Their hypocrisy knows no bounds. A professor at the University of Saint Augustine school of physical therapy who is outspoken against loan forgiveness follows the same script using insults and ugly descriptives of students in debt. His university is a big part of the problem with skyrocketing tuition with no regulation or cost controls all the while moving their program more and more online. They bring in private loan representatives to their orientation to push unsubsidized loans that accrue interest while students are in the program and cannot work. They also tell students to just take out more loans when new costs arrive like tuition increases mid program or out of state residency obligations which may require maintaining dual residences or having to break a lease.
Aren’t our State Universities subsidized? Florida’s Bright Futures awards up to full tuition to students who attend in-state public schools. Many states have an equivalence. I just can’t buy-in to any loan forgiveness for money spent on kids going out-of-state or private schools.
I think that in this order’s current form that is a certainty. Now the pressure is all on congress. Congress can legally do this, while a president cannot unilaterally do so. I think Biden knows this. I do have a question for the lawyers here, how would this legislation address the millions more people who borrowed responsibly and already repaid, as well as future borrowers? Given that congress (neither party) has the stones to not do this, I’m afraid that they just made college now free to students, with no way for the government to pay for it.
Even state universities have been defunded, I suppose they are still "subsidized" to some degree in that they receive some federal and state money to operate, but its much more expensive to attend a state school than it was decades ago, and that forces more people into borrowing money to pay for it. Since the 80s, schools have been much more deliberately subjected to market forces, which increases costs which necessitates financing and debt. Its very much part of a general assault on public education.
The cost of attending instate tuition vs out of state or private tuition, particularly in Florida and taking into consideration Bright Futures-like programs isn’t in the same hemisphere.
Free money artificially raises tuition like it does house prices. When the next batch f professors with AA degrees come on board the prices should flatten
Yes, my son is a jr at UF and is still hanging on to bright futures, he's taken a couple of small loans for some living expenses but nothing crazy. You are absolutely correct about out of state/private schools, only makes sense if you've got a huge 529 account or wealthy parents.
problems with this the problems with this bill for me go a lot of places. Someone who has no money, but chooses to take out a loan for a 70k private school. Are we paying for that? For profit colleges? People who didn’t graduate? The cutoff is 125k, so someone making low six figures needs a bailout? People that chose to major in something not marketable need to be bailed out for that decision? Universities, who have jacked tuition fees largely on the back of student loan expansion only get rewarded essentially and face no consequence? What about people who went to trade schools, I honestly don’t know, are they covered? Their education might be more practical than a poli-sci major at a good school. and by the way, for low income earners I think it’s 20k.
I’m going through it with my kids now. And you hit the nail on the head. Many parents treat their kids’ college as a status symbol, and then convince their kids to bear the loans and future costs. They’ll let their kids incur 10s of thousands (or over 6 figures) to attend a “prestigious” school and earn a degree which renders them virtually unemployable in that field.
Does POTUS have the power to override the provisions of the Internal Revenue Code legislatively passed by Congress through Executive Order? Seems that may be an overstep of his power even if the debt waiver is not.
I had a small homebuilding business that failed in the late 80s. I'm proud to say instead of filing bankruptcy I paid off every penny of my corporations debt. Why not, I borrowed it, I owed it.
I think Congress created the exemption via the American Rescue Plan Act, which provides student loans discharged from 2021-2025 are excluded from gross income:
Ok, so what? A $1000 a month health care plan isnt in the same hemisphere as a $5000 one, doesnt mean you arent being gouged by the market for both.
You’re correct, just as liberals take advantage of tax cuts. There’s no such thing as Liberal Natureor Conservative Nature, there’s only human nature. And human nature is that humans will primarily serve their own interests first. Partisan demagogues on both sides have done an outstanding job unconvincing their base only the “other side” does such things. They have effectively convinced their bases that their own turds are clean and don’t smell, whereas the other sides turds are filthy and reek inhuman stench.
Democrat Socialists: Yay! Joe Biden finally acted to lower student loan debt. Democrat Socialists Running for Reelection: Yay! Joe Biden finally acted to lower student loan debt, but I have to act as if I'm opposed even though most everyone knows I am lying. Joe Biden Wakes up to Democratic Mutiny on Student Loan Forgiveness Plan – RedState Tim Ryan is particularly laughable. He has a 100% voting record with Dictator Biden and is an acolyte of Nancy Pelosi, no longer the moderate Catholic lad Ohio originally sent to the US House. Nobody in Ohio believes his lies. It'll end up being JD Vance in the Senate. Hey Tim, get your post political career lined up as you are going to need it come January.
Everyone is looking at this from a macro standpoint. But if you look at it from a micro standpoint, it is a good policy. People who did not go to college have the biggest gripe because they feel that they forfeited a college education because they did not want to get into debt like the ones who did go to college who now do not have to pay. Their argument is, had they known that the debt was going to be excused, they would have gone to college also. Their primary concern is that now that it is forgiven, they are going to have to pay for the cost of the loan forgiveness through taxes or higher prices. This is unfounded. First, while all of these college students were in school, it created job opportunities and demand for labor that would have been saturated had all of the people opted out to work after HS. If you take all of the people out of HS who went to college, and put them in the job market with the others who did not go to college, wages would be suppressed, unemployment would be higher, and businesses as well as tax revenues would suffer. HS graduates or others not attending college benefitted from a smaller job pool, earned thousands and thousands of dollars while students matriculated through college. Many HS graduates have become managers and directors of companies because of their experience and knowledge in the industry in which they work. If the average HS person earns 35,000 after HS working one full-time job, then after 4 years, he or she will have earned 140,000 to the college grad's zero (although some college students like myself worked part-time). More importantly, that HS grad will have 4 years more experience in the workforce than the college grad. During the four years, countless number of HS grads or drop outs benefit or benefitted from the expenditures of college students. They work at restaurants, they pump gas, they work at bookstores, places of entertainment, they sell real estate, and they work in health care, etc., etc, etc. They are providing compensable services and selling products to these college students that they would not be able to provide or sell if there were none of them in college and taking out loans which ostensibly go to purchase these goods and services. The same is the case for the professors, administration, and other college staff who take these student loans and pump them back into the community which supports people who do not have college degrees. The notion that this is unfair to excuse loans is founded in an anti Biden obsession with those who still can't get over having a moron like Trump who was born with a silver spoon in his mouth, make a mockery of the presidency in 4 short years, and who was resoundingly defeated in 2020. The notion that college students are simply banking these loans so that they can buy homes and nice cars when they get out of school is preposterous. The money is going into the pockets of people who don't finish school. The revenues of colleges are not being bankrolled. They are spending money in the community with the tuition (including loans) to make sure the university functions. Much of this money is fueling the budgets of non college graduate households. So who is making the sacrifice. While we were sitting through rehashes of American History, HS graduates who were working, were buying things for their homes and families with those loan dollars that they are now complaining should not be excused. This might be hard to comprehend, but McDonald's workers are not doing cancer research. They are not designing defense infrastructure to security our country from enemies. They are not designing methods to protect our environment. Non college grads benefit every day from the sacrifices of four or more years of formal education, but then cry foul when in a tough economy, the people who make those sacrifices are given a break. No one complains about the bailouts of banks, financial institutions, farmers, and other industry entities who also provide jobs, services, and purchase goods in commerce. But when loans are excused for those who are trying to make America a better place, it becomes a crisis. The microeconomic impact of debt excusal will ultimately benefit society. There will probably be write offs by the financial institutions, and there will be tax implications I am sure to the individuals whose debts are forgiven, because now such cash flows become income and not an accounts payable debt.
I saw a post on a veteran's Twitter account yesterday outraged over the government paying for college students' debt when that veteran grew up poor in public housing, went into the Air Force, and then used the GI Bill to pay for college. I had to chuckle at the irony of that comment.
More of the money is coming from the college educated than the working class. I hope this will be coupled with stronger protections in place to prevent predatory colleges from sticking suckers with debt as a business model.
