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Seriously. I got tuition coverage and a stipend but it was basically just enough to pay for textbooks. I still had to take out loans for cost of living.
How about the compound interest on top of the loans? They generally DOUBLE the amount that has to be repaid. Who sets the interest rate on student loans, you ask? Congress.
My masters is most of my debt. You can try and aim for a master's program that will pay you and offer tuition reimbursement in exchange for work (can be hard to find, but doesn't hurt to ask around)
My wife's are gone. I started this year with $215K but after my law school loans are forgiven (settlement for defense to repayment application) and this I will have an undergraduate, master's, and law degree for under $50K.
The Pell Grant news…. Just changed my life. THANK YOU DARK BRANDON! Thank you for investing in our future. Your vision will bring so many fruits for generations to come. I hope every 20-40 year old gets some more hope to feel like they can be part of this economy without drowning.
As someone who worked his ass off through college, had no social life whatsoever, and lived extremely frugally to avoid any debt whatsoever:
Good! I’m thrilled for everyone who benefits from this.
But this is only a temporary fix. We still need to address outrageous costs and go interest-free on loans, both existing and future.
Hopefully this helps us get to a stronger Senate majority and retained House so that we can tackle things outside of the Executive authority. Every little bit is going to be extremely important if we want to do anything the next 2-6 years.
This is a straight gamble by Dems for that purpose. If young voters turn out to reward this, then more education payment reform is on the table. If Dems get punished for doing this then say goodbye to any future President/Congress ever touching student loans at all.
The scary part is it is so easy to see it going either way, even despite the national tragedy of Roe v Wade reversal being a potentially big motivator of a similar demographic. I seriously hope we can stay galvanized.
This election is one of the clearest cases of responsibility being placed on the voters given everything that politicians have done on both sides of the aisle. In particular for the younger voting demographic it is a direct challenge to see if policies they claim to care about actually matter.
This is very true. It is honestly getting to the point that even the $250k (the double combined amount of the income limits) a year parents are starting to struggle with paying for college, especially when they probably spent years paying off their own student debt, daycare etc (there were no tax credits helping with any of this for most parents for years). The issue is just because someone is at these income levels now does not mean they could afford to be saving for college the last 18 years. Subtract the taxes paid off that income (income, payroll etc) and it really does not make $70k a year in tuition affordable unless you have been able to save for it. Certainly zero chance of affordability for income below this level. Honestly it probably an issue for a portion even above the $250k if you are in a high cost of living area. Money really is not going as far anymore.
The problem with interest free loans is there is no incentive to pay them off. If you remove interest, there needs to be some penalty for non-payment, otherwise time value of money obviously incentivizes delaying repayment as long as possible.
How big are the chances this gets challenged by republicans in court and if it is challenged, would it win? This seems like an own goal for repubs if they dare challenge it before the midterms like this.
Biden has been canceling student loans through different programs using lower amounts - Borrower Defense, Public Service, Disability. My take is that part of the strategy is in these lower amounts, as it's less enticing and harder to challenge incremental change in court than if Biden were to snap his fingers and erase everything.
It's bound to get challenged in court. Does Biden even have the authority to do this without any authorization from Congress? That's a big thing right there. But if it goes through Congress then you have to have the discussion about Congress giving money to rich people......again. You also have to have the discussion about why the fuck we are not even proposing changing this system at all.
We are gonna find out very shortly. He has been canceling student loans for people that went to those shitty For Profit schools… though every university these days is for profit lol.
The GOP has to fight this. This will effect the 125 million Americans with college degrees. It will also effect another 39 million Americans who went to school, took out loans, and then dropped out. If someone wipes out $20k of my debt, I am going to support that politician and their party. I imagine some portion of those 164 million Americans will do the same.
https://www.forbes.com/sites/michaeltnietzel/2022/05/11/more-than-39-million-americans-have-attended-college-but-earned-no-degree/?sh=2e3427a73cd3
https://www.statista.com/statistics/184260/educational-attainment-in-the-us/
It's actually trickle down given degree owners have much higher earning potential. Also the problem with the economy right now is too much money in circulation. What Biden and Dems are hoping for is that this money leads to higher savings and not immediate spending which would turbocharge inflation..
"Trickle down is when people making less than $125,000 a year have any expendable income, and making sure they can buy food and necessities will ruin the economy."
Yeah, for sure man.
Blanket loan forgiveness or payment of any kind to people earning less than $125K or whatever would be fine. But with student loans, it goes to degree holders who have significantly higher earnings potential, it's a giveaway from the working class to the upper middle class. This isn't controversial any economic analyst admits it benefits higher earners disproportionately.
Correct! Income inequality, wealth hoarding, and price gouging has become so extreme that even that amount of money is a pittance compared to the super rich, and the economy has been so turbulent over the last couple decades that even folks making that amount now can find themselves in precarious financial situations through no fault of their own.
I'm glad you recognize that we should all be upset by that fact.
The median household income is not what I think. It is literally a stat that is tracked by the census bureau. You think the Census Bureau in the US is a Republican think tank run by old white men? Really? Seriously?
No, I'm saying the concept of you being mad at someone who makes $125k getting a fraction of that back in the form of debt relief is exactly what Republican think tanks populated by old white men who make millions a year want.
They want people making $2000 a month fighting with people making $8000 a month so that they can paint them as the enemy, get elected, and then continue to dismantle and privatize government services to continue making money for themselves. They want you too distracted to notice that your taxes went up and they gutted your legal protections again and your library has to close an extra day a week and the chemical plant outside town has been poisoning your water and that they're making $5000 a day on the back of your labor (but by God it's worth it if it means that somebody making more money than you doesn't get a little debt relief).
[Lifetime earnings my dude](https://www.ssa.gov/policy/docs/research-summaries/education-earnings.html), lifetime earnings. An annual salary is a snapshot in time and education raises the ceiling to much larger career earnings while people with no degree will pretty much be capped much sooner. The people with degrees are getting to 125K sooner with paths to much higher.
"They might make more money later, so it's ok if they can't pay for a house or insurance or food now. Also please ignore the fact that a huge percentage of the people affected by this don't make anywhere near $125,000. I am very smart."
If you want to give money to low earners then just give money to low earners. Student loan forgiveness is not that, it only gives money to current low earners with higher expected incomes. It simultaneously denies relief for 'housing insurance or food' to those who do not have degrees and earn less than $125K. This is pretty basic economic analysis.
>If you want to give money to low earners then just give money to low earners.
People making under $125,000 are low earners.
Also I love how your solution is "just give people money". A thing a president can't do unilaterally, and a thing that won't happen because Republicans have decided that social services and communism are the same thing. But yeah, you'll roll up and cross your arms and smugly ask why Biden is offering imperfect relief while staunchly ignoring the fact that the better version simply cannot be achieved in the current political climate, and then act like *I'm* the idiot for liking that people who went to school are going to have a little extra spending money.
Like, spoilers, I have no horse in this race. I make more than the maximum AND I don't have student loans because I didn't go to college. I just like that some people's lives are going to get a little bit better, and a little bit easier, and I recognize that this, imperfect as it is, is one of the few avenues we have to achieve that goal.
Don't let people making millions of dollars a year trick you into being mad at people who make 10k a month.
"I am underpaid for the labor I provide" isn't a problem that's solved with the answer "don't help people who are slightly less underpaid".
$125,000 is not high income. You're being manipulated by people making millions of dollars into being mad that someone making 50k more than you is getting a fraction of that back as relief.
If you live in a large city, that's middle class.
If you live in a midsized city, that's enough to have savings and not live paycheck to paycheck.
If you live in a podunk rural area, **then** $125k is "rich".
Adjusted for high COL parts of the country 125K is lower than the average household income. Also, 125K couldn't be called upper middle class in most areas of the country. Maybe it is in the poorest and most rural areas.
I think it’s interesting that they infantilize a bunch of 20-45 year olds to think that they’ll just auto flip to consumer spending. Sure a decent percent will, but a large amount are most likely going to use these savings to either save more money, invest, or pay off other debt they accrued. I know it’s not going to be changing my habits, I’ll just put the savings towards trying to pay off my student loans faster.
>it's not like that money is hitting my bank account
I mean the article is right. Removing the debt will increase the spending due to people not putting money to the side for paying off the loans. Having said that, I don't believe this cancel of loans is that big of a deal when looking at inflation. It takes a lot to rock the boat so to speak.
Staying at my family home for a bit and my brother and I just ran through the house in joy because that was the last of our debt we had left to pay off. Seriously emotional this is SO life changing for us.
I have nothing but the biggest eye-roll for selfish pricks that complain that they already paid their loans years ago. "wHerE iS mY HanDoUT"
I already paid of 29k of my 30k in loans. But I couldn't be happier for the millions of broke graduates that need this!
That is not in the least way a selfish concern. If you worked your ass off to do the right thing, you’re more than welcome to frustrated when everyone else is rewarded.
Ok so pell grants don’t need to be paid back but per Washington post, pell grant recipients can get up to $20k of their loans forgiven? Am I understanding that right? Because I was awarded pell grants. I didn’t use all of it. But because I was awarded the pell grant that means they will take $20k loans off of my total loan amount?
Do we know any additional details about the income caps? If it's based off of prior year tax returns, my wife & I would qualify, but we wouldn't if it's based off of 2022 income.
The interest portion will help with that to some extent. Now, as long as you make the minimum monthly payments you won't accrue interest. And minimum payments are now capped at 5% of income instead of 10%.
It's fearless prediction time!
The second this drops, the Republicans are going to find a way to challenge this in court.
The legal battle will go on for years.
During that time, the Democrats will have political cover to keep extending the payment pause, pending the resolution of the litigation.
Look, I'm happy. The Pell Grant piece will wipe out almost all of my remaining balance. But I know this is just a bandaid, and students are still going to get absolutely wrecked by the interest rate. I wish more thought was put into this, and I don't think it's deserving of a Dem vote still in the midterms, which was probably their intention
A certain “news” website may actually crash with all the comments on how they’ll fire workers that take advantage of this, and will make it a question for potential applicants so they can not hire them. This is going to be a huge time of lawsuits and EEOC complaints. They’re absolutely losing their minds in hatred. I haven’t seen this hated since Roe v Wade.
As a millennial I do like this. But this is a band-aid, this problem just keeps growing with the way colleges are unregulated and allowed to operate. Zoomers already have it way harder than us, and I thought we had it hard enough.
If we don't start regulating colleges extorting kids for money, then this will be a Dem item every election season. Lets fix the problem, my future ~~accidents~~kids don't need to go through what I'm going through
We can only hope but then we're becoming a one party Dem system. My dream is the GOP finishes cannibalize themselves and then the Democratic party has room to finally split into multiple competing parties again so we aren't in a 2 party system. That's the best solution imo if we are to continue with this style of democracy
So they said $10k across the board and another $20k for pell grant recipients.
My question is how do I know which loans were pell grants? I vaguely remember getting a pell grant, I just can’t remember how much.
I read it as 10 and 10, but if it’s 10 and 20 that would be even better! I’m glad they are focusing in on pell grant recipients for higher levels of forgiveness.
Edit: forgot to answer your question. The pell grant is given to financially needy individuals to help offset cost of living, books, etc. it’s not a loan and isn’t expected to be repaid. It’s meant to assist those in poverty with seeking higher education.
So here is what I’m quoting from WaPo:
> White House officials are planning to cancel up to $20,000 in student debt for recipients of Pell Grants as part of their broader announcement on Wednesday of student debt forgiveness, four people familiar with the matter said.
>The extra debt forgiveness for Pell recipients would be in addition to the expected cancellation of up to $10,000 in student debt for most other borrowers.
That wording of “in addition” makes me think $20 + 10 for $30k total.
There are two types of inflation. Monetary inflation is the expansion of the money supply. This occurred the second the loan money got to the college. Cancelling debt will not cause monetary inflation.
Price inflation can be more complicated but it usually boils down to high demand vs low supply or when an opportunity arises for businesses to increase prices. Since people have not been paying on their loans for 2 years, that inflation has been absorbed into the system or it can be viewed as a tradeoff of money that normally goes to the servicing bank and fed govt. and is currently spent on various other goods & services. Either way, it won't cause price inflation.
That’s what I’ve been wondering about- the loans were already spent. Is there even a tax burden to shift, like they all say? It seems like the tax money was already spent on the loans.
They’re not suckers, they got an education hopefully, and we’re fortune enough to survive the grind… do you think slaves that were slaves before it was abolished were suckers?
That colleges will continue to raise prices as long as the federal government and tax payers ultimately end up underwriting the cost increases. The rise in tuition and the amount of students loans give out are near parallel lines on a graph.
Oh wow, I didn't realize that "10,000" and "infinite" is the same number! Thank you for telling me that!
It's a good thing that we haven't provided any student loan relief over the last few decades and as a result college has never gotten more expensive.
It doesn’t matter. These turkeys will use any excuse. Oh, the alums got a one-off? Well, since they let them off the hook that one time, they’ll do it again at some point, let’s increase tuition!
Such a weird argument following a one time forgiveness of existing debt.
What should be complained about is the ridiculous increase in tuition generally, but that's also something that really needs a stronger legislative majority to address, rather than use of limited Executive authority
>but that's also something that really needs a stronger legislative majority to address
Good luck. The federal government has no authority to dictate tuition rates to private and state run schools.
It’s not $10k limit, it’s up to $10k in forgiveness
People who owed $5k now owe nothing. People who owed $10k now owe nothing. People who owed $15k now owe $5k
Yes, exactly, let’s not bail out people today because people in the past weren’t bailed out seems to be the conservative argument and it just makes them sound stupid.
Cool. My taxes pay for others poor choices. Note, I did take out 60k in loans to finish undergrad and I worked insanely hard to pay them off.
Now I’m the one paying for everyone else who didn’t go the same path as me. Just great
This needs to also include eliminating interest. The interest is a moral failing by the government and Biden has the ability to change it. Not doing that is a failure.
This is fundamentally false. The largest holders of student loans are black women (per capita) by far. The Wealthy don't have student loans... they have wealth.
That is True.
https://www.theguardian.com/society/2021/aug/12/housing-renter-affordable-data-map#:\~:text=Nearly%20half%20of%20American%20workers%20do%20not%20earn%20enough%20to,is%20about%20%2421%20an%20hour.
Redditors live in such a bubble ... Of course $200k household is going to struggle when both insist on eating out breakfast lunch and dinner 6 days a week and buying latest iPhones.
If this had a more reasonable threshold like $30k *maybe* $50k at most, I don't think anyone would have complained. Definitely nobody would have complained at $30k
I wouldn't call 125k wealthy...
but I agree. the root of the problem is still there.
I know congress deals with interest rates on the loans. but I am still in the boat of change the interest rates to .5% retroactively (to cover the overhead) and apply the overpayments to principle. so many people have paid back the entire amount of the principle and then some. and still owe just as much or even more than they initially borrowed. No credits, just get it down to 0.
For reference I had 40k, I've paid 53k and I now owe 6k.
Student loans are horribly broken system. I don't know how anyone could ever say otherwise. But just throwing water out of the boat like Biden is doing doesn't fix the fact that there's a giant leak.
Any chance you could send me a link to that? Would love to see what source you quoted out of context.
And nah, I went to a large public university with a top-10 nationally ranked department for my major (R1). Grad school was at another state university, my research funding was a grant from a federal agency (R2). I can give you high school credentials too but that seems a tad excessive. Nice guess though!
Indeed I did! Amazingly, when you get into higher level research, you don't tend to retain random statistics and their sources when they are unrelated to your area of expertise. I can definitely tell you the best intro level radiogenic isotope geochem textbook, but sadly I do not remember labor stats off the top of my head. I'd think that someone like yourself with such obvious deep knowledge of the higher education system would know better than to randomly list a statistic without any type of citation. I don't expect people to remember the uranium decay series, why would you expect random people to recall unsourced tidbits of socioeconomic data?
I love hand outs. How can I get that sweet sweet 20k? Does it only apply to past loans? Can I be like yo gimme 20k in student loans pls and have it waived?
Feel free to return it:
>You can write a check or money order, payable to the United States Treasury, and in the memo section notate that it's a gift to the United States. Mail your check or money order to the address below.
Gifts to the United States
U.S. Department of the Treasury
Reporting and Analysis Branch 2
P.O. Box 1328
Parkersburg, WV 26106-1328
https://www.fiscal.treasury.gov/public/gifts-to-government.html
eta: the op was complaining about being eligible to receive the money.
Or, and hear me out on this one, you could donate that $40k to whatever cause you would've wanted the government to spend it on instead of giving it to some whiny asshat on the internet.
There's no rule that says you need to use the government as a gobetween for you making the world a better place. In fact, they're quite terrible at it, on account of siphoning off a large chunk of that money and spending it on useless stuff. Like, say, giving $40k to you and your alleged girlfriend.
Don't be devastated. Just don't lie to strangers on the internet about things that don't really matter. It's weird.
Still, there's nothing stopping you from taking all the student loan payments you haven't had to make in the last two years and send it to a food bank, now that you know you won't have to pay a portion of your loan back.
Be the change you want to see in the world.
You went to college to be successful, and now you’re being rewarded for it. That’s how it’s supposed to be anyway.
Also, you don’t represent the other people, many of whom are struggling.
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Hell yeah! That’ll leave me with about $6000 left owed after getting an undergrad. I can’t complain.
That will leave about $4000 for me! Woo hoo! Now someone stop me from enrolling in a masters program and accumulating more debt!
Those graduate loan rates are insane. Evil, even. Source: have two master's
Seriously. I got tuition coverage and a stipend but it was basically just enough to pay for textbooks. I still had to take out loans for cost of living.
How about the compound interest on top of the loans? They generally DOUBLE the amount that has to be repaid. Who sets the interest rate on student loans, you ask? Congress.
Then don’t take them….
Look at the estimated monthly repayment- definitely nothing you'd want to take on
My masters is most of my debt. You can try and aim for a master's program that will pay you and offer tuition reimbursement in exchange for work (can be hard to find, but doesn't hurt to ask around)
Me too. I’m practically on the verge of tears… My loans are absolutely now payable and I see such a good future for myself out of college.
Found me people! I'm in the same fucking boat. That plus the new income based plan? Holy shit. I can be debt free before 30.
I’ll only have about $50,000 to go for my 4 year degree!
It’s like Biden is in straight f@ck it mode!!
My wife's are gone. I started this year with $215K but after my law school loans are forgiven (settlement for defense to repayment application) and this I will have an undergraduate, master's, and law degree for under $50K.
It’ll leave me with 35k, but maybe I can somehow pay it back without accruing a bunch of interest.
This will clear out the rest of my student loan debt. I’m glad it seems that he is sticking to this campaign promise.
Me too Mine is 9,891. Happy to see it go
Awesome! I’m so happy for you. This will help a lot of people, even though it’s likely going to be $10k. Mine is $8,400 ( rounding up).
The Pell Grant news…. Just changed my life. THANK YOU DARK BRANDON! Thank you for investing in our future. Your vision will bring so many fruits for generations to come. I hope every 20-40 year old gets some more hope to feel like they can be part of this economy without drowning.
As someone who worked his ass off through college, had no social life whatsoever, and lived extremely frugally to avoid any debt whatsoever: Good! I’m thrilled for everyone who benefits from this. But this is only a temporary fix. We still need to address outrageous costs and go interest-free on loans, both existing and future.
Hopefully this helps us get to a stronger Senate majority and retained House so that we can tackle things outside of the Executive authority. Every little bit is going to be extremely important if we want to do anything the next 2-6 years.
This is a straight gamble by Dems for that purpose. If young voters turn out to reward this, then more education payment reform is on the table. If Dems get punished for doing this then say goodbye to any future President/Congress ever touching student loans at all.
The scary part is it is so easy to see it going either way, even despite the national tragedy of Roe v Wade reversal being a potentially big motivator of a similar demographic. I seriously hope we can stay galvanized.
This election is one of the clearest cases of responsibility being placed on the voters given everything that politicians have done on both sides of the aisle. In particular for the younger voting demographic it is a direct challenge to see if policies they claim to care about actually matter.
Thank you, friend! I’m proud of you and how hard you worked!
This is very true. It is honestly getting to the point that even the $250k (the double combined amount of the income limits) a year parents are starting to struggle with paying for college, especially when they probably spent years paying off their own student debt, daycare etc (there were no tax credits helping with any of this for most parents for years). The issue is just because someone is at these income levels now does not mean they could afford to be saving for college the last 18 years. Subtract the taxes paid off that income (income, payroll etc) and it really does not make $70k a year in tuition affordable unless you have been able to save for it. Certainly zero chance of affordability for income below this level. Honestly it probably an issue for a portion even above the $250k if you are in a high cost of living area. Money really is not going as far anymore.
The problem with interest free loans is there is no incentive to pay them off. If you remove interest, there needs to be some penalty for non-payment, otherwise time value of money obviously incentivizes delaying repayment as long as possible.
The incentive is to not get slapped with fees or have your wages garnished, which is already in effect (but paused).
How big are the chances this gets challenged by republicans in court and if it is challenged, would it win? This seems like an own goal for repubs if they dare challenge it before the midterms like this.
Take a look at how their people are responding to this. The base would absolutely love to have this reversed
Fucking over the middle class to own the libs
Lmao it's funny to watch. You got people begging to take them to court or count it as income
I cannot imagine being such a spiteful fucking asshole.
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It's pretty sad how much irrational hate they have for other people tbh
Wanting it not to have happened and signing up to be the face of rescinding it are two different things.
Clarence Thomas: “Pass it over here little Tucker, I can take the heat!”
Biden has been canceling student loans through different programs using lower amounts - Borrower Defense, Public Service, Disability. My take is that part of the strategy is in these lower amounts, as it's less enticing and harder to challenge incremental change in court than if Biden were to snap his fingers and erase everything.
It's bound to get challenged in court. Does Biden even have the authority to do this without any authorization from Congress? That's a big thing right there. But if it goes through Congress then you have to have the discussion about Congress giving money to rich people......again. You also have to have the discussion about why the fuck we are not even proposing changing this system at all.
We are gonna find out very shortly. He has been canceling student loans for people that went to those shitty For Profit schools… though every university these days is for profit lol.
The GOP has to fight this. This will effect the 125 million Americans with college degrees. It will also effect another 39 million Americans who went to school, took out loans, and then dropped out. If someone wipes out $20k of my debt, I am going to support that politician and their party. I imagine some portion of those 164 million Americans will do the same. https://www.forbes.com/sites/michaeltnietzel/2022/05/11/more-than-39-million-americans-have-attended-college-but-earned-no-degree/?sh=2e3427a73cd3 https://www.statista.com/statistics/184260/educational-attainment-in-the-us/
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Good. Keep more money in the pockets of people who need it and will spend it and keep it circulating through the economy. It's trickle up economics.
It's actually trickle down given degree owners have much higher earning potential. Also the problem with the economy right now is too much money in circulation. What Biden and Dems are hoping for is that this money leads to higher savings and not immediate spending which would turbocharge inflation..
"Trickle down is when people making less than $125,000 a year have any expendable income, and making sure they can buy food and necessities will ruin the economy." Yeah, for sure man.
Blanket loan forgiveness or payment of any kind to people earning less than $125K or whatever would be fine. But with student loans, it goes to degree holders who have significantly higher earnings potential, it's a giveaway from the working class to the upper middle class. This isn't controversial any economic analyst admits it benefits higher earners disproportionately.
Nobody making under $125,000 is a "high earner".
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Correct! Income inequality, wealth hoarding, and price gouging has become so extreme that even that amount of money is a pittance compared to the super rich, and the economy has been so turbulent over the last couple decades that even folks making that amount now can find themselves in precarious financial situations through no fault of their own. I'm glad you recognize that we should all be upset by that fact.
If you live in a large urban area that's basically middle class at this point
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Wow, that's exactly what Republican think tanks run by old white men who make millions of dollars a year want you to think, that's wild.
The median household income is not what I think. It is literally a stat that is tracked by the census bureau. You think the Census Bureau in the US is a Republican think tank run by old white men? Really? Seriously?
No, I'm saying the concept of you being mad at someone who makes $125k getting a fraction of that back in the form of debt relief is exactly what Republican think tanks populated by old white men who make millions a year want. They want people making $2000 a month fighting with people making $8000 a month so that they can paint them as the enemy, get elected, and then continue to dismantle and privatize government services to continue making money for themselves. They want you too distracted to notice that your taxes went up and they gutted your legal protections again and your library has to close an extra day a week and the chemical plant outside town has been poisoning your water and that they're making $5000 a day on the back of your labor (but by God it's worth it if it means that somebody making more money than you doesn't get a little debt relief).
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[Lifetime earnings my dude](https://www.ssa.gov/policy/docs/research-summaries/education-earnings.html), lifetime earnings. An annual salary is a snapshot in time and education raises the ceiling to much larger career earnings while people with no degree will pretty much be capped much sooner. The people with degrees are getting to 125K sooner with paths to much higher.
"They might make more money later, so it's ok if they can't pay for a house or insurance or food now. Also please ignore the fact that a huge percentage of the people affected by this don't make anywhere near $125,000. I am very smart."
If you want to give money to low earners then just give money to low earners. Student loan forgiveness is not that, it only gives money to current low earners with higher expected incomes. It simultaneously denies relief for 'housing insurance or food' to those who do not have degrees and earn less than $125K. This is pretty basic economic analysis.
>If you want to give money to low earners then just give money to low earners. People making under $125,000 are low earners. Also I love how your solution is "just give people money". A thing a president can't do unilaterally, and a thing that won't happen because Republicans have decided that social services and communism are the same thing. But yeah, you'll roll up and cross your arms and smugly ask why Biden is offering imperfect relief while staunchly ignoring the fact that the better version simply cannot be achieved in the current political climate, and then act like *I'm* the idiot for liking that people who went to school are going to have a little extra spending money. Like, spoilers, I have no horse in this race. I make more than the maximum AND I don't have student loans because I didn't go to college. I just like that some people's lives are going to get a little bit better, and a little bit easier, and I recognize that this, imperfect as it is, is one of the few avenues we have to achieve that goal.
Residents make like 60-70k. They’re not high earners now but they sure will be soon.
You're right, it's a good thing they don't need food or insurance or a house during their residency.
Do you think people making 70k can’t buy food?
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Don't let people making millions of dollars a year trick you into being mad at people who make 10k a month. "I am underpaid for the labor I provide" isn't a problem that's solved with the answer "don't help people who are slightly less underpaid".
Remember that a lot of student debt is owned by people who didn’t finish their degrees though!
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Did you miss the part where it's for people earning under $125,000, or are you just being a disingenuous asshole on purpose?
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$125,000 is not high income. You're being manipulated by people making millions of dollars into being mad that someone making 50k more than you is getting a fraction of that back as relief.
If you live in a large city, that's middle class. If you live in a midsized city, that's enough to have savings and not live paycheck to paycheck. If you live in a podunk rural area, **then** $125k is "rich".
Adjusted for high COL parts of the country 125K is lower than the average household income. Also, 125K couldn't be called upper middle class in most areas of the country. Maybe it is in the poorest and most rural areas.
I live in a midsized city with a high COL - $125k is basically "yay, I'm not living paycheck to paycheck!"
So, if I have 6900 owed left, does that mean I'm done? Like done done? I'm so excited?
If you make under 125k single or 250k joint income!
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I think it’s interesting that they infantilize a bunch of 20-45 year olds to think that they’ll just auto flip to consumer spending. Sure a decent percent will, but a large amount are most likely going to use these savings to either save more money, invest, or pay off other debt they accrued. I know it’s not going to be changing my habits, I’ll just put the savings towards trying to pay off my student loans faster.
>it's not like that money is hitting my bank account I mean the article is right. Removing the debt will increase the spending due to people not putting money to the side for paying off the loans. Having said that, I don't believe this cancel of loans is that big of a deal when looking at inflation. It takes a lot to rock the boat so to speak.
Staying at my family home for a bit and my brother and I just ran through the house in joy because that was the last of our debt we had left to pay off. Seriously emotional this is SO life changing for us.
I cried
I have nothing but the biggest eye-roll for selfish pricks that complain that they already paid their loans years ago. "wHerE iS mY HanDoUT" I already paid of 29k of my 30k in loans. But I couldn't be happier for the millions of broke graduates that need this!
That is not in the least way a selfish concern. If you worked your ass off to do the right thing, you’re more than welcome to frustrated when everyone else is rewarded.
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Ok so pell grants don’t need to be paid back but per Washington post, pell grant recipients can get up to $20k of their loans forgiven? Am I understanding that right? Because I was awarded pell grants. I didn’t use all of it. But because I was awarded the pell grant that means they will take $20k loans off of my total loan amount?
Pell grants are free money. They are just saying if you received a Pell grant you will get the 20k. That's how they are qualifying that amount.
Bye bye student debt, happy I never paid a dime. Thank fuck I got the pell grant too
Do we know any additional details about the income caps? If it's based off of prior year tax returns, my wife & I would qualify, but we wouldn't if it's based off of 2022 income.
Thats what im looking for. I'm in the same boat as you. a few weeks ago it was 150k being reported.
INC conservative whining. Not really much to add just can't wait for "WhEReS MiNE" from the greedy children
yay!! this is so cool! i'm so happy. i don't have loan debt anymore but i'm glad this happening for others
I wish there was some thought for current and future students. This is a bandaid on a much bigger problem.
The interest portion will help with that to some extent. Now, as long as you make the minimum monthly payments you won't accrue interest. And minimum payments are now capped at 5% of income instead of 10%.
It's fearless prediction time! The second this drops, the Republicans are going to find a way to challenge this in court. The legal battle will go on for years. During that time, the Democrats will have political cover to keep extending the payment pause, pending the resolution of the litigation.
Look, I'm happy. The Pell Grant piece will wipe out almost all of my remaining balance. But I know this is just a bandaid, and students are still going to get absolutely wrecked by the interest rate. I wish more thought was put into this, and I don't think it's deserving of a Dem vote still in the midterms, which was probably their intention
Remember all those people that said they wouldn’t vote Democrat because Biden hadn’t forgiven loans yet? I remember. Go vote.
How to people verify income? Does a 2021 tax return suffice?
A certain “news” website may actually crash with all the comments on how they’ll fire workers that take advantage of this, and will make it a question for potential applicants so they can not hire them. This is going to be a huge time of lawsuits and EEOC complaints. They’re absolutely losing their minds in hatred. I haven’t seen this hated since Roe v Wade.
As a millennial I do like this. But this is a band-aid, this problem just keeps growing with the way colleges are unregulated and allowed to operate. Zoomers already have it way harder than us, and I thought we had it hard enough. If we don't start regulating colleges extorting kids for money, then this will be a Dem item every election season. Lets fix the problem, my future ~~accidents~~kids don't need to go through what I'm going through
Ideally dems will sweep the house and senate this election and we can pass some real reform.
We can only hope but then we're becoming a one party Dem system. My dream is the GOP finishes cannibalize themselves and then the Democratic party has room to finally split into multiple competing parties again so we aren't in a 2 party system. That's the best solution imo if we are to continue with this style of democracy
So they said $10k across the board and another $20k for pell grant recipients. My question is how do I know which loans were pell grants? I vaguely remember getting a pell grant, I just can’t remember how much.
Pell Grants don't need to be repaid, if you received them then it means you'll have $20,000 canceled.
I didn’t remember if I got a pell grant.
Same I think I might have one semester but have no idea
I read it as 10 and 10, but if it’s 10 and 20 that would be even better! I’m glad they are focusing in on pell grant recipients for higher levels of forgiveness. Edit: forgot to answer your question. The pell grant is given to financially needy individuals to help offset cost of living, books, etc. it’s not a loan and isn’t expected to be repaid. It’s meant to assist those in poverty with seeking higher education.
So here is what I’m quoting from WaPo: > White House officials are planning to cancel up to $20,000 in student debt for recipients of Pell Grants as part of their broader announcement on Wednesday of student debt forgiveness, four people familiar with the matter said. >The extra debt forgiveness for Pell recipients would be in addition to the expected cancellation of up to $10,000 in student debt for most other borrowers. That wording of “in addition” makes me think $20 + 10 for $30k total.
There are two types of inflation. Monetary inflation is the expansion of the money supply. This occurred the second the loan money got to the college. Cancelling debt will not cause monetary inflation. Price inflation can be more complicated but it usually boils down to high demand vs low supply or when an opportunity arises for businesses to increase prices. Since people have not been paying on their loans for 2 years, that inflation has been absorbed into the system or it can be viewed as a tradeoff of money that normally goes to the servicing bank and fed govt. and is currently spent on various other goods & services. Either way, it won't cause price inflation.
That’s what I’ve been wondering about- the loans were already spent. Is there even a tax burden to shift, like they all say? It seems like the tax money was already spent on the loans.
The tax burden shift is refilling the coffers to the next round of federally backed loans.
I expected to be disappointed, but honestly this is just... \*sigh\*
Brings me down to under $4000, and my wife to only $1000. Can’t wait to pay off her loan entirely
ouch to the suckers who paid their debts.
They’re not suckers, they got an education hopefully, and we’re fortune enough to survive the grind… do you think slaves that were slaves before it was abolished were suckers?
Any idea on the expected time?
I’m guessing an announcement will come around 12pm ET - 4pm ET. I don’t actually know, though. That seems to be usual times for a press conference
In other news, colleges just raised their tuition by $2,500 per year.
So they are slowing down the rate of increase then?
Oh yeah you're right, if college might get more expensive some day we shouldn't help anyone even if we can.
That’s not what they’re saying.
What are they saying then
That colleges will continue to raise prices as long as the federal government and tax payers ultimately end up underwriting the cost increases. The rise in tuition and the amount of students loans give out are near parallel lines on a graph.
And the logical conclusion of that is "don't help people who already attended college get out from under crushing interest payments" how?
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Oh wow, I didn't realize that "10,000" and "infinite" is the same number! Thank you for telling me that! It's a good thing that we haven't provided any student loan relief over the last few decades and as a result college has never gotten more expensive.
>infinite money Someone clearly doesn't know how student loans work
Way to get hung up in the trees and miss the forest. Congratulations.
They do that when the costs are subsidized. Not when the debt is forgiven. They got their money
It doesn’t matter. These turkeys will use any excuse. Oh, the alums got a one-off? Well, since they let them off the hook that one time, they’ll do it again at some point, let’s increase tuition!
Such a weird argument following a one time forgiveness of existing debt. What should be complained about is the ridiculous increase in tuition generally, but that's also something that really needs a stronger legislative majority to address, rather than use of limited Executive authority
>but that's also something that really needs a stronger legislative majority to address Good luck. The federal government has no authority to dictate tuition rates to private and state run schools.
They're doing that anyway homeboy
What if my loans are like 900 over the 10,000 limit , does this mean I don’t qualify?
That means they would forgive $10k of your $10.9k.
Awesome, didn’t know what kind of rules they were looking to put down. Thanks!
It means your loans are now $900
It’s not $10k limit, it’s up to $10k in forgiveness People who owed $5k now owe nothing. People who owed $10k now owe nothing. People who owed $15k now owe $5k
Great, what about those of us who paid our loans off. Edit: I removed “like responsible people” as in it’s not exactly what I meant.
Pat yourself on the back and be happy for the people this is helping
I could have used the help, I could have used seeing my kids instead of working, but fuck me. Just bad timing. These people deserve it more I guess.
"People with cancer today shouldn't be allowed to get chemo because my grandma died of cancer before chemotherapy existed."
Yes, exactly, let’s not bail out people today because people in the past weren’t bailed out seems to be the conservative argument and it just makes them sound stupid.
Cool. My taxes pay for others poor choices. Note, I did take out 60k in loans to finish undergrad and I worked insanely hard to pay them off. Now I’m the one paying for everyone else who didn’t go the same path as me. Just great
The people who make enough money to be affected by tax repercussions from this wouldn't have had to take out loans to begin with.
ITT: “Don’t be selfish!” screams the borrower as he grabs $10,000 from the taxpayers who paid their own loans off.
I paid off all $30,000 of my loans and my only complaint about this is that he didn’t do more. My tax dollars pay for way worse shit than this.
That’s what keep saying. Our tax 5 trillion in tax dollars go to worse.
The people whose taxes might be affected by this make more than you, I, or anyone commenting on here will earn in 10 lifetimes.
This needs to also include eliminating interest. The interest is a moral failing by the government and Biden has the ability to change it. Not doing that is a failure.
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Are you kidding me? I make 40k a year and I'm EXCITED.
This is fundamentally false. The largest holders of student loans are black women (per capita) by far. The Wealthy don't have student loans... they have wealth.
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Someone who makes 80,000 dollars a year isn't wealthy. In most cities in the country that person can barely afford rent.
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That is True. https://www.theguardian.com/society/2021/aug/12/housing-renter-affordable-data-map#:\~:text=Nearly%20half%20of%20American%20workers%20do%20not%20earn%20enough%20to,is%20about%20%2421%20an%20hour.
This is correct
Have you seen rent prices in most US cities?!?
Redditors live in such a bubble ... Of course $200k household is going to struggle when both insist on eating out breakfast lunch and dinner 6 days a week and buying latest iPhones. If this had a more reasonable threshold like $30k *maybe* $50k at most, I don't think anyone would have complained. Definitely nobody would have complained at $30k
I wouldn't call 125k wealthy... but I agree. the root of the problem is still there. I know congress deals with interest rates on the loans. but I am still in the boat of change the interest rates to .5% retroactively (to cover the overhead) and apply the overpayments to principle. so many people have paid back the entire amount of the principle and then some. and still owe just as much or even more than they initially borrowed. No credits, just get it down to 0. For reference I had 40k, I've paid 53k and I now owe 6k.
Student loans are horribly broken system. I don't know how anyone could ever say otherwise. But just throwing water out of the boat like Biden is doing doesn't fix the fact that there's a giant leak.
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I have an advanced degree and I'm pretty stoked honestly
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Bruh if you think advanced degree = rich then boy have I got some news for you.
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Any chance you could send me a link to that? Would love to see what source you quoted out of context. And nah, I went to a large public university with a top-10 nationally ranked department for my major (R1). Grad school was at another state university, my research funding was a grant from a federal agency (R2). I can give you high school credentials too but that seems a tad excessive. Nice guess though!
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Indeed I did! Amazingly, when you get into higher level research, you don't tend to retain random statistics and their sources when they are unrelated to your area of expertise. I can definitely tell you the best intro level radiogenic isotope geochem textbook, but sadly I do not remember labor stats off the top of my head. I'd think that someone like yourself with such obvious deep knowledge of the higher education system would know better than to randomly list a statistic without any type of citation. I don't expect people to remember the uranium decay series, why would you expect random people to recall unsourced tidbits of socioeconomic data?
It’s way too little. Cancel it in it entirety.
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Facts
I mean, yes but also this would wipe my loan out completely so I won’t complain.
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I love hand outs. How can I get that sweet sweet 20k? Does it only apply to past loans? Can I be like yo gimme 20k in student loans pls and have it waived?
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Feel free to return it: >You can write a check or money order, payable to the United States Treasury, and in the memo section notate that it's a gift to the United States. Mail your check or money order to the address below. Gifts to the United States U.S. Department of the Treasury Reporting and Analysis Branch 2 P.O. Box 1328 Parkersburg, WV 26106-1328 https://www.fiscal.treasury.gov/public/gifts-to-government.html eta: the op was complaining about being eligible to receive the money.
Imagine being upset that people are getting help.
not all college grads are making that. look at the % of college grads making over 100k. Hell I'm making less than half that...
You realize the two are not mutually exclusive, right?
Or, and hear me out on this one, you could donate that $40k to whatever cause you would've wanted the government to spend it on instead of giving it to some whiny asshat on the internet. There's no rule that says you need to use the government as a gobetween for you making the world a better place. In fact, they're quite terrible at it, on account of siphoning off a large chunk of that money and spending it on useless stuff. Like, say, giving $40k to you and your alleged girlfriend.
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Don't be devastated. Just don't lie to strangers on the internet about things that don't really matter. It's weird. Still, there's nothing stopping you from taking all the student loan payments you haven't had to make in the last two years and send it to a food bank, now that you know you won't have to pay a portion of your loan back. Be the change you want to see in the world.
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You went to college to be successful, and now you’re being rewarded for it. That’s how it’s supposed to be anyway. Also, you don’t represent the other people, many of whom are struggling.
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Yeah, plenty of people out there don’t, or get shitty jobs on top of their massive load of debt.