the opposite.

 

[BigDawgs2010]

Help me understand something here. Why are tax payers responsible because someone decided to take a loan out to pay for college? Taking a loan is a choice, and wasn’t forced on anyone.

Absolutely a choice but students need to be educated at orientation about them. These financial advisors are acting irresponsibly. Yes it is ultimately the students responsibility but they are def not mature enough at 18 to handle turning down getting a 5k+ refund.

 

[BigDawgs2010]

This would also kill bullshat majors that are to blame for the woke movement which needs to die hard.

Do you mean to tell me there is something wrong with getting 80k in student loans to get a degree in Linguistic Arts with a minor in Socially Acceptable Poetry and head out for career being a barista?

 

[BigDawgs2010]

Every high schooler in the country should listen to this:

View embedded media

I will say that I was told multiple times by people that I trust that student loan was “good” debt, including my College advisors. I wish I would have not listened. The truth is there is no good debt! Needless to the say, I’m telling my kids the opposite.

Yes

"good debt"

"this will make getting a house much easier down the road"

"Creditors don't look at student loan debt the same when looking to approve or deny credit"

These were all things I was told by financial advisors.

 

[albanyga]

Yes

"good debt"

"this will make getting a house much easier down the road"

"Creditors don't look at student loan debt the same when looking to approve or deny credit"

These were all things I was told by financial advisors.

Probably getting kickbacks for loan referrals.

 

[Artmcollins]

This is why we need government programs that don’t reward bad choices or encourage them. Too many times these feel good ideas turn into nightmares in reality. You have to have skin the game and govt backed loans takes the skin out of the game

 

[BigDawgs2010]

This is why we need government programs that don’t reward bad choices or encourage them. Too many times these feel good ideas turn into nightmares in reality. You have to have skin the game and govt backed loans takes the skin out of the game

And it hurts people also for not having skin in the game as you can't get it from under student loans even in bankruptcy.

 

[BigDawgs2010]

This is why we need government programs that don’t reward bad choices or encourage them. Too many times these feel good ideas turn into nightmares in reality. You have to have skin the game and govt backed loans takes the skin out of the game

At 7 prcent interest for federally backed student loans, this is no feel good story. This is purely a money making scheme.

 

[wstugamd]

Absolutely a choice but students need to be educated at orientation about them. These financial advisors are acting irresponsibly. Yes it is ultimately the students responsibility but they are def not mature enough at 18 to handle turning down getting a 5k+ refund.

It's even worse with the mortgage industry as several have pointed out. When we were looking for a new house, the price ranges in the area we needed to live were up to 350k then above 700k. 500k was what we could afford. Yes banks would have given me the money to buy the 700-800k house that we really liked, but at the sacrifice of our financial future. People don't understand it's not free money. It cost you future earnings. Cars are similar.

Anything with a 3rd party payer has dramatic increase in price. Houses, cars, school, medicine, and we could go on forever.

 

[doofusdawg]

Biden's plan for student loan forgiveness will effectively do nothing for the people. He wants to forgive 10k for everyone. Let me explain:

People that owe 10-20k in student loans and are on income based repayments are not getting killed by their payments. It's the people who have 50-100k+ in student loans. Once you get to the 50kish in student loans, you usually max out with your maximum payment. So if you have 50, 100 or 150k in student loan your payment is the same because they can only require you to pay 10 percent of your discretionary income. So 10k forgiveness does nothing as far as people's monthly payment but it sounds good to people who do not know anything about student loans.

The thing that helps the people the most is the temporary suspensions that we have had since March, not forgiving 10k.

Making the interest deductible would help those upper end borrowers... that would be easy to fix but would take away the political issue. Politicians are scum.