06-08-2022, 11:58 AM
(06-08-2022, 11:04 AM)davewill Wrote:(06-08-2022, 12:18 AM)ifomonay Wrote: ... That would be $2,400 per year or $200/month. That's only 4% of her gross. I mean she paid 10% Federal Taxes, and 7.65% SS Tax, then 4% isn't that much more.
So no need to feel sorry for her, or feel like we have to figure out who to blame; she's not suffering as she claims to be.
No, it's no reason to panic, but $200 is not enough to actually RETIRE the debt, and probably not even enough to cover the interest, in which case she will literally be in ever increasing debt forever. Multiplied by the millions like her, that's a serious problem that deserves our attention, in my book.
I see what you're saying I agree with you that we do need to fix the system. It's completely broken as evident by the $1.6T collective student loan balance. I was just saying that we don't need to lose sleep over her situation. Like you said, her repayments will never be anywhere close to covering the interest on her debt.
One thing though you have to remember is that this isn't really a typical loan like credit card debt. It's actually student aid. They're calling it a loan, but it's more like hybrid grant/loan. When you fill out FAFSA, they let you know that you have the option to repay the loan over 10-30 years. But they also tell you that you have the option to pay only 10% of your income for 20-25 years, and the rest is discharged (like a grant basically).
That shows that Congress can't do math. Because offering these plans will end up exactly where we are today.
Personally, I am not in favor of the 10k loan forgiveness. Taking 5% off your paycheck is miniscule.
What we should do about this in the future? I'm in agreement with everyone here. We need to stop giving away so much money. Maybe offer free education if they attend select low-cost public universities.