Will The U.S. Supreme Court Strike Down Biden's Student Debt Plan?
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- Опубліковано 2 чер 2024
- Student loan debt has ballooned to over $1.6 trillion with more than 45 million borrowers. A third of borrowers never attain a degree and the weight of this debt can be crushing to Americans. President Joe Biden fulfilled his campaign promise by forgiving a portion of student loans for borrowers. After launching the application, courts blocked the continuation of the plan due to opposing cases from republicans, states and individuals. The Supreme Court heard the case and now borrowers are awaiting the decision.
Chapters:
0:00 Introduction
1:09 Ch. 1: The challenge to Biden’s plan
3:14 Ch. 2: The Supreme Court case
4:44 Ch. 3: What if SCOTUS blocks Biden’s plan?
6:37 Ch. 4: What’s next?
Produced by: DeLon Thornton
Edited by: Dennis Donovan
Graphics by: Jason Reginato
Reporting by: Annie Nova
Supervising Producer: Jeff Morganteen
Additional Footage: Getty Images
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Will The U.S. Supreme Court Strike Down Biden's Student Debt Plan?
How about we prevent colleges from over-charging for a degree in the first place!
Someone with common sense. I went to a community college that helped me save a lot.
But guess what people go to high end univerisities.
I think its unfair some of us paid our own personal college/university.
End the department of education.
@@liko098 In Western countries that aren't the US, the cheapest (and sometimes free) universities are the most prestigious ones. In those countries, the private (expensive) universities are usually meant for people who don't have good-enough grades to get accepted to the public (cheaper and more prestigious) universities, so, if they want to get higher-education, they need to pay (quite a lot, though probably not even close to how it is in the States) to a private university - whose requirements for admission can often be summed by "do you have enough money?" - to be able to earn a degree.
Our university did the stupid BS where they charged more for online classes during the pandemic where the professors are using their own homes which shows the school's greed is the biggest problem. They even were like we need to raise tuition to pay teachers more which is complete BS and show Dems throw money at the problem but they don't realize their own school board that they voted for is the actual problem
The pandemic proved that in-person instruction of a few dozen students by one in-person instructor is not necessary. VIDEO RECORD all the best lectures by the best instructors, include lots of extra tutoring optional video footage, eliminate live instruction completely, have students do assignments in real-time after watching the best instructional videos, would lower the cost of universities through the floor. Universities are currently designed for frat parties and social lifestyle, NOT for educational experience, which is absolutely the wrong priority. In-person instruction in small groups is only necessary for laboratory classes or physical performance classes.
I hate to say this, but when I went to school in the 1980's there were more grants given out, and we also benefited from Work-Study programs, which paid us to work on college campuses, like jobs and we were able to sign over our paychecks to cover our tuition. I left college, with a degree and debt-free because of these programs. Unfortunately, now that my daughter is attending college, I noticed many of these work programs are not offered anymore and many of the grants are gone too...Just these high interest loans!
No, there were less grants in the '80s, it's just today there are more people applying.
There's still work study program, but most of those that work on campus are foreign students. Local students don't want to work in study jobs anymore.
Not to mention all of the ridiculous additions schools have put in, like Rock Walls and endless construction on buildings and other infrastructure. The student body rarely utilizes the majority of services because those services are so extra. In the case of construction, so many students pay for it with their tuition but never get the chance to benefit from the end product. Universities continue to increase tuition to highly unaffordable levels in order to fund these projects.
The grants are going to foreign students (because Americans have no alternatives but foreign students can go to Europe). Also, grants are often given to those who have other means including affluent families. It's a business to enrich universities.
@@PlaneMechEsq
Local students cannot get those jobs.
I had multiple jobs and worked my butt off all the way through college & grad school and continued living like a broke college student. I still have overwhelming debt. My degree (nutrition) has a horrible return on investment (to which I should have researched about before I decided to pursue it) but my point is, you can work your way through school and live far below your means but it STILL doesn't cover the cost of higher education as well as price-gouged college town housing.
Agree - I'm going back to school while working full time as an adult. I live pretty frugally and have been saving for a while, and I'm still going to have to go in debt probably to pay for my degree. I've also been paying on my previous loans (almost there), but trying to save for school, take care of regular expenses, and pay down other debt is hard to compute into a budget. Where I'm going now is only $1000 a class, and it's hard to come up with an extra $4k-$6k a year to pay for it when the budget is already tight.
I also worked myself through college and needed loans to complete my degree. 70k in debt for a 40k/y career. Good stuff.
@Lilman Yellow I have a few family members that are more likely to have loans forgiven due to age than pay them off.
How come that men are not complaining like this?
To be honest, if I knew then what I know now, I would have opted out of college and save myself thousands of dollars. Certain degrees, you can teach yourself, but many of us want the title and legitimacy but find out the hard way, the jobs we often get, don’t require a degree or don’t even check for it.
pride is always expensive
@@tylerdurden9748 It's not always pride. I know I was "sold" on a better paying position. A higher starting salary. I was never told about the down side of "I may graduate in the middle of a recession where MBA's are being paid clerk salaries to start with. Or that the market would be flooded with others doing the same thing because they were sold the same benefits of a degree or certification.
I couldn’t agree more with your entire comment!
I disagree. Most jobs in financial services or STEM require a degree to even get an interview. You just have to be smart about where you go, how much you spend and what career you want.
While I agree that some jobs can be obtained without higher degree, but definitely not all. As someone already said, STEM fields, law, medicine, education, etc, or if you would like to go into academia and do research/teaching. The problem is many kids today don’t know what they would like to do for their life/career when they are 17 or 18, and often make less thoughtful decisions in college. With that said, I don’t believe that the whole purpose of a college education is to get you a job. For me at least, the learning itself was very rewarding. I always said that if didn’t have to worry about money, I’d stay in college forever and get 10 different majors. But that’s just me. If learning itself doesn’t interest you, it’s probably not your thing.
Although it's not the direct topic of this video, I find it unfortunate that the "original sin" isn't mentioned here: tuition in the US is absolutely bonkers. Insane. In all other Western countries, tuition is either 0 or a fraction of that in the States (i.e., something like 5-20 times lower in most cases).
It's cheap in other countries because the governments there subsidize them, the money has to come from somewhere, high quality education does cost money. The difference us subsidies come from tax payers, loans, the borrowers have to pay the back themselves. It seems fair and win-win that way. Tax payers shouldnt shoulder the cost of enriching a stranger's live. The student, after getting a higher education, in theory, earns more money, so a loan is a good fit. We do want colleges to run efficiently so as to keep the cost down. But I think much of the problem is, people in this country as a whole, has a habit of seeing a loan as a gift. Too many people dont even think about paying back when taking out loans (look at the credit card debt in this country) I mean, there are people to take out loans to go on vacation, or take out a loan to buy luxury cars (instead of settling for a cheaper car they can pay for). Seriously, people need to have a plan on how to pay them back before they take out a loan
And your median worker is commonly giving up 25-30% of their income to taxes in Europe whereas in the US you have to go all the way up to the 80th percentile of earners before you hit people averaging a 20% federal effective tax rate. It's a tradeoff. Know which would cost an individual more over a lifetime? The former.
@@BTrain-is8ch this is so misleading, you're not taking into account property taxes and such that cost more over time in the U.S. and those taxes europeans get also have medical expenses covered which you're not factoring in for american medical expenses through our private system which bills wickedly higher for similar medicine and procedures then our European counterparts.
And there are not fancy dorms and not all kids pass entrance exams. No div 1 football or sports. I could go on…. No gender studies depts.
US tuition is often much too high. Lots of loan money drives the increases as does a massive bureaucratic complex at universities today. But other countries have increasing tuition too. It’s not like it once was. Just about anyone can go to university in much of the world now so it’s a mixed bag.
If they can't forgive a paltry $10,000 per eligible borrower, then they should slash all interest rates on federal student loans to 0%. The bank bailout loans in 2008-09, which was to the tune of $800 billion (way more than the student loan balances of today, 2023), were given at near-0% interest rates. Why do banks get a bailout but not students?
Federal student loans have had a 0% interest rate since the moratorium began.
So my taxes have to subsidize a college loan at 0% when the Treasury goes to the Fed they 5+% APY for a 4 week bill? Thats nonsense. 0% means a loss on every loan for the government and tax payers
Most people use banks. Meanwhile this will forgive a small percentage of the population.
@@sal5604 no, interest accruals are *temporarily* waived until the moratorium is lifted, the interest rates on the loans are NOT zero.
@@SteveFrance-jw8de well that means you lost a ton of money when gov’t gave out $800 billion worth of 0% loans to banks to bail them out. I guess you didn’t mind that so much?
I’ve already forgiven myself for those loans
With this plan obviously not others loans! Looks like we’ll ALL be responsible for those!
😂
Exactly lol
😂😂😂😂👏
😂😂 GOOD one! 👌🏾
Imagine going to this much trouble and spending this much money to keep the most desperate people in the country from catching a small break
Imagine signing a loan that you can never pay back because you got a degree in gender studies 🤡
@Hunter Whitten imagine the loan company operations unethical practices. I barrow you $100 okay I DON'T expect $300 back
@@hunterbwhitten 🙄stfu
College grads are not the most desperate; those who didn’t go to college are. This is giving relief to a base of liberal voters who make as much as $125k per year. 🤨
@@carlgharis7948here’s an extra cost for financing and you sign up for it. You’re irresponsible if you sign up for a loan and can’t pay it back 🤨
If they shut it down they need to get the covid money back from all members of congress as well. We can't get a pay out they definitely shouldn't pay the money back
AMEN
Makes no sense. Go get a job
@@LaZarusXtnct people are working full time jobs and are homeless. Wake up 😂
@@ChrisGoldie No theyre not name 1 😂
@@ChrisGoldie Show me a homeless person working full time and ill show you a person spending all their money on drugs and alcohol 😂
Focus on lowering tuition cost at the start and make max limits. That would help more on the long run
just like rent stabilization!
How about getting an education that prepares one for a actual job rather than spending so much that you can never pay it back?
@@bobroberts2371 those degrees are still gonna be expensive bro
Or……You can pay back the money that you borrowed voluntarily 👍🏿💯
@@mananimal3644 yeah man totally agree with you but also not everyone has the privilege of knowing what they’re getting themselves into taking out all these loans out at such a young age. Problem is that has become the standard, and people think they won’t get a job afterwards unless they go to a fancy school that costs 60k/ year. So yea, you could say it’s voluntary….. but it’s also a predatorial system
What I can’t understand is how we can break the wheel on this after the debt cancellation. What happens to all of the current highschool students yet to take out loans? Are they doomed to be the first in line to recreate the crisis this debt relief is intended to address?
We definitely need student loan reform.Our Current student loan system is predatory just like most of our financial institutions and it’s too much. With American citizens struggling to stay afloat with soaring Auto loan prices and interest rates, inflation in general and the decrease in affordable housing, it seems that our country is facing greater economic woes than we imagined
This is what people should discuss. Though we are seeing less kids go the traditional route now and some companies providing their own training and certs so people can start their careers immediately.
Agreed! Let's stop the bleed instead of slapping a band-aid on it.
This is a bandaid, not a true fix which needs Congress to pass. Republicans do not care about having an educated population and want it to hurt as much as possible to get an education.
Sadly, Dems would need to win back the house, get to 60 seats in the Senate, and win the presidency. This will not happen, we will only ever get bandaids.
Although the problems are related they’re not the same issue. Banks are giving out high risk loans because they’re guaranteed by the government. My mortgage loan’s interest rate is 3.10% but my student loan’s interest rate is roughly 8%. Why is the bank allowed to collect high risk interest rates when they assume no risk? If I file for bankruptcy I can’t get out of the loan and if I don’t make payments the government will reimburse the bank. People don’t want the government acting as a bank but in my opinion these should be federal loans with a 0% interest rate and payments should be tax deductible. Then put a cap on tuition that’s calculated using cost of living in the area of the university.
Us: "We won't be able to afford the payments if they start up in August."
Them: "Just save money so you can pay it."
Us: "But we need that money to live now..."
Them: 🤷🏻♂️
😂
THIS ....inflation didn't just disappear, nor the need to eat and pay for gas to drive into the office.
Forgiving rich people of their PPP loans was a slam dunk, easy for congress to pass. But, student loan forgiveness that is mostly poor people?!?? Hell no!!
Hunter still owes me a steak dinner for bailing out his half million dollar PPP "loan".
Easiest 500k we ever made!
It’s actually not mostly poor people. It’s a average people and many unnecessary masters degrees.
@@SeeLasSee You got that right, nobody asked people to do a gender studies degree using a student loan to follow their "passion".
@@SSchithFoo ahhhh the classic gender studies nonsense excuse. Just remember that a lot of modern work requires higher education so if you really care about the country's future you wouldn't punish and condemn your youth to indentured servitude and let China and India overtake America in innovation and economic development. Education is important.
@@SeeLasSee < liar.
Easy fix, they have to pay it off but the interest rate is fixed or set at 0%
This is the only reasonable solution but Obama care depends on the loan interest so it’s not as easy as it seems
This feels like a reasonable middle ground. I don't understand why politicians are not proposing this.
That fixes nothing. That still leaves you will ballooning college costs and graduates with ever increasing piles of debt.
Why would anyone lend you money if you get a 0% interest rate
@austinduke8876 how would a one time forgiveness of $10k fix "ballooning college costs"?
I paid for my own college education, with a little help from the VA, but that was way, way back in the day when community college was virtually free and a quarter at a Cali U.C was less than $1400. I don't begrudge the debt relief for today's students particularly since most of it goes to disadvantaged and poor students. We need more college graduates not fewer to maintain our competitiveness in the global economy.
reasonable and based comment
Yes more communication and gender studies graduates 🤣
hell yes and more graduates of every other studies as well unless you think america should be less educated and competitive globally?
@@pepperonipizza7633 Engineer here 🙋♂️
well, let's put that university education to work (I have one too). What has changed in the decades since then? Sure seems like yeah, the population is bigger so more go to school, but that alone doesn't explain it as schools could become more exclusive in their entrance requirements to maintain having less people to serve and therefore lower costs. Wait, High school graduation requirements have been consistently lowered in many states in that time, to 'equalize' disparities in matriculation. The same has been done to universities, how they determine eligibility, and the laws allowing student loans guarantee them to anyone who has not yet attained a bachelor's degree for at least 4 years and stays in good academic standing. The video's description says up to a third of students with debt never get a degree. I wonder if there's some correlation between the kind of people entering university in recent decades and the people who don't matriculate or choose degrees that don't actually net job skills? A university education isn't needed to see intellect has a strong genetic component either. If you want a competitive economy with modern technology, you need intellect, not education.
The real question is why is College tuition so expensive. The knowledge needed have not changed in decades but tuition goes up every fall. How about going after colleges for raising tuition every year.
its expensive because idiots keep buying it!
@@tylerdurden9748 But to be fair, many of the idiots in this scenario are kids just above the age of majority. They're schlepping this off on VERY young adults with zero life experience, not middle aged folks that have seen a lot. These same kids are told for years by teachers that this is the way to go (over and over).
I don't think this absconds the kids from responsibility if they fall for it (because you have to draw the line of 'adult' somewhere), but it definitely makes the colleges a special kind of a hole to actively predate on those with so little defense.
Smart comment!
Not only is tuition increasing, but colleges are now using adjunct professors with premade lesson plans. Price is going up at the same time costs to provide is falling and the difference is going elsewhere.
@@scotttaylor9133 Kids and their parents. My parents were a big factor in encouraging me to go to school, and many parents are a big financial factor in their kid's schooling.
Let’s be serious, they never planned to cancel it in the first place.
This. And when you look into it even you it becomes even more increasingly obvious this is the case. Biden used an executive order to try to get it done while his party had control of both the house and the senate. They could have passed a law and no one could say anything because it is well within the powers and rights of congress to pass a student relief bill that does what Biden's executive order does. Yet he went with using an executive order which was bound to be challenged because its really is not within the president's power to do such a thing, and you have an entire second party that doesn't want student loan forgiveness to be implemented this way.
Literally just buying votes, just like reparations
Yup. Just a re-election promise/tactic that never gets fulfilled 😂
Yup its all a game that BOTH parties are full in on it....As you can see there was NO supreme court hearing for bailing out the banks
@@lanceres5spdthey did cancel it… lol
Would be nice if the government didn’t give any bailouts to banks and corporations whenever a crisis happens…
Where do you think the government gets the power to give away our money in the first place? Oh right, because people want free stuff.
Tomas Gomez , you and I are the only two people who think this, they need to stop doing this, also they have NO money to loan or bale out anybody, They are BROKE them selfs. ...
Banks and Corporations generate employment and drive the economy. Far left factories in the academia do the opposite
@@Heretic-007 Truth!!
@@Heretic-007 No, you can't ignore opportunity costs. Banks and corporations have often stolen millions of jobs and trillions of dollars by getting bailouts because the government's bailouts to them hinder competitors from arising. Once the SVB depositors were bailed out, the first thing they did was make other people's student loans increase by raising interest rates. They also stole millions of jobs from them by blocking deflation. You need to remember how the toxic SVB depositors like Mark Cuban used all of that government money to price their enemies out of their markets.
this student loan is a real debt trap
Community College is much cheaper then transfer!
I just see a lot of students making irresponsible financial decisions. If you can't afford it, don't borrow it. Life comes with consequences.
@@A_R_B_G ever heard of inflation? Pretty sure that contributes to a large portion of the increase in tuition. Having false expectations is exactly the problem. We are not born equal. Some people are born with more opportunities than others and their parents can afford the tuition for them. You have to get the facts right. Higher education is a privilege in this country, not a basic right, just like luxury cars and big houses. For people who can't afford it, they have to realize it and be down to earth to make the responsible financial decisions, instead of locking themselves into tuition debt and complaining about it.
@@Rhetoricalact right on the money
@@A_R_B_G inflation is an inevitable phenomenon that comes with economic growth and resource scarcity. It's a problem faced globally. That's not something any country can control. Entering a branded university is definitely a privilege, apart from the education it provides, it is a highlight on the resume and provides alumni networking. Again, life is not fair, it's not something everyone can afford. I definitely agree with the education part but to be fair for dedicated learners, they can learn almost everything on the internet nowadays. Education is definitely not a privilege but a cheap, if not free, commodity. Why enter university if they can learn the materials cheaply online. Why choose an expensive university if they can go to community college for 1/3 the cost. That's why I said students should make responsible financial decisions, and behave like adults to pay the consequences for their choices.
Imagine thinking most people are wealthy law students, instead of underpaid professionals in other fields
He never said most people lol.
Looks like the "wealthy" law students are not able to get jobs
Who thinks that and what evidence do you have that back up that claim ?
Oh, you poor thing. Here's 10-20k to wipe your tears with.
If you chose to study a certain field, shouldn't you have a clue how much you are being paid lateron?
I agree, cant pay it back don't loan it out. So why does this apply only to the citizens and not corporations? They can get bailouts and nobody bats an eye. The moment citizens might actually get bailed out there is an uproar.
Because this gives money to the middle class and puts the tax burden on everyone even minimum wage employees who never went to college. If were spending $500 Billion for one off payment to the middle and upper class it would be better spent on the homeless and addicts who need rehab not help Freddy buy a bigger car
Don't agree corps should be bailed out either. One big difference is that if a large corporation like Ford goes out of business, then thousands lose their job, but if a person defaults on their loan that person is affected, not thousands.
@@Daniel-gs9eh What about students who received Pell Grants? Wouldn't that 500B sent to low income families in someway fund post-secondary? We also have to ask: Isn't it predatory to have interest rates on loans for education that make it so difficult to pay it off? We know that post-secondary is economically beneficial and yet it doesn't seem like we want to make that investment.
neither companies or private citizens should be bailed out. there was plenty of uproar when 2008 bailouts occured though
@@rajanduncan3613 I agree, I believe student loans should be interest free. A lot of people want to pay off student loans, it's the compounding interest that is killing them.
I paid off my student loans and I want those with loans to have some forgiveness
Not me
For ppl who paid off his/her student loan should qualify for a tax break
@When in Gnome Then you can pay for Big Bank Bailout, Ukraine. Welfare Receipants, and Illegal immigration.
The Student Loan nay sayers acting like all of student loans are being wipe out.
Yes! A little forgiveness will benefit the very ones who tried to make a difference to society. Not sponge off the system like the rest of ppl who take advantage of Taxpayers.
Same. Paid off all my undergrad loans, I had to live at home for 3 years after graduating just to do it. I wish I had forgiveness then, but I absolutely would not want to deprive graduates today of something that would greatly benefit them and our whole economy.
You cant forgive debt . Its transferred to someone else! Im guessing you didnt major in finance!
Oh yah we’ll just start saving. Didn’t think of that with our increased costs of everything
Getting even half of my loans forgiven would make a colossal difference.
So get a job. You probably bought a 1000$ iPhone but You wont pay your student loan debt. Your Priorities are off
Hey Forgiven half my mortgage would make a colossal difference to , Pay Up Deadbeat
Getting a job? Wow, i bet no one has thought of that. There's a big difference between student loan and house loan. Buying a house benefits you personally while education benifits all of society. This is why K to 12th grade are free and why college is free or very inexpensive in most countries. Every society needs education to function. For being such a crucial part of a sosciety, college is overwhelmingly expensive to the point where it's impossible for most people to get into college without getting a lone. "Get a job" is a common talking point from people who are against these policies to help out college student. Ironic since you cant get a good job without going to college.
@@MRick-cd1kr I also have a mortgage and a car payment. I make regular payments on all of them. If half my student loans were forgiven I would quickly make extra payments on my car so that that would be paid off faster and then start a college fund for my child. So chill out.
@@Venisor21 Or the "get a job" people that didn't have to pay for college or had parents pay for everything other than college. Easy to put down others when they have a head start.
The problem is schools. When student loans were basically taken over by the government the schools decided they could keep raising their prices since the government would give the loans anyway. And what value exactly have universities and colleges added while increasing their prices? NOTHING.
The problem seems to be with the corrupt government guaranteeing any loan
This is why we need to privatize student loans. If an 18 year old has to wait a year or two to build up a credit score to get approved for a loan, no big deal. They can work and save during that time as well as try multiple career paths so that by the time they get to school, they actually have an idea of what they want to study for.
Exactly
@@mikemccabe8015 NO! Privating loans is how we got our nightmare of a healthcare system. And I am pretty sure a good chunk of it is already privatized. Privitazation is not the answer, it never is the answer. Thowing capitalism at things only makes it worse. That is why insulin, something people need to live is unaforable.
@@Dracomata Actually, Obamacare is how we got our nightmare of a healthcare system. Seriously, ask any doctor who practiced medicine before and after Obamacare and they will tell you how much simpler things were before Obamacare, and cheaper too. As for insulin, the reason it's so dang expensive is because there's only a handful of patents that enable the pharmaceutical companies to produce it. Those patents keep getting renewed due to incremental changes whether it be to the drug itself or to delivery methods. If more companies were allowed to produce it, those companies would have to compete with each other for the lowest price.
The smart solution is to make the interest zero. 10k is nothing in the long run
I think I saw a segment on Bill Mahar, he pointed out the ridiculous amount of “administrators” compared to actual professors. That is the cost increase.
I went to college, learned from the professors, took my tests and that was it. I’m there to learn and move on with my life. Get back to the basics.
No, it's new construction going on at all colleges everywhere that's driving up tuition (plus inflation of college operating costs generally).
Socialism against the management of an institution has no merit in the discussion.
When it comes to education, the age of the building where the classes meet has no bearing on how good the teaching is. Do the proper maintenance, don't build new castles to line construction contractors' pockets.
As someone who saw a sole administrator contribute to the downfall of their Alma mater, I completely agree that administrators are a major problem in the college system. They're overpaid figureheads that run schools like a business.
@@thatguy-dh1qh if that happened, then your Board of Trustees is at fault, not the administrator. If the person they hired is not doing the job they shouldn't leave him there, they should have replaced him.
... and btw, universities SHOULD BE run like a business.
The solutions they gave at the end are things everyone knows already.
We can buy out banks at 250k per person after the educated banks make mistakes but we can’t help teenagers fresh out of high school with college debt that may only be 50k+
This part!!! 💯
The president has 0 authority to forgive loans, those businesses bailouts which I disagree with come from congress
🤡 - that isn't how FDIC insurance has ever worked
can I agree 10k time with this statement!
How about we teach kids to not take out loans if they can't repay them? Its pretty simple. Besides, you can get free tuition if you agree to serve your country in the armed forces. Many veterans did just that. They enlisted, served their country, learned technical and leadership skills and in return they earned tuition reimbursement. Yet Politicians want to pander for votes so they sell "cancel student loans", "reparations", "equity", "fill in the blank except not with personal responsibility".
If "the student loan system is broke" and "student debt has got to go", then we need to immediately stop making any Govt-backed student loans.
Facts
Absolutely. We need the US government to 100% remove themselves from issuing student loans. Let the private banks take over.
They won't because the value of education is too great for this country. If this happens, then there will be a precipitous fall in students who can get approved for loans for a fair amount from the private sector and college admissions would be obliterated. This would cause demand for college to drop like a rock and would cause a huge loss of income of the majority of colleges and universities. Except for the rich who will keep doing what they are doing. So the government would be forced to quickly reverse what they did or pay for college outright like they should be doing. They are reaping the value of the educational system but putting the cost on the educated. The whole point of government is to enact useful policies that help the most amount of people that normally would not be possible by individuals or a small group of people.
@@adrees Genuinely bright students will continue to attend whether the government is involved or not. Removing the federal government from the equation would, however, ramp the financial consequences of sending the mediocre kids to some school because "that's what you do right?" up to a point where maybe those kids or maybe their parents might figure out that getting a job might be the better choice. Higher income households would continue to do whatever they like but they aren't the source of the 1.6 trillion dollar problem here now are they?
Governments aren't charities. Confiscating resources from people who made good decisions and reallocating them to people who objectively did not is a moral hazard.
Yes they should. They should end ALL government backed loans, then you will see corporations with picket signs as to how they are poor victims.
The worst thing is when you file bankruptcy - student loans don’t get erased. But if you have millions in business debt - ok. 😂
@@The_Internet_Is_Overrated so you lose the business knowledge gained from being a business owner too? Lol
Because businesses are worth the risk. Your gender studies degree isn't. Loaning money to 18 year olds with no job, skills, credit nor income.
I never heard these agreements with bailouts for companies, banks, stocks etc
And they all sucked to.
Get educated. Obviously college failed you. If a company like Ford goes under, hundreds of thousands of people lose jobs and can be catastrophic to the economy. Them not bailing you of you your LOAN, won't hurt anyone. You took out the damn loan, you should have a great paying job now and you can afford to pay it back. if you went to college and you are still working at Burger King, that is on YOU... Not my tax dollars....
College tuition was so much cheaper when the government wasn't involved in giving out loans. Also, no reason for most degrees to be more than 4 years. The first two years are just a repeat of high school.
Well the repetitionpart is to make sure everybodys on the same level. Depending on where you're coming from the level of knowledge people bring in is widely different
College and university nowadays are for the most part a big con. Totally agree. The gov started guaranteeing loans back in the 60s i think and that was music to the ears if university's thinking"now we can charge anything and fix will guarantee it and they can't get it out it in bankruptcy"..
The states defunded public universities. The cost has shifted to students over the years. That is one of the largest drivers of tuition increase.
You know how I know you didn't go to college? Because you think "the first two years are just a repeat of high school".
@@claytonmoradanope, federal backed loans have basically made colleges go "hey, more free money. Let's build crap we don't need and hire more unless staff"
What nobody is really talking about is how interest is calculated on those student loans. It's based on a percentage of the principal sum AND the number of days since your last payment. Just look at your payment history page!
That's how most are calculated. Credit cards and heloc etc. Nothing new.
Federal loans are a flat interest rate quite literally lower than home interest rates right now. What are you talking about 😂
@@jordanjeanette7672 Look at ur student loan payment history and do the math
@@keeleyduke9494 it's a basic interest calculation. My bachelor's is in accounting. That's kinda how interest works. My point here is you're making it seem like this is a scam when #1 you signed the papers and #2 it's the exact same interest calc used by everyone else in the world
@@keeleyduke9494 i say it's a flat rate because it doesn't fluctuate with the market
Tuition for my degree doubled the semester after I graduated. Same degree, twice the price. Also my degree was "pre-med" and me and the vast majority of my fellow students didn't get into med school after. Degree was useless and expensive. can't dismiss in bankruptcy, can't give the degree back. You take out the loan as a teenager who's never had debt before. The whole practice is predatory and despicable.
If student debt was normal debt, without income based repayment, that could be defaulted on and put through normal bankruptcy court, I guarantee over 50% of these fed student loans are a total loss for the lender. We need to literally sell off college's assets and liquidate this crap. We can't let lenders OWN people for the rest of their lives. You write a loan to someone, YOU take a risk and the US and the universities need to take the L on this. Sell a building... Sell a chair...sell the fro yo machine at the student union ffs...
We need to cap student loans and hold colleges accountable for overcharging for useless degrees. Stop destroying the middle-class.
The Gov pushed Student loans after 08 but nobody ever mentions that do they?
Why doesn't the GOP mention that?
@@Ether202Cause the 2 party system is a statist duopoly
@@The_Internet_Is_OverratedThe government employees in public schools told all these kids they need college, the government forced banks to never turn down student loans, the government funds all of these universities and they're still the most overpriced schools.
But, obviously the problem is capitalism and the fact that the government isn't doing enough 🤡
It's become a religion of the state. "Germany lost WW2, fascism won it."
It's conveniently left out. The only time I ever saw it mentioned was when the CEOs of the large banks were before congress talking about the student loan program and B-of-A and the others mentioned the government took over the program in 07/08.
So, after the government "loans to everyone" plan (much like they did with the housing market), tuitions had no incentive to stay low, and government had no incentive to corral in the program since people couldn't discharge it in BK.
When real banks were giving out loans, doing proper underwriting and ROI, loans were doled out a little more judiciously -- or people learned a trade, or went to Community College for a couple years first to get either a base learning, or get an Associates Degree, or just pull their head out of their backside and figure out what they wanted to do with their life.
So, here we are. Government scammed us. 15 years on, students are saddled with crippling debt the government pushed on to them and now they want to put the genie back in the bottle.
@@realShadowKat Yes that is the truth of the matter but no mea culpa from them its all on we the real people
I'll take getting $20k knocked off my loans if it happens, but I think it is a bad idea to just forgive debt without reforming the higher education system in general. Public colleges and universities should be free just like public schools through high school already are. Then people can go to those for free if they want, and if they have money and/or are willing to take on debt to go to a private college or university then that's fine and they can do that. Once you've solved the problem THEN solve the existing debt issue. To just forgive debt without tackling the root cause of it means in less than a decade we'll be right back to where we are now, or worse.
Nothing is free, someone has to pay the bill. Let’s say the taxpayers do take up that burden, not everyone will get to attend. It will become competitive again, or if the government is involved, preference will be given to (insert disenfranchised group here) irregardless of their ability to excel in the field of study.
@@av8rgrip you’re not wrong but why is it we only seem to have these conversations with respect to things that help ordinary people and not when it comes to bailing out the elite and ultra rich after they mess up royally?
@@katahn I think we do have these conversations. Both are wrong, but with some of these bailouts the fear is they are too big to fail and that the damage of allowing them to fail will affect too many others. Again neither is right. Along similar lines, I can’t stand the idea of golden parachutes. You failed at your job and somehow you are entitled to 20 million dollars? We as a society have become growingly risk averse expecting the government to save us. The government can’t afford to save everyone, so they pick and choose.
@@av8rgrip and they always pick the rich and powerful. Weird.
@@katahn I think I explained it. It isn’t just a matter of picking, it isn’t right and it isn’t fair, but if a bank goes under, how many lives will be affected? Yes, people are being used as hostages. You can’t save everyone, who do you save? 1 person or 10 people?
Pay your loan, be responsible
I had to work 3 jobs to pay rent, bills and school loans ($485 a month starting 2006) and to save anything at all. I did this for 9 years and then went down to 2 jobs for another 5 years. That's what it took for me to survive. Now I'm down to one job and have a home (at 40), but it took until the age of 36 to get any financial security. I have a great career, but that career didn't pay enough for the first 10 years to pay for the ever increasing housing costs while paying on school loans.
Took me 7 years to finish by bachelors degree but I never went into debt over it. Worked hard and got promoted. Now government says I should pay for someone else's bad life choices?
@@travisspicer5514True
Seriously, it's my money
These losers need to get a taste of reality
Losers
Oh you poor thing, rather than focus on one job and make good money working overtime, you decided to focus on 3 part time jobs. Please don't give out financial experience.
I earned my college tuition by joining the national guard.
Peoplebhas right to choose.
Not right to steal from hard working American to pay off your tuition.
You have to earn it.
but you have the pride in knowing you made yourself!
We forgive business loans and rescue failing banks no question, but these loan sharks are so intertwined in Washington that THESE are the loans people fight against forgiving. It’s sickening.
Failing banks are not rescued with taxpayer money. They are rescued by the FDIC whose funds consist of premiums assessed against all of the chartered banks.
2 wrongs don't make a right.
I don't see anyone suggesting that it's fair to forgive business loans and rescue failing banks. On the contrary, the core argument is that NO LOANS should be forgiven. According to your logic, why not forgive ALL loans then? While it would be great if we could forgive all existing loans, it simply isn't possible. The world isn't a charity, my friend.
Those are two different problems. We should *not* be bailing out banks and businesses. We also should *not* be forgiving student loans.
@@ingwersen1996 Taxpayer money in consistently used and abused in ways that never go challenged by the citizens due to the way they are portrayed. Example would be the Pentagon, whose budget has inflated to enormous amounts annually. A small cut relative to what they receive every year could help the student loan forgiveness that was abused by the lenders when handed out. I think you’re taking an extreme all or nothing approach with all loans.
You could make the argument it is irresponsible to hand out 30k, 40k, 50k etc. to 18 year olds with unrealistic interest rates who will never be able to actually repay because the market doesn’t compensate you enough after college. Are the lenders at fault for that? Because they seem to know what they’re doing. Taxes should benefit citizens and society. Wiping those out and allowing people to spend that money back into the economy almost makes too much sense.
I don’t know why they just can’t let this debt be discharged in bankruptcy 😳
Then you give up the degree and can no longer claim the degree in your employment. All certifications would also be void for accountants/doctors/engineers. Just like when a home goes into foreclosure the bank takes back the asset.
@@SteveFrance-jw8de 😂👍
Exactly. It is a secured debt. Discharge of debt comes with forfeiture of degree. Simple and fair.
Why doesn’t business bankruptcy for mega corporations (like Trumps or the auto industry or the banking industry), result in the loss of the business then? It’s only fair…
@@nancykurtz7333 You didn't debunk @SteveFrance-jw8de. You know they're right but your ignorance and smugness won't let you acknowledge it.
Nobody thought this was an option until a politician decided to make it an issue. Our lives just in the hands of politics. Universities should be on the hook for charging a fee that’s not reflective of the pay that goes with the degree.
As an employee of a Canadian University I will say this... The vast amount of $ wasted by schools is what the US should be worried about. Forgiving loans is the wrong approach. GO after the crazy cost of the schooling in the first place.
I agree partially, but forgiving student loans *one time* will help people a great deal and help stimulate the economy with more money in people's pockets short-term.
As much as we *want* to lower the crazy high cost of colleges, many of the people in power don't want to take the steps to make that happen.
Do BOTH
They should not forgive any student loan debt with out fixing the root cause the broken system that allowed the cost of college to balloon to the point that students needed to take a loan out.
If we forgive the debt, it is the equivalent of putting a bandaid on a knife wound while the knife is stuck in the person.
There are multiple root problems. But restoring bankruptcy rights is one positive step that negates most complaints.
1. Taking away bankruptcy is unconstitutional.
2. no bankruptcy means no lender accountability of schools and government.
3. bankruptcy is dependent on situation of borrower true distress will be cancelled, no distress won’t be, in between cases will have adjusted payment and reduced balances.
4. Bankruptcy right can root out unfair collection problems which have been proven to exist.
So it solves everyone’s immediate complaints.
But only a few sensible Congress people bipartisan are pushing this while others sabotage this.
Just allow bankruptcy on student debt, like for every other kind of debt. This will make lenders think twice about giving out student loans and this will in turn force universities to lower prices.
Unfair is the amount of money business received and tax payers are paying the bill
What money do businesses receive?
@@armandolimon7465 PPP loans
Why do you care if "the tax payers are paying the bill". 20% of top earners pay 80% of taxes.
Student Loan companies: *Forms a whole industry based on taking advantage of young people who can barely even pay their care insurance*
Student Loan companies when even a fraction of student debt gets forgiven: "omg they're hurting me why 😭💔"
Thank you. You admit that young people are unable to read or understand what they are reading. I bet they all got BS in stupidity.
Maybe colleges isn't the best choice for people who can barely pay their car insurance
@@kevinmatheson-fi7jt Kind of a dumb mindset. That surgeon operating on you most likely took out more than 100k in student loans and couldn't pay their car insurance. There would be a shortage of workers in every single highly educated field.
@@nate8795 I don't get operated on.
@@kevinmatheson-fi7jt My bad, the engineer that designed the bridge you drove across that one time.
As someone who doesn't have loans and used the GI Bill, I hope these lazy, mooching, self-servicing politicians cancel it. Or a good chunk of it
it would ruin the economy as every net taxpayer and business is taxed more to pay for it. A better solution is making college actually merit based again and stop pretending that everyone is entitled to higher education. No nation with taxpayer paid tuition allows every moron to go to university.
Well the Republicans are trying to slash billions from the VA budget, so go ahead and vote against your own interests if you want. 🤡
At least they can do is permanently keep federal student loans at 0% intrest. Not sure if "forgiving it" will be feasible.
I definitely agree with you on that )% interest on the student loans. What I am hearing, most of the students who are behind on their payments is because of the interest rates...
Glad someone offered a reasonable alternative. I agree.
Thank you for posting this, the interest rates are the real problem. Paying off the principal is manageable.
Exactly, it's hard to even find 6% in the corporate bond market. But students are regularly charged that much and higher.
So the government loses money on every loan? Finance the debt at 5% from the Fed and then I pay for the difference...
I feel to keep the costs down we should remove unnecessary classes required for Bachelors. I have a degree in Finance but had to take electives like labs, astronomy, philosophy, etc. those were thousands of dollars wasted towards my degree
or stop letting idiots go to college. That solves it all. Breadth requirements are important. Having to take a women's art history class let me learn how stupid rabid feminists are.
1000% agree
Why not forgive all mortgages, hell forgive all my taxes.
Whoever cosigns your student loan is responsible for it until they die if the student is delinquent. Even if you die , your cosigner has to pay it off! It happened to my coworker, her daughter was in medical school & died of pancreatic cancer at 24!
That's just horrible. I was able to go through Optometry school without a cosigner in 2002-2006 for my loans. I wonder if medical schools advise taking out a life insurance policy on the borrower? Extremely rare I'm sure but life is never certain.
yes, that's what a cosigner is, genius. That's how loans work. That's how you guarantee payment for someone with no or crappy credit.
@@reign0ffire88 would you prefer the student not be given a loan in the first place? Because if you don't have credit or have bad credit, anyone lending money will want a cosigner.
Its like that in the reverse too. My mom is a chemist, as in she works in a laboratory doing research and she may have loans until she dies 🤷♂️🙃 they will simply pass on to me
so what? no one forced that signature now did they?
I went to a public university, graduated with my bachelors in 2010 and masters in 2013. My dad claimed me on his taxes my first 2 years even though he wasn’t actually supporting me in any way so I lost out on a lot of need based financial aid. I came out with $55k in gov loans. It took many years before I started making a decent salary. I always felt like my student loan payments should be tax deductible at the very least. The interest rates were so high (around 9%) that I refinanced with a private lender 2 years after graduating. I lived really cheaply for a while but managed to pay them all off on my own. I don’t support total loan forgiveness but there are certainly some changes that need to be made.
The interest paid on Direct Loans is tax deductible but not the loan itself. :(
@@katarh yes, and a corporation can deduct all eduction expenses. The student loan system is entirely irrational on ever level. Even with your point, why shouldn’t loan payments be a personal business expense? And if that requires all students creating a private business it should be part of the program to do so.
The entire system is irrational in every way. It is a model for debt servitude.
Lol bad father
I hate to tell you all…the Supreme Court will simply vote party line. This isn’t happening. Nice try Biden…seriously but Republicans like the revenue stream it brings it.
This. I'm not a big fan of forgiveness (though I wouldn't turn it down), but the system needs an overhaul. My parents felt my education was their responsibility, so they took the brunt of my loans while I took the rest.
The interest is only deductible to a point, which also doesn't encourage people to pay it down. Even if total loan payments weren't deductible, a portion would be nice as a "thank you" from the government for paying them back.
Forgiving the debt doesn’t fix the issue, it’s Tylenol for cancer
The system needs to change first before relieving debt or we’ll be in this same cycle all over again
I absolutely agree. How can you knock student loans while still providing them?
Completely true, but changing the whole system is an even loftier goal than just trying to get some debt relief, which in itself is proving to be difficult. Getting relief now will free up millions of people so they will have enough time and energy to help rally for things like overall reform instead of just keeping their nose to the grindstone and trying to not get evicted.
I’ve paid $32,000 toward principal balance over the last 29 months. I did this by budgeting, cutting out all unnecessary spending and focusing on essentials. It’s not easy but can be done when you are intentional. Still $29,000 to go!
Advice for when you have to pay rent??
I have 15k
Congratulations! Way to be a responsible person and not expecting a free handout.
That’s awesome!! 🙌 I did the same. I’ve never made more than an average middle class salary, lived alone, and put all my extra money towards my loans. I paid off $55k in principal in less than 5 years. Idk how much it all was in the end with the interest. It can be done but people need to prioritize it. I have friends with $100k in student loans who buy a new car every year then want their student loans forgiven. That’s the kind of mentality that really irks me.
@@ufcjustice7449 I’m working Dave Ramsey’s Baby Steps. Zero based budgeting using the debt snowball method. Student loans are the last of my consumer debt. When it’s finally paid off, I’ll just have a mortgage payment. 👊
Better solution would be to forgo interest for 5 years after graduation as long as the borrower is making some contribution to the principle.
I think this is a very reasonable suggestion. As for the current plan, retroactively cancel the first 5 years of interest after someone graduated, and recalculate the principle as it would have been today with the payments applied at the times they were.
For a large chunk of us, that too would wipe out our remaining debt owed. I know it'd make my remaining undergraduate loans disappear entirely.
@@katarh This is dumb. Why should a grocery store clerk be paying for a lawyers degree?
If they don’t lower tuition costs this will just happen all over again!
Incredible how people in our “first world” country still have to pay for education.
Yeahhhh... did you think K-12 education was "free"? Because people do pay for it. I think we should dismantle the entire system and let everyone pay for their own stuff.
The economy wasn’t ready for a mass of people to suddenly have disposable income, and now it’s not ready for all of that cash to vanish overnight. Things are about to get very very bad.
what r we gonna do when it gets very very bad😨😨😨
👻
@@crishernandez5828 vote blue 💙
@@leabush2608 YEah. Voting blue has worked out so well for cities like San Francisco! LOL!
Private Student Loans are the killer. No protection. Super High adjustable interest rate over 10%.
Thats why I didnt go private and somehow people now expect I pay for theirs, like tf?
@@Daniel-gs9eh private loans arent covered by this at all... not even the private-federal hybrid FFELs. So it's kinda a moot point.
If you want debt relief you should be able to sue the university for giving you a worthless degree.
EXACTLY!!! Let them suffer. Why should we carry the burden for you?
@@lawsattitude1999 Yea, why should everyone who doesn't have a degree pay for everyone else's degree.
@@MegaLokopo Because you're a bigot or something.
Make these universities with their huge endowments co-sign the loans, not the taxpayers. Then these universities might care about costs and what it takes to earn a degree.
The problem is that the demand is too high to get in these universities, so the university has the luxury to adjust the tuitions. I think there should be more schools
@@Guzmania Eh, I think people need to first recognize if it's worth going. As in, is the degree they pay for and "experience" worth it? It would probably result in less people going, more online courses and thus, incentives for Universities to reduce costs.
@@Guzmania They are actually lowering the standards to create an artificial demand. Acceptance rates are ~70% now compared to -45-50% just 7-8 years ago.
@@lawsattitude1999 if only…kids will continue to make poor choices because they can. Unfortunately they just want the college experience and the financial aspect is an afterthought. “Just something they have to deal with that isn’t fair”
I'm all for finding ways to reduce the cost of college to where it should be rather than the current state. I have zero interest in them forgiving $X amount for any and all borrowers.
They just should have reduced outrageous 7% ( graduate level interests are higher) interest rate and allow us to deduct payments from the gross income. Interest payments has a cap of 2K. I don't think either forgiveness or outrageous interest rates with deduction caps are fair .
Update: I am having a hard time understanding why people are against my argument who is making a fraction of what I am making in a year based on them not knowing 2K interest cap , graduate level interests being higher etc. only the poor or uneducated can be fooled to act against their own interest.
You should just pay the bill that you willingly signed up for. Its that simple.
This the best option I’ve seen in the comments!
@@tira2145 of course . But why should government charge huge interests rate to students ? While my car loan was 2.99 , graduate student interest rate was 7%. Why does government exist ? We need more doctors , engineers born in the USA instead of importing them from the Asia.
What's outrageous about a 3-6% interest rate? Also student loan interest payments ARE deductible although the deduction starts phasing out around 60-70k/year.
@@BTrain-is8ch Mine was 7% 10 years ago . Also interest deduction cap is $2K.
Regardless of supreme court, I see the student loan cancellation getting gutted in the debt ceiling deal.
That's because it was an election ploy to get youngsters to pull the lever for the Democrats. Same with reparations.
OP - I could see the Dems running on "and this is why we need a Democratic majority in the House" platform if that happens. Would get a lot of young voters to the polls.
@@Matt-fl8uy it works. Quite often. You saw that in 2022 and 2023 with massive democrat wins all over the map.
@@personnesenki4521 Sadly. Hopefully people eventually realize how dumb this is.
@@lawsattitude1999 by the time they do there will be another crop of young voters who don't know any better who will buy into it.
It's been shown in multiple studies that 80 Billion per year could comfortably cover Public college and Public University tuition for Americans. If congress could vote on this to be covered from now on, we would be caught up to most universities in the european system of only paying $200-$300 per semester for university fees (as tuition is free). Even Universities that do charge tuition like in South-West Germany the costs at times 50%-70% less than what I payed ($3500 in the US vs $1500 in SW Germany).
We can talk about debt relief and how to repay that, and I know there is bound to be a lot of controversy. What shouldn't be controversial is that we need to start NOW to PREVENT the overwhelming majority of incoming college students from being riddled with loans coming from college tuition.
I remember marching for free college back in my day...in the ARMY!
Navy here. Same. We served our country and in return we learned some valuable technical and life skills while having our college tuition reimbursed. Quid Pro Quo.
Ok, so if you risk your life fighting for some oil company, assuming you dont turn into a complete trainwreck from PTSD, you can get something every other country already provides for everyone.
@Evan B you couldn't be more disrespectful if you tried and most of those "other country's" send their best and brightest here for college, not the other way around and why is that?
@A B maybe you are. I retired in 2015 after 21 years. Proud to have served and still do in my community
@@evanb4189 cut the drama. People do it every day: serve their country and get the education at the same time. You people want everything now and for free.
I wonder how many people paid down their student loan debt while it was paused for the last 3 years. Seems like a good way to chip away at the principle.
We cut the principle in half. We hit it hard.
It would have been a great idea but I bet most haven't made a single payment in years... I had private loans so I didn't get any payment/interest pause and finally just paid the last loan off last month after making payments for 20 years.
Me.
I didn't. But that's because the 0$ payments count for PSLF - which I am eligible for. The payments that would have gone to student loans went to other debt.
Terrible idea. It would have been better to put that money into a savings account or a CD during the moratorium and collect interest until payments resumed, then make a lump sum payment. On top of having extra liquidity in case you lost a job or otherwise during that period, your money would have gone farther.
I never went to college. I have worked my ass off for well over a decade starting and establishing a construction business and you are telling me that I as a taxpayer now have to pay off these parasites student loans??? Hell no!!!!!
Make it dischargeable in bankruptcy like all other debt.
Both borrowers and lenders need better discipline.
They did.
@@moresalad221 Yes, but the process is often quite different from other types of debt.
No! Bankrupting on a house or car allows the tangible asset to be resold and recoup the loss. How do you recoup a degree? If you allow bankruptcies then everyone will go to college and no one will pay it back. At that point you might as well offer free tuition.
@@SomeUserNameBlahBlah but there’s nothing tangible they can take back from medical bankruptcy. They aren’t going to turn back around and undo what they did possibly hurting or killing you
@@SomeUserNameBlahBlah quit giving them ideas
Back in 2005~2009, i was working 2 jobs to pay my tuitition, rent, and food while studying for college. I slept like 3-4 hours a day. I learned more things in those 2 jobs than what I learned from college...Now I own two restaurants and coffee shops
You lived the American dream Sir. Well done. You set the example of what is possible through hard work, sacrifice, and never giving up.
Yeah and now that you run a restaurant and a coffee shop all that time and money spent on your student loan dept was a waste. I feel collage is really not needed for a lot of jobs that require a degree.
Taxpayers shouldn’t be responsible for peoples personal debt.
About time are elected officials do something, right!!!
How about we eliminate these ridiculous interest rates!
I have student loans going back to 1996.... due to deferments and doing income based payments, my payments were at 0 but interest piled on. I now owe less than 10k (high was about 30k). Previously even going through bankruptcy, you couldn't get student loans discharged.
I think changes being made going forward are 100% needed, but the government only wants to bail out banks/corporations and not those that need help the most.
Most of these students don't need it. The job they get from the degree should provide enough money to allow them to save up and pay it off within several years if they're financially savy.
you haven't been able to pay back a 30K loan in 27 years? that's what you're saying???? are you even trying?
@@lawsattitude1999 That's the theory, but a number of people I graduated with didn't even get into their fields or more steady jobs until 2-3 years after graduation, including those with STEM degrees. Even then, living expenses take up most of your income. The only reason I was able to pay for many years was because I could live with family who didn't need me to pay rent. It was 5 years before I made enough to pay rent (with roommates) and pay down loans at the same time. And that was my money only being focused on loans and some savings, hardly any other expenses.
just remove accumulated interest, put everyone automatically under the same repayment plan, make it 10 years, with monthly payments capped at 5% of after tax income & after standard and dependant deductions over say 50k/year. after 10 years if it is not paid off, forgive the balance and do not tax them for the forgiven amount.
you don't need to forgive student debt if you make it manageable for everyone to pay it given their circumstances.
Are you running for office? Cuz if vote for you lol
@@cassiechiedu unfortunately asian guys named andrew with good ideas don't seem to win the presidency lol
@@ajlee613 bahahaha! You know what? Can’t even argue with you
I love this idea, hope it gains traction with enough government officials
Every cent owed should be repaid with interest. Its a risk for the tax payers to give out these uncollaralized loans with no time horizon on when they'll ever be paid back.
You can’t just cancel the debt, and keep the current student loan programs as they currently exist. It’s a racket, no doubt about it
Can’t use tax dollars in this manner, period.
those opposing student loan relief are not concerned about the ppl struggling to make ends meet while paying student loans. i'm for the previous suggestion of chapter 10 bankruptcy forall student loans and cancellation for public student loans. for a super power country, public tuition should be free and all student loan debt from public colleges should be cancelled. the taxes paid by student debtors is being paid along with loan debt--not right or fair.
You are correct that I personally am not concerned about people struggling to make ends meet while paying student loans. Many generations before them went through the same thing. They were already given 3 years where the interest was frozen and there have certainly been PLENTY of job openings where they could have earned extra income. No sympathy here.
Let's say student loan debt is cancelled. I wonder what would happen to future debt? Would debt cancellation for current holders mean future holders are saddled with higher interest rates? Faster repayment timelines?
current borrowers only care about their needs, they dont care about future generations. If we forgive student loan debt now, we will have to forgive debt in the future.
It would mean that they would want to do this EVERY YEar and we would just rack up debt.. and the people that would have been making payments wont pay and wait for govt to pay it for them.
It's not creating a problem, were going slowly through a recession. Eliminating debt of millions of borrowers will funnel that money into the economy and even potentially provide future benefits like starting families and keeping the birth rate flat rather than decreasing.
As for future borrowers, that's the next step is to get alignment on fixing the college tuition increases and loan rates. If you look at college admission rates they are going down and 1 in 4 high schoolers don't plan to go into higher education already so you won't be having an entire generation in massive debt as it's been pretty blatant that college is not a sound choice for certain careers if you plan to have a living wage where it's not all going to debt.
I don't understand why we can't do both. The more we leave things be, the worse things will get. It's inaction that is making things worse as all these issues just keep on.
That’s why people are fighting for FREE education. Stop trying to come up with ridiculous hypotheticals and actually think for once
No students have had to pay back any federal loans since 2020 and the country didn't catch on fire.
I know too many parents who will once again have to make the choice between food and life-saving medicine for their kids or student loan payments every month. They got used to the "luxury" of being able to afford needed healthcare for their kids over the past 3 years.
The student debt crisis is a joke. Elsewhere you can go to university for free, or if you have to take out loans they have nearly zero interest on them.
Stop bailing out everyone. Students, corporations, anybody and everybody. Everyone needs to start taking more responsibility for their own decisions.
GOD SAVE THE COUNTRY
That should include lenders. Irresponsible lending is a thing. In the “real world” a lender would not make the loans in the first place, and if they did they would be high risk and there would be consequences for that risk. The system as it is has no lender responsibility because bankruptcy and consumer protections were stripped from the loans.
Right, but for some reason, we should stop bailing everyone out starting right now when poor struggling people need the help instead of when the next large corporation or bank fails, right?
Stop letting the free market raise prices. Look at the wealth gap who's benefitting from the current market? We wouldn't need bail outs if corporations didn't hoard money.
@@matthewkopp2391 Right who in the right mind would loan an 18yo with zero credit history $50,000 without a cosigner....oh wait that's right the broken student loan system.
this story acts as though these borrowers were just randomly assigned debt and didn’t know these payments were coming. Every borrower signed up for their debt.
What about all the borrowers with credit card debt? They should be just as responsible instead of filing for bankruptcy. Student loans there is no bankruptcy clause.
@@jeffshelton6652 what about people with debt from technical and trade schools? Or those who invested in their small businesses instead of college? This version of student debt relief is pandering to buy votes pure and simple. I have a bit of a loan left and this would pay it off, but I don’t want it. No one needs to pay my debts.
@@jasonvaughn3478 If a person who received any Federal Loan should qualify for Student Loan relief. If that person want to opt out of it. Then that it their choosing or make it possible to file bankruptcy on student loan debt.
@@jeffshelton6652😂 that’s a wild argument. Over extending on credit cards and student loans is irresponsible and that’s why when you file bankruptcy you also take a hit to your credit score; the systems way of telling the world you’re a fool with money. 😂
@@ronnie5151 at least with credit cards, one is bailed out with bankruptcy and student loan isn't. So if student loan borrowers are supposed to be responsible for their debt. So should credit card holders but I guess you missed my point.
Education is how you progress a society.
As an immigrant… I worked over 60hrs a week while getting my bachelors…. Didn’t focus on the parties and all that fun stuff. I graduated debt free while paying for my own housing, food, etc (parents not able to support at all)… Be smart about college if that’s the route you want to go in life … 😕 Still, college shouldn’t be this expensive tho
You did it through hard work and perseverance. Nobody says a person has to take out loans to go to college. There are other ways to get help with tuition. I joined the military and served my country and in return they paid for my college. I found that a fair deal. Today, everyone wants everything for free. Nothing is free.
@@spydude38 k - 12 education is free
1) HIGHLY doubt that.
2) You shouldn't have to work 60 hours a week to avoid debt.
3) There are nowhere near enough jobs to have millions of people working "60 hours," and flooding the labor market would just lower the wages anyway.
No one should have to work 60+hrs or multiple jobs just to afford an education in an attempt to better their life or even without the education. Your the same as everyone else making the same dumb comment oh I did it look at me work hard you can too. All when not even considering this person is not you. They could be a single mother of 3 who's husband just died tragically and one of her daughters has cancer now she is struggling due to all the medical bills, funeral bills, house, car, insurance, electric payments....etc and is struggling to pay her student loans. What do you recommend this poor single mother do??? Get a 4th job and work 80hrs a week? Thus having less time with the kids, paying more in daycare...etc Like shut up dude not everyone is you, not everyone is in the same situation.
Let the whole system fail. People who cannot pay their loans cannot pay for mortgages, cannot pay car loans, and cannot contribute to the economy. Be careful what you wish for. Regardless on the “fairness” of loan forgiveness, we’re reaching a point where people can only afford to pay for essentials and survival. Sharp fall in discretionary spending will tank this economy.
I think the US is on the brink of financial ruin. We can't afford to fix our roads, our pipelines, basically anything needed to run a thriving nation. So I'm with you, just let the whole system fail.
Let it all drop imo
Yes, shooting ourselves in the foot over supposed "fairness". Who loves to say "life isn't fair" in many cases when there's an attempt to level the field?
Yes, let it crash - why are we constantly robbing Peter to pay Paul? Both Peter and Paul need to be mindful of how they do business and which loans they take out. :)
Another thing about student loans that ppl seem to ignore is the long term ramifications on the country. Millenial and Gen Zer's with mountains of debt are actually choosing to not have children because of the immense burden it has on them. This demographic shift is going to hurt older generations as they move into retirement age. Remember social security and medicare are entitlement programs. It's not a pot of money you pay into and collect when you retire. It's paid based on the current working population. If you have more people retired than working you're in for hell as the government will have to be forced to make cuts to funding forcing retirees to start struggling with poverty and going back into the workforce at much older ages than they should. This isnt simply a "these kids need to be responsible" situation. This has large effects on everyone in the country
Reducing offsprings per-dates Boomers. It started with the mechanized plow. This reduced the need for farmers to have children for free labor. As Calhoun's mouse experiment has shown, an easy life reduced offspring. Even people not going to college are having fewer kids.
They won{t do anything until it gets out of hand. American politicans are REACTIVE not PROACTIVE!
Your argument concerning the potential long-term ramifications of widespread student loan debt on demographics is certainly thought-provoking. You're correct in stating that student loan debt may contribute to individuals' decisions to delay or forego having children, which in turn could impact Social Security and Medicare programs.
However, it's worth noting that the issue of an aging population is multifaceted and cannot be directly attributed to student loan debt alone. Let's take Japan as an illustrative example. The country offers relatively affordable college education and doesn't suffer from a major student debt crisis. Yet, it has the world's most rapidly aging population. The reality is that other factors, such as unaffordable housing, shifting gender roles with more women prioritizing their careers, and increased life expectancy, contribute significantly more to demographic changes than the student loan crisis.
If the issue of having an aging population is your main concern, then why pardon U$500B of student loans when instead you could use that money to build affordable housing for the younger generations?
Aside from the obvious argument about the unfairness that pardoning U$500B in student loans would be, it would also end up generating an increase in inflation, shift even more the economy to a potential recession. That would then generate an increase in unemployment rates, worsening the life of many Americans. Imagine having to foot the bill that caused the exact situation itself that is responsible for you losing your job, having to watch your purchase power crumble and essentially make you suffer.
It's sad to see young people drowning in debt because of their student loans, but the proposed solution doesn't fix the issue.
@@ingwersen1996 I didn’t say we should cancel student loan debt. My solution is zero percent loans permanently bc I think the interest is the bigger issue. I also don’t think it’s the main reason why demographics are changing. Biggest reason is rising costs of living in general and the rise of educated women who choose to have less or no children at all. My point above was to point out that it’s not as simple as “they need to be responsible” ; we need a comprehensive long term solution
Imagine a generation (Boomers) who went to school for free or very low expenses, were able to build wealth when young, and are able to retire complaining about “in my day we worked summer jobs to be for school”. They also had zero interest Johnson loans. (I had three jobsBTW)
It is obviously a paid TROLL farm.
One of the conservatives who support loan forgiveness OWNS a retirement home business. He knows exactly what is on the horizon. An entire generation that are unable to retire. Can’t build wealth, and don’t have children because they can’t afford children.
Theyre going to get rid of forgiveness. No one will pay. Many will default. Banks will get bailed out. Government will pay anyway but people will also be hurt
The people saying its not fair to help lower/middle class are dumb af because you are 100% correct. The government will still payout just not to the people who really need the help they will bail out the lenders.
@@griminc6548 debt is necessary to keep currency valuable. It represents the future labor output of a country.
Please and Thank you!!!
Zero interest loans sure, but forgiveness no way.
Tell the republicans to pay back their ppp loans then😂😂
@@spicychad55 Covid is unexpected, government decided to foot the bill to help people going through unexpected hard times (mostly due to covid regulations). How is that comparable to student loan?
@@MrRight0930 because this forgiveness program uses the same reasoning for that. this just or its not and neither is that. if SCOTUS strikes this down because others can claim harm, then others could have sued PPP and claimed harm. that's the precedent this will sent if it is struck down. its not as simple as people think.
Exactly, should be 0 percent interest.
@@MrRight0930 The government foot the bill for PPP loans? Have you tried to buy a loaf of bread lately. The bill is paid by people who want to eat.
The department of education will have to break down my door and take money from my cold dead hands before I ever pay back that debt
Die with debt. What a life
Well thanks for scamming all of the American tax payers
How haven’t your wages been garnished?
Did you hear that with the new budget increases, the federal government will arm hundreds of more IRS agents to do just that. Thats change you can believe in.
Careful with that mindset. As debt accrues, they will just garnish your wages. As long as you’re working a W2 or 1099 job, they will get their money. They don’t have to send anyone, they’ll just take it.
Not having to pay the bill for three years is exactly why you should be able to pay the bill now.
Amen.
Agree but most are too busy shopping for shoes clothes cars etc.
My loans didn't qualify for that, so what now? I have been paying since 08 and balance hasn't gone down. Interest rates are crazy
@@Adam-wc1wj There are likely many cities you could move to in order to have a job that pays about the same but with much cheaper housing options. Why have you been paying so little on your balance?
@@Adam-wc1wjYou need Dave Ramsey in your life.
I wonder if anything is being done to help for private student loans. With federal loans you at least have some options to help with repayment or even bankruptcy as an extreme option. As someone with majority of private loans and interest rates on them rising to 12%, I hardly have any options.
Same here, there is no relief for us, only massive interest
Private loans are harder to get and require a good credit history or cosigner. Student loans can be given to an 18yo with zero credit or cosigner who is not 100% sure what they are even doing.
They should restructure the student loans and give a lower fixed intrest rate. We've been paying down my husband's student loans during the zero interest pause. Having 0% interest helped us tremedously. Before the pandemic we were making payments every month but very little went to the actual principal because of the way they set up student loans. If they restructured the loans allowing more of the payment to go towards the principal and lower the overall interest rates on student loans then that seems like a fair trade. My husband does qualify for the 10K forgiveness but we never thought it would pass. We didn't expect anyone else to pay off his debt anyway. We've been throwing all our extra cash toward paying it down. I'm praying we can get the rest of it paid off before the pause ends. We as a family have made a lot of sacrafices in order for my husband to attend college, but that's a choice we made. A few more months of eating beans and rice and we'll be free from these hellish student loans forever!
This is the most reasonable solution. Borrowers take a hit to the standard of living for a few years and negotiate an amount that they can pay back. Better than just accumulating interest that will never get paid.
If education in America requires you to eat rice and beans for your meals so you can afford to pay it off something's wrong...
@@everydaysamething I agree 100% but it does. Same goes for medical bills in the U.S. Our system is broken. Only one of us could afford to go to college so I opted to quit college and let him further his education since he would make more money with his degree. Now I have to pray nothing happens to him because he's the breadwinner. Lovely way to live, huh? Like they say, It's called the American dream because you have to be asleep to believe it.
Let’s hold everyone to the same standard. If you make dumb financial decisions, you live with it. If you can’t afford a $30,000 a year private college then go to a local community college. If you can’t afford a new $60,000 SUV then buy a used one. If you don’t live with in your means that is nobodies fault but your own.
But that makes too much sense!
I went to a community College paid my way, transfer to a 4 year college and a year's worth of classes didn't transfer even though the community College says it would.
I would love to see how my VEPR 54r would stack up in this test. Plastic 5rd single mags I think are boo. But other than that I would think it should do pretty well.
Dream big, SAW M249.
I havent gotten my tax return yet because of this and im falling behind on all my payments. Its so frustrating i tried applying for student debt relief and the website was closed due to it going to court. First they raise gas prices groceries and now they are after OUR money. The school i went to closed down and i have no idea how to even make payments to a school that doesnt exist anymore.
Need to call the loan servicer.. once the school closes down, you don’t pay
“If your school closes while you're enrolled or soon after you withdraw, you may be eligible for discharge of your federal student loan.”
Ohhh waaaah... maybe you should have saved money for unseen situations and lived within your own means.
All you need to do is get the federal government out of student loans. Put that on the schools and force them to hold the bag. Now they can’t charge excessive tuition or they won’t get paid back.
Or they won’t except poor people anymore. Wants a big deposite. And pay per sumester. Don’t have fund or approved than next sumester you can’t go school. Also loose your deposite for the seat 😅
@@capitalgains2216 No, they'll simply decide which degrees are likely to pay off or not and they'll cut the ones that aren't. They'll do what consumers would have forced them to do if people made rational choices about post-secondary education. It's not about socio-economic standing it's about people making crappy financial choices then refusing to take accountability.
They can have free tuition for public schools and zero loans for private schools. The entire scam was created by private schools in the first place.
This is the best solution by far.
@@capitalgains2216 There will never be a perfect solution.
As long as the federal government continues to sponsor/guarantee student loans, there is no incentive to lower tuition costs or stop universities from offering worthless degrees. This will continue the debate of students who want their loans to be forgiven. The schools must be responsible for this insane increase of tuition. They caused this issue, and should bear the brunt of it.
I completely disagree with colleges having huge endowments and continuing to impose high tuition. There must be a trade off, no public loans for these institutions who do not allocate material portions of their endowment as financial aid to students. If not, they will face backlash from the public for only accepting wealthy students, and would inevitably use more of their endowment for lower income students if they are truly for higher education for all.
I recently graduated a state school with minimal debt making more than the median household income. It is to show you don’t need the prestige of elite universities to do well.
I had opportunities to go to other expensive universities, so why is there a penalty for getting a degree with job prospects and knowing I didn’t want to be saddled with debt in the future? If a college is out of your price range, go somewhere cheaper. It’s simple, but so many think with their emotions.
Alas, fairness is in vogue for society but only for those who made the wrong decisions. Choosing a school and having a fun time in college instead of using it for actual learning has caused us to be in this situation. Now we are stuck needing repair the mistakes of those who did not have foresight and wish to be debt free like responsible people.
LMAO at the people who actually thought the feds would forgive loans.
Or think it's fair.
But they already have forgiven some … so I guess the jokes on you !
@@bradyhack2428 a few million vs a few trillion, and the joke will be on us all if they go thru with it all.
They can't afford the 30K in student loans but they choose they can afford a 30K+ car loan payment?