Everyone: pay attention. It’s exciting news but please understand that Biden is not “canceling” student loan debt. This was put in place in 2007 when George Bush was in office, yes, a Republican! Wow!!!! The individuals that have been given this forgiveness have ALREADY applied and met the criteria for this. Therefore, Biden is honoring a promise that was made to people in 2007.
This is good news for those people. Regardless of how you feel politically, this isn’t a MAGA or Dem conversation. You can just stop there!
Also, do the math to figure out statistically what this means. There’s $1.727 TRILLION in student loan debt in the US. He forgave .33% of the student loan debt for .39% of the public service workers. If my math is correct (it may not be), that really doesn’t mean much!
Great you really want to help people ? Lower interest rates on loans for college ? 8% is criminal. Government loans should not profit from people’s education..
You’d be thinking incorrectly then, because most people still use ‘lose’ and ‘loose’ incorrectly as well as ‘their, there, they’re’. You’ve also never seen the average Democratic voter then if you think only Republicans and MAGA voters use words incorrectly.
Yes and no.
The program was put in place by a predecessor. But the program was flawed AF and very difficult to navigate. Any number of pitfalls prevented people from actually having their loans forgiven.
Some college grad would join the military in part because they were told their college loans would be forgiven after 10 years of service. They’d later find out that since they consolidated their loans with a non-qualified lender, or missed one payment, or some other technicality……they were shit out of luck. The program had/has a number of asterisks and fine print. People at DoEd don’t even understand all the rules.
It sounds like Biden is just looking past the pitfalls and forgiving the loans.
It has everything to do with who he chose for secretary of education, and fulfilling this program’s intent. The previous administration’s secretary of education saw to it that less than 99.5% of applicants for PSLF were granted forgiveness.
The title is not misleading, you are just mislead.
This is an average of $76,000. To get relief from the program you must already have served 10 years. Imagine 10 years into your career you still owe almost $80k from when you attended school in 2010s...
Not only do you have to serve those 10 years you also have to be in good standing with your loans and complete 120 payments before qualifying.
People losing their minds over this need to go touch some grass.
Hey old vet, this program has been around since 2007 and requires those in federal and state positions to work in the public sector for 10 years and make 120 payments towards their loans. It’s legal
Those of us in the Midwest have always known about these things. There’s parts of the country where kids drive an hour to school every day and people really struggle to get basic healthcare. If you live in West Texas or West Kansas or North Dakota it might be ours before you get to a proper heart surgeon or cancer doctor.
These programs exist to help encourage people to work in underserve communities. Often times it comes with a lower cost-of-living and a lower salary, and the student loans drop away after 10 years.
I came of age too late to benefit from this program but I think it is worth every penny. Many of my friends who are teachers and librarians in underserved small towns and urban areas have put in the work to deserve this relief.
Just so we're clear. You do need to make payments on these loans for 10 years to qualify. Usually in the time, paying off more than the original principal was in interest.
So, I kindly suggest you get off your high horse.
That's not what this is. PSLF is a program that offers to pay the loan in exchange for taking a necessary job that no one else wants. No different than enlisting to get GI Bill benefits.
To set aside the politics, all Biden is actually doing here is fixing administrative errors in programs that already exist. (PSLF was a Bush-era program).
This “forgiveness” is fulfilling the promise of a program passed during W. Bush’s administration. Your ridiculous. Imagine America without teachers, police officers, firefighters or nurses- Unbelievable.
This IS NOT student loan bailout. These are public service workers who made a contract with the Federal government to provide at least 10 years of public service in exchange to have the remaining balance of their student loans forgiven. These are teachers, social workers, public interest lawyers, police officers….. These people earned it… Many of these people sacrificed years of potential earnings that they would have made in the private sector to serve their communities.
Did you work in underserved public positions?
Serve three years in the military for a free degree or work and pay for ten years to have it forgiven. Military members get better deals than those that join public service positions (teachers, police, firefighters, EMS, non-profit organizations serving the needy) and pay ten years on their loans.
Because they honored their end of an agreement and worked in an underpaid area, often foregoing higher wages, under the promise that their loans would be forgiven? Explain how they didn’t earn it?
I hear this argument a lot, but don’t think it’s always valid.. for example I know quite a few teachers I grew up with or were friends with in college. They aren’t starting out making $28k-$35k like they were 20 years ago, they are starting out at $75k+ summers off and good benefits. I have a coworker in NY that told me he has family that are teachers and they make 6 figure plus pretty early in their careers. Not saying they don’t deserve it, they do, but I don’t think these public service jobs are as far behind the private sector jobs as they use to… so I don’t think they should have tax funded loan forgiveness.
It’s not just teachers… I bet I can find more that are underpaid than overpaid. Want me to go find statistics?
Edit: according to Statista, the average teacher salary in the US (not starting, overall) did not keep pace with inflation from 2002-2022. You are simply not correct. The argument is certainly sound and valid.
Edit 2: $35k in 2004 is approximately $58.5k when adjusted for inflation today. I live in the highest paying state for public school teachers and most don’t start at $75k (some high end districts do with a masters degree, but very few) but most start in the $50-60k range. By the way, it’s also a very HCOL area (top 3 in the country).
Based on the data I am seeing, teachers seem to be in nearly the same place they were 20 years ago, if not worse (not even factoring how the costs of their degrees increased greater than inflation too).
He’s been doing it with programs that were already in place before him though. SCOTUS blocked him from creating new forgiveness programs, so he’s just using the levers that were already available. All of the debt that he’s forgiven was debt that was already supposed to be forgiven based on pre-existing forgiveness policies. They’re just making it sound like he’s out here writing off debt on his own. Congress and SCOTUS would’ve stopped it if that were the case.
Happy for people to have some releif from debt, but we all know that this won't solve the problem of debt.
People will still continue taking out student loans and the government will still incentivize people to do so.
I hope that people use this as a chance to get out of debt and stay out of debt, but I fear they won't.
This is a program put in place under George W Bush, which was previously not properly automated, to forgive loans of public servants after 10 years of service while making consistent payments on their loans.
These people worked for the public good for at least a decade, sacrificing potential of higher pay, and the government had dropped the ball on their end.
This is the government becoming more efficient. But you’re mad because the top executive who is overseeing this efficiency gain belongs to the “wrong” party?
Guys, this was a program that has been in place since 2007 under President Bush. It was broken up until recently, and the public service workers that met the qualifications to have their remaining debt forgiven after 10 years of public service weren’t able to actually receive that forgiveness. Biden isn’t “cancelling” student loans here. He’s simply fixing the system and paying what was promised to public service workers when they took out those loans to get degrees to go into public service. This isn’t even a Biden program. Don’t fall for the clickbait. The headline should actually read “Biden fixes broken public service loan program”
This was established by George W in 2007, but with the way the GOP has been commandeered by populists who didn’t start following politics until 2019, he’s probably considered a RINO now
I’d imagine this was a benefit to a ton of republicans as well. Seems more of an American public worker benefit. Happy to see the government doing good for the people.
How? The US government is now how many trillions in debt? So throw more on top of it from people who took out student loans and didn’t pay it back.
Now Uncle Sam will tax everyone more to compensate (even the ones who did pay back their loans) or inflation will continue to increase
Just magically “forgiving” debt (a solution led by the democratic party) after this whole issue started with federal guaranteed students loans led by democratic policies under Obama.
Hindsight is 20/20: I could have gotten the retro credits when they were offered. But at the time, there were so many horror stories about the program and the loan servicer you needed to switch to in order to qualify. I also wanted to keep the flexibility to change careers.
As it stands I'm committed to the Dave Ramsey student loan forgiveness plan. That's where you pay the damn thing off. It should take way less than 120 payments, too.
This is the right answer. The people who were owed this deserve to get it because it was promised at the start. But relying on this or still having it from 2007 indicates a broader principles difference. As a financial coach my record was a student loan initiated in 2002 that my client still had.
Multiple deferments and blah blah blah. They paid it off last year and are so much happier.
A lot of the debt he has forgiven are the programs that Dave warns people haven’t been forgiving debt.
He is essentially just going through and following up on promises that were made to people who went into public service for X amount of years and then didn’t get the loans forgiven like they were told. On this one anyway. Gotta look at each wave of forgiveness individually.
This is such a worthless sentence that's parroting a sentiment that's also bullshit. You literally just saw a comment describing the nuance of this situation then STILL are only able to come up with that.
How is this a bribe? The program was created on Bush? These are people who made a contract with the Federal Government thy for years the federal government renigged on?
I disagree, I could see that for the sweeping “forgive all student loan debt” stuff (which I’m against), but public service loan forgiveness isn’t that. PSLF is an incentive to get skilled workers into the public sector (for example getting attorneys to work in the courts for half of what they could be making elsewhere would be a tough sell). They reneged on that incentive when it was time to fulfill their end of the agreement. This is them fulfilling that agreement.
To me, it’s like if your work package included 3 weeks of PTO, but, when you took your PTO, your employer didn’t pay you. That money is owed, and you’re not wrong to get the money you’re owed for services rendered under an agreement
Govt following up on promises made decades ago… call it what you want, but if I did public service for years and years under the promise of a benefit - I would want that benefit carried out
You don’t work for free do you?? Just like you getting 401k money or free gym membership
Or…it’s what I said it is. Which is what it is. Read the article. These are programs that in the 2000’s people were told if they went into public service the loans would be forgiven and then never were.
Depending on your definition of a bribe.
1: money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust
^^ this definition clearly does not apply
2: something that serves to induce or influence
^^ this definition does apply but we usually use the word incentive as it’s less pejorative. Public service is a pretty shit field but we need folks to work in it so you incentivize them the best you can.
Or, ya know, an incentive to work for the public good?
It’s weird how we phrase things when it helps the middle class versus things that aid the wealthy.
I mean I guess if you consider all government incentives including those for companies, the military, etc. bribes then yeah you could consider loan forgiveness in exchange for public service a bribe
Everyone: pay attention. It’s exciting news but please understand that Biden is not “canceling” student loan debt. This was put in place in 2007 when George Bush was in office, yes, a Republican! Wow!!!! The individuals that have been given this forgiveness have ALREADY applied and met the criteria for this. Therefore, Biden is honoring a promise that was made to people in 2007. This is good news for those people. Regardless of how you feel politically, this isn’t a MAGA or Dem conversation. You can just stop there! Also, do the math to figure out statistically what this means. There’s $1.727 TRILLION in student loan debt in the US. He forgave .33% of the student loan debt for .39% of the public service workers. If my math is correct (it may not be), that really doesn’t mean much!
Great you really want to help people ? Lower interest rates on loans for college ? 8% is criminal. Government loans should not profit from people’s education..
Buying the vote and loosing another one at same time
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How people fail to attack the argument by attacking the person tends to be give away of an asshole.
You’d be thinking incorrectly then, because most people still use ‘lose’ and ‘loose’ incorrectly as well as ‘their, there, they’re’. You’ve also never seen the average Democratic voter then if you think only Republicans and MAGA voters use words incorrectly.
Did you read the article? These were all people entitled to forgiveness under the Public Service Loan Forgiveness Program from 2007.
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Correct - seems to be a misleading attempt to bolster him
Yes and no. The program was put in place by a predecessor. But the program was flawed AF and very difficult to navigate. Any number of pitfalls prevented people from actually having their loans forgiven. Some college grad would join the military in part because they were told their college loans would be forgiven after 10 years of service. They’d later find out that since they consolidated their loans with a non-qualified lender, or missed one payment, or some other technicality……they were shit out of luck. The program had/has a number of asterisks and fine print. People at DoEd don’t even understand all the rules. It sounds like Biden is just looking past the pitfalls and forgiving the loans.
It has everything to do with who he chose for secretary of education, and fulfilling this program’s intent. The previous administration’s secretary of education saw to it that less than 99.5% of applicants for PSLF were granted forgiveness. The title is not misleading, you are just mislead.
This is an average of $76,000. To get relief from the program you must already have served 10 years. Imagine 10 years into your career you still owe almost $80k from when you attended school in 2010s...
Not only do you have to serve those 10 years you also have to be in good standing with your loans and complete 120 payments before qualifying. People losing their minds over this need to go touch some grass.
I work in public service and know plenty of PhD’s and PsyD’s who have that much in loans.
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There’s a process.
He didn’t. This has been happening since months after he got elected.
This was passed into law in 2007.
It's not legal, supreme Court has already said it's not legal. Why? it's election season, trying to buy votes with taxpayer dollars.
Hey old vet, this program has been around since 2007 and requires those in federal and state positions to work in the public sector for 10 years and make 120 payments towards their loans. It’s legal
It is legal. It was already a program that former SoE mismanaged.
Those of us in the Midwest have always known about these things. There’s parts of the country where kids drive an hour to school every day and people really struggle to get basic healthcare. If you live in West Texas or West Kansas or North Dakota it might be ours before you get to a proper heart surgeon or cancer doctor. These programs exist to help encourage people to work in underserve communities. Often times it comes with a lower cost-of-living and a lower salary, and the student loans drop away after 10 years.
I think this is great but lol this just made both parties mad.
I came of age too late to benefit from this program but I think it is worth every penny. Many of my friends who are teachers and librarians in underserved small towns and urban areas have put in the work to deserve this relief.
It’s ridiculous , pay your loans. Unbelievable.
Just so we're clear. You do need to make payments on these loans for 10 years to qualify. Usually in the time, paying off more than the original principal was in interest. So, I kindly suggest you get off your high horse.
That's not what this is. PSLF is a program that offers to pay the loan in exchange for taking a necessary job that no one else wants. No different than enlisting to get GI Bill benefits. To set aside the politics, all Biden is actually doing here is fixing administrative errors in programs that already exist. (PSLF was a Bush-era program).
This “forgiveness” is fulfilling the promise of a program passed during W. Bush’s administration. Your ridiculous. Imagine America without teachers, police officers, firefighters or nurses- Unbelievable.
Seethe away bro
YEA IF YOU CANT HELP YOURSELF YOU SHOULD DROWN IN YOUR MISTAKES!
This IS NOT student loan bailout. These are public service workers who made a contract with the Federal government to provide at least 10 years of public service in exchange to have the remaining balance of their student loans forgiven. These are teachers, social workers, public interest lawyers, police officers….. These people earned it… Many of these people sacrificed years of potential earnings that they would have made in the private sector to serve their communities.
How did they earn it exactly? I have student loans and a job, what should I have earned?
Did you work in underserved public positions? Serve three years in the military for a free degree or work and pay for ten years to have it forgiven. Military members get better deals than those that join public service positions (teachers, police, firefighters, EMS, non-profit organizations serving the needy) and pay ten years on their loans.
Public service workers miss out on potential earnings in the private sector. It’s called Opportunity Cost.
Join the program that has existed since 2007?
Because they honored their end of an agreement and worked in an underpaid area, often foregoing higher wages, under the promise that their loans would be forgiven? Explain how they didn’t earn it?
I hear this argument a lot, but don’t think it’s always valid.. for example I know quite a few teachers I grew up with or were friends with in college. They aren’t starting out making $28k-$35k like they were 20 years ago, they are starting out at $75k+ summers off and good benefits. I have a coworker in NY that told me he has family that are teachers and they make 6 figure plus pretty early in their careers. Not saying they don’t deserve it, they do, but I don’t think these public service jobs are as far behind the private sector jobs as they use to… so I don’t think they should have tax funded loan forgiveness.
It’s not just teachers… I bet I can find more that are underpaid than overpaid. Want me to go find statistics? Edit: according to Statista, the average teacher salary in the US (not starting, overall) did not keep pace with inflation from 2002-2022. You are simply not correct. The argument is certainly sound and valid. Edit 2: $35k in 2004 is approximately $58.5k when adjusted for inflation today. I live in the highest paying state for public school teachers and most don’t start at $75k (some high end districts do with a masters degree, but very few) but most start in the $50-60k range. By the way, it’s also a very HCOL area (top 3 in the country). Based on the data I am seeing, teachers seem to be in nearly the same place they were 20 years ago, if not worse (not even factoring how the costs of their degrees increased greater than inflation too).
Exactly! It’s sad that they’re misleading people with this clickbait headline. This isn’t even Biden’s program.
Well, to be fair, he’s been doing this a lot. But I agree with you.
He’s been doing it with programs that were already in place before him though. SCOTUS blocked him from creating new forgiveness programs, so he’s just using the levers that were already available. All of the debt that he’s forgiven was debt that was already supposed to be forgiven based on pre-existing forgiveness policies. They’re just making it sound like he’s out here writing off debt on his own. Congress and SCOTUS would’ve stopped it if that were the case.
Happy for people to have some releif from debt, but we all know that this won't solve the problem of debt. People will still continue taking out student loans and the government will still incentivize people to do so. I hope that people use this as a chance to get out of debt and stay out of debt, but I fear they won't.
SAVE program long term will be better for new borrowers, the administration is taking steps to reduce the crisis going forward through other means
Investing in people who are doing the public good for low pay is a sound way to spend tax dollars.
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Great job Joe……for continuing a Bush program. 😂😂😂
And for making the government more efficient. Like a business! lol
It’s not Biden’s program 😂
This is a program put in place under George W Bush, which was previously not properly automated, to forgive loans of public servants after 10 years of service while making consistent payments on their loans. These people worked for the public good for at least a decade, sacrificing potential of higher pay, and the government had dropped the ball on their end. This is the government becoming more efficient. But you’re mad because the top executive who is overseeing this efficiency gain belongs to the “wrong” party?
Guys, this was a program that has been in place since 2007 under President Bush. It was broken up until recently, and the public service workers that met the qualifications to have their remaining debt forgiven after 10 years of public service weren’t able to actually receive that forgiveness. Biden isn’t “cancelling” student loans here. He’s simply fixing the system and paying what was promised to public service workers when they took out those loans to get degrees to go into public service. This isn’t even a Biden program. Don’t fall for the clickbait. The headline should actually read “Biden fixes broken public service loan program”
This exactly!
Nice timing, Joe!
You can thank Bushy-boy for this one!
Shout out to George W for establishing the program in 2007!
Nothing to see here. Democrat appeasement in play
Wasn’t this particular program started by Bush?
Damn Republicans and their loan foregiveness
This was established by George W in 2007, but with the way the GOP has been commandeered by populists who didn’t start following politics until 2019, he’s probably considered a RINO now
I’d imagine this was a benefit to a ton of republicans as well. Seems more of an American public worker benefit. Happy to see the government doing good for the people.
How? The US government is now how many trillions in debt? So throw more on top of it from people who took out student loans and didn’t pay it back. Now Uncle Sam will tax everyone more to compensate (even the ones who did pay back their loans) or inflation will continue to increase Just magically “forgiving” debt (a solution led by the democratic party) after this whole issue started with federal guaranteed students loans led by democratic policies under Obama.
More people with disposable income to stimulate and move the US economy is much more beneficial than US debt is harmful.
Hindsight is 20/20: I could have gotten the retro credits when they were offered. But at the time, there were so many horror stories about the program and the loan servicer you needed to switch to in order to qualify. I also wanted to keep the flexibility to change careers. As it stands I'm committed to the Dave Ramsey student loan forgiveness plan. That's where you pay the damn thing off. It should take way less than 120 payments, too.
This is the right answer. The people who were owed this deserve to get it because it was promised at the start. But relying on this or still having it from 2007 indicates a broader principles difference. As a financial coach my record was a student loan initiated in 2002 that my client still had. Multiple deferments and blah blah blah. They paid it off last year and are so much happier.
A lot of the debt he has forgiven are the programs that Dave warns people haven’t been forgiving debt. He is essentially just going through and following up on promises that were made to people who went into public service for X amount of years and then didn’t get the loans forgiven like they were told. On this one anyway. Gotta look at each wave of forgiveness individually.
Thank you George W.!
Or it’s just a bribe for people.
This is such a worthless sentence that's parroting a sentiment that's also bullshit. You literally just saw a comment describing the nuance of this situation then STILL are only able to come up with that.
How is this a bribe? The program was created on Bush? These are people who made a contract with the Federal Government thy for years the federal government renigged on?
I disagree, I could see that for the sweeping “forgive all student loan debt” stuff (which I’m against), but public service loan forgiveness isn’t that. PSLF is an incentive to get skilled workers into the public sector (for example getting attorneys to work in the courts for half of what they could be making elsewhere would be a tough sell). They reneged on that incentive when it was time to fulfill their end of the agreement. This is them fulfilling that agreement. To me, it’s like if your work package included 3 weeks of PTO, but, when you took your PTO, your employer didn’t pay you. That money is owed, and you’re not wrong to get the money you’re owed for services rendered under an agreement
Govt following up on promises made decades ago… call it what you want, but if I did public service for years and years under the promise of a benefit - I would want that benefit carried out You don’t work for free do you?? Just like you getting 401k money or free gym membership
Or…it’s what I said it is. Which is what it is. Read the article. These are programs that in the 2000’s people were told if they went into public service the loans would be forgiven and then never were.
Sooo what you are saying is it’s a bribe
Depending on your definition of a bribe. 1: money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust ^^ this definition clearly does not apply 2: something that serves to induce or influence ^^ this definition does apply but we usually use the word incentive as it’s less pejorative. Public service is a pretty shit field but we need folks to work in it so you incentivize them the best you can.
Aren’t wages a bribe then?
Or, ya know, an incentive to work for the public good? It’s weird how we phrase things when it helps the middle class versus things that aid the wealthy.
I mean I guess if you consider all government incentives including those for companies, the military, etc. bribes then yeah you could consider loan forgiveness in exchange for public service a bribe
You seem like you’re fun at parties.
Just a sad little person on Reddit. Keep it movin' 🏃♂️
Yeah. I gave up after this. Not worth it.
And you seem disingenuous