In all seriousness, why just the private schools? Should we not go after UCLA, Berkeley, NYU, etc. for taking poor, gullible kid’s loan money without providing them with a means to repay the loans? For that matter, should we not go after their high school for not teaching them math? How about their parents?
Why should we go after the taxpayers, at all? They were kind enough to loan money to people who promised to pay it back. Why should they bear the brunt of dealing with [whatever adjective/noun combo that pops into your head]?
similar to mortgage brokers/banks giving bad loans, that were bailed out by tax payers too.
Everyone passed the buck.
For Profit incentives need to be removed from the student loan industry or education in general. I do agree that someone needs to punished (pitchforks out!) but not the hapless 18 y.o that was sold a bill of goods.
The Biden administration said it will cancel the federal student loan debts of about 200,000 borrowers who claimed to be defrauded by their schools. The announcement followed a class-action lawsuit settlement filed in federal court on Wednesday.
Is this the angle he was looking for? Conceptually, I think most would agree that a lot of these students/borrowers were defrauded - not by their school, but by the government’s continual messaging that a college education is an entitlement and is necessary to become successful.
When I was in high school, I don’t remember hearing this from the government. I just heard it from everybody. To a certain extent, they were and are right… if you study something in demand and go into that field.
According to Friday’s GAO report, which examined the federal program dating back to 1997, it lost money on loans issued in all but one year over the past quarter-century. Originally, the Education Department estimated the loans would generate $6 in income per $100 lent out. The GAO analysis found the loans wouldn’t make money, but actually cost the government $8.88 per $100 in loans.
C’mon, now. You realized it, but didn’t want to admit/accept/believe it. You wanted to believe Barney (he’s not, currently, a flaming prostitute) Frank, and Chris (she shoved her breasts onto my hands, her buttocks onto my crotch, and no, I’ve never been to Chappaquiddick) Dodd.
Why should the students pay? If they’re willing to lie/cheat/steal, Uncle Sam should not question their moral integrity. Consider their examples, and idols: Bill “smallcox” (freely stolen) Clinton did not rape an intern. Nor did he rape anyone else, or give them herpes.
I had never really thought about it, honestly. I figured with all the priority and non-BK discharge, the loans would get paid almost always, if with some delays due to various favorable hardship waivers (that still accrue interest). The only real way out, before this modern era of getting a $10-50k handout by agreeing to vote Democrat five times in the next election and raise your first born with xe/xem pronouns, was to die having not paid the full balance and having it wiped out that way. Not anyone’s first choice.
Once upon a time, long long ago, I did some work involving lending and credit risk. Those types of loan figures are absolutely atrocious. Any private lender would be out of business in a few years, but the Feds as usual can keep subsidizing incompetence with the taxpayers wallet.
The whole system is now designed around stringing out the loans as long as possible. The total balance and interest accrued is basically meaningless in all the IBR type payment plans. Most people with large loan balances are paying less than the interest that is accrued each month. Even credit cards make you pay the interest plus a tiny amount of principal as the minimum payment.
Option 1) work 10 years for gov or a non-profit, pay as little as possible with IBR, get your loan forgiven
Option 2) work 20-25 years, pay as little as possible with IBR, get your loan forgiven
Option 3) hope for payment pauses and 0 interest, and loan forgiveness. As long as the carrot is being dangled, why pay any more than absolutely necessary.
Option 4) die … you could even take continuing education and borrow the “full cost of attendance” each year if you really want to play the long game. Law degree at 60, why not…
None of these give any incentive to proactively repay your student loans. While I prefer lowering interest rates to outright loan forgiveness, 0% interest would just further incentivize stringing out the loan and letting inflation eat away at the real value of the loan balance.
With option 2) you do pay tens of thousands in interest (depending on principal) .Which I did unfortunately at ~$50K interest.
My servicer UHEAA and maybe taxpayers? profited to that amount by telling me I couldn’t move to Direct Loans (several reps I checked with said that so I know it was systemic and not an error) No payment pause for me. That being said my loans are now at DOE Direct Loans, waiting for news.
I appreciate the guidance I got here and FWF (despite my own political leanings, if the govt. is handing out money, be in line!)
or by not offering more never-a-hope-in-Hades-of-earning-money classes than common sense would bear.
Keep in mind that us poor gals and fellers who had lower tuitions did not have the benefit of alphabet studies classes or Title IX. Thus, our education was separate and inferior from yours. It should have cost even less than it did, and I’m awaiting my refund for not being offered courses describing why white males should be hated.
i’d settle for that after missing out for several years of moratorium, thanks to multiple UHEAA reps saying I couldn’t re-consolidate loans, would mess up my low interest rates .
It actually helped b/c it seems to be locked @ 2.6 % vs UHEAA it was an autopay discount and showed higher
How many months have they been “leaning towards” this?
Either it’s going to happen right before the election, where they can essentially buy Democrat votes for $10k/pop. Or it’ll never happen, because they know any actual attempt will be tossed out by the court, and they’re just hoping to soak all they can out of the hope.
Fair enough, but they’ve already changed PSLF big time. Including retroactive counting payments, so my wife will have her $20K loans forgiven, maybe even refunds for “time served”
