If you're still paying off student loans and make under $125,000 a year in the US get ready to see $10k of that disappear. your thoughts?

[Still-alive]

Biden could reportedly cancel up to $10,000 in student debt this week for borrowers making under $125,000 a year.

• Biden is mulling up to $10,000 in forgiveness for debtors making under $125,000 a year, CNN reported.
• His announcement could come as early as Wednesday.
• Borrowers are waiting for news of an extension of the payment pause, set to expire after August 31.
• The final days of waiting for student-loan forgiveness might have finally arrived.

On Monday, CNN reported that President Joe Biden was leaning toward canceling up to $10,000 in student debt for borrowers making under $125,000 a year. The outlet, citing people familiar with the White House plans, said this announcement could come as early as Wednesday, and a person familiar with the matter confirmed that timeline to Insider.

This comes right before the student-loan-payment pause is set to expire. In April, Biden extended the pause for his fourth time, through August 31, and the president — along with Education Secretary Miguel Cardona — has confirmed a decision on another extension of the payment pause, along with one on broad debt cancellation, will be announced before the August 31 deadline.

"We know August 31 is a date many people are waiting to hear something from," Cardona said Sunday. "We've been talking daily about this, and I can tell you the American people will hear within the next week or so what the Department of Education will be doing around that."

Expect the announcement either this week or on the 31st. So your thoughts? if you are payng off loans still, will $10k of that off help you out much?

https://www.yahoo.com/news/biden-could-reportedly-cancel-10-234221162.html

Updates

1 y

www.yahoo.com/.../...bt-forgiveness-153845682.html

and he just announced it. its official folks!

"President Biden on Wednesday announced he’s canceling $10,000 in student debt for Americans making under $125,000 a year, fulfilling a campaign promise and garnering criticism from across the political spectrum."

[TroyDT]

I am of two minds on this. On the one hand, I think if you borrowed money to get a degree that does not cover the educational costs then you should be stuck with it.

On the other hand, I find it ridiculous that wealthy people can borrow $100,000,000 for a business idea that failed and BK it away while students (and credit card consumers) can get stuck for life with their poor borrowing choices.

So perhaps a fairer solution would be to allow student loans ( and credit cards) to fall under the same bankruptcy rules as other debts.

[Aerissa_Jade]

The difference though is a hundred million is not backed by tax payers. It is investors who take the loss. If student loans were not backed by tax payers, I'd be fine with bankruptcy on them.

I do however support student loans being allowed in bankruptcy, when you file it, you give back your diploma, your debt free and disqualified from any future tax payer backed student loans.

It is not actually for life, there is a mechanism in place that allows a student loan borrower, who if they pay for 20-25 years to have the rest forgiven. That is not new, has been around forever.

studentaid.gov/manage-loans/repayment/plans

Revised Pay As You Earn Repayment Plan (REPAYE)
Eligible Borrowers
Any Direct Loan borrower with an eligible loan type may choose this plan.

Monthly Payment and Time Frame

Your monthly payments will be 10 percent of discretionary income.

Payments are recalculated each year and are based on your updated income and family size.

You must update your income and family size each year, even if they haven’t changed.

If you're married, both your and your spouse’s income or loan debt will be considered, whether taxes are filed jointly or separately (with limited exceptions).

Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).

Eligible Loans
Direct Subsidized and Unsubsidized Loans

Direct PLUS Loans made to students

Direct Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents

[RolandCuthbert]

$125,000 seems high to me. I would rather see a lower bar. Maybe half of that.

[Still-alive]

Why's that?

[RolandCuthbert]

A young person making over $100,000 should be able to swing student loan of $20,000. I owed more than that when I left college. And I was literally starving at times. I was making 24k on my first job. It sucked.

[Still-alive]

how do you feel about what Aerissa jade is saying?

[RolandCuthbert]

Well, you know what I am going to say. It is nonsensical. When Trump cut a check for billions and gave it to farmers. I am sure these folks said squat. No one said anything when their hard earned dollars subsidized the banks. The same banks who make these loans at a profit. The same banks that charge them interest on their credit cards, car loans, and mortgages. And the banks do this with our own money.

But folks will run to protect them. Because the banks put out commercials demonizing the recipients of loan forgiveness. And if that group includes ethnic groups, immigrants, or political voices they disapprove of, they will scream to the high heavens.

It doesn't matter how much you rationally explain economics. It doesn't matter how much in the end, this will benefit them. Because for them it is not about a rational logical approach to securing the economy for everyone. It is about the culture war. And if they end up broke and blind. . . if the country ends up in the toilet, it would have been worth it.

My issue with the program is that the cutoff is too high. Folks making that kind of money should be able to deal with those loans. It isn't benefiting the economy to exempt them from paying back student loans.

The point is with loan forgiveness is that this is a temporary fix for the ultimate problem. The cost of an education. It is ridiculously high. And we need to fix that.

But in the short term, you do not want to punish people for seeking an education. But we need to work out a better solution than the current deal. Folks who have made 125,000 would seem to me have taken advantage of their education. Someone making 45,000 a year has not benefited and is seemingly being punished for seeking more knowledge and skills.

[USLegionary]

Would be pointless giving taxpayer money to these banks if its just going to eaten up by the intrest owed on these loans. My own opinion on it is that it is more about giving taxpayer money to banks than helping pay off student loans.

[Still-alive]

@USLegionary loll wow you're unhinged on this... it'll be really interesting seeing you all meltdown once this actually happens

[USLegionary]

If taxpayer money was used to actually help people I'd be on board but in the last financial crisis banks were bailed out by the taxpayers but people still lost their homes repossessed by the same banks who caused the crisis.
https://youtu.be/Nmxox3oqRZo

[RolandCuthbert]

@USLegionary Yawn, the banks will get that loan money and they will get your money.

Twice.

And you don't care.

So why pretend that you do?

[Still-alive]

this guy sounds like some shill from the heritage foundation or something lol.

[USLegionary]

Of course I care. If I have to pay for it out of my own pocket I care. The banks didn't get my what's mine in 2010 when taxpayers were losing their jobs and their houses.

[Still-alive]

@USLegionary "If I have to pay for it out of my own pocket I care. "

you won't. quote me on it.

[USLegionary]

We will see. Taxpayer always pays.

[RolandCuthbert]

I would disagree. Of course the money is coming out of our pocket. Everything does.

The issue is what helps the nation. I pay taxes every single year. It has never gone down, it has always gone up. It just depends on what you are paying for.

And that is what we argue about. Even when the banks make the conversation totally different than reality.

We argue whether or not our tax dollars should to go pay off a student's loan. Or to subsidize the banks. We argue whether or not we should pay for food stamps during Covid, when unemployment was approaching 20%. Or to give Elon Musk 4-6 billion in help because he has a "good idea".

He is right. We are always paying. The argument is over what we will we pay for. And we keep pretending we are talking about substantive things. When the vast majority are discussing nothing. And mad about even less.

We will never have honest politics, until we have honest conversations.

[llorando]

It sounds great, but I've learned to take anything Biden says with a grain of salt.

[Aerissa_Jade]

I'd prefer they just give all citizens 10k and those with loans have it applied to theirs first... otherwise this is going to be one of those things that will divide American's massively and will never recover from.

Picking a special class of people to give them freebee's while ignoring those who worked two jobs and went to school full time and paid their loans back... in favor of lazy ass butts who wanted to party and not work at all and live on campus who then have massive debt and blame everyone but the person in the mirror.

I get doing it for those that were taken advantage of, ITT and stuff... but not those who chose it. They dug their hole they should live in it for the 20 years, cause currently after 20 years they can apply and have it forgiven.

I hope there is endless lawsuits that prevent this for years... until the next election to undo it.

It would be hilarious too, if they are forgiven but then the SCOTUS later re-instates them, saying the president doesn't have legal authority to do it and everyone who had 10k forgiven now has to pay it back, plus late fees and interest... would serve them right.

Otherwise this solves nothing, in 10 years people will want it again and again and again, there will never be a end. This won't address any issues that lead to the current problem.

I expect massive civil unrest if he does this, but maybe that is what the Democrats want to take away from the current regimes failures and to try and win more votes before the elections. The timing says so, otherwise he could of done it from day 1 in office.

Legally speaking if the president can forgive all student loans, wouldn't he/she just be able to do that endlessly and thus have free college for everyone? Like re-occurring year after year after year.

Then again I have suggested a idea on here several times for free socialism stuff like college education or universal health care that would allow those who want it to opt in and then live with it, but even liberals hate that idea.

[Still-alive]

i couldn't disagree with you more on this... but ill stay silent for now and let others answer

[Still-alive]

"I expect massive civil unrest if he does this, but maybe that is what the Democrats want to take away from the current regimes failures and to try and win more votes before the elections."

ohh i dare republicans to do that... go ahead... watch how unpopular you guys will be if you try it.

[Aerissa_Jade]

If it happens, at least it is for a legit reason, not some made up thing. Thing is anyone who gets free money will love it. It might not happen though cause enough Republicans will get free stuff too.

This is nothing more than a way to reward people who are irresponsible, while doing nothing to prevent it from happening again. It still allows banks to do whatever they want.

I pay 54% of my gross income in taxes and I get shit from the federal government, because I'm too responsible. Why do we reward irresponsible assholes?

Lots of people have been paying their student loans back double payments, working two or three jobs with the hold and zero interest.

Others now, who refused to make any payments will be rewarded for this and now there will be precedent for future tax payer giveaways.

Actually I hope if he does forgive them he says tax payer money can't go to banks, that would be best... they just have to take the loss. Let the banks re-coop their money other ways. That I could support.

[Still-alive]

"If it happens, at least it is for a legit reason, not some made up thing. "

lol are you serious? civil unrest? as in protests and possibly violent ones over cancelling debt?

[Aerissa_Jade]

Actually yes, this is a very big issue, it is the most absurd thing I've ever heard of the government doing. I have seen nothing larger than this in my life time.

Selectively choosing who gets a massive handout. Discrimination by the government at the highest level.

The government is saying, you get free money, while turning to responsible people and saying, you have to pay for it.

Then the government is saying to those who don't qualify, fuck you... we don't care about you. We just need you to pay the tax bill for these people.

It is directly punishing responsible people who paid their loans and those who decided they didn't want student loans so they never went to college and wanted to.

Imagine the number of people who'd love to use that 10k and go to school with it.

Now imagine being that person who worked two or three shitty jobs, destroying their physical and mental health to do so and paid their loans only to find this out. They are going to be pissed.

Slap in the face of responsible people while rewarding irresponsible people. You don't think that person is going to want to do something to protest it?

Hence the easy solution to appease is to give it to EVERYONE then everyone is happy.

Plus the 125k is going to apply to like 90% or more of irresponsible losers anyways and those who make more than that, likely don't have an issue making payments or have paid them off already.

This will create massive resentment, that will NOT ever go away... a decade from now, people will still be demanding more free money, those that got it, and those who didn't.

I still hear it all the time, I'm still waiting for the $2500 Obama promised and that was forever ago... people have not forgotten that and want it.

I hate Trump and I don't want him back, but this issue alone would get me to vote for him, just so he could undo it. If we are going to divide the country even more, lets go all out.

[Still-alive]

"I hate Trump and I don't want him back, but this issue alone would get me to vote for him, just so he could undo it. If we are going to divide the country even more, lets go all out. "

wow amazing... keep voting for a dictator in chief who doesn't care about actually destroying our country just because you don't like a bunch of college graduates who are struggling to pay off loans and living paycheck to paycheck SOME relief. and some who still are struggling for decades after. and by the way this is just a drop in the bucket. We want him to cancel/forgive ALL of it... but $10k? this really won't help that many people. its just a nice little something thats it...

but these rants pretty much reveals the type of person you are now...

[Aerissa_Jade]

Guess we can't be friends then anymore, because it also reveals your character that you don't care about fairness and equality.

I will end friendships with someone who is against fairness and equality.

This is a very important topic to me. There is nothing higher on my list than being fair and equal... it is plain and simple and this clearly points out that Biden and Democrats are the opposite. They do not believe in being fair and/or equal at all or else they would never consider this OR they would consider it for everyone.

Giving $10,000 dollars to a elite special class of people is extremely unfair. Hence why I pointed out the simple solution to make it fair, give it to all citizens.

Lots of people who paid their student loans off struggle pay check to pay check... so do those who could never afford to attend. Why should they be left out?

IF the government is planning on being this unfair right now with this, there is nothing that is going to stop them in the future and it is time for Trump to come back or at least someone with some balls to FORCE people to live with their own choices and be responsible.

What will be next, another 10k next year?

Sorry I can't sympathize with someone who signed on the dotted line, knew exactly what they were getting into and now wants someone else to pay their loan for them.

This is a extremely dividing issue, giving certain people free money because they made bad decisions and then leaving out the responsible people who made good decisions. It is going to make a lot of responsible people very angry.

You should go read some of those yahoo comments to see how angry people are getting, at least those that get past the yahoo mods.

There is nothing more to add to this conversation, feel free to reply but I'm done with this... I'd just be repeating myself at this point, kind of already did some, sorry about that.

Have a nice life!

[ShaTTeredMasterpeace]

"Sorry I can't sympathize with someone who signed on the dotted line, knew exactly what they were getting into and now wants someone else to pay their loan for them."

Except I was 18 years old and knew diddly squat about wtf I was doing or signing. And here I am $20,000 later. Predatory loans are definitely a thing. Everything isn't cut and dry and black and white and to assume so is why this country is the way it is.

[Aerissa_Jade]

@ShaTTeredMasterpeace

"Except I was 18 years old and knew diddly squat about wtf I was doing or signing. And here I am $20,000 later. Predatory loans are definitely a thing. Everything isn't cut and dry and black and white and to assume so is why this country is the way it is."

That isn't a valid excuse to pass your loan off onto the tax payers. Even if you are saying that 18 year old's should not be allowed to get student loans. No 18 year old understands loans do they?

Legal documents, especially loans are black and white, ask any court... watch any case, there is no shades of gray. You have to pay back what you agreed to, unless you do the various programs, like the REPAYE loan or fraud was committed against you.

You might be able to convince your lender to write some off (short sell for example) and I totally support people with student loans going to their lenders and convincing them to write off some of it and not be reimbursed by the tax payer.

I don't like unfairness, that is all it is to me and this is totally unfair and against equality two things I value highly. I value fairness and equality. I don't support any government bailouts for banks or whoever, never have... never will. I don't support any direct tax payer money to any business out there. Tax deductions are fine, but not direct cash. Anyone that supports this is against equality and being fair.

The solution is to either not do it or give all citizens 10k and auto apply those with student loans first, then it will be a uniting force instead of a dividing force for people.

We are already seeing the effects of hatred and dividing over this and it hasn't even happened yet... it is only going to get worse.

[ShaTTeredMasterpeace]

I don't agree with you and I'll leave it at that.

[Still-alive]

@ShaTTeredMasterpeace yeah there's just no point...

[Aerissa_Jade]

@Still-alive

"yeah there's just no point..."

Hey we can agree on something 😂😂😂

[Still-alive]

i mean i like you otherwise but im not at all thrilled with your political takes at all lol

[CrazyGirl2]

Un fucking believable! So for those working class people who were responsible, bought a smaller house, have never been on expensive vacations, got the cheapest possible car to meet your needs, and actually saved for their kids college. (instead of buying yourself that new corvette, unlike your upper-middle class neighbor in the bigger house, who always went on lavish vacations)… and his total Chad of a kid got in on student loans, and now works at daddy’s law firm? This rewards irresponsibility, and punishes fiscal responsibility!!!

Seriously, this means for the first time in the history of the US, the working class who couldn’t afford to go to college, now have to pay off the student loans of people earning way more than them? Dept. of Labor Bureau of Statistics studies show that college educated people earn more than $1,000,000.00 (One Million Dollars) more than non-college educated people in their lifetime! But somehow, the people earning less, have to work to pay of the loans of the people earning more than enough to pay back their own loans!

Let me guess? The very same people now saying that they were too young to understand the complexities of a loan, ya know “borrow now, pay more back later”?
These are the very same people who say a 12 y/o girl is old enough to consent to a double mastectomy, if she is trans? GTFOH!

[USLegionary]

Typical democrats, give with one hand then take with the other. This isn't about helping pay student loans, no this about bailing out the banks as they've all these student loans that graduates can't pay off on their books. So the banks get $10,000 per student loan from taxpayer money and graduates will still owe money on their loans. Currently, about 44 million borrowers owe a collective $1.7 trillion in federal student loan debt. Say its only 30 million graduates times $10,000 that's $300,000,000,000. So possibly as much as $3 trillion in taxpayer money to the banks because like in the previous financial crisis they gave out loans without thinking of the ability of those who took the loans to pay it back. The banks are going bring the economy into recession again over this, get bailed out and of course taxpayers pay for it all and of course despite the $10,000 per loan it will not make a dent. I sah let the banks with bad loans collapse this time.

[Cherry234]

I'm happy about this but I do realize that this plan isn't going to help out all Americans, including the most vulnerable student loan borrowers. People with pell grants get up to $20,000 of their loans forgiven. Since I qualify for that, I could potentially get half or most of my federal student loan debt cancelled. I unfortunately do not only have federal student loans. I'm okay with paying off the rest of the federal loans. I don't mind student loans too much anymore as long as they're manageable to pay and the interest isn't too high and doesn't accrue too much.

[Still-alive]

Mine will be completely paid off since i git pell grants myself 😁

[Cherry234]

Nice 🙂

[normalice]

I'd rather employers just be forced to pay their employees enough that they can afford to pay off their student loans but I suppose it is neither the first nor last time the American taxpayer had to make up for earned wages withheld by greedy rich people..

[Pinay_ako]

Sorry I’m not American so I can’t and prefer not to comment …

[Still-alive]

as you wish! i like seeing you on my questions anyways :*

[Pinay_ako]

Has there you go I answered 😝 🥰 thanks honey 🍯

[Still-alive]

mmmmm i love honey *mouth waters*

[GoodGuyBreakingBad]

Yes, I believe Student Loan Debt should be canceled and forgiven.

[Still-alive]

@USLegionary if that actually doesn't happen (and it won't trust me) will you eat your hat?

[Still-alive]

@USLegionary The money given out to student loans has already been added to the National Debt. The only thing forgiveness does is cuts a small revenue source from repaying on that debt.

you're just fearmongering dude

[Still-alive]

@USLegionary lol man i wish i knew what crack pipe you were smoking out of

[GoodGuyBreakingBad]

@uslegionary GTF off my threads

[USLegionary]

If we were "forgiving" the debt we would just be knocking $10,000 per loan off and no money would be exchanged. Basically it would be like your crack dealer saying he will take $90 bucks instead of the $100 you owe him for the crack you bought next week.

[USLegionary]

Sorry bra thought I was talking to you...

[Still-alive]

@USLegionary not how it works bro lol

[Still-alive]

@USLegionary If anything it will help the economy. Young people with more money in their pockets buying stuff.

[menina]

I don't know what to say. I just know that these numbers scare me and I'm glad I didn't go to college in the US.

[melanieeeB]

Ohh no clue but I heard that in America nearly everyone is in some debt... if that's true... sounds crazy to me

[RedStiletto88]

I think if the government can give huge giveaways in company subsidies then they can do something for those with student loans

[USLegionary]

I dont think the money will make a dent, it looks to be more of a bailing the banks out yet again.

[jamesgoldman]

Anything to push the US further into debt and therefore the control of the Chinese government

[GlassTop]

Why do people fall for the same crap over and over 😂 student debt will never be canceled. Keep chasing the carrot until November.

[USLegionary]

I agree. Think it will be just money given to the banks again.

[ArtemisSilver]

Literally buying votes... Cool

[Still-alive]

if thats what you think this is all about...

[ArtemisSilver]

That's literally what it's about yes, if it weren't then there would be some kind of meaningful reform.

[Still-alive]

it may help in the midterms but this is a step in the right direction even if its just a drop in the bucket for some folks. We all want him to do more but just this small token ill take what we can get.

[ArtemisSilver]

Exactly, he's throwing you scraps to secure a vote.

[Still-alive]

that isn't all this is doing bro... i disagree

[ArtemisSilver]

Think whatever you like, but there really aren't any good men in politics.

[Still-alive]

im not saying he's good... but i still take him over fascist wannabe dictator donald trump any day. and yes i want the dems to win this November so if this helps and i think it may then that is a net good in my book. we must defeat the fascist christian ultra right from gaining anymore power here.

we will sort out the bad dems later. step one is defeating republicans here

[ArtemisSilver]

I'm glad you're enjoying the puppet show

[Still-alive]

lol such a condescending comment...

[ArtemisSilver]

Yeah obviously you've drunk the kool aid and have been fully dazzled by the show they put on for you.

The fact that you think it really matters who wins anymore is proof enough.

I wish I could be entertained thusly it would make for a nice distraction from the bigger picture.

Have you ever noticed that red or blue, most of the same policies and objectives continue on between administrations despite campaign promises?

But again I'm glad you're enjoying the show.

[Still-alive]

"Have you ever noticed that red or blue, most of the same policies and objectives continue on between administrations despite campaign promises?"

uhh yeahhh...

but one is worse than the other. this is obvious to anyone lol. im voting for the lesser of two evils. i don't want fascist republicans gaining anymore ground.

im glad you're in Canada cause your approach is just fucking loser mentality and no one should follow it.

[ArtemisSilver]

More dullard tribalism. It's like it's the only trick you know.

[Still-alive]

lol you act liek you know me.. c'mon bro engage. why is my approach wrong and yours beter?

yours helps no one.

you're like that guy on the titanic telling everyone to just give up hope because the ships sinking... you aren't helping

[Dinosaursandanime65]

So is he taking money away or giving it?

[Still-alive]

he's just accepting the bill for college students taking out loans. not forcing them to pay back $10,000 of it

[Dinosaursandanime65]

I’ll take that as giving

[Still-alive]

yeah like imagine having a bill at a restaurant and the owner of the restaurant said '10% of that is on the house!'

thats basically what he's doing

[Dinosaursandanime65]

Oh boy, my fAVoorTe seat

[USLegionary]

The money is going to the banks not those with student loans. Possibly as much as 3 trillion dollars in taxpayer money. Its more of a bailout for banks than anything just like the last financial crisis. Banks have all these bad loans on their books that borrowers can't pay off. Plus at the intrest banks are charging on some of these student loans that $10,000 will ho to servicing the intrest on the student loans and those people will be no better off and as taxpayers will have to contribute an extra $1000-$5000 in federal taxes that year along with the rest of taxpayers for Biden to give the banks $10,000 per bad student loan. Its a real shit show like the last bank bail out the taxpayer pays and the bankers win big.

[Dinosaursandanime65]

@USLegionary so banks are giving the paper, people don’t pay them back, and the bank gets that PAPUR back from someone else?