• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Cutting Down Student Debt (Student Loan Forgiveness)

H

hidingrpolitics

Member
Joined
Apr 17, 2013
Messages
88
Reaction score
45
Gender
Undisclosed
Political Leaning
Undisclosed
The White House proposes that the government forgive billions of dollars in student debt over the next decade, a plan that cheers student advocates, but critics say it would expand a program that already encourages students to borrow too much and stick taxpayers with the bill.

The proposal, included in President Barack Obama's budget for next year, would increase the number of borrowers eligible for a program known casually as income-based repayment, which aims to help low-income workers stay current on federal student debt.

Borrowers in the program make monthly payments equivalent to 10% of their income after taxes and basic living expenses, regardless of how much they owe. After 20 years of on-time payments—10 years for those who work in public or nonprofit jobs—the balance is forgiven.

Rest at here:
Cutting Down Student Debt - WSJ.com


Another well-conceived government plan that will have absolutely *no* unintended consequences. No way this will lead to even more overborrowing.

My favorite part is the law student who borrowed $300,000 for reasons other than just school. The real fools are those who live responsibly and within their means--why not buy McMansions and borrow 6 figures to be a professional student? The writing is on the wall--politicians will eventually buy the rest of the votes from those who want free money, so why not everyone just take on as many loans as possible?
 
hidingrpolitics said:
The White House proposes that the government forgive billions of dollars in student debt over the next decade, a plan that cheers student advocates, but critics say it would expand a program that already encourages students to borrow too much and stick taxpayers with the bill.

The proposal, included in President Barack Obama's budget for next year, would increase the number of borrowers eligible for a program known casually as income-based repayment, which aims to help low-income workers stay current on federal student debt.

Borrowers in the program make monthly payments equivalent to 10% of their income after taxes and basic living expenses, regardless of how much they owe. After 20 years of on-time payments—10 years for those who work in public or nonprofit jobs—the balance is forgiven.

Rest at here:
Cutting Down Student Debt - WSJ.com


Another well-conceived government plan that will have absolutely *no* unintended consequences. No way this will lead to even more overborrowing.

My favorite part is the law student who borrowed $300,000 for reasons other than just school. The real fools are those who live responsibly and within their means--why not buy McMansions and borrow 6 figures to be a professional student? The writing is on the wall--politicians will eventually buy the rest of the votes from those who want free money, so why not everyone just take on as many loans as possible?
Click to expand...

You get an even better deal if you go to work for the gov after you graduate,like gov workers don't get enough perks already?
 
hidingrpolitics said:
The White House proposes that the government forgive billions of dollars in student debt over the next decade, a plan that cheers student advocates, but critics say it would expand a program that already encourages students to borrow too much and stick taxpayers with the bill.

The proposal, included in President Barack Obama's budget for next year, would increase the number of borrowers eligible for a program known casually as income-based repayment, which aims to help low-income workers stay current on federal student debt.

Borrowers in the program make monthly payments equivalent to 10% of their income after taxes and basic living expenses, regardless of how much they owe. After 20 years of on-time payments—10 years for those who work in public or nonprofit jobs—the balance is forgiven.

Rest at here:
Cutting Down Student Debt - WSJ.com


Another well-conceived government plan that will have absolutely *no* unintended consequences. No way this will lead to even more overborrowing.

My favorite part is the law student who borrowed $300,000 for reasons other than just school. The real fools are those who live responsibly and within their means--why not buy McMansions and borrow 6 figures to be a professional student? The writing is on the wall--politicians will eventually buy the rest of the votes from those who want free money, so why not everyone just take on as many loans as possible?
Click to expand...

I actually don't have a problem with that because no one will make all of their payments on time. :rofl

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?
 
MaggieD said:
I actually don't have a problem with that because no one will make all of their payments on time. :rofl

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?
Click to expand...

It states it in the article. It seems like a huge giveaway program.

"During her studies her husband was laid off and she twice had to take out emergency student loans totaling more than $30,000 to make home repairs, pay unexpected medical costs and keep up with the family's $1,000-per-month health-insurance bills, she said.

She now is applying for government jobs that pay about $55,000 a year. According to a repayment calculator created by the New American Foundation, a Washington-based think tank, Ms. Rodriguez-Marshall would pay $273 per month in her first year under the program; without it, she would owe $3,562 a month. Under the program, she would pay about $102,000 over 10 years, and the government would forgive about $639,000, which includes interest.

...

The government caps the amount that an undergraduate student can borrow, at $57,500. However, graduate students essentially have no cap—the so-called "Grad Plus" program allows them to borrow up to whatever their respective college charges."
 
Last edited:
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.
 
radcen said:
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.
Click to expand...

So stick it to the taxpayers!!! What a statement. Pathetic.
 
MaggieD said:
So stick it to the taxpayers!!! What a statement. Pathetic.
Click to expand...

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?
 
Henry David said:
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?
Click to expand...

Apathy. The enemy of democracy. You've got it.
 
MaggieD said:
Apathy. The enemy of democracy. You've got it.
Click to expand...

You're quite right, I am apathetic. But Radcen puts it into perspective.

Also, consider that if "democracy" means the government is controlled by the 'demos', the people, then in this country democracy is an illusion. :shock:
 
radcen said:
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.
Click to expand...

Probably because you won't be paying it.

I'm so tired of Democrats racking up bills, then asking me to pay for it.
 
Henry David said:
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?
Click to expand...

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.
 
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?
 
ocean515 said:
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?
Click to expand...
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).
 
radcen said:
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).
Click to expand...

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.
 
MaggieD said:
I actually don't have a problem with that because no one will make all of their payments on time. :rofl

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?
Click to expand...

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.
 
You must log in or register to reply here.
Back
Top Bottom