5 ms·

I'm all for the student loan bailout, at least this one is going directly to the pockets of consumers instead of having to trickle down like the PPP loans or pr

by Zircom 4y ago

I'm all for the student loan bailout, at least this one is going directly to the pockets of consumers instead of having to trickle down like the PPP loans or previous corporate bailouts.

lend000 4y ago
Student loan holders already received 2 years of paused payments and an effective 20%+ reduction in debt due to inflation over that period. There is a lot wrong with our education system (including guaranteed infinite loans incentivizing high tuition prices -- a better system would be to just have some state schools be free, and like in Europe, more competitive. They would only be for people who really need them financially and have great potential academically). However, resetting student loans and letting the system continue is definitely NOT the solution.
- MauroIksem 4y ago
  Most people didn't get a 20% raise during that time, so stating that debt reduction by 20% is a mute point.
- MauroIksem 4y ago
  So why not both? Reset loans and don't let the current system continue? Your argument is a weird one. It literally hurts no one to forgive the loans but a lot of people don't want to see and i think that's because those people who don't have student loans feel like they're losing an advantage.
  - lend000 4y ago
    Because no one is talking about doing both -- the only policy being discussed by populists is the simplistic option (cancel loans or don't cancel loans). Also, all of those loans (and I have a fair amount as well) were taken voluntarily by adults capable of handling responsibility and consequences. If there was any fair way to do it, it would be to reimburse the last X years worth of student loan payments, such that people who forewent savings to pay down their debts aren't penalized compared to people who did not. > It literally hurts no one to forgive the loans Also want to address this, because I feel like it's a common misconception, especially with Gen Z. It's basically an inflationary policy to forgive debts. So it does hurt anyone who is affected negatively by inflation, while certainly not being "fair" for the reason mentioned above (some responsible adults actually paid their debts and are penalized for that). We all make mistakes (such as taking out massive loans to go to acting school and having it not materialize), but consequences are the side effect of living in a consistent reality. If you make financial reality inconsistent by forgiving loans, you incentivize more of that bad behavior. Also note that most degree holders with student debt are not the lower class, but the middle and upper middle class. Student loan forgiveness is a handout for an educated class of people who are generally doing much better than the poorest in society.
  - nradov 4y ago
    Should taxpayers who never went to college and didn't take out any student loans have to bear the financial burden? Should borrowers who did the responsible thing and paid back their loans already receive a retroactive refund?

by Zircom 4y ago

I'm all for the student loan bailout, at least this one is going directly to the pockets of consumers instead of having to trickle down like the PPP loans or previous corporate bailouts.

lend000 4y ago

Student loan holders already received 2 years of paused payments and an effective 20%+ reduction in debt due to inflation over that period. There is a lot wrong with our education system (including guaranteed infinite loans incentivizing high tuition prices -- a better system would be to just have some state schools be free, and like in Europe, more competitive. They would only be for people who really need them financially and have great potential academically). However, resetting student loans and letting the system continue is definitely NOT the solution.

MauroIksem 4y ago
Most people didn't get a 20% raise during that time, so stating that debt reduction by 20% is a mute point.
MauroIksem 4y ago
So why not both? Reset loans and don't let the current system continue? Your argument is a weird one. It literally hurts no one to forgive the loans but a lot of people don't want to see and i think that's because those people who don't have student loans feel like they're losing an advantage.
- lend000 4y ago
  Because no one is talking about doing both -- the only policy being discussed by populists is the simplistic option (cancel loans or don't cancel loans). Also, all of those loans (and I have a fair amount as well) were taken voluntarily by adults capable of handling responsibility and consequences. If there was any fair way to do it, it would be to reimburse the last X years worth of student loan payments, such that people who forewent savings to pay down their debts aren't penalized compared to people who did not. > It literally hurts no one to forgive the loans Also want to address this, because I feel like it's a common misconception, especially with Gen Z. It's basically an inflationary policy to forgive debts. So it does hurt anyone who is affected negatively by inflation, while certainly not being "fair" for the reason mentioned above (some responsible adults actually paid their debts and are penalized for that). We all make mistakes (such as taking out massive loans to go to acting school and having it not materialize), but consequences are the side effect of living in a consistent reality. If you make financial reality inconsistent by forgiving loans, you incentivize more of that bad behavior. Also note that most degree holders with student debt are not the lower class, but the middle and upper middle class. Student loan forgiveness is a handout for an educated class of people who are generally doing much better than the poorest in society.
- nradov 4y ago
  Should taxpayers who never went to college and didn't take out any student loans have to bear the financial burden? Should borrowers who did the responsible thing and paid back their loans already receive a retroactive refund?