Student Loan Forgiveness

[dodek101]

Lately, there is a lot of talk about canceling up to $50, 000 for student loan borrowers with new administration.
I was wondering if there is a chance for this to actually happens?.

[ss20ts]

Don't even think about it unless it passes and goes into law. Not even worth wasting time worrying about. I mean it would be fabulous if it happens don't get me wrong, but there's not point in wasting energy over it since we have no control over it.

[innen_oda]

Lately, there is a lot of talk about canceling up to $50, 000 for student loan borrowers with new administration.
I was wondering if there is a chance for this to actually happens?.

Sure. And then one day later, tuition fees coincidentally go up by $50 000.

[ReyMysterioso]

Lately, there is a lot of talk about canceling up to $50, 000 for student loan borrowers with new administration.
I was wondering if there is a chance for this to actually happens?.

Sure. And then one day later, tuition fees coincidentally go up by $50 000.

That's not very likely. The universities already got their money. The federal government holds 1.15 trillion in student loan debt. So Uncle Sam would eat that cost or find a way to plug the hole.

[innen_oda]

That's not very likely. The universities already got their money. The federal government holds 1.15 trillion in student loan debt. So Uncle Sam would eat that cost or find a way to plug the hole.

It was a bit tongue-in-cheek, but in any case, if you think a government is going to eliminate a loan that keeps people going to crappy jobs and tolerating poor employment protections, you are a far greater optimist than I.

[LevelUP]

$50,000 loan forgiveness is one of those what I call lottery legislation ideas that have been proposed.  Lottery legislation is legislation that helps the very few if you are in the right place at the right time, sometimes by sheer luck.

A better idea is just to give Pell Grants to everyone as pretty much all kids start out life broke regardless of what your parents make.  Lower the cost of doing this by taking away the free interest on loans while in school and set all interest to a flat 4%.

[innen_oda]

A better idea is just to give Pell Grants to everyone as pretty much all kids start out life broke regardless of what your parents make.  Lower the cost of doing this by taking away the free interest on loans while in school and set all interest to a flat 4%.

Something similar to how they handle it in Australia might be nice. Everyone is entitled to an interest-free government loan for their studies, which is not paid back until you reach a certain income level, and then is repaid based on your income (so someone earning $100 000 right out of uni starts repaying a large proportion of their studies immediately, whereas someone earning $45 000 three years after graduating, doesn't pay anything for those first three years, and then only a small percentage of their salary).
It stops universities offering nearly as many useless degrees (because if no one in a specific school is ever able to repay their loan, the government starts asking questions), and allows everyone the opportunity to attend uni if they wish while still putting some sort of cost and limits on study.

Of course, the government there is gutting the system bit by bit, because educated people tend to inconvenient to governments. Perhaps the US could take over for Australia in offering fair and equitable education access.

[videogamesrock]

Prices go up when money floods a market. A large supply of money chasing a limited supply of goods. If you want cheaper college you simply remove all loans and grants to force schools to adjust to the new market equilibrium.

To answer the first question though, Biden won’t be president.


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[StoicJ]

Lately, there is a lot of talk about canceling up to $50, 000 for student loan borrowers with new administration.
I was wondering if there is a chance for this to actually happens?.

I think there is a chance. Not enough that you should plan anything in your life around the possibility, but there's a chance.

[Pats20]

Uncle Sam doesn’t eat the cost. The tax payers do. Remember the old adage TINSTAAFL.