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> * Those who sacrificed and paid off their student debt receive no reward. Everyone is sacrificing. This statement seems to imply that people who haven't paid
by ModernMech 4y ago
> * Those who sacrificed and paid off their student debt receive no reward.
Everyone is sacrificing. This statement seems to imply that people who haven't paid of their debt only haven't done so because they haven't sacrificed anything and are instead taking vacations.
Moreover, the general concept of taxes is that you put money into a government pot, and it goes to things that maybe won't better you in a direct way. I've paid much more than $20k in taxes, why can't I get something out of that which will benefit me directly for once, even if it doesn't benefit someone else directly? My sacrifice is that I don't have kids, and yet I'm paying for the schooling of other people's kids. That's not something I complain about because I know it will help society as a whole.
> * People are now incentivized to not pay off the last 10K of their debt until there is an answer if relief will be enacted or not
The whole point of the policy is that people aren't paying off that loan one way or another. It's not as if many people have $10k-$20k sitting around they could put toward a student loan but have decided not to because of the announced policy.
> * The policy smacks of "vote us back in or else 10K wont be yours"
It's the other way around: the policy is the fulfilment of a campaign promise from the last election; student loan debt relief was one of the things Biden campaigned on. Last time we elected a billionaire real-estate developer and got tax breaks for the rich and corporations. This time we voted the other way and are getting student loan debt relief. That's just the way it works. Anyway, Biden isn't up for reelection this year and is implementing this action through the executive branch, so control of Congress doesn't matter so much as to whether this policy is implemented or not.
- ipaddr 4y agoIt's not as if many people have $10k-$20k sitting around they could put toward a student loan but have decided not to because of the announced policy. That is exactly what is happening. Sitting around could be defined as parents with $10,000 ready to help but deciding to let general tax payers pay up.
- ModernMech 4y agoIf that were the case, there wouldn't be such a clamoring for debt relief. Fact is that student loan calculations already take into account the assets of parents. Schools routinely factor in the help they could give into the total cost, and offer a package of grants and loans to make up the difference. If parents are withholding support it likely means the student can't meet tuition with their aid package.
- prieslo 4y agoPayments have also been paused for 2 years with no interest. I can say personally I have left the money “sitting around”, because there is literally no reason to pay the loans when you can just invest (or otherwise let inflation devalue the debt) and pay later
- maerF0x0 4y agoit becomes a marginally rational choice to defer whatever you're able to though. even if it's only $500, that's $500 more in your pocket.