Just make student loans easier to eliminate in bankruptcy. Problem solved.
and make the endowments of the Universities eat the loses.
59% of Americans worry student loan forgiveness will make inflation worse
21–30 of 153 posts
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#22Didn't they forgive a massive amount of bank debt during the 2008 financial crisis? And that didn't cause any worrisome inflation. Forgive these kids loans, who were just trying to go to college to learn and gain job skills to compete in the world and are now debt slaves.
Do you mean the taxpayer absorbing the debt should target loans given to people who did job skill-related degrees?
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#23Just make student loans easier to eliminate in bankruptcy. Problem solved.
but isn't that equivalent to just forgiving the loan?
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#24Re: 59% of Americans worry student loan forgiveness will make inflation worse
#25I don't know how you can have a blanket forgiveness of student loans without also addressing college costs. Otherwise consumers become even less price-sensitive, expecting another round of forgiveness in a decade or so.
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#26Re: 59% of Americans worry student loan forgiveness will make inflation worse
#27No post body was provided.
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#28The entire student loan debt issue has been framed badly, because hardly anyone understands the real problem: "As of March 2021, 54% of borrowers with outstanding education debt owed less than $20,000; 45% of the outstanding federal education loan debt was held by the 10% of borrowers owing $80,000 or more." https://research.collegeboard.org/media/pdf/trends-college-p... Forgiving $10K across the board is dumb and mi…
That doesn't sound intuitive to me. Who are these people with $80k balances of debt? How did that happen? Are they maybe correlated with higher earnings e.g. med students? Would they benefit the most from aid in terms of actually improving society? They might not actually be the "poorest" even if they have the lowest net wealth, if they have high incomes.
More surprising to me: > As of March 2021, 23% of the $1.59 trillion outstanding federal loan balance was held by borrowers who were 50 or older, up from 18% in 2017. (Figure SA-12A
Off the cuff, this group seems like the least important to pay off
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#29Earlier quoted context omitted.
> screw over the banks by writing off the debt The banks don't hold this debt, the federal government does. That's why the federal government can forgive it. That's why the federal government has been able to suspend payments for 2 years. The government can't forgive debt held by someone else.
"Most lenders are huge institutions, such as international banks or the government. After a loan is originated, however, it represents an asset that can be bought and sold on the market." Source: https://www.investopedia.com/articles/personal-finance/08121...
Look at the source of investopedia's stats:
"The outstanding federal loan balance is $1.620 trillion and accounts for 92.7% of all student loan debt." https://educationdata.org/student-loan-debt-statistics
So yes, banks do hold some student loan debt, but most of it is held by the federal government.
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#30Earlier quoted context omitted.
The federal government doesn't forgive debt, it just changes who's paying for it
Right, they change the who from "former student" to "no one".
No, if the federal government "forgives" student debt, neither spending nor budget receipts will decrease to compensate.
If any other institution ventured to forgive such massive amounts owed, they would be forced to compensate with their budgets, but they don't have monopolies on violence.