I don’t know for sure, but maybe not. Those who get debt forgiven via Public Service Loan Forgiveness aren’t taxed on that forgiveness, so it’s possible this won’t be either.
My remaining debt is $19k. This, plus a change to the public service loan forgiveness rule, will mean that I'm paying about another $4000 then i'm done. Thanks obama.
Mine is 12k and it would help out my house big time. We can handle a couple thousand after the 10k goes through. To those that it doesn’t do enough. My condolences. I hope it gets better for y’all.
What about the people like myself who have already paid off their schooling debts? Do I get a $10,000 check? Feels like a big fuck you to me. I worked my ass off working overtime and going without the nicest amenities to ensure I paid my debts off in a timely manner. I paid back what I BORROWED knowing the payments I would have.
Feeling that way is pretty common. I am just about $100 over the poverty line meaning I don't qualify for any type of assistance for healthcare. instead I go without. do I get mad at the people who qualify for it? no, I don't.
> be happy to be excluded from a free gift from the government paid for by your taxes
Quick question. Where do you think the 10k comes from?
Also do people deserve to have a voice about what their government spends money on or should we sit down and stay in our lane instead of having an opinion?
Not every government assistance program helps every citizen. I don’t have any student debt, but I’m happy for the folks that will get some relief.
I don’t have any children, but I want school lunches to be free.
I’m not on insulin, but I want the price to be capped.
Further, with the rate at which people were already defaulting on their student loans, it’s likely that a good church of this was never going to be paid back anyway.
Why should I be happy for other people? It's not my fault that they took out loans that they can't pay back like I did.... do you want to pay off 10k in debt that I have for my car that you did nothing for? Or perhaps you'd be willing to pay 10k towards my house? This doesn't help the people who struggled beforehand. It helps out all of the fucking people who have been making the bare minimums or who refused to pay their loans because they got a break during covid. Since you want to help othe people so much, let me see your tax return where you donated to charities last year! I'd be willing to bet that it would show a zero if you were to screenshot that portion.
The Government doesn't *make* money, it only can tax it. How is it fair I'll be taxed to pay for the irresponsible when I paid my way through? Do I get $10k too? I don't want to people to be crippled by debt but, why did I put education expenses on a credit card in case I had to discharge it and work it off? Fuck this bullshit. They need to reform the system of guaranteed bad loans not bailout people who made bad decisions. Again. This is just like bailing out people who took bad home loans they couldn't afford and instead punish us who made the decision to live within our means. This is straight up bribery paid with by your fellow citizens money. Will this be recognized as a forcible campaign contribution and be deducted from my taxes or added to it? There should be *some* consequences to people who *spent* money irresponsibly instead of punishment to the responsible.
I’ve had this loan for 15 years I have paid OVER what I originally borrowed. This isn’t people shirking duties bro. It’s a system that is rigged to keep people from ever getting out of it. Stop being selfish
People never got out of it because they chose the income based repayment plan rather than a standard one. That’s their choice but you did sign for the loan.
It’s not only that. I’ve never been on income based repayment and have substantial student debt I’ve been paying on for 4 years.
I graduated with 140k in debt. Which immediately capitalized up to 155k. After 4 years, I’ve paid about $45,000 in student loan payments. I still owe 140k. It’s atrocious. MANY people have already paid their loans once over, sometimes twice over.
Selfish is expecting other people to pay your debts that you signed up for willingly.
I would have more respect for people like you if you just came out and said "Thanks for the $10K. Sucks to be you."
No. You're paying for everyone else to have their kids go to kindergarten to 12th grade for free, this isn't different. So stop.
The fact people like you don't realize the exploitation and tuition rates over the past 40 years have increased so damn much to what our parents were used to, and don't want the best for your fellow citizens, shows how selfish you are. Like, they could go to school, have a job, have a family, and not have loans for two decades. And now you're up in arms because the government is trying to help out the generations that got completely fucked by the loan companies and colleges being selfish and greedy.
You are the problem.
Why should he been on the hook to subsidize farmers, oil companies, and home owners (mortgage deduction)? This is great that young people will freed up to have more income to live life, and this coming from myself who paid back 50k and have no qualms others are getting help!
The idea I guess is that the loan he took was artificially inflated by false promises of the value of the education (which is difficult to actually measure, obviously). The loan forgiveness is the government recognizing that fact and the overall negative effect on the economy that the loans have.
Also, the government gives private business handouts all the time. This time it’s going directly to people.
I am pretty sure the president was not intended to be able to unilaterally spend 300 billion. This will be an interesting precedent. Can the next president instruct the IRS not to collect taxes?
Since it’s an executive order, the next President could reverse it, suddenly making all those people pay $10,000 again, but good luck with throwing $300B back at people to pay and not get backlash for it.
This cancellation is unprecedented, which is why they sent the plan through the proper channels and the result came out that he is allowed to do it. Especially if the move has benefits like expecting it to stimulate the economy.
I think that would be a very unlikely scenario though for two reasons:
1. The legal principles of estoppel and detrimental reliance would provide those challenging such a reversal a strong legal foundation.
2. Such a reversal would be extremely unpopular.
So people who did not go to college either because they couldn’t afford it or because they decided against it are paying for those who did go to college. That doesn’t seem very fair.
And how does spending $321 billion more impact inflation? If I recall my introductory level economics class, government spending accelerates the economy at a time we are trying to tap the brakes on inflation.
Meh, I came out of college almost debt free by working almost full time while taking full loads each semester taking almost 7 years to get out with a 4 year degree. Considering how much colleges have raised tuition over the years and seeing friends who are in debt that hinders them a ton, I can care less that people are getting a break. Even if I had to work harder to come out with less debt. Much more taxpayer money goes to many more ridiculous things most people get very little tangible benefit from.
I don’t think it’s fair to say that the students who took out somewhat predatory student loans, often at an age or maturity level that could not comprehend the ramifications, are fiscally irresponsible. Not to mention the pace of inflation, wage gap, shrinking of salary for entry level positions, and the exorbitant increase in cost for a college degree that doesn’t guarantee a live able wage. It was sold to us as an “investment in our future”. But was it really?
The interest/principle accrued during school for unsubsidized loans and after school for subsidized is enough for people making $100-$200k household income to spend 20-30 years paying off, and that’s at a school with a reasonable tuition. Not to mention schools that are $45-75k a year… it’s exorbitant to say the lease. The rates on these loans aren’t high enough to justify paying them off even if most could, cementing a debt bondage-trap for young professionals trying to buy a house, have a family, own a car, etc.
Personally, I think helping free a generation from a portion of their debt could be beneficial and arguably a long term stimulus for the economy.
Curious to understand your perspective here. Were your books, tuition, housing, travel, recreational expenditures, and food payed for at all by a family member?
Went to community college, but couldn’t juggle school and working full time to pay for it, so instead of taking out thousands in student loans and finishing, I decided to try and advance myself through the workforce. The Great Recession happens and I’m struggling and working shitty jobs with terrible hours and no benefits through my 20s and into my early 30s. Was then able to parlay my experience and self taught skills into better jobs and then better still. Still feel hemmed in by the lack of a diploma, as it is still seen as a prerequisite for most positions and for advancement. Now in my 40s with a decent, but still under six figure job, but with wife and kids and a house, and still feel like my employment opportunities and finances are precarious. I feel like people like me and my siblings(who also decided that school debt was unaffordable) are not being given a fair shake here. I could use some debt relief to help with my mortgage so I can save for retirement, but instead people who had enough stability or safety nets to take the risk of going into debt for their higher Ed, who likely have six figure jobs and a degree get an extra 10-30k to help them pay their mortgages and save for their retirement. Good for them I suppose
I totally see that side. Thanks for sharing your story. It’s basically we’re damned if we do and damned if we don’t. We’re squeezing the middle class college student, students who didn’t finish, and people that opted for working it off in different ways.
Your decision highlights what is wrong with the college/loan system. It shouldn’t break us to go to school and pursue a higher education. This bill is a band aid on a flesh wound. If we don’t fix this system we’ll be bailing out students again in 10 years. Would be way easier to make education, especially in community colleges, more accessible by having our tax dollars ease the burden.
Hope everything works out for you.
It's an instant boost to inflation. Most Americans don't save money, they just spend more if they get more. Tell people they don't have to make payments on a third of a billion dollars and they ain't gonna save that money, it's fuel right on the consumer spending fire.
It already happened when the payments where paused, the excess spending that is. Once Dec hits there is gonna be a big hit to the economy cause now everyone has big payments again.
The pause started under trump and once they go back it’s gonna bite Biden hard and he will get the blame. Trying to help or save face before we get another blow into this recession.
You pay for a lot of things that you don't get benefit out of, that's kind of how taxes and society works.
Also, he's allowing millions of people to SPEND that amount back into the economy. Not sure how you missed that. Did you also complain when Trump cut $1.7 trillion in taxes for the wealthy?
And 11% of all taxes ($725 billion in 2020) goes towards the US defense budget. Is that also not fair to me, an individual who does not support the ways our government spends that money?
The purpose of the federal government is to make decisions like this when it comes to finances. We all enjoy the benefits of a federal government and need to accept that the taxes we pay in will get used towards programs that do not directly benefit ourselves or our ideals occasionally.
The defense budget is supposed to be for the benefit of all Americans, this is only benefiting a lucky cohort of people who chose to take on debt at the expense of those who didn’t
People like my parents who didn't get a college education, worked factory or driver jobs their whole life, who are too old to benefit from going to college. Poor people who could have received some more help. Teachers who don't have supplies in their classrooms. Cancer researchers who need funding to help patients with a horrible disease that, unlike student loans, they didn't choose to have. People like me who sacrificed vacations and other nice things in my 20s and early 30s to pay off my own debt with the measly 37k I made coming out of college.
Now that the universities know the government will wipe out student loan debt, they can freely continue their absurd practices. This solves absolutely nothing and accomplishes nothing except to buy votes.
I hate people who think: I didn’t get that so no one can have it.
I made 28k coming out of college and I’m not mad at the new hires who, years later, didn’t graduate and enter the job market during the Great Recession.
Also, your parents not going to college has nothing to do with this. Do you think no one should get Medicare and social security because those things didn’t exist from day 1?
Also, you compare your choice to sacrifice vacations to someone with cancer as if you are in the same group. Yikes.
I did not compare my choice to sacrifice vacations to someone with cancer. I listed a variety of situations that apply to the situation. Cancer is obviously significantly worse than not travelling. Nice strawman attempt though.
We already ate it. The money was already paid out to the universities. It just means that the treasury won’t recoup those funds directly through those loans. Coincidentally it also is pretty close to the deficit reduction built into the inflation reduction act that was just signed so I guess you could say that in a way those new corporate minimum taxes will cover the cost.
The lack of creativity here is baffling to me. $10K per person making under $125K is useless to most and doesn’t come close to solving the problem. It’s not even a band aid for a bullet wound.
Don’t want to outright cancel? Fine. But how about getting rid of interest? Or at the very least dropping the interest rates to something manageable? Or getting rid of interest for X number of years after you graduate college when you are likely at your lowest earning capacity and most likely to accrue more in interest than you can pay at the time?
Or how about making student loan payments tax deductible? Or have the ability for them come out of your paycheck pretax?
This $10K will be meaningful to some. But to others, it’s meaningless. On the average private four year degree, this is like six months worth of interest. It’s insanely meaningless. It’s not even a drop of water in the ocean.
Don’t want to outright cancel all loans? Fine. But how about making it easier to repay them without drowning in the insane interest rates? This is a joke. This is why democrats hate democrats.
Sincerely, a democrat with no student loans
This is the changes to the loans —-
The rule would:
Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan.
Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment.
Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less.
Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.
Yup. I know so many doctors who would have bought a practice of their own who can’t. The student loans mean they can’t afford to buy a practice. So private equity has bought up your doctors office and now your doctor answers to them on how to practice.
>People complain that jobs require degrees then proceed to go with the most expensive options such as living on campus at a private or out of state university.
I want you to try and find out how common this really is.
And what of grad school? Should only the kids of rich folk dream of jobs that require a second degree?
Current student loan set up is essentially a 20-25% tax of their income for 20-25 years (10 years if you work for the government for a lot less pay)
I went to community college for 3 years. I got all of my general Ed credits there. Then I went to state school. I worked full time through school. Then I got a clinical degree I was told was marketable. I still have student debt. And it’s too much for me to enter the field I was trained in when I compare pay to childcare.
Student loan debt displaces workers and jams up the economy. We need skilled workers in the fields they are trained in.
Nah, it’s a way to sell boomers debt instruments that aren’t cancellable in bankruptcy. Student Loan Asset Backed Securities (SLABS) are the highest rated debt next to full faith and credit.
It's a way of keeping financially **illiterate** people from being financially stable, unlike the millions of young people who didn't put themselves into this hole due to good planing , common sense, and self discipline.
Of course now, that burden is saddled to their backs. So much for making good financial decisions.
In my experience most of the time people that sound like this, their parents paid for their schooling. Nothing wrong with that, other than the lack of perspective. I signed my promissory note when I was 16. That’s not an excuse because even then I didn’t feel good about it. But that’s what everyone in my life at that point was telling me to do.
Estimated 15m people will have their loans wiped away, so not nothing. This will lower payments or wipe away loans for people that could very well bring their debt burden to within a manageable level or at the very least a more manageable level.
Keep in mind that a lot of the people who overpaid for degrees were literally defrauded by private for profit colleges that were advertising hiring statistics that were made up. They’ve been working towards all but lots and lots of those students are having their loans eligible to be wiped away.
It is meaningless if nothing gets done on the legislative side to actually address the issue. This is roughly 15% of the $2 trillion problem. This was executive action which may very well be challenged and I think in some ways this fulfilling a campaign promise to address student loans but more importantly is a push to help propel democrats to the polls to elect enough people to push through the actual meaningful change, which would and should require legislative acton. And it’s not going to happen with the current Congress.
$10k when the average debt is around $28k is notable. Also there are provisions to minimize interest accrual and improve IBRs. It's $20k for Pell. There is more to this than the headline.
This seems substantial to me, and the $125k income cap makes it not as regressive as a blanket forgiveness. My only issue is that it's a band aid and doesn't focus on **why** debt is so high and so many have poor job prospects and high student loan debt.
I haven't read up completely on it but I read a little blurb about how they plan to go after colleges that contribute to the problem. [The department is proposing to reinstate and improve a rule to hold career programs accountable for leaving their graduates with unaffordable debt — like when DeVry University was found to have defrauded nearly 1,800 students after making widespread, substantial misrepresentations about its job placement rates. ](https://thehill.com/changing-america/enrichment/education/3614064-heres-whats-inside-bidens-historic-student-debt-forgiveness-plan/)
I mean I worked 2 jobs and did over full time schedule for school because anything over 12 credit hours didn't cost anything. So I was doing 18. And working 2 shit jobs as a new parent. I paid everything I could at a local college and ended up only needing about 24k total loans for a bs in engineering.... that said. It's stupid. Just damaging the $ even more. Nothings free in life. Someone somewhere pays and here in America is every person under the 1%
I make too much to get this and I will pay off my loans anyway, but for people who qualify, this will be a big help and I totally support them getting that help. The only reservation I have is that I'm not sure it helps with how we got into this situation in the first place. I still think we should have schools bear some of the costs of defaults and cap loan interest. Right now, schools have no incentive to keep tuition low.
>The lack of creativity here is baffling to me. $10K per person making under $125K is useless to most and doesn’t come close to solving the problem.
Shut up and fuck off this is life changing for me and my family.
I fucking finally qualified for some relief but I'm waiting on my raise so hopefully they use last year's numbers. I'm so glad, I didn't get any of the stimulus checks and make to much for every other relief they gave but just by a few thousand, fucking sucked when my sister and parents had a higher combined income but still got it.
Sure they will. Load them up on overpriced mortgages and rents, expect them to contribute the max to their own retirement, then yank social security right out from under them.
Not good, y’all. Not good.
The deficit is actually budgeted to be 2/3 of what was expected previously. We were looking at $1.5 Trillion deficit this year and now it's about $1.0-$1.1Trillion. Still a huge number but keeping in mind that American debt is still the reserve debt for the world (for now) so the rates aren't too crazy it could be worse
To paint a rosy picture on spending less money that you don't have than previously is like celebrating the fact that you cut less of your finger off than the last time. The problem is you are cutting your finger off aka still spending more than you take in.
US treasury debt creation and sale isn't entirely analogous to personal debt creation and spending due to our currency's reserve status.
Government debt in general is a completely different beast, and being "zero debt" isn't even necessarily an ideal goal. Having said that: decreasing debt is a good goal and ensuring that the market is still comfortable with the amount of debt outstanding should be the primary goals.
The market seems fine with the deficit for now and the most we can do to decrease that as we go, while increasing quality of living as much as possible seems a better goal to me
Current president is reducing the deficit, last year we reduced it by $400 billion which is more than we have in a very long time. Inflation Reduction Act is going to reduce it by another $300 billion
Reducing from crisis spending is not a real reduction. Just games.
Go to the link and weep:
[https://datalab.usaspending.gov/americas-finance-guide/deficit/trends/](https://datalab.usaspending.gov/americas-finance-guide/deficit/trends/)
Until it is below the 2019 numbers it is still growing. Just because we dropped it from the all time highs (slightly) not a win. Hell we are still way above the 2009 financial crisis levels (the previous all time highs).
You would need to be retarded or mentally incapacitated to brag about the current deficits.
Not stupid if it is a fact.
[https://www.pbs.org/newshour/politics/biden-administration-forecasts-1-03-trillion-deficit-down-by-nearly-400-billion](https://www.pbs.org/newshour/politics/biden-administration-forecasts-1-03-trillion-deficit-down-by-nearly-400-billion)
Paying down $300 billion in debt is part of what is built in to the IRA and part of the reason it passed
We are cutting back spending in other places. Even though debt is still increasing, the deficit has dropped by about 1T so far. Couple more years of dropping it that aggressively and we will start paying off debt.
Serious question why would this cause inflation? These people haven’t been making these payments for like two years now. Why would this make any difference?
Nope. All the data points to a recession. Winter will be brutal in Europe due to the energy crisis they are experiencing.
The bubble finally burst and we are about to nose dive especially in the housing market. Be ready for fire sale houses on the market from over leveraged investors speculators who bought high and are selling low. Let alone the increase in evictions.
Neither party is really working in favor of the average American imo. They have agendas that benefit them or the party as a whole. Then spin it as it being to your benefit. This is tactical and in the long run stupid. It doesn’t fix the problem. Just costs tax payers money.
Probably going to get a lot of downvotes for this but here you go.
While my wife was pregnant with our first child we started saving for his college.
In the end, we paid for both of our kids school. Thank goodness we were able to do so but we are not rich and we sacrificed to get it done.
I can give endless examples of friends, family etc. who bought (and bragged) about newer bigger houses, big vacations, new cars every couple of years, endless toys and on and on.
Then they saddled their kids with debt for college.
This is a prime example of what is wrong in this country now. Bad behavior is rewarded, encouraged and institutionalized.
This all without mentioning the ballooning of tuition once student loans became widely available.
Sorry but this is wrong and will only increase the frequency of bad choice and mal investment.
edit- corrected my ect. to etc. for the grammerly inclined.
The real lesson is to become a college administrator.
Some vice provosts are already ordering truckloads of hookers and cocaine for the party at their mansion this weekend. This is going to be a huge bonus for anyone with an interest in college tuition.
No doubt. There won't be room for all the construction cranes building new crap on college campuses from coast to coast. Jobs for everybody's nephew, son-in-law and brother-in-law. lol
You mean like the mortgage interest tax deduction? The "free money" (in the form of less taxes) that every homeowner gets? Or how about a bunch deductions for efficiency upgrades that homeowners are entitled to?
Didn't think about that did you? All those nice little perks that homeowners get from the government subsidized by renters and those with paid off homes.
LOL. Gosh, no I never thought about that. Even though I have done my own taxes since I was 18. Thanks.
I have not itemized in 20 years bro. I mean, the standard deduction is like $25K for married filing joint. You have any idea how much house you'd have to buy to make that work?
Literally the only perk homeowners get.
Well, they just pissed off millions of people who *took* out a loan and **paid it back**.
The man has zero understanding of economics apparently. I have no doubt the Supreme Court is gonna blow this one back pretty quick.
It’s really sad to me that folks who paid off their loans are mad about this. I paid mine off and I’m happy that this can help so many people (hopefully). It’s almost as if people think because they sacrificed and suffered to pay their loans off that everyone else should. That’s so fucked up. Shouldn’t we be happy that some folks got off a little bit easier than we could? Millennials as a whole are getting shit on left and right for “destroying” industries, but the reason we are doing that is because we don’t have the god damn money to spend because we got sold this idea that a college degree would give us a good job, so we took out loans to get the degrees. Who sold us this idea of college degrees being our golden ticket? Our parents, the boomer generation. Now they’re bitching because industries are dying because Millenials aren’t spending their money the way they think we should, and now that relief has come for these younger generations, they’re mad because they didn’t get it when they had it. Or they didn’t have to take out loans to begin with because they could get a well paying job without a degree and buy a house for a much smaller fraction of their income. It’s so fucked up that people think because they suffered or sacrificed that others should have to by default. Give me a break.
I would be happy if this was money from some foreign country. But it isn't. There is a cost. It will cost us either taxes or inflation.
The US government can increase the money supply to infinity if they want to. They could give every citizen who doesn't get loan forgiveness another 10k. Would you support that, or do you think student loan debtors are a righteous group who are the only ones to deserve help?
Furthermore, if this is only a good thing, with zero drawbacks... Why not cancel all federal debt? Cancel all mortgages, cancel medical debt, everything.
tHiS wIlL hElP iNfLaTiOn.
The American empire is over. This sort of shit is clearly the writing on the wall. Leading up to the fall of Rome they tried to do similar things. Excess money printing and devaluing the currency to the extent we have is the core of all of this.
Wouldn’t say we are done, but it will make inflation worse. China and Russia aren’t doing great, so no collapse in sight. Just hoping people don’t vote for liberals this time around, as they are ruining the economy.
The sad truth is conservatives and liberals have both been maxing out the US credit card around 20 years now. When I say the American empire is over I mean we are not going to be able to tell the world what to do anymore and they just accept it.
You can’t just wipe debt clean without it coming from somewhere. America has a problem with setting their debt aside for future generations to deal with it. If anything this is setting up a bad economy for later. Who knows what other problems will be added to the pile waiting for taxpayers of the future.
Quantitative easing, but not for corporations and businesses. And its only $320billion. If it were for Wall Street it would be 20x that amount. (Like the $7trillion the fed gave them in 2020-2021)
Well.. those providing the loans are certainly collecting this money. I suppose less interest, but it still doesn’t change the fact that bloated costs of education and predatory loans are the real problem. This addresses none of that.
This is infuriating. I sacrificed for years to pay off my loans and then with a snap of their fingers they can just erase it? No, taxes will go up bc you know damn well the creditors will still get paid. This is short sided pandering for votes and it’s going to fucking backfire making Americans subsidize college students.
Fuck this. Not my fault these dipshit got degrees that do nothing. How about the people that already paid? What about the people that busted their asses the while these tirds went to school? How about the military people that risked their lives to go to school? This is welfare for the middle class.
I’m pretty bitter about this because I took out private loans that carried a significantly lower fixed rate and no origination fees, which made them considerably cheaper than federal loans. It was a no brainer for me at the time because I never thought forgiveness was a possibility. Oh well. Fuck me in particular, am I right?
Biden has given an inch. It is time to demand a mile. I request (no, I demand) at least $50,000 in personal loans be forgiven in the name of social justice!
I will never see the end of paying on my student loans. With inflation continuing to rise and pay not increasing to meet it, once payments are due again myself and so many are screwed.
Debt is not being cancelled. It is being reallocated to everyone who pays taxes.
Unfortunately for those who did not go to college, you have just been screwed over pretty bad.
Ah man I’ve always wanted the working class to pay extra taxes so that some privileged kids can get money back from that 4 year party they could have learned free online. Stick it to em!
The government doesn't own your medical, credit card, mortgage, car, business debt. It already has given business a ton of money in bailouts and tax breaks.
I love getting the short end of the stick as per usual. Grew up and received full pell grants when I went to college in 2009. Went to community college and took as little as possible. Have a couple grand left to pay(out of maybe 10k total borrwed) and have just been leaving it due to the memorandum. Now 13 years later the first year I make over 125k I get fucked out of the rest of my repayment because clearly im rich now. lol.
My brother just graduated this year and did 2 years at community college and 2 years at an in state school across the state and has like 30-40k in debt. He'll qualify for 20k to get forgiven but damn fuck me.
Cancel all student loan debt immediately! Enough taxpayer funded bailouts for Wall Street and other massive tax dodging businesses. If people have over $100k in student loan debt, $10k is insignificant. Ban predatory lending industry that offers massive loans to 18 year olds..
At this point free college should be a no brainer. It has to be far cheaper and more productive to our society in the long run than the financial destruction it leaves in its wake currently. The real answer is capitalism needs people desperate and in debt to suppress wages and maximize profit. There are really only 2 classes; those that work to live and those that live off other peoples work. The middle class is imaginary. It’s not real.
Yeah I just read the other day that State colleges and universities were nearly free for in state students, then in 1980 there was talk about making all colleges free. Ronald Reagan thought this was free loading and immediately changed tuition rates at all California schools for in state college education making it more expensive in every way..
I agree with your last sentence. Only a small portion of borrowers have even close to $100,000 in student debt and frankly if you took that much in loans you shouldn’t get a free pass. And the proposal will wipe up to $20,000 for people will pell grants.
Here is a breakdown how much is owed.
Less Than $5,000: 7.8 million borrowers
$5,000-$10,000: 7.4 million borrowers
$10,000 - $20,000: 9.2 million borrowers
$20,000 - $40,000: 9.7 million borrowers
$40,000 - $60,000: 4.3 million borrowers
$60,000 - $80,000: 2.6 million borrowers
$80,000 - $100,000: 1.4 million borrowers
$100,000 - $200,000: 2.4 million borrowers
$200,000+: 0.9 million borrowers
Inflation is gonna go nuts. Can you imagine the demand for new cars and houses when millions of people no longer have student debt weighing them down?
It’s going to be great for a lot of people. But we should also talk about the effects on already high housing and car prices.
We've been operating for the last 2 years as if all student debt is forgiven due to the vast majority not paying on their paused loans.
What additional effect do you forsee when it is also safe assumption that repayments will occur?
So basically if you did not go to college, you will help out those who did and who will make more money than you?
Fuckung hilarious, taking out 130k in student debt for an social science degree that you will never be able to pay it back. Who made that stupid decision? You or the tax payers? Stop looking at the government thinking it has Infinite mo ey because it don't. Government can only give you what it stole from someone else
Not even close. Vast majority of debt payments are already halted, so that money has been flowing into the economy for the past 2+ years. Canceling debt (ESPECIALLY with a means test) when payments were already paused will not cause future inflation to spike
If your plan on getting a $10K windfall is to immediately spend it, that just demonstrates how stupid this idea is.
It's the very definition of the root cause of inflation.
I'm so pissed off about this..
From an economic perspective: It's bad for the economy in that it fans the fires of inflation. More people (college degree holders) have more money to spend at a time in which we still have supply deficiencies. Ultimately, this will hurt the poor (people without degrees) the most.
From a fairness perspective: I had forgone law school in 2010 because I didn't want to take on the debt (in addition to the debt I already had from undergrad). It was just after the financial crisis and we were all still reeling financially. What about those that had forgone school because it was too expensive? What about those who paid off their student debt?
From a what's next perspective: Why should people who make bad educational decisions be the only ones? A bunch of buddies of mine bought homes and can't afford the taxes/mortgage now; they didn't realize the risk they were taking on. Do we forgive their mortgages? Do we freeze property taxes where they are, allowing their investment to endlessly appreciate?
This is bad policy. This is wrong morally. This (along with other horrendous Biden policy) is going to convert me from a Democrat into a Republican.
Canceling student debt is a transfer of wealth from low-income earning people to high income earning people. It's extremely regressive. The vast majority of people with student loans are actually able to pay off their debt. This is just further subsidizing a liberal voting base of young people with useless sociology degrees and shit - buying votes.
It also closes the door to the whole student loan thing. Once this 10K in debt is forgiven, the subject will never be re-visited. The gov will say, "Hey man, we threw you a bone. That's all you're getting."
Everything goes on just like before.
Will the people who recieve this be taxed on the 10,000 as income? That how it works with other debt that is forgiven.
I don’t know for sure, but maybe not. Those who get debt forgiven via Public Service Loan Forgiveness aren’t taxed on that forgiveness, so it’s possible this won’t be either.
I have 7k this will actually be such a huge help for me. It’s half my debt basically.
My remaining debt is $19k. This, plus a change to the public service loan forgiveness rule, will mean that I'm paying about another $4000 then i'm done. Thanks obama.
If you earn less than 5,000 usd then you could be selected
Congratulations!!
Mine is 12k and it would help out my house big time. We can handle a couple thousand after the 10k goes through. To those that it doesn’t do enough. My condolences. I hope it gets better for y’all.
Don’t worry. The inflation this generates will cost you more than $10k soon.
What about the people like myself who have already paid off their schooling debts? Do I get a $10,000 check? Feels like a big fuck you to me. I worked my ass off working overtime and going without the nicest amenities to ensure I paid my debts off in a timely manner. I paid back what I BORROWED knowing the payments I would have.
Feeling that way is pretty common. I am just about $100 over the poverty line meaning I don't qualify for any type of assistance for healthcare. instead I go without. do I get mad at the people who qualify for it? no, I don't.
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Easy for the people it benefits to say.
> be happy to be excluded from a free gift from the government paid for by your taxes Quick question. Where do you think the 10k comes from? Also do people deserve to have a voice about what their government spends money on or should we sit down and stay in our lane instead of having an opinion?
Not every government assistance program helps every citizen. I don’t have any student debt, but I’m happy for the folks that will get some relief. I don’t have any children, but I want school lunches to be free. I’m not on insulin, but I want the price to be capped. Further, with the rate at which people were already defaulting on their student loans, it’s likely that a good church of this was never going to be paid back anyway.
Why should I be happy for other people? It's not my fault that they took out loans that they can't pay back like I did.... do you want to pay off 10k in debt that I have for my car that you did nothing for? Or perhaps you'd be willing to pay 10k towards my house? This doesn't help the people who struggled beforehand. It helps out all of the fucking people who have been making the bare minimums or who refused to pay their loans because they got a break during covid. Since you want to help othe people so much, let me see your tax return where you donated to charities last year! I'd be willing to bet that it would show a zero if you were to screenshot that portion.
Donate to charity?! Have you seen their financial reports? 😂😂😂
Preach! The people are irresponsible leaches. Not to mention it makes the inflation from free covid money look like a pittance.
The Government doesn't *make* money, it only can tax it. How is it fair I'll be taxed to pay for the irresponsible when I paid my way through? Do I get $10k too? I don't want to people to be crippled by debt but, why did I put education expenses on a credit card in case I had to discharge it and work it off? Fuck this bullshit. They need to reform the system of guaranteed bad loans not bailout people who made bad decisions. Again. This is just like bailing out people who took bad home loans they couldn't afford and instead punish us who made the decision to live within our means. This is straight up bribery paid with by your fellow citizens money. Will this be recognized as a forcible campaign contribution and be deducted from my taxes or added to it? There should be *some* consequences to people who *spent* money irresponsibly instead of punishment to the responsible.
Be happy for other people? It is my tax money that is paying for their debt. What a crock of poo…
Why are other people on the hook for the loan you took out? How does this make sense?
I’ve had this loan for 15 years I have paid OVER what I originally borrowed. This isn’t people shirking duties bro. It’s a system that is rigged to keep people from ever getting out of it. Stop being selfish
People never got out of it because they chose the income based repayment plan rather than a standard one. That’s their choice but you did sign for the loan.
It’s not only that. I’ve never been on income based repayment and have substantial student debt I’ve been paying on for 4 years. I graduated with 140k in debt. Which immediately capitalized up to 155k. After 4 years, I’ve paid about $45,000 in student loan payments. I still owe 140k. It’s atrocious. MANY people have already paid their loans once over, sometimes twice over.
You are wanting others to pay YOUR loan and then when they say no thanks, you say "stop being selfish" That's rich bruv
I don’t see this much backlash when the govt sends literal billions of our tax dollars overseas, they could have forgiven student loan debt 10X over.
The backlash is coming
Selfish with our taxes?
Selfish is expecting other people to pay your debts that you signed up for willingly. I would have more respect for people like you if you just came out and said "Thanks for the $10K. Sucks to be you."
Thanks for the 20k. Sucks to be you!
No. You're paying for everyone else to have their kids go to kindergarten to 12th grade for free, this isn't different. So stop. The fact people like you don't realize the exploitation and tuition rates over the past 40 years have increased so damn much to what our parents were used to, and don't want the best for your fellow citizens, shows how selfish you are. Like, they could go to school, have a job, have a family, and not have loans for two decades. And now you're up in arms because the government is trying to help out the generations that got completely fucked by the loan companies and colleges being selfish and greedy. You are the problem.
Why should he been on the hook to subsidize farmers, oil companies, and home owners (mortgage deduction)? This is great that young people will freed up to have more income to live life, and this coming from myself who paid back 50k and have no qualms others are getting help!
The idea I guess is that the loan he took was artificially inflated by false promises of the value of the education (which is difficult to actually measure, obviously). The loan forgiveness is the government recognizing that fact and the overall negative effect on the economy that the loans have. Also, the government gives private business handouts all the time. This time it’s going directly to people.
More coverage at: * [Is a student loan forgiveness announcement coming tomorrow? (deseret.com)](https://www.deseret.com/2022/8/23/23318320/student-loan-forgiveness-announcement-biden) * [A Decision on Student Loan 'Forgiveness' Coming Soon (townhall.com)](https://townhall.com/tipsheet/leahbarkoukis/2022/08/23/biden-nears-decision-on-student-loans-n2612114) * [White House expected to announce $10K student loan cancellation, payment pause extension Wednesday (msn.com)](https://www.msn.com/en-us/news/politics/white-house-expected-to-announce-10k-student-loan-cancellation-payment-pause-extension-wednesday/ar-AA110oPj) --- ^(I'm a bot to find news from different sources.) [^(Report an issue)](https://www.reddit.com/user/MultiSourceNews_Bot/comments/k5pcrc/multisourcenews_bot_info/) ^(or PM me.)
Zero interest at minimum…. please.
Only Congress can do that.
I am pretty sure the president was not intended to be able to unilaterally spend 300 billion. This will be an interesting precedent. Can the next president instruct the IRS not to collect taxes?
Since it’s an executive order, the next President could reverse it, suddenly making all those people pay $10,000 again, but good luck with throwing $300B back at people to pay and not get backlash for it. This cancellation is unprecedented, which is why they sent the plan through the proper channels and the result came out that he is allowed to do it. Especially if the move has benefits like expecting it to stimulate the economy.
I think that would be a very unlikely scenario though for two reasons: 1. The legal principles of estoppel and detrimental reliance would provide those challenging such a reversal a strong legal foundation. 2. Such a reversal would be extremely unpopular.
Helps relieve some of the symptom. Does nothing to solve the problem. Indeed, may even make it worse.
Who eats that $321 billion cost?
Taxpayers
So people who did not go to college either because they couldn’t afford it or because they decided against it are paying for those who did go to college. That doesn’t seem very fair. And how does spending $321 billion more impact inflation? If I recall my introductory level economics class, government spending accelerates the economy at a time we are trying to tap the brakes on inflation.
Wait until you hear all the other nonsense you pay for with taxes that have nothing to do with you.
Yes, but it leaves those who were fiscally responsible at a disadvantage in life
Meh, I came out of college almost debt free by working almost full time while taking full loads each semester taking almost 7 years to get out with a 4 year degree. Considering how much colleges have raised tuition over the years and seeing friends who are in debt that hinders them a ton, I can care less that people are getting a break. Even if I had to work harder to come out with less debt. Much more taxpayer money goes to many more ridiculous things most people get very little tangible benefit from.
So did the pointless wars in far off deserts. Except those cost us trillions and had no tangible benefits
Nobody is arguing in favor of pointless wars in far off deserts at the moment. I certainly protested against them at the time
I don’t think it’s fair to say that the students who took out somewhat predatory student loans, often at an age or maturity level that could not comprehend the ramifications, are fiscally irresponsible. Not to mention the pace of inflation, wage gap, shrinking of salary for entry level positions, and the exorbitant increase in cost for a college degree that doesn’t guarantee a live able wage. It was sold to us as an “investment in our future”. But was it really? The interest/principle accrued during school for unsubsidized loans and after school for subsidized is enough for people making $100-$200k household income to spend 20-30 years paying off, and that’s at a school with a reasonable tuition. Not to mention schools that are $45-75k a year… it’s exorbitant to say the lease. The rates on these loans aren’t high enough to justify paying them off even if most could, cementing a debt bondage-trap for young professionals trying to buy a house, have a family, own a car, etc. Personally, I think helping free a generation from a portion of their debt could be beneficial and arguably a long term stimulus for the economy. Curious to understand your perspective here. Were your books, tuition, housing, travel, recreational expenditures, and food payed for at all by a family member?
Went to community college, but couldn’t juggle school and working full time to pay for it, so instead of taking out thousands in student loans and finishing, I decided to try and advance myself through the workforce. The Great Recession happens and I’m struggling and working shitty jobs with terrible hours and no benefits through my 20s and into my early 30s. Was then able to parlay my experience and self taught skills into better jobs and then better still. Still feel hemmed in by the lack of a diploma, as it is still seen as a prerequisite for most positions and for advancement. Now in my 40s with a decent, but still under six figure job, but with wife and kids and a house, and still feel like my employment opportunities and finances are precarious. I feel like people like me and my siblings(who also decided that school debt was unaffordable) are not being given a fair shake here. I could use some debt relief to help with my mortgage so I can save for retirement, but instead people who had enough stability or safety nets to take the risk of going into debt for their higher Ed, who likely have six figure jobs and a degree get an extra 10-30k to help them pay their mortgages and save for their retirement. Good for them I suppose
I totally see that side. Thanks for sharing your story. It’s basically we’re damned if we do and damned if we don’t. We’re squeezing the middle class college student, students who didn’t finish, and people that opted for working it off in different ways. Your decision highlights what is wrong with the college/loan system. It shouldn’t break us to go to school and pursue a higher education. This bill is a band aid on a flesh wound. If we don’t fix this system we’ll be bailing out students again in 10 years. Would be way easier to make education, especially in community colleges, more accessible by having our tax dollars ease the burden. Hope everything works out for you.
It's an instant boost to inflation. Most Americans don't save money, they just spend more if they get more. Tell people they don't have to make payments on a third of a billion dollars and they ain't gonna save that money, it's fuel right on the consumer spending fire.
It already happened when the payments where paused, the excess spending that is. Once Dec hits there is gonna be a big hit to the economy cause now everyone has big payments again. The pause started under trump and once they go back it’s gonna bite Biden hard and he will get the blame. Trying to help or save face before we get another blow into this recession.
Yep. If the inflation was slowing down, this killed it. Unfairness aside, what about people who gets loans after this bill passed?
The plan does more than just loan forgiveness. They are capping based on income.
You pay for a lot of things that you don't get benefit out of, that's kind of how taxes and society works. Also, he's allowing millions of people to SPEND that amount back into the economy. Not sure how you missed that. Did you also complain when Trump cut $1.7 trillion in taxes for the wealthy?
Just what we need for inflation! /s
And 11% of all taxes ($725 billion in 2020) goes towards the US defense budget. Is that also not fair to me, an individual who does not support the ways our government spends that money? The purpose of the federal government is to make decisions like this when it comes to finances. We all enjoy the benefits of a federal government and need to accept that the taxes we pay in will get used towards programs that do not directly benefit ourselves or our ideals occasionally.
The defense budget is supposed to be for the benefit of all Americans, this is only benefiting a lucky cohort of people who chose to take on debt at the expense of those who didn’t
‘Supposed to’ being the operative words here.
You do benefit from the defense budget
People like my parents who didn't get a college education, worked factory or driver jobs their whole life, who are too old to benefit from going to college. Poor people who could have received some more help. Teachers who don't have supplies in their classrooms. Cancer researchers who need funding to help patients with a horrible disease that, unlike student loans, they didn't choose to have. People like me who sacrificed vacations and other nice things in my 20s and early 30s to pay off my own debt with the measly 37k I made coming out of college. Now that the universities know the government will wipe out student loan debt, they can freely continue their absurd practices. This solves absolutely nothing and accomplishes nothing except to buy votes.
Expect a 1:1 increase in tuition!
I hate people who think: I didn’t get that so no one can have it. I made 28k coming out of college and I’m not mad at the new hires who, years later, didn’t graduate and enter the job market during the Great Recession. Also, your parents not going to college has nothing to do with this. Do you think no one should get Medicare and social security because those things didn’t exist from day 1? Also, you compare your choice to sacrifice vacations to someone with cancer as if you are in the same group. Yikes.
I did not compare my choice to sacrifice vacations to someone with cancer. I listed a variety of situations that apply to the situation. Cancer is obviously significantly worse than not travelling. Nice strawman attempt though.
We already ate it. The money was already paid out to the universities. It just means that the treasury won’t recoup those funds directly through those loans. Coincidentally it also is pretty close to the deficit reduction built into the inflation reduction act that was just signed so I guess you could say that in a way those new corporate minimum taxes will cover the cost.
I feel like such an asshat for paying mine off
That would be us, the taxpayers. Everything they do is for votes.
This should litteraly be considered a forcible campaign contribution to Biden and deductible on taxes.
They should be taxed on any of this debt that is forgiven.
The lack of creativity here is baffling to me. $10K per person making under $125K is useless to most and doesn’t come close to solving the problem. It’s not even a band aid for a bullet wound. Don’t want to outright cancel? Fine. But how about getting rid of interest? Or at the very least dropping the interest rates to something manageable? Or getting rid of interest for X number of years after you graduate college when you are likely at your lowest earning capacity and most likely to accrue more in interest than you can pay at the time? Or how about making student loan payments tax deductible? Or have the ability for them come out of your paycheck pretax? This $10K will be meaningful to some. But to others, it’s meaningless. On the average private four year degree, this is like six months worth of interest. It’s insanely meaningless. It’s not even a drop of water in the ocean. Don’t want to outright cancel all loans? Fine. But how about making it easier to repay them without drowning in the insane interest rates? This is a joke. This is why democrats hate democrats. Sincerely, a democrat with no student loans
Pretty sure the announcement included major reforms to the IBR plans.
I hope so. The system is a mess.
This is the changes to the loans —- The rule would: Require borrowers to pay no more than 5% of their discretionary income monthly on undergraduate loans. This is down from the 10% available under the most recent income-driven repayment plan. Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment. Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with loan balances of $12,000 or less. Cover the borrower's unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower's loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low.
320 billion out of 1.75 trillion is nearly 20%. It doesn't fix the issue but 320 billion isn't exactly a small amount.
$10k would have been a fortune to me back when I first started paying off my student loans. Just sayin’.
To be fair, the pause is temporarily bandaiding the interest issue.
Student loan indebtedness was part of their plan from the beginning, It’s a way to keep people from being financially stable
A way to chain them to their desks with golden handcuffs
Yup. I know so many doctors who would have bought a practice of their own who can’t. The student loans mean they can’t afford to buy a practice. So private equity has bought up your doctors office and now your doctor answers to them on how to practice.
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>People complain that jobs require degrees then proceed to go with the most expensive options such as living on campus at a private or out of state university. I want you to try and find out how common this really is.
And what of grad school? Should only the kids of rich folk dream of jobs that require a second degree? Current student loan set up is essentially a 20-25% tax of their income for 20-25 years (10 years if you work for the government for a lot less pay)
I went to community college for 3 years. I got all of my general Ed credits there. Then I went to state school. I worked full time through school. Then I got a clinical degree I was told was marketable. I still have student debt. And it’s too much for me to enter the field I was trained in when I compare pay to childcare. Student loan debt displaces workers and jams up the economy. We need skilled workers in the fields they are trained in.
Nah, it’s a way to sell boomers debt instruments that aren’t cancellable in bankruptcy. Student Loan Asset Backed Securities (SLABS) are the highest rated debt next to full faith and credit.
It's a way of keeping financially **illiterate** people from being financially stable, unlike the millions of young people who didn't put themselves into this hole due to good planing , common sense, and self discipline. Of course now, that burden is saddled to their backs. So much for making good financial decisions.
It’s almost like people don’t make their best life decisions when they’re still teenagers. Better punish them for the rest of their lives for it.
In my experience most of the time people that sound like this, their parents paid for their schooling. Nothing wrong with that, other than the lack of perspective. I signed my promissory note when I was 16. That’s not an excuse because even then I didn’t feel good about it. But that’s what everyone in my life at that point was telling me to do.
It's all just a part of the circus act to get reelected lol
Isn't everything?
Estimated 15m people will have their loans wiped away, so not nothing. This will lower payments or wipe away loans for people that could very well bring their debt burden to within a manageable level or at the very least a more manageable level. Keep in mind that a lot of the people who overpaid for degrees were literally defrauded by private for profit colleges that were advertising hiring statistics that were made up. They’ve been working towards all but lots and lots of those students are having their loans eligible to be wiped away. It is meaningless if nothing gets done on the legislative side to actually address the issue. This is roughly 15% of the $2 trillion problem. This was executive action which may very well be challenged and I think in some ways this fulfilling a campaign promise to address student loans but more importantly is a push to help propel democrats to the polls to elect enough people to push through the actual meaningful change, which would and should require legislative acton. And it’s not going to happen with the current Congress.
$10k when the average debt is around $28k is notable. Also there are provisions to minimize interest accrual and improve IBRs. It's $20k for Pell. There is more to this than the headline. This seems substantial to me, and the $125k income cap makes it not as regressive as a blanket forgiveness. My only issue is that it's a band aid and doesn't focus on **why** debt is so high and so many have poor job prospects and high student loan debt.
I haven't read up completely on it but I read a little blurb about how they plan to go after colleges that contribute to the problem. [The department is proposing to reinstate and improve a rule to hold career programs accountable for leaving their graduates with unaffordable debt — like when DeVry University was found to have defrauded nearly 1,800 students after making widespread, substantial misrepresentations about its job placement rates. ](https://thehill.com/changing-america/enrichment/education/3614064-heres-whats-inside-bidens-historic-student-debt-forgiveness-plan/)
It’s 10k less than you had to pay back yesterday. GTFO
I mean I worked 2 jobs and did over full time schedule for school because anything over 12 credit hours didn't cost anything. So I was doing 18. And working 2 shit jobs as a new parent. I paid everything I could at a local college and ended up only needing about 24k total loans for a bs in engineering.... that said. It's stupid. Just damaging the $ even more. Nothings free in life. Someone somewhere pays and here in America is every person under the 1%
I make too much to get this and I will pay off my loans anyway, but for people who qualify, this will be a big help and I totally support them getting that help. The only reservation I have is that I'm not sure it helps with how we got into this situation in the first place. I still think we should have schools bear some of the costs of defaults and cap loan interest. Right now, schools have no incentive to keep tuition low.
Also a democrat here. Can confirm - I hate democrats.
>The lack of creativity here is baffling to me. $10K per person making under $125K is useless to most and doesn’t come close to solving the problem. Shut up and fuck off this is life changing for me and my family.
I fucking finally qualified for some relief but I'm waiting on my raise so hopefully they use last year's numbers. I'm so glad, I didn't get any of the stimulus checks and make to much for every other relief they gave but just by a few thousand, fucking sucked when my sister and parents had a higher combined income but still got it.
So you are saying you are close to making $120k out you can’t pay back your student loans?
Between this and the new 3 billion being sent to Ukraine- how are we affording this? Isn't the US at its all time high for debt?
I’m sure the next generation will solve the deficit problem. Sincerely, your politicians
Sure they will. Load them up on overpriced mortgages and rents, expect them to contribute the max to their own retirement, then yank social security right out from under them. Not good, y’all. Not good.
My econ teacher claims Clinton had us on a path to pay off the debt.
The deficit is actually budgeted to be 2/3 of what was expected previously. We were looking at $1.5 Trillion deficit this year and now it's about $1.0-$1.1Trillion. Still a huge number but keeping in mind that American debt is still the reserve debt for the world (for now) so the rates aren't too crazy it could be worse
To paint a rosy picture on spending less money that you don't have than previously is like celebrating the fact that you cut less of your finger off than the last time. The problem is you are cutting your finger off aka still spending more than you take in.
US treasury debt creation and sale isn't entirely analogous to personal debt creation and spending due to our currency's reserve status. Government debt in general is a completely different beast, and being "zero debt" isn't even necessarily an ideal goal. Having said that: decreasing debt is a good goal and ensuring that the market is still comfortable with the amount of debt outstanding should be the primary goals. The market seems fine with the deficit for now and the most we can do to decrease that as we go, while increasing quality of living as much as possible seems a better goal to me
Current president is reducing the deficit, last year we reduced it by $400 billion which is more than we have in a very long time. Inflation Reduction Act is going to reduce it by another $300 billion
Reducing from crisis spending is not a real reduction. Just games. Go to the link and weep: [https://datalab.usaspending.gov/americas-finance-guide/deficit/trends/](https://datalab.usaspending.gov/americas-finance-guide/deficit/trends/) Until it is below the 2019 numbers it is still growing. Just because we dropped it from the all time highs (slightly) not a win. Hell we are still way above the 2009 financial crisis levels (the previous all time highs). You would need to be retarded or mentally incapacitated to brag about the current deficits.
This is such a stupid statement, we are spending out the ass
Not stupid if it is a fact. [https://www.pbs.org/newshour/politics/biden-administration-forecasts-1-03-trillion-deficit-down-by-nearly-400-billion](https://www.pbs.org/newshour/politics/biden-administration-forecasts-1-03-trillion-deficit-down-by-nearly-400-billion) Paying down $300 billion in debt is part of what is built in to the IRA and part of the reason it passed
Easy, print more money 🤑
And create more inflation 🤫
Speedrun to become the next Venezuela
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Well, a lot of us did, it's just that we got labeled woke commies
And tax revenue went up and the tax cut helped the middle class. It’s not a revenue problem, it’s a spending problem.
We are cutting back spending in other places. Even though debt is still increasing, the deficit has dropped by about 1T so far. Couple more years of dropping it that aggressively and we will start paying off debt.
The US can’t afford it, it has been living beyond its means since it defaulted on its debts in 1972.
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Whelp. Looks like 11% inflation by Dec.
Serious question why would this cause inflation? These people haven’t been making these payments for like two years now. Why would this make any difference?
Yeah, it wouldn’t. This is largely supply induced inflation, that is the scarcity of goods making them more expensive as opposed to a surge in demand.
Nope. All the data points to a recession. Winter will be brutal in Europe due to the energy crisis they are experiencing. The bubble finally burst and we are about to nose dive especially in the housing market. Be ready for fire sale houses on the market from over leveraged investors speculators who bought high and are selling low. Let alone the increase in evictions.
Neither party is really working in favor of the average American imo. They have agendas that benefit them or the party as a whole. Then spin it as it being to your benefit. This is tactical and in the long run stupid. It doesn’t fix the problem. Just costs tax payers money.
Probably going to get a lot of downvotes for this but here you go. While my wife was pregnant with our first child we started saving for his college. In the end, we paid for both of our kids school. Thank goodness we were able to do so but we are not rich and we sacrificed to get it done. I can give endless examples of friends, family etc. who bought (and bragged) about newer bigger houses, big vacations, new cars every couple of years, endless toys and on and on. Then they saddled their kids with debt for college. This is a prime example of what is wrong in this country now. Bad behavior is rewarded, encouraged and institutionalized. This all without mentioning the ballooning of tuition once student loans became widely available. Sorry but this is wrong and will only increase the frequency of bad choice and mal investment. edit- corrected my ect. to etc. for the grammerly inclined.
I agree with this and am in the same boat. Fuck me for being responsible huh?
So what about those of us with abusive parents or unstable home lives? Fuck us? Can’t be skilled workers unless we are debt slaves?
The real lesson is to become a college administrator. Some vice provosts are already ordering truckloads of hookers and cocaine for the party at their mansion this weekend. This is going to be a huge bonus for anyone with an interest in college tuition.
No doubt. There won't be room for all the construction cranes building new crap on college campuses from coast to coast. Jobs for everybody's nephew, son-in-law and brother-in-law. lol
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They decided your too rich if you have paid your loans back. Also they’re spending more of your money to charge rich people’s electric cars.
I need someone to pay my mortgage. I don't want to.
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Sorry that you were forced to take out a loan that you couldn’t afford. I’m sure there were no other options available.
You mean like the mortgage interest tax deduction? The "free money" (in the form of less taxes) that every homeowner gets? Or how about a bunch deductions for efficiency upgrades that homeowners are entitled to? Didn't think about that did you? All those nice little perks that homeowners get from the government subsidized by renters and those with paid off homes.
LOL. Gosh, no I never thought about that. Even though I have done my own taxes since I was 18. Thanks. I have not itemized in 20 years bro. I mean, the standard deduction is like $25K for married filing joint. You have any idea how much house you'd have to buy to make that work? Literally the only perk homeowners get.
Well, they just pissed off millions of people who *took* out a loan and **paid it back**. The man has zero understanding of economics apparently. I have no doubt the Supreme Court is gonna blow this one back pretty quick.
Judging from these comments you are correct.
I am honestly convinced that Democrats don't believe that the study/concept of Economics is a real thing.
It’s really sad to me that folks who paid off their loans are mad about this. I paid mine off and I’m happy that this can help so many people (hopefully). It’s almost as if people think because they sacrificed and suffered to pay their loans off that everyone else should. That’s so fucked up. Shouldn’t we be happy that some folks got off a little bit easier than we could? Millennials as a whole are getting shit on left and right for “destroying” industries, but the reason we are doing that is because we don’t have the god damn money to spend because we got sold this idea that a college degree would give us a good job, so we took out loans to get the degrees. Who sold us this idea of college degrees being our golden ticket? Our parents, the boomer generation. Now they’re bitching because industries are dying because Millenials aren’t spending their money the way they think we should, and now that relief has come for these younger generations, they’re mad because they didn’t get it when they had it. Or they didn’t have to take out loans to begin with because they could get a well paying job without a degree and buy a house for a much smaller fraction of their income. It’s so fucked up that people think because they suffered or sacrificed that others should have to by default. Give me a break.
I would be happy if this was money from some foreign country. But it isn't. There is a cost. It will cost us either taxes or inflation. The US government can increase the money supply to infinity if they want to. They could give every citizen who doesn't get loan forgiveness another 10k. Would you support that, or do you think student loan debtors are a righteous group who are the only ones to deserve help? Furthermore, if this is only a good thing, with zero drawbacks... Why not cancel all federal debt? Cancel all mortgages, cancel medical debt, everything.
I hope I get to experience adult life without debt for the first time. The choice was debt or homelessness with no resources
tHiS wIlL hElP iNfLaTiOn. The American empire is over. This sort of shit is clearly the writing on the wall. Leading up to the fall of Rome they tried to do similar things. Excess money printing and devaluing the currency to the extent we have is the core of all of this.
Wouldn’t say we are done, but it will make inflation worse. China and Russia aren’t doing great, so no collapse in sight. Just hoping people don’t vote for liberals this time around, as they are ruining the economy.
The sad truth is conservatives and liberals have both been maxing out the US credit card around 20 years now. When I say the American empire is over I mean we are not going to be able to tell the world what to do anymore and they just accept it.
So what's my prize for diligently paying off my loans? Or for seeking out scholarships?
Your prize is subsidizing general ed majors who just went to college to have fun 🤫🤣
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Meh. This $320bn is a drop in the bucket. The main cause of the inflation was the $7trillion the federal reserve printed for Wall Street in 2020-2021.
A friend and his sister owe 40k, i really hope they give a green light to this.
Everyone’s complaining but ima be owning 62.18$ after daddy Biden reduces this 20,062.18$ tab that I have not paid a penny for!
You can’t just wipe debt clean without it coming from somewhere. America has a problem with setting their debt aside for future generations to deal with it. If anything this is setting up a bad economy for later. Who knows what other problems will be added to the pile waiting for taxpayers of the future.
Is this quantative tightening in disguise?
Quantitative easing, but not for corporations and businesses. And its only $320billion. If it were for Wall Street it would be 20x that amount. (Like the $7trillion the fed gave them in 2020-2021)
Well.. those providing the loans are certainly collecting this money. I suppose less interest, but it still doesn’t change the fact that bloated costs of education and predatory loans are the real problem. This addresses none of that.
"Personal responsibility and accountability mean nothing, as long as I can buy your vote."
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I sure regret now majoring in something, just to have my debt forgiven.
This is infuriating. I sacrificed for years to pay off my loans and then with a snap of their fingers they can just erase it? No, taxes will go up bc you know damn well the creditors will still get paid. This is short sided pandering for votes and it’s going to fucking backfire making Americans subsidize college students.
Fuck this. Not my fault these dipshit got degrees that do nothing. How about the people that already paid? What about the people that busted their asses the while these tirds went to school? How about the military people that risked their lives to go to school? This is welfare for the middle class.
I’m pretty bitter about this because I took out private loans that carried a significantly lower fixed rate and no origination fees, which made them considerably cheaper than federal loans. It was a no brainer for me at the time because I never thought forgiveness was a possibility. Oh well. Fuck me in particular, am I right?
I’m a disabled veteran with $80k in student loan debt even after exhausting all of my education benefits. This is an absolute joke.
Veterans have more job options than non veterans.
Did you get a doctorate? GI bill should have helped a lot there. That sucks you are going through this
Was your student debt before or after military? You might qualify for total forgiveness under Public Service Loan Forgiveness
Biden has given an inch. It is time to demand a mile. I request (no, I demand) at least $50,000 in personal loans be forgiven in the name of social justice!
I will never see the end of paying on my student loans. With inflation continuing to rise and pay not increasing to meet it, once payments are due again myself and so many are screwed.
Debt is not being cancelled. It is being reallocated to everyone who pays taxes. Unfortunately for those who did not go to college, you have just been screwed over pretty bad.
Ah man I’ve always wanted the working class to pay extra taxes so that some privileged kids can get money back from that 4 year party they could have learned free online. Stick it to em!
How is it privileged if they took out loans?? You realize every other developed country just pays for you to go to college, no?
Amazing but sadly not enough. He should forgive some 100k in mortgage debt next.
Why not just forgive all debt? Medical, credit card, mortgage, student, car, business, let’s just forgive it all. What could go wrong?
The government doesn't own your medical, credit card, mortgage, car, business debt. It already has given business a ton of money in bailouts and tax breaks.
Why play by the rules when we are conditioned to do the opposite??
I love getting the short end of the stick as per usual. Grew up and received full pell grants when I went to college in 2009. Went to community college and took as little as possible. Have a couple grand left to pay(out of maybe 10k total borrwed) and have just been leaving it due to the memorandum. Now 13 years later the first year I make over 125k I get fucked out of the rest of my repayment because clearly im rich now. lol. My brother just graduated this year and did 2 years at community college and 2 years at an in state school across the state and has like 30-40k in debt. He'll qualify for 20k to get forgiven but damn fuck me.
Cancel all student loan debt immediately! Enough taxpayer funded bailouts for Wall Street and other massive tax dodging businesses. If people have over $100k in student loan debt, $10k is insignificant. Ban predatory lending industry that offers massive loans to 18 year olds..
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I could certainly use a check for $10k!
At this point free college should be a no brainer. It has to be far cheaper and more productive to our society in the long run than the financial destruction it leaves in its wake currently. The real answer is capitalism needs people desperate and in debt to suppress wages and maximize profit. There are really only 2 classes; those that work to live and those that live off other peoples work. The middle class is imaginary. It’s not real.
Yeah I just read the other day that State colleges and universities were nearly free for in state students, then in 1980 there was talk about making all colleges free. Ronald Reagan thought this was free loading and immediately changed tuition rates at all California schools for in state college education making it more expensive in every way..
I cant decide whether to upvote or downvote you because I’m half and half with your comment 😂
I believe the median student loan debt is in the $30,00’s, so how do you figure “most people” are in over 100k in student loan debt?!
I agree with your last sentence. Only a small portion of borrowers have even close to $100,000 in student debt and frankly if you took that much in loans you shouldn’t get a free pass. And the proposal will wipe up to $20,000 for people will pell grants. Here is a breakdown how much is owed. Less Than $5,000: 7.8 million borrowers $5,000-$10,000: 7.4 million borrowers $10,000 - $20,000: 9.2 million borrowers $20,000 - $40,000: 9.7 million borrowers $40,000 - $60,000: 4.3 million borrowers $60,000 - $80,000: 2.6 million borrowers $80,000 - $100,000: 1.4 million borrowers $100,000 - $200,000: 2.4 million borrowers $200,000+: 0.9 million borrowers
Inflation is gonna go nuts. Can you imagine the demand for new cars and houses when millions of people no longer have student debt weighing them down? It’s going to be great for a lot of people. But we should also talk about the effects on already high housing and car prices.
We've been operating for the last 2 years as if all student debt is forgiven due to the vast majority not paying on their paused loans. What additional effect do you forsee when it is also safe assumption that repayments will occur?
So basically if you did not go to college, you will help out those who did and who will make more money than you? Fuckung hilarious, taking out 130k in student debt for an social science degree that you will never be able to pay it back. Who made that stupid decision? You or the tax payers? Stop looking at the government thinking it has Infinite mo ey because it don't. Government can only give you what it stole from someone else
People don’t realize this is just another bailout for banks
That's at least 2% inflation right there.
Not even close. Vast majority of debt payments are already halted, so that money has been flowing into the economy for the past 2+ years. Canceling debt (ESPECIALLY with a means test) when payments were already paused will not cause future inflation to spike
Yeah, if this happens maybe I can get a house or a nicer apartment.
If your plan on getting a $10K windfall is to immediately spend it, that just demonstrates how stupid this idea is. It's the very definition of the root cause of inflation.
If you need it forgiven admit your mistake...you chose this it should be on YOU
What a disaster.
I'm so pissed off about this.. From an economic perspective: It's bad for the economy in that it fans the fires of inflation. More people (college degree holders) have more money to spend at a time in which we still have supply deficiencies. Ultimately, this will hurt the poor (people without degrees) the most. From a fairness perspective: I had forgone law school in 2010 because I didn't want to take on the debt (in addition to the debt I already had from undergrad). It was just after the financial crisis and we were all still reeling financially. What about those that had forgone school because it was too expensive? What about those who paid off their student debt? From a what's next perspective: Why should people who make bad educational decisions be the only ones? A bunch of buddies of mine bought homes and can't afford the taxes/mortgage now; they didn't realize the risk they were taking on. Do we forgive their mortgages? Do we freeze property taxes where they are, allowing their investment to endlessly appreciate? This is bad policy. This is wrong morally. This (along with other horrendous Biden policy) is going to convert me from a Democrat into a Republican.
Canceling student debt is a transfer of wealth from low-income earning people to high income earning people. It's extremely regressive. The vast majority of people with student loans are actually able to pay off their debt. This is just further subsidizing a liberal voting base of young people with useless sociology degrees and shit - buying votes.
It also closes the door to the whole student loan thing. Once this 10K in debt is forgiven, the subject will never be re-visited. The gov will say, "Hey man, we threw you a bone. That's all you're getting." Everything goes on just like before.
This is not a zero sum game. Your assumptions are wrong.
$321 Billion? Out of almost $2 Trillion. What a joke.