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Thread: Cutting Down Student Debt (Student Loan Forgiveness)

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    Re: Cutting Down Student Debt (Student Loan Forgiveness)

    Quote Originally Posted by radcen View Post
    An imperfect idea, to be sure, but considering that higher education has been overcharging for so long... tuition has been keeping up in lock-step with increases of student loan availability, funny coincidence... I'm having a hard time working up any outrage.
    Probably because you won't be paying it.

    I'm so tired of Democrats racking up bills, then asking me to pay for it.

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    Re: Cutting Down Student Debt (Student Loan Forgiveness)

    Quote Originally Posted by Henry David View Post
    We taxpayers are stuck for everything, including all the bonuses paid under TARP. All I know is that we've been shafted by the very rich.

    I too cannot get worked up over this proposal. I got all worked up over TARP and the rest of the shanigans, for what?
    The issue with this proposal is the net beneficiaries are going to end up being for-profit educational institutions, who have already gouged the American population with skyrocketing education costs funded by government subsidies.

    All this policy will seek to accomplish is to further inflate this bubble as students take out more and bigger loans (free money!) to funnel into the pockets of the higher education industry, courtesy of the tax payer. The problem is the cost of education, not the interest rate on loans.

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    Re: Cutting Down Student Debt (Student Loan Forgiveness)

    Has anyone given any thought to the fact that any forgiveness of debt is considered income by the IRS, and is taxable at the prevailing rates that are in place at the time of the forgiving of the debt?

    Struggling along trying to pay bills, and thousands of dollars in debt are written off? Guess what, that's added to your income for the year, and the possible new tax rate applies to every dollar earned, including those from a current job.

    That is a carved in stone fact within IRS tax law.

    Do students actually think they are going to be allowed to walk away from government, or private, sector debt unscathed?

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    Re: Cutting Down Student Debt (Student Loan Forgiveness)

    Quote Originally Posted by ocean515 View Post
    Has anyone given any thought to the fact that any forgiveness of debt is considered income by the IRS, and is taxable at the prevailing rates that are in place at the time of the forgiving of the debt?

    Struggling along trying to pay bills, and thousands of dollars in debt are written off? Guess what, that's added to your income for the year, and the possible new tax rate applies to every dollar earned, including those from a current job.

    That is a carved in stone fact within IRS tax law.

    Do students actually think they are going to be allowed to walk away from government, or private, sector debt unscathed?
    True, but it would reduce their overall indebtedness... though it would also bring all the new tax debt due that year and all at once (barring a payment agreement with the IRS).
    If you claim sexual harassment to be wrong, yet you defend anyone on your side for any reason,
    then you are a hypocrite and everything you say on the matter is just babble.

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    Re: Cutting Down Student Debt (Student Loan Forgiveness)

    Quote Originally Posted by radcen View Post
    True, but it would reduce their overall indebtedness... though it would also bring all the new tax debt due that year and all at once (barring a payment agreement with the IRS).
    Perhaps.

    But are you aware of the ongoing penalities and interest that accrues on unpaid taxes?

    For example, instead of getting a small refund, the tax liability could be in the thousands, with staggering penalties and interest pilling on every month.

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    Re: Cutting Down Student Debt (Student Loan Forgiveness)

    Quote Originally Posted by MaggieD View Post
    I actually don't have a problem with that because no one will make all of their payments on time.

    Seriously, this is no give-away program. As far as borrowing $300K for reasons other than school? Where are you getting that information? Student loans are for school. Do you have proof someone can buy a house with the money?
    Federal money for school is sent to the student who requested it, not the school.

    If I sign up for 3 classes, request financial aid, get it, and then WF(withdraw/fail), I still get to keep the money, and the school gets nothing.

    Talk to any administration employees. The % of part-time students who WF just to keep their financial aid is ridiculously large.

    If you get it as a grant, its "free" money with no strings.

    If they changed the aid programs to instead pay the schools directly, they could stop the fraud.

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