student loan foregiveness: BULLISH

[gzz]

https://www.cnbc.com/2022/07/06/biden-administration-to-make-sweeping-changes-to-student-loan-system.html

Those monthly loan payments count against DTI and limit the mortgage amounts people can get.

They are also a psychological burden on young buyers.

Hopefully Biden will go with 50k in automatic forgiveness, no application required.

Income cutoffs are impractical. You are going to give someone with a $99,999 income a 50k loan forgiveness, but then say “sorry you get nothing” to someone who makes a dollar more?

You going to have the Dept of Education massively staff up and then start processing millions of applications for forgiveness? All just to stop a small number of high income borrowers from getting BidenBux? And these high income borrowers are both more likely to vote and more likely to be swing voters than low income student loan debtors.

Much easier to just cut balances by 50k a borrower, which can be done by a single programmer.

[scaredyclassic]

I doubt it’ll be 50k.

5-10, maybe.

[The-Shoveler]

I would definitely feel like a sucker dweeb if I had worked my ass off through college or worst spend 2-3 years in Afghanistan so I would not have student debt.

[The-Shoveler]

dup

[scaredyclassic]

[quote=The-Shoveler]I would definitely feel like a sucker dweeb if I had worked my ass off through college or worst spend 2-3 years in Afghanistan so I would not have student debt.[/quote]

On the scale of being a sucker, not as bad as dying in Afghanistan in a purposeless national adventure. But, still, a sucker.

[evolusd]

I have not read too much about this, but I hope that the government will significantly change the way higher education is financed. They’ve created such a huge supply of money to ‘finance’ college with debt, it seems schools have been able to raise prices exponentially, fattened up admin staff, financed capital projects and grew endowments on the backs of college student borrowers.

College system needs to be financed differently, IMO.

[Navydoc]

Will they reimburse me for the debt I already paid back? Didn’t think so….

Education is such a scam. Why did I need three semesters of calculus to go to medical school? If you put a gun to my head and said “solve this integral!” I would say “go ahead and pull the trigger, because I don’t remember how to do it”. But I got my three semesters in! What a waste of my time. I could have learned everything I needed to do well in med school in 1 year, but I got my undergraduate degree! Couple that with the huge number of people who graduate with useless degrees and I really believe we need some sort of education reform. I understand the necessity to “learn to think”, and not all of my undergraduate courses were a waste, but we need to figure out how to do this more efficiently, and therefore less costly. That to me seems much more useful than loan forgiveness.

[flyer]

We’ve gladly paid off various types of loans for many people we know, or who are affiliated with organizations we trust. Happy to do that.

Even though the people receiving the “Biden Bux” will actually be paying for them in the future in some way, shape or form, I’d rather pass on a government give away to people we don’t know.

[sdduuuude]

[quote=flyer]We’ve gladly paid off various types of loans for many people we know, or who are affiliated with organizations we trust. Happy to do that.

Even though the people receiving the “Biden Bux” will actually be paying for them in the future in some way, shape or form, I’d rather pass on a government give away to people we don’t know.[/quote]

… taking god-knows-what classes. Should the government really be investing in Lesbian Studies degrees ? What is the break-even on that ?

[sdduuuude]

[quote=evolusd]I have not read too much about this, but I hope that the government will significantly change the way higher education is financed. They’ve created such a huge supply of money to ‘finance’ college with debt, it seems schools have been able to raise prices exponentially, fattened up admin staff, financed capital projects and grew endowments on the backs of college student borrowers.

College system needs to be financed differently, IMO.[/quote]

+1

Classic government problem solving … ends up making the original problem worse.

[scaredyclassic]

[quote=Navydoc]Will they reimburse me for the debt I already paid back? Didn’t think so….

Education is such a scam. Why did I need three semesters of calculus to go to medical school? If you put a gun to my head and said “solve this integral!” I would say “go ahead and pull the trigger, because I don’t remember how to do it”. But I got my three semesters in! What a waste of my time. I could have learned everything I needed to do well in med school in 1 year, but I got my undergraduate degree! Couple that with the huge number of people who graduate with useless degrees and I really believe we need some sort of education reform. I understand the necessity to “learn to think”, and not all of my undergraduate courses were a waste, but we need to figure out how to do this more efficiently, and therefore less costly. That to me seems much more useful than loan forgiveness.[/quote]

Law schools worse … But really, the degree has little to do with training. It’s just a weeding out process.

[scaredyclassic]

[quote=sdduuuude][quote=evolusd]I have not read too much about this, but I hope that the government will significantly change the way higher education is financed. They’ve created such a huge supply of money to ‘finance’ college with debt, it seems schools have been able to raise prices exponentially, fattened up admin staff, financed capital projects and grew endowments on the backs of college student borrowers.

College system needs to be financed differently, IMO.[/quote]

+1

Classic government problem solving … ends up making the original problem worse.[/quote]

It is a pretty clear example of bad gov action. The least the colleges could do is pay their damn adjuncts decently

[LAAFTERHOURS]

The entire college system is broken and debt relief on federal only loans is not ok. If Joe is going to forgive student debt, do it across private as well. Otherwise don’t give relief to anyone.

On the college topic, I pissed away 80-100K in college partying like I was in Animal House. I learned nothing but street smarts. 4 years of French language (8 total with high school) and while I can read it, I cant speak it. I have already prepped my oldest that she will be going to whichever college provides her the most or pays for her entirely if she gets an athletic ride.

I am not for handouts unless you work for them. Stop handing out “free” money and bailing everyone out. This includes the CA gas rebate/ handout.

[LAAFTERHOURS]

sorry double post

[gzz]

Navy, I wrote my law school third-year paper on why the third year of law school should be optional. The two big points is that it hurts lawyers by making them pay $30k in tuition rather than earn maybe 75k in salary, and hurts the middle class by driving up the price of legal services.

Got a B+.

I don’t think mass loan repayment is a particularly good policy for the reasons everybody has mentioned.

It is less of a giveaway to the rich than PPP, but the biggest student loan debts are generally doctors, dentists, and lawyers. And a lot of the rest, middle class and poor people with large debts, aren’t actually paying them back. They either defaulted, are on a forgiveness plan, or have income based repayment of 200 or less a month.

So grading loan forgiveness on a curve, it isn’t that bad an economic policy. The best economic policy is to buy the top copyrights and patents and release them into the public domain, and to cut incomes taxes and replace them with Georgist land value taxes and Pigovian pollution taxes. Won’t happen of course!

[Author]

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