None taken 
I’m not busy paying them off. My “slow quit” strategy paid off (at least partially ) $20k forgiven due to Pell grants
So thx (intentional means thanks @Honkinggoose ) Uncle Biden+taxpayers (myself included) !
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You hit the nail right on the head, for people on the cusp of cutoffs. Just like most tax credits with recent dem admins. $150K seems to be that magic cut off.
It will be likely be gross income and 2020/21, given the past cut off for loans originated. Reddit has more info.
So too late to game it. Unless you haven’t filed for 2021, BUT looks like they will take the lower
College graduates have so many options for student loan repayments, it’s silly. But it’s not hard. Standard repayment plans are 10 years. Income based repayment plans are 20 to 25 years. If you went to a private school and took out lots of $$$ in loans, you can probably only afford the standard repayment plan if you work in something where you expect your income to get pretty high pretty fast (business, engineering, computer science, lawyer, doctor, etc). For everyone else with high starting balances, an IBR with the 20 year forgiveness timetable is an easy decision.
If you went to a public school and don’t graduate with a huge loan balance, you’ll probably pay less over time if you stick with the 10 year standard repayment plan if you know you’ll have a consistently rising income and can afford the payments. But you still have the option to switch to an IBR plan if you can’t afford them because you decided to work for a non-profit or become a starving artist. You’re now locked in to paying for 20 years or until the loan is paid off, whichever is shorter. The only real way this decision can screw you is if you had a high loan balance, enter IBR thinking you’ll stay poor, but you start making six figures after about 5 years and now have lots of discretionary income. Your payment now capped at the amount you would have paid under the 10 year plan, but you now have to pay that amount for 15 more years because enough interest accumulated in those first 5 years of you having a low income and doing IBR that just paying the full payment starting 5 years in won’t retire the debt before you reach your forgiveness date.
Here’s another scenario: The current available plan makes suckers out of liberal arts majors at state schools that leave with $20,000 in loans - under as standard payment plan, they will pay $212/mo for 10 years, paying off their full debt by shelling out a total of $25,500. If someone wants to f- around at college for 4 years before becoming an adult, get a liberal arts degree, and never plan on working in the business world making a bunch of money, they should go to that super expensive private school on the other side of the country that they really love. Have their parents take out a PLUS loan for the max amount (for example $200,000). Graduate… or not. Live in a cheap beach town and work at Starbucks or somewhere that will pay you enough that you’ll be comfortable (example $15/hr). Instead of paying $2,190/month for 10 years and paying off their loan, the IBR plans give them the option to pay $109/month. Assuming 3% raises for 20 years, their payment will gradually increase to $222/month. And after 20 years, they will have paid a grand total of $38,362 and their $200,000 education will be completely paid off. If the state school person does the same thing assuming the same income, they will have paid the same amount per month (but it will be capped at $212/mo in year 13 - won’t go all the way up to $222/mo), and they would finish paying it off in 14 years and 10 months for a total of $29,665. So they may have saved a little over 5 years of payments compared to the private school kid, but they cost themselves more than if they had just paid normally over 10 years. And of course, nothing was forgiven for them under either plan - they actually paid their debts.
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I apologize. It was a cheap shot. I forget that in today’s world, English is not everyone’s mother tongue.
ETA:
You mean, the current proposed plan, as it’s been floated, right? Hey, this is just the beginning. Since Biden isn’t going to reward hard work, or financial responsibility, I suspect there will be a flood of educational loans paid for by taxpayers.
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I’m not familiar with her business, but weren’t the PPP loans floated as “forgivable” if certain parameters were met. This is a far cry from educational loans which, to my recollection, were always sold as pay back your loan loans.
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And even when it is, sum of us abuse the spell Czech on porpoise.
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Apology accepted and you’re right English is not my “mother tongue”.
Fair enough. Except you have to have a “real” business. What exactly does she do? The main reason I brought it up is she is the poster child of the other side saying “pay your bills”. The other is Trump crowd. Hello BK King ( and i don’t mean BurgerKing?
You’ll be happy to know that I didn’t apply for PPP for my consulting business either.
Politics aside, this is a pretty good write up of what is going on:
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You are conflating the issue of being eligible to take out such loans, and the obligation to repay them. I dont have a clue how accurate your implications about Greene may be, but your questions about her PPP loans would equate to questioning the student loans of someone who never attended any school (and thus should’ve been ineilgible for them in the first place, regardless of if they repaid the loan or not).
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Well, since you mentioned it, I am most certainly glad, considering your repayment history on your educational loans, which have benefited you much more than the people who will be paying your loan … for you.
Agreed. I also think that student loans should be harder to get/ eligibility. Similar to housing loans back during the NINJA period. The system is set up to reward the brokers/bankers and punish other stakeholders
Lax loans eligibility= higher prices.
These are definitely real businesses and the White House talking points are their typical BS
In 2002 Marjorie and her husband Perry purchased Taylor Commercial, a commercial construction and renovation company. The company has since managed a quarter of a billion dollars of construction projects.
Marjorie successfully started, grew, and sold a thriving CrossFit gym here in Georgia which has become one of the top CrossFit gyms in the country.
When I went to undergrad they weren’t discounting tuition, that was b/f and from what I hear is happening now. eg. Princeton is doing no loans aid. I do agree now that these highly endowed schools should pitch in.
I went back to school for an MBA to help change careers (which I have) at a state school but tuition is now $50K+/yr w/ wife’s tuition benefits b/c they still charge fees. I did get into Kellogg too, but passed since they were much higher and I didn’t want to add more to my $90K student loans (at the time) https://www.metromba.com/school/kellogg-school-of-management-northwestern-university/executive-mba/#:~:text=Tuition%20and%20fees%20for%20the%20Kellogg%20Executive%20MBA,well%20as%20room%20and%20board%20during%20class%20weekends.
I wish I had the financial sense when I was 18 when I took out the original loans. We need HS finance education .
actually I have paid ALL of my loans on time, per terms. and barely made a dent after 20 years. This Biden “plan” might make a bigger dent… but just maybe right? there will be all these lawsuits so I might never get it, but I will continue paying on time.
The system is set up similar to CC companies with min. payments, except with low interest rates. j/k What do CC companies call people who pay off their balances in full every month: deadbeats!
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Just curious… how many years would it take to repay a student loan under current terms?
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Sure i was on 25 yr plan, with forgiveness promised at the end. except i find out year 20 that oops sorry that was supposed to be income contingent THE ENTIRE TIME. (Apparently Biden’s plan addresses that gotcha too, still researching that )
they should stress the fact that interest payments alone will more than principal on that plan. so even if “forgiven” at the end you end paying a lot more $$ than you borrowed. and until recently inflation was not even a major factor.