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they definitely should announce it the day after the election
The U.S. government is the lender.
Yes
So you're saying I should start getting my news from Tik Tok? At least I'll see a lot of dance clips.
I’m not suggesting that.
Yeah...I think its a mistake to do this. I don't like it.
Inflation no doubt. Not to mention that the next step is everyone currently in school will rightly ask “Where is my $10k?” to which there is no good answer. So stay tuned, more to come.
I don't know that such a policy will cause any materially significant amount of inflation. That said, this is a phenomenally bad idea for all sorts of reasons. It sets a terrible precedent for the future. It won't play well politically. It's essentially a transfer of money from non-educated to educated, which is regressive.
I’m not opposed to it but I would have preferred your solution here.
What a horrible display of whataboutism.
You're asking plumbers and car repairmen to pay for the degrees of engineers and lawyers, etc. It's terribly regressive and inflationary. The average student loan payment is $300/month, very achievable for the majority of folks, particularly when you consider the average car loan right now is $702/month.
The fraud associated with those is absolutely infuriating. Read the article below this morning with this nice tidbit - "In the midst of the pandemic the government gave unemployment benefits to the incarcerated, the imaginary, and the dead. It sent money to “farms” that turned out to be front yards. It paid people who were on the government’s “Do Not Pay List.” It gave loans to 342 people who said their name was “N/A.”"
The cost of higher education has exploded with the dramatic rise in non-faculty staff, among other items. Wiping away debt without tackling these cost drivers is just another long term inflationary driver of tuition. Pell grants have been horribly inflationary over the years - same thing.
why stop at education? this whole forgiveness is nothing. but. buying. VOTES!
I mean, what do you think it is when president X cuts taxes or promises to when campaigning?
I looked this up, because I knew they were in part, but not all. Am shocked at how high a % it is (apparently this has skyrocketed since 2010). Last time I had a student loan was 2001.
why stop with education loans? lot of kids have car loans. let's pay those also up to $10,000. what the H, let's pay off every loan. what is the difference?
Right, and the other 8% wouldn’t be eligible for forgiveness.
The government doesn't own those loans.
IMO, it will be heavily inflationary. As far as the rise in college costs - this is a great chart.
There is a current program already in place, which seems to be fair and working well, that one can have his or her student loans forgiven after ten (10) years if he or she doesn't get delinquent at any point and works a public service job (e.g. public school teacher, prosecutor, public defender, etc.).
I imagine we have many people that would argue that it isn't fair that someone who chose to go into teaching or non profit work should have their debt wiped away.
This is correct. It will be inflationary because the $321 billion total will now be permanently circulating in the economy.
Oddly enough, while much of my son's bills for school (we just paid them) went up so much from when I was in school. His books were actually a bargain...at least this semester. Maybe they are relying on some older textbooks for things like Chemistry, History and English...but man, I was expecting a worse hit when we ordered his books. (Tuition, food, and his dorm cost...not so much the bargain).
Isn't this money already in circulation? Loan payments have been paused for 2 years now. It's not as if people have been saving up their loan payments and are sitting on thousands of dollars in cash.
In a sense, yes. But I do think there's a difference between outright paying money one may not have and just not getting paid. The latter is obviously easier to logistically control without a significant overhead cost (think of all the auditing and accounting work that would go into the government receiving, analyzing, and then paying private car loans).
Yes. The portion of the paused loan payments that was due were inflationary. Same for rent moratoriums.
Disagree. The growth in my maturity as a person from dorm living and the expansion of my mindset from learning in college was, at least to me, worth far more than the dollar cost. Which is probably why I never missed a student loan payment and paid them off after twelve years.
I'm confused now. Did my explanation about how they weren't the same after explaining the additional overhead costs of affirmatively paying private loans not make sense?
