President Biden Announces Student Loan Relief for Borrowers Who Need It Most

[Kai 354]

Have you or do you currently have student loans?

A lot of mixed thoughts on this. What're yours?

Does this help your financial situation?

Did you grind it out to payoff your loans already?

Are you upset by this?

 

https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

Edited August 24, 2022 by Kai

[Vanzant 1,410]

In today's society that's basically like everyone yeah lol.

 

 

I dont know enough such as are the loans interest free? 

[Atvdinner 386]

This is like putting a bandaid on a bullet wound. Don't treat the symptoms, treat the problems. 

 

The issue here isn't the loans. The issue here is why someone is asked to take on a life time of dept for further education. 

[Kai 354]

2 minutes ago, Atvdinner said:

The issue here isn't the loans. The issue here is why someone is asked to take on a life time of dept for further education. 

At 17 years of age at that. (usually)

[Kai 354]

5 minutes ago, Vanzant said:

In today's society that's basically like everyone yeah lol.

 

 

I dont know enough such as are the loans interest free? 

No they are not interest free. My highest loan had a 6.5% interest rate and ranged down to a 1.5% interest rate.

However, over the coarse of covid the government has put a freeze on interest and payments on these loans which have culminated to this debt forgiveness.

[@The End 2,082]

Although student loan market is predatory, people should really know better when they take out huge loans for useless degrees that don't net them a job that allows them to pay back the loan. 

 

 

[Howl 950]

While I think college in the US is ridiculously expensive and needs reform, I don't particularly like this policy as it's a largely regressive policy.

 

Quote

Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). No high-income individual or high-income household – in the top 5% of incomes – will benefit from this action.

Far more than just the top 5% of earners can afford to pay off their student loans and this policy.

 

Quote

Department of Education estimates that, among borrowers who are no longer in school, nearly 90% of relief dollars will go to those earning less than $75,000 a year.

While the majority of funding is going towards low/middle class earners, I still think $75,000 is a bit high of a threshold.

 

They use the example of a nurse with two kids, making $77,000/year. While that's an entirely realistic scenario, I would rather see the relief based on dependents rather than just income, similar to the child tax credit.

 

I don't have time to go back and read every detail of the press release, but on the whole, I don't see college debt forgiveness as a significantly beneficial or efficient policy. Only 1/3 Americans has a bachelor degree. This is completely ignoring blue collar workers with nothing more than a high school diploma.

[Req 236]

I'm against this.  I think you should be held accountable for poor financial decisions that you make. 

[Roofis 159]

Shouldn’t forgive people that make poor financial decisions

[NarNumbers 219]

16 minutes ago, Req said:

I'm against this.  I think you should be held accountable for poor financial decisions that you make. 

 

[Kai 354]

ITT: People mad at 17 year olds for being "financially irresponsible".

[Pietru 1,251]

Man thank god I don't live in the US..........

[Markito. 9]

In my experience from Brazil, I think it is not  too good.

 

1 - Many students will get a degree, after to finish if dont joined in the market during the university like an internship, that's will be very hard to pay the loan, many years. The consequence is debt renegonation.

 

2-  When more people get a degree, more hard to join in the market, people with more skills,because law of supply and demand, more people with skills + (supply) and less (demand)

 

3- Overeducation, when many people, they are able to do a specific function more complex but at the same time the market dont absorve them. Result: A lot of study and little work/no work.

 

4- No a good economic growth, the situations gets worse.

 

5- The salary of skilled labor will decrease, because more people with skills will accept a lower salary;

 

From the government's perspective.

 

1-  Insertions of minorities as result more votes

 

2- A family without any member never did a degree, can justify it how a good thing to attract votes etc..

 

3-  Giving opportunities

 

4- In general, good for public opinion.

 

 

 

 

[≈Nick 609]

1 hour ago, Roofis said:

Shouldn’t forgive people that make poor financial decisions

 

[Hat 133]

should just make it all free Zz