Student Loan Forgiveness

[Mazderati]

Anyone else go to college in the pre 08 crash era where boomer led companies told kids they needed a college degree to get a job? Even if not in the field, just to show they could commit to something for 4 years and meet deadlines etc. And now they're shitting on kids 'useless' areas of study. And then they wrecked the economy and all those new grads interviewed for entry level jobs against folks with MBA's and 20 years experience and didn't stand a chance.

That was my first college experience. I went to community college for 1.5 years and it cost me a few hundred bucks a semester. Finished out at a state college in CA that cost a few grand a year and was debt free with a BS and with zero meaningful job prospects.

10 years later I went to medic school to advance my career at a state college in ID, to get and AS, and it cost me 20k in state tuition. Thankfully the loans were federal with next to nothing in interest.

10K would would be meaningful to me. I've paid off a degree and financed and overpriced one. People who are shitting all over this are painting the typical college debt experience with a real broad stroke.

100%.

[J. Barron DeJong]

Yup, how can we make Bidenflation worse.

Inflation was negative in July:



https://jabberwocking.com/pce-inflat...-zero-in-july/

[Hood26]

Me.

Fuck the Baby Boomers.

[skaredshtles]

Inflation was negative in July:



https://jabberwocking.com/pce-inflat...-zero-in-july/

Deflation?

[huckbucket]

They should just give everyone a Pepsi

That’s all they want. Or need.

Just one Pepsi?

[::: :::]

People who are shitting all over this are painting the typical college debt experience with a real broad stroke.

repeated for truth

[Peruvian]

They should just give everyone a Pepsi

That’s all they want. Or need.

That’s no way to get the world to sing in perfect harmony.

[Core Shot]

Inflation was negative in July:



https://jabberwocking.com/pce-inflat...-zero-in-july/

Month over month. Yay. Fuck me in the ass

Life is so much better now.
And it ain’t orange man bad.
Or Biden.
How about Nixon Truman and FDR

[::: :::]

i don't understand the graph: what does "cumulative" change in CPI/PCE mean?

[alpinevibes]

Anyone else go to college in the pre 08 crash era where boomer led companies told kids they needed a college degree to get a job? Even if not in the field, just to show they could commit to something for 4 years and meet deadlines etc. And now they're shitting on kids 'useless' areas of study. And then they wrecked the economy and all those new grads interviewed for entry level jobs against folks with MBA's and 20 years experience and didn't stand a chance.

That was my first college experience. I went to community college for 1.5 years and it cost me a few hundred bucks a semester. Finished out at a state college in CA that cost a few grand a year and was debt free with a BS and with zero meaningful job prospects.

10 years later I went to medic school to advance my career at a state college in ID, to get and AS, and it cost me 20k in state tuition. Thankfully the loans were federal with next to nothing in interest.

10K would would be meaningful to me. I've paid off a degree and financed and overpriced one. People who are shitting all over this are painting the typical college debt experience with a real broad stroke.

[Raises hand]

Graduated in 08 and was lucky to walk with “only” $20k in loans. Never really got a “career” (that I’m engaged in) going but that has mostly been attributed to choosing to live in the mountains, but largely part of having a spouse with $150k in loans to resolve as a 25 y/o.

I grew up in a well-to-do suburb (Edmonds, WA) and the set expectation of college for my community was inescapable: 99 of my 101 HS graduates went enrolled in 4year schools. The other two planned/did go to community college. Everyone’s parents had worked/sacrificed/ built a life so that their kids could/had to succeed. There wasn’t any other foreseen path.

With the cost of college 20 years later, I really struggle with the whole college pitch and the idea that in 15 years I will be deciding where encourage/illuminate my boys to go in their post-HS lives.

[J. Barron DeJong]

Month over month. Yay. Fuck me in the ass

Life is so much better now.
And it ain’t orange man bad.
Or Biden.
How about Nixon Truman and FDR

Yes. Steady but positive inflation is good for economic growth. Ideal inflation rate is likely more than the Fed’s current 2% target.

Excessively high inflation can be bad, but the primary concern is inflation expectations getting anchored at that higher rate. That isn’t happening.

Sorry about the uncertainty caused by Covid, and Russia starting a war at a bad time. Next time let’s all do better by trying to help people less so we don’t have a temporary bout of high inflation.

[Bunion 2020]

Still waiting to hear how this program will make any type of long term changes other than returning some $$$ to some folks. Some of whom could really use that $$$ and some that don't really need it.

So it goes.

[east or bust]

Still waiting to hear how this program will make any type of long term changes other than returning some $$$ to some folks. Some of whom could really use that $$$ and some that don't really need it.

So it goes.

Pretty good summation.


I wonder when Student Loan Forgiveness V2.0 will be? 5 years, 10 years?


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[Core Shot]

i don't understand the graph: what does "cumulative" change in CPI/PCE mean?

Heh

Yes. Steady but positive inflation is good for economic growth. Ideal inflation rate is likely more than the Fed’s current 2% target.

Excessively high inflation can be bad, but the primary concern is inflation expectations getting anchored at that higher rate. That isn’t happening.

Sorry about the uncertainty caused by Covid, and Russia starting a war at a bad time. Next time let’s all do better by trying to help people less so we don’t have a temporary bout of high inflation.

What the holy fuck?

How about no inflation. And a dollar saved is a dollar earned and a dollar that’s worth a dollar someday later.

Or. We get the inflation casino that crushes the average worker. While at the same time rewarding the fat cats.

[Not DJSapp]

Wow people are really hard up about this.

Didn't we just hand out $3200 per adult + more for kids in 2020 and 2021 if you made less than 75k? On top of never ending unemployment benefits? I never saw a dime of it, worked the whole pandemic and didn't bitch. Trump cut taxes on the ultra-wealthy and I didn't really bitch. This is just another tax cut I don't get a part of.

And who is really getting hurt here? Oh no, the banks! Will someone please think of the banks! Fuck them. A 100k loan at 4.6% generates 25k in interest over 10 years; 53k over 20. So the bank is going to take a haircut on that loan and take a loss on paper. Who is the victim here again? Are the feds really paying the banks the balance?

[jono]

Pretty good summation.


I wonder when Student Loan Forgiveness V2.0 will be? 5 years, 10 years?

Next time there's a stimulus just kick it out to people who haven't had any debt forgiven yet, some household income limit or whatever.

The quiet part: the reason "both sides" are ok with this stuff is it's all a way to devalue the dollar and monetize the national debt. It's a policy response to China's decades of currency manipulation.

[fatnslow]

Thinking about playing the student loan forgiveness lotto with kid #3. Kid #1 finished with zero debt at state U, kid #2 finished this year with about 10K from a private school which looks to be forgiven and kid #3 is starting state school in a month with no plans for debt BUT do we roll the dice and load him up ? I think I could actually afford to go out to lunch once a month or pay for an ugly hooker and meth with the extra cash.....

[doebedoe]

Still waiting to hear how this program will make any type of long term changes other than returning some $$$ to some folks. Some of whom could really use that $$$ and some that don't really need it.

So it goes.

The 10k forgiveness is the headline.

The thing that will have real lasting effect is the changes to IBR plans -- lowering them from 10% of disposable income to 5%, changing the definition of "disposable income" to 225% the FPL, and making it so interest does not accrue on loans as long as minimum payments are met.

Say your monthly take-home pay is 4k (solidly middle class but not a "high-earner" by any stretch). About 2k of that isn't "disposable" under the new definition (vs about 2.5 under the old.) Historically you'd have a $250 payment. Now you've got a $100 payment. $150 means a good deal for someone in that salary range.

Those are significant changes that will a great number of people for potentially decades.

Is it sufficient to fix the costs of higher education and the student loan situation more broadly? Fuck no. But it is a step in the right direction and at the limits of what the Biden administration thinks it can do since our legislative branch is basically Fubar'ed by Republicans holding it hostage.

[AK47bp]

Hilarious thread. It’s like whatever is the hot CNN topic of the week people get all emotional about.

What happened to “quiet quitting”?

Can’t wait for next week’s outrage.


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[Core Shot]

[Kevo]

Anyone else go to college in the pre 08 crash era where boomer led companies told kids they needed a college degree to get a job? Even if not in the field, just to show they could commit to something for 4 years and meet deadlines etc. And now they're shitting on kids 'useless' areas of study. And then they wrecked the economy and all those new grads interviewed for entry level jobs against folks with MBA's and 20 years experience and didn't stand a chance.

That was my first college experience. I went to community college for 1.5 years and it cost me a few hundred bucks a semester. Finished out at a state college in CA that cost a few grand a year and was debt free with a BS and with zero meaningful job prospects.

10 years later I went to medic school to advance my career at a state college in ID, to get and AS, and it cost me 20k in state tuition. Thankfully the loans were federal with next to nothing in interest.

10K would would be meaningful to me. I've paid off a degree and financed and overpriced one. People who are shitting all over this are painting the typical college debt experience with a real broad stroke.

I graduated high school in 2004 and college in 2008. After a short stint of wildland firefighting I tried to find my way into the business world (my degree) in 2010 and the post financial crisis job market was terrible for new grads. I was working an unpaid 20 hour a week internship while working 48+ hours a week as a snowmaker. Eventually the shitty internship company gave me a full time $12/hr job so I could leave the shitty $9/hr snowmaking job. It took years to catch up to anything close to the career path of my brother and his friends who lucked out and graduated in 2006 into $50k+ salary jobs. I didn't make at or above the published "average starting salary" from my degree program until 2012, 4 years after graduating. I definitely had some luck along the way to find my way back towards a career.

So many people were pushed into college who shouldn't have gone to college. Many now have tens of thousands in dollars of debt or over $100k in debt with degrees that don't offer meaningful career advancement. Add in the for profit schools that straight up offered nothing of value in return for loan money and it's unconscionable. There was never a plan for people who went to those for profit schools like Devry, University of Phoenix, ITT Tech, National American University, The Art Institute, etc to be successful. Those students were mostly poor and/or minority first generation college students and large institutional investors (Goldman Sachs in particular) who owned those schools intentionally took the government backed loans and grants from those students, made billions off of them, and left them with a lifetime of indentured servitude. Now the American taxpayer is getting left holding the bag. The system was so poorly designed it's almost like it was intentionally evil.

The entire system needs a massive overhaul, but I don't think either side has the political will to do anything to fix the actual problem.

[Core Shot]

The Biden administration announced it will discharge any remaining federal student loan debt for borrowers who attended ITT Technical Institute from Jan. 1, 2005 through its closure in September 2016.

The Department of Education made this announcement based on its findings from extensive internal records, testimony from ITT managers and recruiters and first-hand accounts from borrowers. It will result in 208,000 borrowers receiving $3.9 billion in full loan discharges, including those who have not yet applied for a borrower defense to repayment discharge. Borrowers will not need to take any action to receive this forgiveness.

"It is time for student borrowers to stop shouldering the burden from ITT's years of lies and false promises," Secretary of Education Miguel Cardona said. "The evidence shows that for years, ITT's leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause.

[Kevo]

The Biden administration announced it will discharge any remaining federal student loan debt for borrowers who attended ITT Technical Institute from Jan. 1, 2005 through its closure in September 2016.

The Department of Education made this announcement based on its findings from extensive internal records, testimony from ITT managers and recruiters and first-hand accounts from borrowers. It will result in 208,000 borrowers receiving $3.9 billion in full loan discharges, including those who have not yet applied for a borrower defense to repayment discharge. Borrowers will not need to take any action to receive this forgiveness.

"It is time for student borrowers to stop shouldering the burden from ITT's years of lies and false promises," Secretary of Education Miguel Cardona said. "The evidence shows that for years, ITT's leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause.

Yeah, they've been doing one off forgiveness for certain for profit colleges. It's good, but it doesn't fix the years of life that the affected people lost, unable to quality for home loans.. The list of for profit colleges is so damn long and the federal government has barely scratched the surface at fixing things.

[J. Barron DeJong]

Heh



What the holy fuck?

How about no inflation. And a dollar saved is a dollar earned and a dollar that’s worth a dollar someday later.

Or. We get the inflation casino that crushes the average worker. While at the same time rewarding the fat cats.

I stand by everything I said. Suggest you read some macro economic theory.

Or don’t and buy some Bitcoin?

[J. Barron DeJong]

Yes, because you can’t have continuous inflation in an economy if wages aren’t inflating as well.

Zero inflation helps those who want to keep their money under a mattress (deflation would be even better for them).