SCOTUS Blocks Student Loan Forgiveness Again

Seems ET is once again caught "making up" his alternative facts. LOL

 

Can we stay on topic here of Student loan forgiveness? If you want to discuss Trump's bankruptcies then start a new thread.

 

So, outside of students who are getting debt forgiveness, is anyone in the US for this?

 

Not here. This is one of the most subjective, irrational, and inequitable proposals from the progressivistas. What about the young person that didn't go to college but learned a trade and invested $$s into the startup of a plumbing, framing, lawn service business? If a failed college student gets a government handout, shouldn't the successful tradesman get it, too? Who is providing more small business jobs and actually contributing to the economy?

 

I’d be ok with low interest/no interest loans or loan forgiveness with service (community medical, military, etc) some of which we already do. I’d also like to point out the colleges can themselves forgive this debt if they like with their huge endowments as long as it doesn’t affect the common taxpayer.

 

College: Tuition is $15,000/yr.
Feds: We'll guarantee loans up to $20,000/yr
College: Tuition is now $20,000/yr
Feds: Let's institute a plan to increase funding/borrowing and/or forgive student loans b/c tuition is so onerous.
College: Tuition is now $30,000/yr.
Feds: Tuition is too high for the deserving student, we need to double the funds available for payment and forgiveness.
College: Tuition is now $60,000/yr.

(Substitute any business/industry for "College" and the same results will be realized.)

If one doesn't comprehend the economics and fallacies of this mindset, there really isn't much more to say.

 

I'm for some types of service-based forgiveness, but that still does nothing to fix the rising cost of higher education. Which is the big problem with forgiveness - it too fixes nothing.

 

Creditors committees simply picks over the bones for what is left. Rarely do creditors get paid in full, as in maybe 1% of the time. Mostly it's like JC Penny's a few years ago where they pay out 10 cents on the dollar, investors lose all their equity, and new owners buy out the debt owners on cents on the dollar. That's bankruptcy. To present chapter 11 as a party of creditors hapily agreeing to new buisness terms is as disingenuous as one can be. But yea... Trump's bankruptcies were creditor parties where everyone got paid.

 

Most folks don't need a college education to make a great living. We have too many colleges and too many students. We need skilled labor.

 

Explain "Trump bankruptcies" to be fair to the readers. I'll start the process for you - developers/investors have a plan to build a hotel/resort/condo; they purchase rights from a Trump entity to use the Trump name/brand to promote their project; said hotel/resort/condo succeeds or fails; Trump was smartly paid up front for use of name/brand; developers/investors of the failing projects file for bankruptcy; the Left and those not versed in the development industry cheer that Trump (not the developer/investor group) filed for bankruptcy. Prediction: lots of links from left-leaning reports, sources with an axe to grind or those with CYA motivation will flood this thread. Not so many links to reports/sources from actual developers in the industry who wear big-boy pants and understand the world of development/construction.

 

I am generally against blanket loan forgiveness. I was definitely against the first blanket forgiveness, one based on its bad policy, bad politics, and executive overreach. Some of the more recent proposals may have had some merit from a policy standpoint but it is still executive overreach.

I would agree that there probably should be some discharge procedure, but blanket inclusion into bankruptcy isn’t appropriate because these loans are guaranteed and thus subsidized by taxpayers, and it would be too easy to just default. The tradeoff in bankruptcy is private lenders lend money at rates that take into account the risk of default, or else the loan is collateralized. Student loans are guaranteed and subsidized so they don’t reflect the rate of default.

 

what you are describing is his more recent model - when wised up and essentially became a branding company. Prior to that he had ownership stakes, with debtors. Then defaulted and declared bankruptcy. You omitted the massive casino losses and bankruptcy.

There were other instances where there were large losses but the banks decided to effectively bail him out because bankruptcy was more expensive.

Trump has lost massive amounts of money. His skill is being about to con others to lend him money over and over again and then eat the losses. Finally most of the banks gave up so that is why they had to rely on Russian and other interests to fund the good courses.

 

Yes, there’s a reason Trump had to give up equity in each of the bankruptcies which doesn’t even account for his default on the Chicago tower in which the lenders took a $285M loss outside of bankruptcy.

 

While bankruptcy usually doesn't end in complete discharge of debt very frequently the debtor declaring bankruptcy ends end settling debts for pennies on the dollar. I suspect that was the case with almost every one of the organizations that Trump controlled and ended up declaring bankruptcy. Although not directly related to his bankruptcies Trump frequently forced his small creditors primary small businesses to accept a fraction of what they owed him since they didn't have the resources compared with the Donald to litigate repayment.

 

I'm not generally in favor of SL forgiveness, but in what way is such policy authoritarian?

 

Ouch. MBA? Where'd you go to school?

 

I believe they are referring to Biden attempting to forgive this legitimate federal debt by executive fiat instead of by way of legislation.

 

I was lucky and never had to worry about student loans. My father was pretty wealthy and set up a trust fund for all his kids and grandkids education. When the youngest grand kid turned 30 the remaining trust was split between the 8 grand kids. Now my grand kids are turning college age I might have to mortgage the farm.