Jump to content

If Biden gives the green light (possibly by late August), the Department of Education already has a plan to cancel student debt *quickly*


Recommended Posts

biden-congress-budget-86601.jpg
WWW.POLITICO.COM

Senior department officials are preparing the mechanics of how the agency would operate a mass loan forgiveness program.

 

Quote

“Internal discussions have resolved most key operational and policy issues necessary for speedy implementation” of a broad-based student debt cancellation program, the memo prepared for Cardona says, “potentially allowing immediate eligibility determination for millions of borrowers, the first cancellations within 45 days of announcement and millions of cancellations within 90 days.”

White House advisers are looking at limiting any loan forgiveness to borrowers earning below a certain income threshold, but they have not finalized that amount. The internal Education Department presentation for Cardona cites — as an example of a threshold — $125,000 for individuals and $250,000 for families, which are among the figures that have been previously reported as under consideration.

 

Quote

[T]he documents show some of the ideas the administration is taking seriously and circulating among senior leaders — and, importantly, how the agency would be prepared to execute them.

 

Link to comment
Share on other sites

4 hours ago, Captain Pickle said:

Well duh

Well tell me. How much faith do you have in Congress to do anything that will negatively impact the finance industry? Sallie gotta get paid after all. And this program won’t forgive my student loans either.

 

I’d prefer policy to cure the disease not treat the symptoms.

Link to comment
Share on other sites

Took me 10+ years to get my loans paid off. During those 10+ years there was times that I had to scrounge for food because there wasn't enough to pay for both. So why the fuck should people now get off without paying them?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Because no one should ever have to choose between food and school loans, like I did. 

Kill that shit so people can move on without dragging the albatross around for the next 30+ years.

  • True 2
  • Halal 1
Link to comment
Share on other sites

5 minutes ago, SimpleG said:

Took me 10+ years to get my loans paid off. During those 10+ years there was times that I had to scrounge for food because there wasn't enough to pay for both. So why the fuck should people now get off without paying them?

 

Because no one should ever have to choose between food and school loans, like I did. 

Kill that shit so people can move on without dragging the albatross around for the next 30+ years.

 

What do you do about the people who take out student loans a day after the current debt is forgiven though?

Link to comment
Share on other sites

6 minutes ago, SimpleG said:

Took me 10+ years to get my loans paid off. During those 10+ years there was times that I had to scrounge for food because there wasn't enough to pay for both. So why the fuck should people now get off without paying them?

 

 

Because no one should ever have to choose between food and school loans, like I did. 

Kill that shit so people can move on without dragging the albatross around for the next 30+ years.

 

First Half GIF

  • Haha 1
Link to comment
Share on other sites

10 minutes ago, mclumber1 said:

 

What do you do about the people who take out student loans a day after the current debt is forgiven though?

Reform the entire process, put all loan applications on hold, kill all current debt. Raise taxes to cover higher education. Nuke Sallie from orbit. 

Link to comment
Share on other sites

15 minutes ago, mclumber1 said:

 

What do you do about the people who take out student loans a day after the current debt is forgiven though?


This is 100% irrelevant to whether or not to do debt forgiveness for current debtors.

Link to comment
Share on other sites

5 minutes ago, SimpleG said:

Reform the entire process, put all loan applications on hold, kill all current debt. Raise taxes to cover higher education. Nuke Sallie from orbit. 

 

Wouldn't putting all loan applications on hold completely fuck up secondary education?  I'm not saying your ideas aren't worth exploring or doing, but surely there are a bunch of negative ramifications people are not addressing if colleges stop getting paid for the services they are providing under the current funding mechanisms.  You can't magically do any of what you said without legislation, aside from putting loan apps on hold. 

Link to comment
Share on other sites

1 minute ago, mclumber1 said:

 

Wouldn't putting all loan applications on hold completely fuck up secondary education?  I'm not saying your ideas aren't worth exploring or doing, but surely there are a bunch of negative ramifications people are not addressing if colleges stop getting paid for the services they are providing under the current funding mechanisms.  You can't magically do any of what you said without legislation, aside from putting loan apps on hold. 

I am sure there is a fuck ton of issues that would arise.  The process can't continue down the same path it has been while we sit on our hands . And if I had to choose between colleges getting paid or people being able to live a respectable existence,  the choice is easy.

Link to comment
Share on other sites

3 minutes ago, GeneticBlueprint said:

 

Well I know they were paused. But they're supposed to resume this month. But I haven't had any communication about them resuming.

 

@Kal-El814 will be the judge as to if they're supposed to resume this month and if you've had any communication about them resuming. :| 

  • Shocked 1
Link to comment
Share on other sites

On 8/1/2022 at 10:47 AM, sblfilms said:


This is 100% irrelevant to whether or not to do debt forgiveness for current debtors.

I disagree. We absolutely need to be addressing the day after forgiveness for a plethora of reasons.

 

Plus I do fear what this would do to further drive American cultural separation. There are a variety of ramifications people aren’t considering here.

Link to comment
Share on other sites

On 8/1/2022 at 12:50 PM, mclumber1 said:

 

Wouldn't putting all loan applications on hold completely fuck up secondary education?  I'm not saying your ideas aren't worth exploring or doing, but surely there are a bunch of negative ramifications people are not addressing if colleges stop getting paid for the services they are providing under the current funding mechanisms.  You can't magically do any of what you said without legislation, aside from putting loan apps on hold. 

 

Ideally the debt forgiveness program would also double as a platform for introducing legislation that would reform higher ed, and the underlying causes that lead to the problematic debt-financing it often relies on.  The message would be "Yes, we're freeing you from debt bondage; but we're also making changes XYZ to ensure we don't just wind up in the same situation a few years down the line."

 

Unfortunately, this is very unlikely to happen.  So the question then becomes "even without reform, is it still worth cancelling these debts?"

 

I would say 'yes', because it would not only benefit those in debt, but also those not in debt, because you'd be freeing up a large amount of spending power that would help grow the economy for everybody, and possibly yield a universal demographic dividend by re-enfranchising portions of generation X/Y/Z/etc. that have had trouble with things like household formation due to debt payments swallowing a large portion of their income.

 

However, there is added risk to this kind of jubilee now that wasn't present a few years ago, when it should have been done, given that it might be somewhat inflationary.  So that ought to be acknowledged.  And any honest advocate of the policy should recognize that the debt cancellation itself won't fix the underlying problems that created the excessive debt overhead in the first place.  As always, it comes with risks.  To me, the rewards still outweigh them--but I have sympathy to those who, having acquired their education in a way that kept them out of debt, feel it's unfair that those who did not are getting blanket forgiveness for their mistakes.

  • Halal 1
Link to comment
Share on other sites

Cancel it all then cancel every new contract the day after it is written, promise to do so

until congress reforms the broken system away from debt based education and our peculiar financing situation

 

making all federal loans “subsidized” with 1-2% interest and payment caps of 0-5% of income and forgiven at 25 years with an expansion of pell grants and work study would be a good middle ground but I don’t think the conservatives (not just republicans here) would be ok with one part of this

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...