Help! Defaulted Student Loans (and other debt fun)

[Califan007 The Constipated]

 

[PeterMP]

15 minutes ago, TradeTheBeal! said:

 

We could do that too.  Even though a considerable percentage of the country doesn’t have any need for public transportation and many more that could use it wouldn’t even it it were free.

 

It seems unlikely that we can do that too without there being some negative consequences.  At least the most generally accepted economic theory does still support that there is a relationship between government spending and inflation.  Putting too much money in people's hands to spend on other stuff eventually does have a negative impact.

 

We in theory could have all sorts of things that are good for the economy because they allow people to spend money on other things.  I don't think anybody would suggest that doing that at any and all levels won't come with some negative impacts.

11 minutes ago, Califan007 The Constipated said:

 

 

 

He should ask for a discount back on his college degree.  His logic is very poor.  The education that he got isn't worth much.

 

The person ALREADY has the degree.  This isn't making anybody more educated, doesn't make it easier for anybody else to get a degree in the future, and might make the problem worse.  This literally does nothing to support living a more educated society and might actually make college harder for people to afford in the future.

Edited August 26, 2022 by PeterMP

[TradeTheBeal!]

Every single piece of legislation or financial policy in US history has had “Negative impacts” for someone.  If your baseline to support/enact any program is that it is 100% free of “negative impacts”, then you’re either as dumb as a brick…or you think your audience is.

[PeterMP]

So I do wonder if any of the Congressional folks who potentially would have standing to sue that are complaining will sue.

 

https://www.courthousenews.com/student-loan-forgiveness-plan-has-a-scotus-problem/

 

The piece talks about a House majority of Republicans having standing to sue, but I wouldn't be surprised if the Supreme Court would grant even the minority standing.

Just now, TradeTheBeal! said:

Every single piece of legislation or financial policy in US history has had “Negative impacts” for someone.  If your baseline to support/enact any program is that it is 100% free of “negative impacts”, then you’re either as dumb as a brick…or you think your audience is.

 

Since you didn't reply directly to me, it isn't clear to me where this post fits into anything, but as I appear to be the only one talking about negative impacts on things, I'm going to address your point in the context of my post.

 

Well that's true but broad based inflation is generally considered to be bad for most people and businesses and also tends to be especially regressive and so hurts the poor and small businesses the most.

 

I didn't talk about some negative impact for some people.  I talked about a very specific negative impact (inflation going up).  If you want to argue that inflationary changes due to the federal government over spending isn't a big deal, isn't likely to happen, or isn't something that should be carefully considered, then you are welcome to do so.  But I think that's not an argument supported by most economists or public policy people.

[Califan007 The Constipated]

4 minutes ago, PeterMP said:

 

He should ask for a discount back on his college degree.  His logic is very poor.  The education that he got isn't worth much.

 

The person ALREADY has the degree.  This isn't making anybody more educated, doesn't make it easier for anybody else to get a degree in the future, and might make the problem worse.

i thought it was obvious he wasn’t being literal.

 

it wasn’t about “paying” for someone’s degree to help them become more educated. It’s about the concept of “If one of the results of a more educated society is all of us helping to ‘pay’ off student loan debt, I’m all for it.”  It’s also a shot at the mindset of the GOP echo chamber of “I didn’t get any help, why should you”…

[PleaseBlitz]

24 minutes ago, PeterMP said:

He should ask for a discount back on his college degree.  His logic is very poor.  The education that he got isn't worth much.

 

The person ALREADY has the degree.  This isn't making anybody more educated, doesn't make it easier for anybody else to get a degree in the future, and might make the problem worse.  This literally does nothing to support living a more educated society and might actually make college harder for people to afford in the future.

 

The other problem with his logic is he pays for LOTS of things, via taxes, that he doesn't get the direct benefit from and may completely disagree with, but it's not a choice he has to apportion where his taxes go.  Under his logic, I paid Donald Trump and his whole illiterate family's government salary for 4 years and I sure as **** didn't want to do that.  

 

I, of course, agree with his overarching point, I just don't like that people are feeding this "OMG THE PLUMBERS HAVE TO PAY FOR THE DOCTOR'S EDUCATIONS" bull**** premise. 

Edited August 26, 2022 by PleaseBlitz

[TradeTheBeal!]

12 minutes ago, PeterMP said:

 

I didn't talk about some negative impact for some people.  I talked about a very specific negative impact (inflation going up).  

This you?

 

19 minutes ago, PeterMP said:

This isn't making anybody more educated, doesn't make it easier for anybody else to get a degree in the future, and might make the problem worse.  This literally does nothing to support living a more educated society and might actually make college harder for people to afford in the future.

Anyhoo…it’s a nice little boost for the working class/mainstream constituencies at a time when they likely really need it.  Beyond that, it puts a cap on interest expense.  Which is wonderful.  And it’s also a politically savvy move going into a midterm election with many, many nazis and confederates on the ballot.  
 

Any effect on inflation will likely be fairly mild.  And there’s plenty of good economics out there to back up that assertion.

[LD0506]

[TheDoyler23]

3 hours ago, Skinsfan1311 said:

How will this handout be paid?

Tax increases or spending cuts? 

I'm pretty sure that it's one, or the other and, if I was a betting man, I'd bet on tax increases.

 

[The Evil Genius]

This isn't good but there is time for the states to fix it.

 

 

[The Evil Genius]

 

[Califan007 The Constipated]

^^^ From that same thread…

 

 

[Dr. Do Itch Big]

7 hours ago, PeterMP said:

 

It seems unlikely that we can do that too without there being some negative consequences.  At least the most generally accepted economic theory does still support that there is a relationship between government spending and inflation.  Putting too much money in people's hands to spend on other stuff eventually does have a negative impact.

 

We in theory could have all sorts of things that are good for the economy because they allow people to spend money on other things.  I don't think anybody would suggest that doing that at any and all levels won't come with some negative impacts.

 

 

He should ask for a discount back on his college degree.  His logic is very poor.  The education that he got isn't worth much.

 

The person ALREADY has the degree.  This isn't making anybody more educated, doesn't make it easier for anybody else to get a degree in the future, and might make the problem worse.  This literally does nothing to support living a more educated society and might actually make college harder for people to afford in the future.

While I understand what you are saying. Have you considered that it might incentivize people to get graduate degrees? Yo Boi included. I don’t have a lot of student loans compared to some but one of the biggest reasons I didn’t want to go to graduate to school was because of the my student loan debt. 
 

Being in debt is a huge psychological factor for a lot of people. This would help alleviate that. 

[Cooked Crack]

 

[The Evil Genius]

 

[@DCGoldPants]

Anything suggest to take recovered PPP loan $$ from both fraud and legit businesses paying back (are there any?) should go to the student loan forgiveness?. Even if they are just taking hundreds of millions and not billions. That's something. 

[TheGreatBuzz]

On 8/26/2022 at 8:54 AM, Llevron said:

 

Someone smarter than me.....am I to  too simplistic in thinking that this is a net positive for the country in the long run?

 

 

I mean......you wrote it.

[Cooked Crack]

 

Why don't these lazy gender studies majors just get a book deal?

[Cooked Crack]

Sound logic

 

[Renegade7]

 

[tshile]

I’m asking here cause seems like the most likely to hit someone that may know
 

really the question is just: should I make it a point to tell them they should consult a certain of profession with taxes 

 

they’re family of mine. He’s retired military officer with good post-military job. He’s maybe just under the cap (unless the military income doesn’t count at all?) but good chance over. 
 

they had lots of kids so even though she had a great career she wound up a stay at home mom. I cannot think of a reason she’d have any income over the last… 10ish years. I can’t imagine she was anything other than a dependent except maybe if she had to do something to claim various relief/stimulus over the last few years. 
 

can she file separately at this point and qualify for the relief?

 

[Cooked Crack]

 

[JamesMadisonSkins]

My wife has $190k in student loan debts from graduate school and has decided to stay home with our kids. She is the last person to complain about her debt. She knows she took it out, although feels a bit duped in hindsight, and takes responsibility for it.

 

Pre-COVID we were doing income-based repayment from 2015-2020, with two young kids, it is about all we could contribute without sinking. It amounted to about $700-900 a month depending on the year. 

 

Anyway, her debt is $10k more than it was when she graduated, because the monthly interest alone is like $910. 

 

So yeah, while I appreciate that $10,000 ... doing something about the interest rate so that our monthly interest wasn't $900+ so we could actually start taking down some of that principal. In the roughly 5 years before payments were frozen in 2020 that we were paying them, I think we had paid about $50,000 toward the loans. And owe $10,000 more than we did at the beginning. 

 

The debt repayment is what it is. She took out the loans knowing what she was doing. But the fact that her loans are just gaining every month is brutal. Especially since she's home with the kids for the forseeable future. And she's decided when she does open back up her practice part time, she's just going to put all her earnings toward her student loans and MAYBE we could pay them off in 10 years from that point on.

 

If we stick with income-based, and just flush that $$ down the drain, I think in 20 years (25, but she has 5 years of paying), the debts are forgiven, but you have to claim the balance as income and are taxed on that in one year, so we're going to have to have something like $100,000 sitting around to pay that tax when the time comes.

 

Do something about the damn interest rates.

 

And no, we didn't consider doing a private refinance because they lock you into a 10 year repayment, so while we could have lowered the interest rate to 4%, it would have forced us to pay them off in 10 years, something we haven't been financially willing to do.

Edited August 31, 2022 by JamesMadisonSkins

[TheGreatBuzz]

No offense but.... why do people ever agree to that to begin with?

[tshile]

Yeah I feel bad you’re in a situation that sucks but that’s an awful lot of money to stay at home.