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It's no different than any other form of tax-funded government assistance. The question is if you think "most recent college graduates without wealthy parents"

It's no different than any other form of tax-funded government assistance. The question is if you think "most recent college graduates without wealthy parents" are a population worthy of government assistance.

econonut 3y ago
When will the government start paying off my mortgage? The terms of my loan say I need to pay back the loan in full. I signed that contract, but I was young and didn't know any better. Everyone said, take out a loan to buy a house. It's worth it! My parents aren't wealthy so I took out a loan. But, the house isn't what I was promised. I don't think it's worth what I had to pay. I want to keep the house, but I don't want to pay back the loan. When will that debt be forgiven?
- hamandcheese 3y ago
  > When will the government start paying off my mortgage? Your mortgage interest is tax deductible.
  - pseudo0 3y ago
    Student loan interest is also tax-deductible...
    - hamandcheese 3y ago
      Only when your income is below a certain (rather low) threshold. Source: I have never qualified to deduct my student loan interest. Mortgage interest deduction does not have an income threshold.
- deleted 3y ago
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- deleted 3y ago
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birdymcbird 3y ago
what is definition of government assistance? is there option where instead of “forgiveness”, government help part of interest payment, but if borrower makes principal payment? discussion often no actual detail or nuance. my issue is people who irresponsible..do not own irresponsible behavior..and say someone else should pay 100% of their debt. no absolutely not.
deleted 3y ago
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yaks_hairbrush 3y ago
> The question is if you think "most recent college graduates without wealthy parents" are a population worthy of government assistance. And, quite frankly, I'd gravitate towards a "no" on this. When taken as a group, I'd expect college graduates to be able to pull off an income stream sufficient to pay down the student loans. Of course there are individuals for whom student loans pose a real problem. There should be some realistic provisions for discharge in bankruptcy. Considering our recent/current environment of low unemployment and high inflation, broad-based loan forgiveness is simply the wrong choice from a Keynesian economics perspective. The same is true of continuing the payment pause.
- danaris 3y ago
  > I'd expect college graduates to be able to pull off an income stream sufficient to pay down the student loans. Based on what? The way it worked 40 years ago? Or even 20? Costs—for college, but also for other very essential things like healthcare and housing—have ballooned extravagantly for some time, while pay has remained relatively stagnant. Or is this just based on some kind of just-world theory? "People who go to college are educated; education deserves better pay; therefore, people who go to college are well-paid"? It's a nice thought, but it's not reality. The fact is, a huge number of people have staggering amounts of student loan debt, and very little ability to repay that debt—and a legal prohibition on discharging it. What does this situation gain us that would be lost if we simply cancelled all that student loan debt? Some very wealthy companies that made these loans would be somewhat less wealthy. The horror. How could we ever recover.
  - yaks_hairbrush 3y ago
    > Based on what? Someone with a high school diploma will earn on average $1.3 million over their lifetime. Someone with a B.S. averages $2.3 million. The college degree is thus worth, on average, $1 million in lifetime earnings. Source: https://cewgeorgetown.wpenginepowered.com/wp-content/uploads/2014/11/collegepayoff-summary.pdf https://cewgeorgetown.wpenginepowered.com/wp-content/uploads... > The fact is, a huge number of people have staggering amounts of student loan debt, and very little ability to repay that debt—and a legal prohibition on discharging it. I believe I acknowledged that. Making provisions for discharging student loans via bankruptcy would be a really good idea. Much better at targeting student loan relief to those who need it. > What does this situation gain us that would be lost if we simply cancelled all that student loan debt? Cancelling all student loan debt would lead to some combination of higher taxes and inflation. No matter how you slice it, that would be a redistribution of wealth from the uneducated to the educated. That redistribution of wealth therefore goes the wrong way -- the uneducated are more likely to be poor, and the educated more likely to be rich.

econonut 3y ago

When will the government start paying off my mortgage? The terms of my loan say I need to pay back the loan in full. I signed that contract, but I was young and didn't know any better. Everyone said, take out a loan to buy a house. It's worth it! My parents aren't wealthy so I took out a loan. But, the house isn't what I was promised. I don't think it's worth what I had to pay. I want to keep the house, but I don't want to pay back the loan. When will that debt be forgiven?

hamandcheese 3y ago
> When will the government start paying off my mortgage? Your mortgage interest is tax deductible.
- pseudo0 3y ago
  Student loan interest is also tax-deductible...
  - hamandcheese 3y ago
    Only when your income is below a certain (rather low) threshold. Source: I have never qualified to deduct my student loan interest. Mortgage interest deduction does not have an income threshold.
deleted 3y ago
[deleted]
deleted 3y ago
[deleted]

birdymcbird 3y ago

what is definition of government assistance? is there option where instead of “forgiveness”, government help part of interest payment, but if borrower makes principal payment? discussion often no actual detail or nuance. my issue is people who irresponsible..do not own irresponsible behavior..and say someone else should pay 100% of their debt. no absolutely not.

deleted 3y ago

[deleted]

yaks_hairbrush 3y ago

> The question is if you think "most recent college graduates without wealthy parents" are a population worthy of government assistance. And, quite frankly, I'd gravitate towards a "no" on this. When taken as a group, I'd expect college graduates to be able to pull off an income stream sufficient to pay down the student loans. Of course there are individuals for whom student loans pose a real problem. There should be some realistic provisions for discharge in bankruptcy. Considering our recent/current environment of low unemployment and high inflation, broad-based loan forgiveness is simply the wrong choice from a Keynesian economics perspective. The same is true of continuing the payment pause.

danaris 3y ago
> I'd expect college graduates to be able to pull off an income stream sufficient to pay down the student loans. Based on what? The way it worked 40 years ago? Or even 20? Costs—for college, but also for other very essential things like healthcare and housing—have ballooned extravagantly for some time, while pay has remained relatively stagnant. Or is this just based on some kind of just-world theory? "People who go to college are educated; education deserves better pay; therefore, people who go to college are well-paid"? It's a nice thought, but it's not reality. The fact is, a huge number of people have staggering amounts of student loan debt, and very little ability to repay that debt—and a legal prohibition on discharging it. What does this situation gain us that would be lost if we simply cancelled all that student loan debt? Some very wealthy companies that made these loans would be somewhat less wealthy. The horror. How could we ever recover.
- yaks_hairbrush 3y ago
  > Based on what? Someone with a high school diploma will earn on average $1.3 million over their lifetime. Someone with a B.S. averages $2.3 million. The college degree is thus worth, on average, $1 million in lifetime earnings. Source: https://cewgeorgetown.wpenginepowered.com/wp-content/uploads/2014/11/collegepayoff-summary.pdf https://cewgeorgetown.wpenginepowered.com/wp-content/uploads... > The fact is, a huge number of people have staggering amounts of student loan debt, and very little ability to repay that debt—and a legal prohibition on discharging it. I believe I acknowledged that. Making provisions for discharging student loans via bankruptcy would be a really good idea. Much better at targeting student loan relief to those who need it. > What does this situation gain us that would be lost if we simply cancelled all that student loan debt? Cancelling all student loan debt would lead to some combination of higher taxes and inflation. No matter how you slice it, that would be a redistribution of wealth from the uneducated to the educated. That redistribution of wealth therefore goes the wrong way -- the uneducated are more likely to be poor, and the educated more likely to be rich.