So based on your post you should oppose bankruptcy laws since they allow folks to walk away from contractual debt every day. You know, folks like DJT.
Credit hit doesnt help those holding the bag for millions, which typically includes a lot of taxpayers, not just faceless banks. Btw, student loan debt is pretty hard to get rid of thru bankruptcy.
Good. Hope he is successful at "bribing" voters. The federal government is the creditor. They're the ones who hold the contractual right to the debt. They have an absolute right to forgive that debt.
so you are saying they can pick and choose what type of loans and contracts to void at their disgression?
To the extent Congress has authorized it and the federal government holds those loans, yes. They aren't forgiving the private loans. The federal government would have to buy that debt up before it could forgive it.
so going back to my irs question are you saying the federal government can whipe out our debt to them as it is their money we are talking about?
if the federal government can nullify student loans why not nullify what we owe to the irs,. the government.it is, after all, their money.do you think it is wise to allow the government to pick and choose whose debts the eliminate?
Perhaps, I don’t know all the ins and outs of those who are capable of claiming the forgiveness. I don’t think it’s a significant number though. Something like 1% of loan balances have been forgiven before Biden’s executive actions. One thing that mitigates how much is paid out is that they’re required to be on income based repayment plans. Those making market rate or above will have higher monthly payments and pay much more of their loans.
If a statute authorizes it, they could do it. Alternatively, Biden could have the IRS not collect taxes. Of course, you may still owe taxes when a new Presidential administration takes over and decides to collect. But not collecting taxes wouldn't be sound fiscal policy. And I don't see other policy upsides that would justify it.
i could be over-simplifying, but imo it seems unfair to pay off debt for those who don't pay it, when others are paying or have already. including many here. And not getting into young adults who serve in the military for the benefit of financial support for college tuition.
That is not what I’m talking about. 1) I qualified my statement as it relates to public service forgiveness pre-Biden EOs. 2) 4.3M borrowers is a different metric than 1% of loan values.
Simple question that I do not know the answer to, but it would seem to make sense. If your student loan is forgiven, are you eligible for new loans?
If Biden's student loan forgiveness is a form of "buying votes" than Trump's recent fundraiser at Mar-a-Lago in which he promised the extremely wealthy attendees that he would extend the tax cuts of his 2017 bill was tantamount to soliciting bribes.
Student loan forgiveness doesn't cost anyone else anything. I almost posted the story I saw the other day of someone who had paid $170,000 towards a $130,000 loan over decades and still owed $68,000--all interest. Wiping out interest on person A's student loans does not cost person B-Z a thing.
If they are wiping out interest only, then this could be acceptable. But according to 2021 census, somewhere just south of 50% of the population 25 and older have some sort of degree from an AA all the way to PHD. So, you immediately have 50% of the population over 25 that never got a loan because they didn't attend college, then you have probably north of 75% of grads that have paid off or are paying off their debt. I can't believe this can be a winner at the polls for Biden and don't really get why you do this? Decisions have consequences and part of maturity is learning how to deal with those decisions. Forgive bad chooses, what percentage of folks will actually learn and do better?
