How is that even possible? Did he never pay on the loan? A dollar a month on the principal? I borrowed like 40k and had it paid off in like 10 years without even trying to pay it off fast.
You may have said it elsewhere, what do you think the root problem is? I have two boys in school now so I am curious.
Oh, it’s possible. People work the system all the time. Especially when the administration telegraphs mass loan forgiveness. Honestly, if I was in the same situation, I would accept the money too. Who wouldn’t? Doesn’t make it right. But take the money, because eventually government is going to get it from you some other way. There’s no such thing as a free lunch.
Root problem is guaranteeing loans with shitty collateral. How many banks would do a mortgage on a home they know will lose almost all of its value within 15 years? Not a one. So why is the government guaranteeing loans for degrees in performing arts and music? Not only is it a bad loan to write from the get go, it also drives up the cost of tuition as money is too easily accessible to pay the ridiculous fees being charged to acquire such an “education.” But the student loan quagmire is what it is because the government is blessing very shitty loans with almost no hope of repayment. Much like the banks were doing in 2005-2007 in the run up to the Great Recession. At least then, banks had a reliable performance of collateral to fall back on. Such performance doesn’t exist with many of these student loans. Why in the world would you guarantee such a raw deal with taxpayer money? Malfeasance.
I’d say it’s multi factorial, but a big part is the cost that schools charge, they know the Gov will loan the money so they know they will get paid. If people weren’t “able “ to planck down 80k a year tuition do you think the schools would charge that? The other big part is some use the ability to get loans easy as a license to borrow any and live large while in school. Not saying everyone does that but many kids think it beneath them to work while at college. It will ruin their “college” experience. A big part of the reason I had a small amount of student debt was that I worked the entire time I was in college(save PA school I even did some shift work here and there even though it was frowned upon). Got to UF with 160+ credit hours and SL free. Wasn’t easy but isn’t that the way things usually work?
I guess I have to post this on every student loan thread, but no one else is picking up the tab for these forgiveness cases. Wiping interest off a financial ledger where the principal was long since paid off doesn't cost any person anything.
Forgive criminal PPP loans, no problem. Write the big banks bailout checks in 2008, no problem. Help people being screwed with usurious interest over decades, BIG problem!
"How do we pay for it" only applies to things that help ordinary people, this guy should have bought arms from the government to fight in a proxy war or something, not gone to school.
So we just wipe these debts off every 10 years or so for the next generation? I don't oppose the forgiveness, but what's the point of we get to do it again and again and again. I support amnesty for illegals here, but not until we actually control the influx at the border. Fix the problems.
I have a problem with each one you mentioned. And most subsidies. And repetitive loss National Flood insurance properties. Maybe NFIP in general.
No able bodied person should have that debt forgiven/ paid by others. Period. It was taken voluntarily. If there are true exceptions such as grave medical issue, car accident etc that prevented that person from working then sure. But this is not that. He clearly had opportunity to work in another career and chose not to…. for decades. 249,000 is a shi ton. Anecdotal alert. My kids God parent has a PhD ( went to UGa) in child psychology and got her first real job at north Atlanta school system. Her fiancé. pharm D. Great guy just got his first real job also in north Atlanta. Both hard working Great people…both got letters about portion(s) of their debt forgiven. They don’t need it. Of course will take it.
