Biden signs student loan cancellation

Patriot

Super Anarchist
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Have you any solutions of your own to offer? Do you even believe the grand exploitation of teenagers by bankers and universities is a problem in need of a solution?
Start by looking at the seemingly limitless supply of government (taxpayer) $$ in the student loan market……is it any wonder that colleges have hiked their tuitions well above the rate of inflation year after year?
 

Patriot

Super Anarchist
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It certainly seems relevant in a discussion of whether or not people should pay back their legally contracted debts.
So in other words, more whataboutism BS. You and your elk couldn’t form an argument if it fell into your lap. Do you guys ever get tired of grasping at straws? Trump’s companies filed for bankruptcy under provisions of law. People can do the same to discharge student loans. As discussed previously in this thread, is it difficult to get rid of student loans via bankruptcy? Yes, it is. Don’t like it? Elect people to change the law - that’s how it works.
 

Patriot

Super Anarchist
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Sure.
It's the same thing as buying votes with bank bailouts, or buying votes (and PAC contributions) from 1%ers by staging pointless wars, or with farm subsidies, or with oil reserve depletion allowances, or with tax cuts for billionaires, etc etc.

The question is, will the result be neutral or harmful for the rest of us?
The answer: harmful. Why? A one-time (hopefully) payout to a group of people currently suffering near record-low 2% unemployment, in a shameful ploy to buy votes for the midterms - resulting in higher taxes to fund this nonsense, incremental inflationary pressure and yet even higher college tuition down the road. And this nonsensical EO does precisely zero to fix the underlying issue of out-of-control college tuition, which has been rising well above inflation for years.
 

Gouvernail

Lottsa people don’t know I’m famous
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Austin Texas
Start by looking at the seemingly limitless supply of government (taxpayer) $$ in the student loan market……is it any wonder that colleges have hiked their tuitions well above the rate of inflation year after year?
So… the government aided in the financial rape of teenagers…
 

Gouvernail

Lottsa people don’t know I’m famous
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Govt provides the funds, kids make decisions - likely often in consultation with their parents, guidance counselors, etc……call it what you want to…..
Financial rape of teenagers with bankruptcy proof enforcement by bribed influence pedaling politicians.

The financial rape is being perpetuated by right wing wanna be rapists who years later are eager to show support for the rapists by objecting to any and every attempt to help the victims.
 

BeSafe

Super Anarchist
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1,355
The answer: harmful. Why? A one-time (hopefully) payout to a group of people currently suffering near record-low 2% unemployment, in a shameful ploy to buy votes for the midterms - resulting in higher taxes to fund this nonsense, incremental inflationary pressure and yet even higher college tuition down the road. And this nonsensical EO does precisely zero to fix the underlying issue of out-of-control college tuition, which has been rising well above inflation for years.

Personally, I think its mostly a political stunt, particularly as structured. But it will help some people.

The 'one-time' payout is true - but none of those people have paid on their student loan in over two years anyway. Debt has some stress attached and negative lending connotations but $10K isn't going to change the borrowing situation of many borrowers, especially when, say, the 'average starter home' is now over $220k. $10K is a trivial component in that calculus. That's why I don't believe this will be particularly inflationary either - that money is already being spent. Re-instituting the payments might be deflationary but forgiving the debt isn't inflationary. As I said above, I do believe there's a couple million people that will probably tangibly benefit, so that's good at least.

The higher taxes will be born by the people most likely to receive the forgiveness. That's one of the points against transferring the debt in this way - its not progressive and therefore mostly benefits wealthy families - who also pay, by far, the largest amount of taxes. So can't have that both ways. In fact, its plausibly argued that the whole plan is just a deferral - I'm going to take away your monthly payments today and put them onto your future taxes. Aren't I a great guy?

I agree, it may, in fact, be an accelerator on college costs but personally, I think college costs don't need much of an accelerant to keep climbing. There is zero break on that car already.

The 'interest guarantee' to the investor community seems like a total giveaway. To me, the big winner in all of this are bond fund managers. Everyone seems to whine about bank profits expos facto but we collectively don't raise a paritcular stink (except Jules above) when we're actually giving them the largess in the first place. So why is it there? In part, because the hard truth is that the system is bloated and cumbersome and part of this action is to also clean up that mess. The loan processors have admitted they don't have accurate addresses on millions of clients. The COVID shutdown has left a mess on many fronts - and some of this program is literally to clean that up, rather than admit and write-off the losses.
 
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Raz'r

Super Anarchist
63,114
5,845
De Nile
On the fairness argument: I had loans, paid them off. But now the govt threw me the 529 plan. I did some quick math and it looks like I’ve saved >$50k in taxes on my kids college investment accounts. Someone might have a beef about fairness, but it ain’t the folks who can take advantage of 529 plans….
 

veni vidi vici

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