U.S. forgives 40k student loans • Hacker News Board

Re: U.S. forgives 40k student loans

#131

Post by mrep » Wed, Apr 20, 2022, 4:39 PM UTC

bombcar wrote: post #109

mrep wrote: post #92

Earlier quoted context omitted.

Maybe for the bottom schools but there are enough rich parents to pay/cosign a loan for like the top 50 schools and I highly doubt they would reduce tuition/spending and risk hurting their rankings.

No matter how many loans or funding you get, it'll always be impossible for everyone to go to the top 50 schools, unless you simply outlaw all schools outside of the top 50.

That is not the point. The point is that kids whose parents cannot pay/cosign a loan can currently get into the top 50 schools but without the government backing the loans, none of them would likely be able to get in at all leaving the top schools only for rich kids.

Re: U.S. forgives 40k student loans

#132

Post by fortran77 » Wed, Apr 20, 2022, 4:40 PM UTC

wonderbore wrote: post #119

31098347 wrote: post #84

Earlier quoted context omitted.

People who have paid their student loan debt are in exactly the same situation they were after this forgiveness than they were before: that is, they have no student loan debt. People in the US are not punished for being financially responsible. They are rewarded for taking risks, but not punished for being responsible. Very different.

> are in exactly the same situation I don’t know you could possibly reach that conclusion. I paid off my loan and lost 1000 hours of work. You didn’t have to work 1000 hours to pay off your loan. We’re not in exactly the same situation . I don’t know how else I can put this without ELI5’ing

More than that! They won’t have to pay income tax on that forgiven debt. You were taxed on the income you spent for college.

Re: U.S. forgives 40k student loans

#133

Post by nfRfqX5n » Wed, Apr 20, 2022, 4:40 PM UTC

leach wrote: post #116

InitialBP wrote: post #94

Earlier quoted context omitted.

Demanding "even-stevens" all the time doesn't help the situation at all. The people that were able to pay off their loan debt were people who chose a degree that would be able to make significant money, were talented enough to land a great job in a field without a lot, or had the circumstances that let them finish a degree where others were unable to. Do some people make bad decisions about degree choice? - Yes Do so…

That’s all fine and dandy until you realize the people who where smart and careful have to foot the bill for those who weren’t. I was smart and sacrificed a little by going to community college so I wouldn’t have debt. I was also smart enough to get a degree in stem where jobs are actually available and in demand. Why should I have to foot the bill for someone who just partied and got a useless degree? I did everythi…

How much do you really think this is taking out of your pocket? You are paying for others all the time with your taxes, which can’t be selective for the system to function

Re: U.S. forgives 40k student loans

#134

Post by InitialLastName » Wed, Apr 20, 2022, 4:40 PM UTC

mywittyname wrote: post #72

_moof wrote: post #27

Please, please, please take note before commenting: These are being forgiven under the Public Service Loan Forgiveness program, created in 2007 (fifteen years ago), which eliminates your remaining debt after you've made ten years of payments while working in the public sector (government or non-profit). This has nothing to do with current debates around loan forgiveness.

I believe a lot of this wave of forgiveness is due to correcting/removing the road blocks for this program put into place by Devos in previous years. The article refers to these as "historical failures" but I think that being very generous.

It wasn't just the Trump administration; it was clear there were significant problems with the way the program was administered well before the first loans were supposed to start qualifying in 2017. Among other things, the Bush and Obama administrations that created and administrated the program provided no guidance and no oversight to the companies overseeing the loans, so the companies made it effectively impossible to qualify.

Re: U.S. forgives 40k student loans

#135

Post by nostromo » Wed, Apr 20, 2022, 4:40 PM UTC

honksillet wrote: post #46

abnry wrote: post #17

Now universities can continue to raise tuition and pay the administrative class even more. Uncle Sam has shown they'll pay it on his dime.

End federal involvement in student loan and allow student loan debt to be discharged in bankruptcy. Problem solved.

Unfortunately no politician will have the guts to do this.

This is why people are skeptical of the federal government getting involved in just about anything.

They passed this program to help students afford school, and it’s done the opposite. It was also passed as a revenue neutral program of loans that would be repaid, now they’re increasingly being forgiven or put into forbearance.

Now to fix it, someone will have to feel significant pain, most likely both the educators and low-income students.

Re: U.S. forgives 40k student loans

#136

Post by ffggvv » Wed, Apr 20, 2022, 4:41 PM UTC

Extremely misleading title. i assumed 40k was the dollar amount cap for each loan. not the number of loans forgiven.

Re: U.S. forgives 40k student loans

#137

Post by vmception » Wed, Apr 20, 2022, 4:41 PM UTC

moralestapia wrote: post #130

I could imagine there's a lot of people who: 1. Are paying/had paid their mortgage properly. Usually implies being down to earth and choosing a home you can actually afford. 2. Paid their student loans. 3. File and pay their taxes properly. 4. Have never went unemployed, or better yet, they're self-employed. 5. Never played stock market bets, as they're more conservative and prefer to save money in a predictable way…

This is about a 15 year old program and nothing to do with current political sentiment. Those same people always had the choice of complying with this program as well.

Re: U.S. forgives 40k student loans

#138

Post by bombcar » Wed, Apr 20, 2022, 4:41 PM UTC

musicale wrote: post #85

fasteddie31003 wrote: post #33

And the student loan debt cycle continues. I'm all for canceling student debt if it is attached to a longterm plan to reduce the cost of higher education so that the next generation is not strapped with the same problem. My cynical side thinks the higher education lobby is deeply entrenched with the Federal Government and loves the never ending conveyer belt of young adults with large bankrolls provided by government…

It's an insane system that has enabled universities to drastically increase tuition and fees, outpacing inflation for more than half a century.

US: We should use the power of our massive government to subsidize and guarantee 30 year fixed home mortgages.

House prices: shoot up

US: Surprised pichachu face

US: We should use the power of our massive government to subsidize and guarantee loans for college education so people can afford houses!

College prices: shoot up

US: Surprised pichachu face

Re: U.S. forgives 40k student loans

#139

Post by hunterb123 » Wed, Apr 20, 2022, 4:41 PM UTC

marricks wrote: post #118

endtime wrote: post #54

Earlier quoted context omitted.

That's where the 40,000 in the headline comes from. But the article also says this: > Several thousand borrowers with older loans will also receive forgiveness through income-driven repayment (IDR) forgiveness, plus another 3.6 million borrowers will receive at least three years of additional credit toward IDR forgiveness, the Education Department said in a statement.

45 million folks in the US have student loans so even some action for 3.6 million folks isn’t a large percentage.

So since it's only 8% it's fine?

How many 8% increments can there be until we're allowed to be against this?

I'm against any percentage of funneling taxpayer money to college administrators.

Reduce tuition, don't rubber stamp federal loans while letting administrators increase costs.

Re: U.S. forgives 40k student loans

#140

Post by anonAndOn » Wed, Apr 20, 2022, 4:41 PM UTC

lifeisstillgood wrote: post #26

I know every European seems to ask this of every American but what is the resistance to a welfare state? if you look at a government as investing in its citizens like a VC fund, then providing education and medical care is sensible, and some will turn out fine and others will be Bezos and then you can get your investment back via tax. I am honestly trying to avoid the flame war here - but I do it know how else to fra…

We're actually quite fond of corporate welfare but loathe individual welfare. States will try to out compete each other to offer subsidies and tax relief for a giant-corp's new facility but shun much less expensive assistance for poor families. Golden shovels win re-elections! [0]

[0]https://goldenopenings.com/Gold-Chrome-Shovels_c_46.html