$300 billion Student-loan debt forgiveness

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Gee I wish my daughter's student loans got written off by the government. The loans I took out to help my daughter's get a college education averaged 4% - 7% interest. Why not have them pay their loans off at 1%. Maybe I should ask the government for a refund.
 
Apparently it was done last night. I'm seeing messages from folks who have been paying on their loans for years, and their balance was wiped out last night overnight.

Ok folks- your debt is cleaned away. Now become good consumers and buy stuff.


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[TD]Check your student loan balance. President Biden Paid off my daughters Student loan last night.


She owed just under 10,000 and now her balance is 0$. Just wonderful, She is crying on the phone.
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To those who are effected- this is a BFD.
 
James48843 said:
Apparently it was done last night. I'm seeing messages from folks who have been paying on their loans for years, and their balance was wiped out last night overnight.
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I find it hard to believe that they paid off loans already before the announcement has been made. And if it is true, us TSPers should not be happy about it comparing that reaction to the slow service we're getting with the new TSP system (although apparently improving?)
 
Well, it looks like the FED has to yank another $300 Billion out of the economy.

Higher interest rates in the forecast.
 
nasa1974 said:
Gee I wish my daughter's student loans got written off by the government. The loans I took out to help my daughter's get a college education averaged 4% - 7% interest. Why not have them pay their loans off at 1%. Maybe I should ask the government for a refund.
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My student loans in the 70's WERE 1.5% in fact. Back when we put priority on higher education access over corporate profit. My kids are paying about 7%, though fortunately we covered about 85% of their total costs ourselves (and that sure as hell wasn't cheap by any means).
 
Khotso said:
My student loans in the 70's WERE 1.5% in fact. Back when we put priority on higher education access over corporate profit. My kids are paying about 7%, though fortunately we covered about 85% of their total costs ourselves (and that sure as hell wasn't cheap by any means).
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My student loans in the early 1980’s were at 8%, at a time when mortgages topped 21%.

Luckily, the US Army made a small dent in the balance over 4 years, and I was able to pay off the rest while serving in the National Guard. I think those programs were very valuable to me. Thank you, America.


Sent from my iPhone using TSP Talk Forums
 
The student loan debt isn’t being paid off. It’s being transferred to someone else.


Scott Harrison
Senatobia, MS
 
Last week we paid off a job we had done to our property in October 2021. We initially placed the balance on a 0% interest rate card and computed what our bi-weekly payments had to be to pay it off before the interest rate took off. The job was in the $10,000 range so you can get an idea of the payments we were making. So many things we could have spent the money on. It wasn't fun, but man, was it a sense of accomplishment and relief to have it paid off after making some sacrifices each month.

Loan forgiveness doesn't teach those kinds of lessons.
 
I don’t think any President ought to be able to just summarily dole out taxpayer money that way.

Why aren’t people concerned about taking on so much debt anyway? It’s not my fault they made bad decisions.

Many things in life aren’t fair. I get that, but this problem (student debt) didn’t just spring up due to the pandemic. It is a campaign promise being fulfilled right here before the elections.


Scott Harrison
Senatobia, MS
 
rangerray said:
I don’t think any President ought to be able to just summarily dole out taxpayer money that way.

Why aren’t people concerned about taking on so much debt anyway? It’s not my fault they made bad decisions.

Many things in life aren’t fair. I get that, but this problem (student debt) didn’t just spring up due to the pandemic. It is a campaign promise being fulfilled right here before the elections.


Scott Harrison
Senatobia, MS
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I would ask a different question, why isn't public higher education affordable for the average citizen (those in the mid to 80th income percentiles) without requiring significant and often economically crippling loans at interest rates that are higher than rates for mortgages, cars and business loans as they were in the 50s, 60s and 70s?
 
Khotso said:
I would ask a different question, why isn't public higher education affordable for the average citizen
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I agree. Tuition has gone up exponentially faster than inflation. It's like medical expenses - if someone else is paying for it (insurance, govt.), the price just keeps going higher until it's insane! Maybe medical bills should be forgiven as well? It's all a ruse and we are the victims, but I digress.
 
I am pretty sure that loan forgiveness is taxable. So the Government shifts the burden to someone else (taxpayer) and taxes the student on the forgiven debt. Where is the downside to the
Government? Heads I win, Tails you lose. And many students won't see it coming. They'll vote in November and likely find out after the fact that they have a big tax bill that the Government wants right now.
 
Here are a few things that are sad and funny in a stupid kinda way:

  • We have been basically living on my paycheck while the wife changes career paths. Not a hard thing to do in North Carolina, it would have been impossible in Kalefonea. Well, the wife has a little over $10K on her previous student loan. Once she passes these four CPA tests she will be on a high paying career path with lots of work opportunity in the area. So, we will get her loan wiped out by this fandango since our income is currently under the $125K - but, our income will be higher than the break point once she finds gainful employment. Too funny. Kinda sad that some GS-3 is on the hook for paying off my wife's loan, but there you go. Sad and stupid as I said.
  • I guess that education is worth nothing - since that is what people are willing to pay. Are future students going to actually pay their student loans, and if so - why?
  • And, this has been in the works for quite some time. This could not have been done if the Feds had not taken over the student loan program.
 
Here’s what President Biden’s student loan forgiveness means for your taxes

Borrowers who will benefit from student loan forgiveness won’t need to worry about getting hit with a federal tax bill.

But they may owe state taxes on the forgiven debt.

Here’s what you need to know...
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https://www.cnbc.com/2022/08/24/her...means-to-your-taxes.html?&qsearchterm=taxable




coolhand said:
I am pretty sure that loan forgiveness is taxable. So the Government shifts the burden to someone else (taxpayer) and taxes the student on the forgiven debt. Where is the downside to the
Government? Heads I win, Tails you lose. And many students won't see it coming. They'll vote in November and likely find out after the fact that they have a big tax bill that the Government wants right now.
Click to expand...
 
$10,000 is hardly life changing money. That's what, 1-2 years of debt repayment? How much is this really going to help individuals? Inflation from cutting Keystone Pipeline, the 3rd stimulus check, and now debt writeoffs are making it impossible for some to even buy food anymore. This doesn't help them one bit. Is this going to jump start those who haven't made payments for the past year into making payments again? I doubt it. Will colleges just raise prices because of this similar to how prices rose due to the first time home buyer credit and EV subsidies?

Manchin gets snookered into some kind of green deal which the CBO says won't even being to lower the deficit until around 2027 and it will only be by $100B. That "savings" is completely negated with this Tammany Hall deal.

CBO estimates that enacting this legislation would result in a net decrease in the deficit totaling $102 billion over the 2022-2031 period
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https://www.cbo.gov/publication/58366

Capitalism is what we have in the US. Call it what you want, but it's brought the most amount of wealth to the most amount of people in history. Risk is a factor in capitalism. How many small businesses in your neighborhood had to close up shop after one year because they failed? Probably more than a few. They tried, they failed, they took on that risk and paid for it. Where has risk gone today?

This doesn't compare to bailouts in 2008 either. The government ultimately made money off the loans given to the banks during that time.

The cost of college needs a good hard look. Two places to start are the money brought in by major university athletics (Big 10, SEC, ACC, etc TV contracts) and amount of expensive research performed by tenured professors that add little to no value to society.

It's still far from over. Don't forget, even though the MSM didn't cover it much, all those vaccine mandates got shot down and they were executive orders.
 
Khotso said:
I would ask a different question, why isn't public higher education affordable for the average citizen (those in the mid to 80th income percentiles) without requiring significant and often economically crippling loans at interest rates that are higher than rates for mortgages, cars and business loans as they were in the 50s, 60s and 70s?
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I think the answer to your question is right there.
 
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