In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.
I'll have more details this afternoon. pic.twitter.com/kuZNqoMe4I
— President Biden (@POTUS) August 24, 2022
33 comments
A step in the right direction. I hope we eventually get to the point of tuition at public universities being free.
I wouldn’t call it ideal, but I won’t let perfect be the enemy of good here.
I honestly don’t know
Student loan forgiveness and free 4-year public college are on my list of “I don’t have enough information so I’m not going to act like I understand it” issues
I’m definitely not in favor of policies like this, but I’ll definitely take advantage of it if it’s going to happen.
How do I get this ball rolling?
Not enough forgiveness, and completely ignores the root cause of college tuition increase, which is federal student loans in the first place. Forgive interest accrued, set future interest rates to zero, and abolish the federal loan program.
I’ll let you know when the whole thing is actually published. *I did X* and what an EO actually does are two different things.
I see it as political PR to the tune of buying votes all while treating the symptom and not addressing the cause. Tuition is prohibitively high when you consider cost of education vs average expected income for years after graduation. Relieving student debt is an incentive I will surely accept (who doesn’t want to save money?) but it doesn’t make me respect the dems in this situation.
Aka “buying votes”
I have debt so I’m not against it, but this does nothing to address the increasing price of college.
I would prefer to get into the root cause of why public university’s are charging as much as they do and look at making them more affordable. I would have went to a university has it been cheaper rather than a trade school, but I’m definitely not looking forward to my broken body paying for these kids college.
$125k cutoff without phase out – dumb tax policy
“Forgiveness” or does that mean taxable cancellation like most debt relief? There’s a difference. IIRC Elizabeth Warren said it was actual gone, Sanders and Biden didn’t clarify.
Why undergraduate only?
No fixing of the actual causes of inflating costs, as expected.
What’s the last point mean? Is it something like 10% currently? Gross income?
I refinanced my student loans a few years ago to get them all in one place. I was sick of paying almost $900 a month to different companies. Now I pay $400 to one company. However, because I refinanced those federal loans through a private company (Earnest) I am under the impression that I will not qualify for any of this relief and honestly it breaks my heart. I make WELL under the income cap and I carry almost $40k in loans still. It wouldn’t be much, but it would help, and now I’m not even eligible because of steps I took to be able to pay on time several years ago.
Student loan debt should be treated like every other non-secured debt in bankruptcy. People who can’t pay can get out from under them, those that can pay will do so. You don’t need this piecemeal forgiveness that only helps a certain population at a certain time.
What about the students next year? And the next? And the next? And the next?
Since this does nothing to fix the underlying problem, the level of college debt will be back to current levels in a few years. The vast majority of people that this benefits are democrats, and this is a reward for them for voting.
edit: a quick google search shows that americans have $200 billion in medical debt, while this tuition forgiveness will cost $300 billion. I would love for someone to explain why, if we’re going to spend this money, that giving money to the wealthiest americans (college graduates) is better than spending money on the poorest americans (people with medical debt). Anyone?
I busted my ass to pay off my loans — all at a detriment to my quality of life. What about me?
The people who benefit the most from this are the loan companies. Either you’ll pay them or the fed does. Once again government policy shows it doesn’t put foresight or care into regular American people.
I’m against any policy that benefits corporate America more than Americans.
Controversial.
“I like it if it helps me and I don’t like it if it doesn’t” -Human nature
Band Aid solution, while better than nothing, does not solve any of the root causes of the crisis, which is the unchecked guaranteed loaning practice paired with sizable interest rates.
It feels more like a placation than trying to do anything meaningful. Especially when we know for a fact they could do more.
I’ll believe it when I see it.
I’m going from $26,000 to $6,000 in debt. I’m going to be real it feels incredible— for the first time in my adult life I feel like I can actually get ahead and I feel like ten years of weight have been taken off of my back.
I think it is interesting.
I am worried that without something more permanent from congress we are just asking future generations to just go on a student debt strike until a sympathetic president gives in.
I am worried that we forget (especially because college grads tend to work, live and exist in a bubble with only other college grads) that college grads are only 40% of the population, so this isn’t really impacting “everyone”, and a large chunk of the people helping to pay for this is people who are worse off than that 60%
I know that ability to pay off debt actually scales inversely with total debt. Which sounds odd, but as it turns out that the average debt burden of a college dropout (who footed all of the cost but gets none of the benefits) is about 10k. and the average undergraduate who does graduate has about 30k. The triple figures for loans come from grad school. This includes a lot of engineers, doctors, lawyers etc. I had that, and paid it off comfortably. Also, while I can see the argument that student loans to 18 year olds are predatory due to age and naivetey, does that really hold for 22+ year olds who already have undergraduate debt, and should “get” how student loans work?
I’m not sure what to do about all of this.
people are wild. by the sound of it if a lot of you were in charge nothing would ever change because it would be unfair to those who came before. crumple zones, airbags, and seatbelts? my grandparents rode around in steel death traps back in the day, maybe think of their feelings. polio vaccine? idk man, not fair to the kids who died or were permanently disabled. continued existence of humanity? I think the dinosaurs who got their asses handed to them by a giant meteorite might have something to say about that. idk man! sometimes we’re just too old to take advantage of shit, too bad so sad
I have, by the way, paid off my student loans in full. I’m not weirdly rabidly against this but I think it’s a bandaid at best and the underlying problem needs addressed
“It’s one student loan Michael, what can it cost? 10,000 dollars?”
I don’t think it addresses any long-term issues, just symptoms. I also think it’s literally just to gain midterm support
👎👎👎👎
This thread will be a lot more interesting when people get home from work.
I feel the 5% of income should apply to all borrowers. My big beef with student loans is they should be paid back interest free. There are too many people paying negative amortization on their loans
Doesn’t go far enough, but still better than nothing.
It doesn’t address the root causes of high tuition costs that necessitate the need for excessive borrowing. This relief shifts that debt to tax payers, of which 60% have no college education and potentially have a lower lifetime earning potential than the beneficiaries of this policy. It’s going to increase the money supply in the economy further stoking inflation.
It should be more, but I’m happy for my girl. Her debt is just gone now (she was at $15k). Mine? Still over $100k…
It does almost nothing for me, but for some people, this is huge, and I’m thrilled for them.