Student Loan Forgiveness

[Supermoon]

There's no indication of how they will calculate salary yet from what I've seen. I would expect they are well aware the compensation packages for high earners look unlike those for low earners. Your anecdotal example is someone earning in the 0.1% -- hardly representative.

My wife's an example: she taught as an adjunct at a spending private university for the last 6 years because she loves teaching. Made ~45k a year. Has plenty of loans. We realized we wanted kids and simply could not make the math work unless one of us switch career paths -- especially if we ever wanted a house with a 2nd bathroom and a WFH space. We drive very expensive cars (2013 minivan and a 2007 civic.) She switched to being a SWE, works at a FAANG and has had a base salary of $125k for the last 9 months. No idea if she'll qualify, but it'd be cool if she does.

I think it’s your AGI from either of your last two tax returns (2020 or 2021). So you might make it.

Shit. I’m taking a long position in Newports

This is fucking gross. Do better.

[J. Barron DeJong]

It's OK. We don't need college graduates as nurses, teachers, civil engineers or business types in any of those places. They choose to live there.


By the logic of "I worked hard and paid mine" --- I should be as pissed as anyone. I paid off 65k of loans in the last 6 years on the salary of a early childhood data geek for the govt in Denver. Not exactly flying high. Last year I paid off the last 9k of my loans (all federal) when I got the only windfall of my life (6k). I could've just ridden it out and got it cancelled.

Am I pissed? Fuck no. This is such a good thing for the vast majority of <40 college grads that I know and work with.

I read that any payments made during the Covid deferral period can be claimed, so sounds like you’ll be eligible for something.

[::: :::]

I support K-16 curriculum overhaul, taking a blowtorch to how we fund education, and loan dismissal for the most disadvantaged, but this feels like pushing the "easy" button.

I suspect a bunch of people would agree
The problem is that Congress is focused primarily on getting re-elected and not legislating.
In the next order of priority for Congress is grandstanding for the tribe.
Policy might slot in somewhere further down.
And good ideas are further still, but only if everyone else is on board first…cuz I need to get re-elected

[Phall]

I'll bite with my story, not a sad sack story by any means, I made my bed and came from a point of some privelage.
MA born, suburban Boston, good high school, parents both worked, but were not wealthy. Followed the "you can be whatever you want to be" and "everyone goes to college" mentality of where I was from. Chose an out of state state school to get farther from my folks, and chose a bullshit degree (recreation management). Tuition wasn't cheap, mid $35k/year ish.
Ended up with two sets of loans, Mom and I are on one set, Dad has a set that I am not co-signed on. I do not know what the value of those are right now, but the ones I had with mom ware ~$49k in loans for a bachelors. I'm currently 36 years old, 13 years out from graduation, and still have $24k left on those loans. Been utilizing IBR plans, paying min. monthly at a minimum, but stepped it up to more than that, paid through the pandemic.

I did not chose a path out of college that let me stay at home, nor save money. I like having good gear for my hobbies. I admit, that's on me and I could have saved better or made different decisions at 18, but, that's life. With Mom's 2nd husband passing we should have enough with this 10k and some money from her to fully kill the loans I have with her, which will free up some money to start saving for a house/paying down some other debts.

I get the opposite arguments, and I definitely won't be swayed for a midterm or next POTUS vote by this.

[Toadman]

Attachment 424704

^^just a funny thing I found on the internet. I’m closer to bemused than outright supportive of the latest action. Not fully following most of the tirades against it, though.

I was thinking about this very thing last night. Catholics are great and donating a few bucks to have their sins absolved. It's interesting to see that disdain and hate coming from the Christian right for loan forgiveness.

[doebedoe]

I read that any payments made during the Covid deferral period can be claimed, so sounds like you’ll be eligible for something.

For those curious about this -- here's PBS on the matter: https://www.pbs.org/newshour/politic...rgiveness-plan

[J. Barron DeJong]

Maybe college costs aren’t going to be as big of a problem going forward?



https://twitter.com/mattgrossmann/st...HRgp6HK7akk9vQ

Also:



Borrowing down too:

[J. Barron DeJong]

More on inflation effects:



https://twitter.com/paulkrugman/stat...HRgp6HK7akk9vQ

[PNWbrit]

With Mom's 2nd husband passing we should have enough with this 10k and some money from her.

I'm currently 36 years old

Wow.

[Conundrum]

Maybe college costs aren’t going to be as big of a problem going forward?

Well who will legislators pandering for votes give money to then?

Joe Biden said this about the fairness of the debt forgiveness:

"Is it fair to people who, in fact, do not own multibillion-dollar businesses if they see one of these guys getting all the tax breaks? Is that fair?" "What do you think?"

I wonder who the one group of people is that could correct this unfairness? These people are dolts.

[jackstraw]

Both my kids just went thru college in the last few years. They were lucky and have no debt. Do I care that their friends are going to get 10k knocked off their loans? Hell no. I'm psyched for them. The cost of college today is absurd.

[Kevo]

Wow.

Mom's second husband's estate and a the American taxpayers finishing off paying for a $35k per year out of state unmarketable degree.

Sounds like the American dream.

[Phall]

Wow.

Yeah, I know. I did shit job saving. I have a 401k but savings is pretty limited. Without help from her I'll be living with these loans for another what, 5 years?
I make under 60k a year, own my car outright and its beat up, but am not on the ramen and heavy saving plan. I could have done a lot better, I always stress about money and this will be a big help for us.

[PNWbrit]

Without help from her I'll be living with these loans for another what, 5 years?

5 years might be enough time to grow up?

[Kevo]

There is an entire generation that was sold a false narrative of "you can be anything you want so long as you go to college". It sucks that the idea was sold without any kind of guidelines to people who could not afford that kind of advice.

I'm glad that Phall is going to have some debt relief, but the underlying issue is far from being fixed and the people who made billions off the grift will never be held accountable.

But hey, if we backstop bad corporate decisions without fixing underlying problems we might as well backstop bad personal decisions without fixing underlying problems.

[Conundrum]

Shit man. If my family leaves me anything, I'm not going to feel bad about it nor should anyone else receiving family help.

[yeahman]

I read that link posted but am still not sure if students borrowing for the upcoming school year will qualify. Anybody know about that?

[hatchgreenchile]

Phall, thanks for sharing.

We chose to blitz our $75,000 bill and payed them off in 4.5 years. There were opportunity costs in doing so, but compounding interest is a fighter that doesn't stop swinging, and you can't have everything all at once. I don't expect others to do the same, but we live in a world of consequence. Choose wisely.

[Ted Striker]

.

[Ted Striker]

There is an entire generation that was sold a false narrative of "you can be anything you want so long as you go to college". It sucks that the idea was sold without any kind of guidelines to people who could not afford that kind of advice.

"Skinny half-cap? and what's the name for the cup?"

[Danno]

There is an entire generation that was sold a false narrative of "you can be anything you want so long as you go to college". It sucks that the idea was sold without any kind of guidelines to people who could not afford that kind of advice.

I'm glad that Phall is going to have some debt relief, but the underlying issue is far from being fixed and the people who made billions off the grift will never be held accountable.

But hey, if we backstop bad corporate decisions without fixing underlying problems we might as well backstop bad personal decisions without fixing underlying problems.

Agree with all of this. And highlighted the last part because I think that's what irritates me about the reaction I am seeing. This doesn't fix a goddam thing from a structural POV, but I'd at least rather see individuals receive some benefit than large corporations. And while Summit is super irritated that some people who make decent or even good money might get a benefit, there simply aren't many, and the bulk of the "poor decision makers" receiving this benefit are people who are FAR from well off. I get nothing, but I am ok with that.

[skaredshtles]

<snip> but we live in a world of consequence. Choose wisely.

I mean - that's sage advice, but I think often we're talking about folks that don't have the privilege of having acquired the appropriate financial wisdom at the ages of 18-25 to make a savvy college-loan decision.

[doebedoe]

I read that link posted but am still not sure if students borrowing for the upcoming school year will qualify. Anybody know about that?

According to my buddy whose daughter just took on a bunch of loans to start at Berkeley Law -- they were told the loans have to be originated before Aug 1 2022 to qualify.

[Supermoon]

I mean - that's sage advice, but I think often we're talking about folks that don't have the privilege of having acquired the appropriate financial wisdom at the ages of 18-25 to make a savvy college-loan decision.

Yeah, and I mean, the initial decision comes at 17, while in school, having everyone tell you college is the way to go. They can't buy a beer, or rent a car, but we want to hold them accountable for a $100k financial decision made under pressure from authority figures they trust?

I do think most of the time college is a good choice, for lots of reasons, but the cost structure of it needs to get figured out.

In my mind, this is a small thing, that's going to help a ton of people, and can get done without the help of a Congress who isn't able/willing to get anything more significant done.

[hatchgreenchile]

I mean - that's sage advice, but I think often we're talking about folks that don't have the privilege of having acquired the appropriate financial wisdom at the ages of 18-25 to make a savvy college-loan decision.

My comment was more about post graduation earnings, and how you choose to prioritize assets and liabilities.
"Appropriate financial wisdom"...This is a failure of K-12 education. The concept of principal and interest is not some 300 level course.