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People don’t need to make payments, why bother making a payment if its going to get forgiven?
by thehappypm 4y ago
People don’t need to make payments, why bother making a payment if its going to get forgiven?
- ceejayoz 4y agoThe payment pause on student loans ends in a month and a half (and is a separate program that's been around since the start of the pandemic). The legal battles over the forgiveness program are likely to go far beyond that, and lots of people have loan balances well over the $10k proposed forgiveness.
- prepend 4y agoI’ll be surprised if it actually ends. They said it will super duper definitely end, but there have been many “end dates” over the past two years. I feel silly because I paid off a student loan during this period and if I had paid nothing it would have been forgiven. The rational action is to pay nothing as long as possible.
- tomcam 4y agoI would bother to make my payments because I would feel like shit if I took that much money from the American taxpayer without paying it back.
- whimsicalism 4y agoWhy not start donating extra tax to repay any public school expenses you acrued as a child?
- tomcam 4y agoThat’s bizarre but I’ll assume you don’t know how American public schools are paid for. It’s property tax, which is money the government takes from you when you own a house. Those property taxes were paid annually by definition.
- whimsicalism 4y agoThe taxes used to forgive your loans were also paid for annually. I am definitely familiar with how American public schools are funded (there are also federal funds in the mix).
- rank0 4y agoAnd you’d be a sucker for not taking tax credits the government has legally granted you. It’s the governments fault for making terrible loans and forcing taxpayers to absorb the risk. Don’t be mad at people for receiving…be mad the government is offering!
- whimsicalism 4y agoMy partner and I make $420k gross. it's ridiculous the government is offering us another $20k because we graduated school in the last 2 years. still going to take it, of course, but simply bad policy.
- ceejayoz 4y agoMaking $420k with student loans is a pretty clear edge case, and we often find that trying to means-test these sorts of things winds up making things worse, not better.
- whimsicalism 4y agoI find the arguments against means-testing less compelling for one time transfers. Large income and large student loans is actually very typical for early-career doctors and many other professionals who have very high expected lifetime income. FWIW, this transfer was means tested - it's just that they consider the lesser of 2021 & 2020 income and we were in school in 2020.
- rank0 4y ago100% agree. Our government needs to start being fiscally responsible. We cannot sustain our current levels of debt forever…
- prepend 4y agoI don’t think that’s how interest works. The government stopping charging interest. They don’t care if you pay or don’t. You aren’t taking any money from the taxpayer. Also, the “taxpayer” charged me 6% internet when the prime rate was 2%. Did it make you feel like shit because you, the taxpayer, were gouging student borrowers? The discussion isn’t about never paying back. The discussion is about not paying back during the 0% interest period when the gov asking not to pay back.
- whimsicalism 4y agothe govt is forgiving $20k/per person with pell grants of loans.