Student Loan Debt - NPR - What a Biden Admin may do (1 Viewer)

Users who are viewing this thread

wardorican

Well-known member
Joined
Mar 14, 2019
Messages
3,645
Reaction score
4,099
Age
41
Location
Ft. Lauderdale
Offline
Interesting interview. It's 11 minutes long.


One tidbit was that students with the most debt often have the best means to pay it. Those with the least debt are most likely to go into default. That's backwards from how I'd think of it, outside of Dr's and Lawyers.
 

Mr. Blue Sky

Still P***** at Yoko
Joined
Feb 4, 2020
Messages
540
Reaction score
988
Location
Between the Moon and New York City
Offline
Can you give us the Reader’s Digest version?


Personally i am of the opinion that the Biden Administration will completely forgive all student debt as one of it’s first orders of business.. and it’ll be a nice start, since I’m still paying mine off- but it’s only a start... There needs to be major help for people who‘ve been financially devastated through no fault of their own- after all, that’s WHY we pay taxes, and have a government at all.. i was telling a friend recently, i think it’s a no-brainer that they’ll wipe it out, but for me it’ll just put me back at square one where i was prior to the pandemic since I’ve had to run up an amount of debt (credit cards, loans) due to my loss of income- that is almost equal to what i owe in student loans... So yeah, a good start.
 

B4YOU

Well-known member
Joined
Oct 29, 2019
Messages
433
Reaction score
691
Age
41
Location
DC
Offline

There’s a lot to like about Biden’s plan. Excluding post-grad costs and private loans while expanding Pell grants, extending forbearance, and means testing repayment are good ideas. The discharge of private loans via bankruptcy is also interesting.

The immediate cancellation of $10k debt isn’t one of those things. There’s an entire generation who made hard choices about military, public vs private, in vs out of state, graduate school, jobs that pay off student loans vs not, etc. There’s people who paid off loans between last year and 10 years ago who will get nothing. Plus the income limit of $125k seems geared toward those who can’t pay due to lifestyle creep instead of lack of means.

Means tested with COLA adjusted direct stimulus payments would be a better use of federal debt.
 
Last edited:

FullMonte

Well-known member
Joined
Nov 14, 2019
Messages
650
Reaction score
1,134
Age
54
Location
Bossier City
Offline
The big problem with all of this is that cancelling/forgiving/paying the outstanding student debt is a pointless exercise and a waste of money if nothing is done to address the problem that created that debt.

The entire system of how college is paid for needs to be addressed, or we'll be right back where we are 10-20 years from now.
 
  • Thread Starter
  • Thread starter
  • #6
OP
wardorican

wardorican

Well-known member
Joined
Mar 14, 2019
Messages
3,645
Reaction score
4,099
Age
41
Location
Ft. Lauderdale
Offline
Can you give us the Reader’s Digest version?


Personally i am of the opinion that the Biden Administration will completely forgive all student debt as one of it’s first orders of business.. and it’ll be a nice start, since I’m still paying mine off- but it’s only a start... There needs to be major help for people who‘ve been financially devastated through no fault of their own- after all, that’s WHY we pay taxes, and have a government at all.. i was telling a friend recently, i think it’s a no-brainer that they’ll wipe it out, but for me it’ll just put me back at square one where i was prior to the pandemic since I’ve had to run up an amount of debt (credit cards, loans) due to my loss of income- that is almost equal to what i owe in student loans... So yeah, a good start.
It's a 7 min interview with the rest being people who called in to leave comments. Honestly, I'd have to listen to it all over again to give a recap, and that may not happen until tonight.

I think the stat they brought up was that most people who are in default have less than 10k in debt. Those with higher debt actually are in a much better position to pay. Doesn't make it right or wrong, but it's a reason why forgiving 10k does the most good. The person also preferred to use the word 'cancel' the debt, vs forgive.

I believe there was discussion about costs out of control, but I can't recall if that was the interview or the comments later. I don't think they talked much about what the Biden Admin will do, just what options are floating around, I think.
 
  • Thread Starter
  • Thread starter
  • #7
OP
wardorican

wardorican

Well-known member
Joined
Mar 14, 2019
Messages
3,645
Reaction score
4,099
Age
41
Location
Ft. Lauderdale
Offline

There’s a lot to like about Biden’s plan. Excluding post-grad costs and private loans while expanding Pell grants, extending forbearance, and means testing repayment are good ideas. The discharge of private loans via bankruptcy is also interesting.

The immediate cancellation of $10k debt isn’t one of those things. There’s an entire generation who made hard choices about military, public vs private, in vs out of state, graduate school, jobs that pay off student loans vs not, etc. There’s people who paid off loans between last year and 10 years ago who will get nothing. Plus the income limit of $125k seems geared toward those who can’t pay due to lifestyle creep instead of lack of means.

Means tested with COLA adjusted direct stimulus payments would be a better use of federal debt.
You're probably right. However, I think it's easier to focus on the debt amount, since that data is readily available from lenders and the government.

The cost to administer a lot of requirements might make it too expensive of a task.
 

Incumbent

Well-known member
Joined
Oct 7, 2019
Messages
167
Reaction score
407
Location
United States
Offline
The big problem with all of this is that cancelling/forgiving/paying the outstanding student debt is a pointless exercise and a waste of money if nothing is done to address the problem that created that debt.

The entire system of how college is paid for needs to be addressed, or we'll be right back where we are 10-20 years from now.

How higher education is structured and financed will have to change. It's possible that with the lessons learned from COVID, as it relates to the educational system, such changes could be accelerated. The four year, in person-attendance model, was already starting to evolve.

I also think it's becoming increasingly clear that we haven't prioritized continuing education, and skills like critical thinking, nearly enough.
 
  • Like
Reactions: Ayo

FullMonte

Well-known member
Joined
Nov 14, 2019
Messages
650
Reaction score
1,134
Age
54
Location
Bossier City
Offline
Personally, I think the solution would be to get rid of SALLIEMAE and have the federal government stop guaranteeing federal loans. Put it in the hands of banks, and allow them to determine if a potential student is creditworthy enough to get a loan for school.
 

Incumbent

Well-known member
Joined
Oct 7, 2019
Messages
167
Reaction score
407
Location
United States
Offline
Personally, I think the solution would be to get rid of SALLIEMAE and have the federal government stop guaranteeing federal loans. Put it in the hands of banks, and allow them to determine if a potential student is creditworthy enough to get a loan for school.

I don't see how such a plan wouldn't essentially make a higher education even less attainable for a lot of people. College shouldn't exist as a privilege for the wealthy and the creditworthy.
 

FullMonte

Well-known member
Joined
Nov 14, 2019
Messages
650
Reaction score
1,134
Age
54
Location
Bossier City
Offline
I don't see how such a plan wouldn't essentially make a higher education even less attainable for a lot of people. College shouldn't exist as a privilege for the wealthy and the creditworthy.

It would definitely do that. But, for some reason whenever I suggest that option, people always say something along those lines, but never seem to follow the thread.

As soon as college is unattainable for most people because the cost is too high, and there are no lending opportunities for those who don't have wealth, college attendance will fall off significantly. At that point, schools will have a decision to make: either keep costs where they are with limited enrollment, or lower costs to a point that those others can afford it.

The most likely outcome is colleges lowering tution and costs.
 

zztop

Well-known member
Joined
Feb 5, 2020
Messages
1,501
Reaction score
1,798
Age
121
Location
in a van down by the river
Offline
Okay so don't take this as fact what I'm about to write, b/c I'm basing it off a vague recollection, but I knew someone that worked with the university here. Basically (these numbers are probably wrong) but once upon a time universities like LSU, ULL, etc was funded 70% by the state. Then you had people like Bobby Jindal get elected, and slowly that number went down to 60%, 50%, 40%. I think the universities also had to meet a certain quota of enrolled students to qualify, and that quota would slowly increase as well. So there was pressure on two sides. The cost of classes started to raise b/c the schools had to shoulder more of the burden, I suspect the cuts in school state funding was because Jindal was such an awful governor and sunk the state into billions of debt. These cuts by the state also effected things like raises for university employees. My friend hadn't gotten a raise in years, or if he did it was like 1%. Eventually he left the state and moved to FL, where he did the same job as before but was getting paid like twice as much
 

Incumbent

Well-known member
Joined
Oct 7, 2019
Messages
167
Reaction score
407
Location
United States
Offline
It would definitely do that. But, for some reason whenever I suggest that option, people always say something along those lines, but never seem to follow the thread.

As soon as college is unattainable for most people because the cost is too high, and there are no lending opportunities for those who don't have wealth, college attendance will fall off significantly. At that point, schools will have a decision to make: either keep costs where they are with limited enrollment, or lower costs to a point that those others can afford it.

The most likely outcome is colleges lowering tution and costs.

That *might* happen but it leaves a lot of deserving people without a realistic option to earn a college degree for however long that transition period takes. And I think it's possible that the consequence could be that the college network atrophies to become a limited resource for limited people.

Costs have to come down, I think everybody can agree to that, but it gets a lot more difficult and uncertain from there.
 

Incumbent

Well-known member
Joined
Oct 7, 2019
Messages
167
Reaction score
407
Location
United States
Offline
Okay so don't take this as fact what I'm about to write, b/c I'm basing it off a vague recollection, but I knew someone that worked with the university here. Basically (these numbers are probably wrong) but once upon a time universities like LSU, ULL, etc was funded 70% by the state. Then you had people like Bobby Jindal get elected, and slowly that number went down to 60%, 50%, 40%. I think the universities also had to meet a certain quota of enrolled students to qualify, and that quota would slowly increase as well. So there was pressure on two sides. The cost of classes started to raise b/c the schools had to shoulder more of the burden, I suspect the cuts in school state funding was because Jindal was such an awful governor and sunk the state into billions of debt. These cuts by the state also effected things like raises for university employees. My friend hadn't gotten a raise in years, or if he did it was like 1%. Eventually he left the state and moved to FL, where he did the same job as before but was getting paid like twice as much

To go along with what you are saying.

 

FullMonte

Well-known member
Joined
Nov 14, 2019
Messages
650
Reaction score
1,134
Age
54
Location
Bossier City
Offline
Costs have to come down, I think everybody can agree to that, but it gets a lot more difficult and uncertain from there.

The problem is that as long as colleges know that the government will guarantee all kinds of loans, costs will continue to rise. The only other option would be for the federal government to set tuition rates.

I guess the other possible option would be for the government say they will only guarantee loans up to a certain point (and make that point lower than the current rates).
 

coldseat

Well-known member
Joined
Sep 30, 2019
Messages
1,168
Reaction score
1,945
Age
46
Location
San Antonio
Offline
You're probably right. However, I think it's easier to focus on the debt amount, since that data is readily available from lenders and the government.

The cost to administer a lot of requirements might make it too expensive of a task.

Personally speaking, this plan would be very benificial to me. I have about $11,000 left on my student loans, so that would just about wipe it out. Ironically, the pandemic has really helped knock down the principle on my loan. Since I haven't lost any income, I've been making my student loan payments this whole time, with all of it going to the principle since they set the interest rate at 0%. Actually increased it my payment by $50. Been able to payoff almost $3,000 from the loan so far.
 
  • Thread Starter
  • Thread starter
  • #17
OP
wardorican

wardorican

Well-known member
Joined
Mar 14, 2019
Messages
3,645
Reaction score
4,099
Age
41
Location
Ft. Lauderdale
Offline
Personally speaking, this plan would be very benificial to me. I have about $11,000 left on my student loans, so that would just about wipe it out. Ironically, the pandemic has really helped knock down the principle on my loan. Since I haven't lost any income, I've been making my student loan payments this whole time, with all of it going to the principle since they set the interest rate at 0%. Actually increased it my payment by $50. Been able to payoff almost $3,000 from the loan so far.
Yeah, same here. We lost some income, since my wife went back to finish grad school, but she only has about 11k in loans, and with the interest being zero, and new loans lower interest (when it kicks in), I've been able to make some headway. Won't be able to do too much until she's back working though.
 

Incumbent

Well-known member
Joined
Oct 7, 2019
Messages
167
Reaction score
407
Location
United States
Offline
The problem is that as long as colleges know that the government will guarantee all kinds of loans, costs will continue to rise. The only other option would be for the federal government to set tuition rates.

I guess the other possible option would be for the government say they will only guarantee loans up to a certain point (and make that point lower than the current rates).

I think those are more palatable options, but we also have to acknowledge that a lot of countries, including many of our allies, are able to provide subsidized access to college for their citizens.

One of my biggest gripes right now is how politicized and polarized we've made economic systems and remedies. I think capitalism and socialism each work fine in some instances and not well in others. Making banks the gatekeepers to college for lower and middle class students is a bad idea, IMO.
 
Last edited:

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Advertisement

General News Feed

Fact Checkers News Feed

Sponsored

Top Bottom