Student Loan Forgivness

[clenz]

I just wanted to hear thoughts on this. Since the Obama administration wanted to forgive all kinds of debts to jumpstart the economy and it hasn't done much what about forgiving student loans?


I graduate in May, and at that point Sara and I will be close to $120,000 in student loan debt with Sara having another year of her masters left. With the number of kids going to college and coming out so far in debt they struggle to make payments of any kind.

Would forgiving at least some of student loans help the economy at all? Give the younger, more than likely higher spending, generation some extra money to use?

[Ibanez]

What about the billions owed to the financial institutions that funded the education? I'm all for having my student loans forgiven.

[danefan]

I'm not a fan of student loan forgiveness.

Pretty much for the same reason I was against mortgage assistance.

I busted my ass to pay off my student loans immediately after law school. I did the same thing for my mortgage.

If we're forgiving debts, I'd like to be paid back for my loans that are already paid off early.

I'm all for an extended deferral though. That will achieve the same results (cash flow) and people won't get off on their committments scott free.

[kalm]

I'm not a fan of student loan forgiveness.

Pretty much for the same reason I was against mortgage assistance.

I busted my ass to pay off my student loans immediately after law school. I did the same thing for my mortgage.

If we're forgiving debts, I'd like to be paid back for my loans that are already paid off early.

I'm all for an extended deferral though. That will achieve the same results (cash flow) and people won't get off on their committments scott free.

Good take danefan. Part of the problem is there's a finite amount of ass busters in the country. Education helps drive private industry and provides economic stimulus. It should be inexpensive if not free. I wonder how european countries are getting away with it?

[RobsPics]

I owe $125K...all by myself

[clenz]

I'm not sure where I stand on it. I can't even begin to explain how much of an impact it would have for Sara and I if even a quarter was forgiven.

I wasn't in favor of the mortage/credit card forgiveness though for some of the same reasons dane listed. I would think there would have to be stipulations put on like employed full time for so long, showing ambition for working, blah blah blah... and having decent grade. I don't want someone who got all c's and didn't give a shit about school to have them forgiven. There are a lot of us students who are B students who don't get any financial aid and it sucks

[Appaholic]

I'm not a fan of student loan forgiveness.

Pretty much for the same reason I was against mortgage assistance.

I busted my ass to pay off my student loans immediately after law school. I did the same thing for my mortgage.

If we're forgiving debts, I'd like to be paid back for my loans that are already paid off early.

I'm all for an extended deferral though. That will achieve the same results (cash flow) and people won't get off on their committments scott free.

Well stated DF..

[clenz]

I owe $125K...all by myself

I'll be pushing 70K myself.


Rob, think what you could do if you had 30K or so knocked off that. The principle and interest you would be saving would be HUGE for you, would it not?

[Appaholic]

I owe $125K...all by myself

I'll be pushing 70K myself.


Rob, think what you could do if you had 30K or so knocked off that. The principle and interest you would be saving would be HUGE for you, would it not?

I'd 70k knocked off of my mortgage....swear I'll put the money back in the coffers via sales tax....

[ASUMountaineer]

I owe $125K...all by myself

I'll be pushing 70K myself.


Rob, think what you could do if you had 30K or so knocked off that. The principle and interest you would be saving would be HUGE for you, would it not?

Probably so, but what's the difference between this and a bank bailout...besides it directly effecting you? My wife and I are pushing about $90k in student debt (total). But, we knew it going in--we signed up for it. As much as I would love to have it just disappear, it's not right.

With that said, if it's good enough for Wall St., why not me? Oh yeah, I know the answer to that...I'm not "too big to fail."

[clenz]

I'll be pushing 70K myself.


Rob, think what you could do if you had 30K or so knocked off that. The principle and interest you would be saving would be HUGE for you, would it not?

I'd 70k knocked off of my mortgage....swear I'll put the money back in the coffers via sales tax....

Hell...leave our student loans and knock 70K off our mortgage and we'd be sitting pretty. That would put us about 25K for a mortgage...that we could do at 6.25% real easy

[OSBF]

took me right at 20 years to pay mine off

i don't even remember what the number was

[danefan]

I'll be pushing 70K myself.


Rob, think what you could do if you had 30K or so knocked off that. The principle and interest you would be saving would be HUGE for you, would it not?

Probably so, but what's the difference between this and a bank bailout...besides it directly effecting you? My wife and I are pushing about $90k in student debt (total). But, we knew it going in--we signed up for it. As much as I would love to have it just disappear, it's not right.

With that said, if it's good enough for Wall St., why not me? Oh yeah, I know the answer to that...I'm not "too big to fail."

That's the key right there.

I think its different than the Wall St. bailouts though. Students loans are a different beast all together. Besides the fact that they really hit the American consumer head-on, they also aren't forgiveable in bankruptcy. Default on a student loan and you're in trouble for the rest of your life, unlike other loans.

[GannonFan]

Hey, let's just forgive debt across the board - mortgages, student loans, gambling losses, etc. I mean, think of all the money that will be freed up to do so? Of course, someone needs to pay back the people who made the loans or we risk not having them around to make loans in the future, but hey, just let the government print up some new dollar bills and away we go!!!

And of course, if this continues, why would the places that we need the loans for ever reduce their costs? Colleges have learned that they can charge whatever they want and people will pay it, and if people can't afford it, then the government will step in and pay it for them (or at least cover the money up front with student loans). Not really hard to see why college tuition and other expenses have increased almost 10% every year - why wouldn't they since someone (either the students or the government) will pay the bill every time?

With that said, I do certainly sympathize with those that are under so much debt. Seriously, I do.

[polsongrizz]

Nobody should be forgiven these types of debts unless they have extenuating circumstances. Not banks, auto manufactures or anyone who has student loans.

Who cares if you put that money back into circulation via purchases, somebody somewhere will be laid off because you think you shouldn't have to pay back money you borrowed in good faith.

If you can't afford it don't buy it, and that includes school.

[mebison]

As much as I'd love it for us (~$75,000 left), I'm not a huge fan either. Deferral maybe (and lots of people get deferrals based on their current situations). Sometimes things just aren't free. I'm not sure it would have a huge stimulating effect either.

I agree with a friend who think high school counselors should be required to sit down with seniors as they are selecting their college and go over the financials. i.e. if you are going into 13th century armenian history which will need you a job paying a max of $30,000, then maybe the state school down the road is a better idea than the $50,000/year private school.

[ASUMountaineer]

Probably so, but what's the difference between this and a bank bailout...besides it directly effecting you? My wife and I are pushing about $90k in student debt (total). But, we knew it going in--we signed up for it. As much as I would love to have it just disappear, it's not right.

With that said, if it's good enough for Wall St., why not me? Oh yeah, I know the answer to that...I'm not "too big to fail."

That's the key right there.

I think its different than the Wall St. bailouts though. Students loans are a different beast all together. Besides the fact that they really hit the American consumer head-on, they also aren't forgiveable in bankruptcy. Default on a student loan and you're in trouble for the rest of your life, unlike other loans.

They are different, but the theory of doing away with loans to forgive bad decisions or financial irresponsibility is the same. Like I said, I would love to not have to pay, but I took out the loan knowing what would happen. So, I pay it...that's my responsibility.

[dbackjon]

Students loans are a different beast all together. Besides the fact that they really hit the American consumer head-on, they also aren't forgiveable in bankruptcy. Default on a student loan and you're in trouble for the rest of your life, unlike other loans.

Thanks to jack-ass lawyers declaring bankruptcy right out of law school.

[Franks Tanks]

No student loans for me (undergrad anyway)! Just a destroyed knee, sore back, and perhaps a decayed brain some day due to concussions.

[danefan]

Students loans are a different beast all together. Besides the fact that they really hit the American consumer head-on, they also aren't forgiveable in bankruptcy. Default on a student loan and you're in trouble for the rest of your life, unlike other loans.

Thanks to jack-ass lawyers declaring bankruptcy right out of law school.

[danefan]

No student loans for me (undergrad anyway)! Just a destroyed knee, sore back, and perhaps a decayed brain some day due to concussions.

I wish they had athletic scholarships (or creative grants as we called them when I played at Albany) for law school.

[Ibanez]

Students loans are a different beast all together. Besides the fact that they really hit the American consumer head-on, they also aren't forgiveable in bankruptcy. Default on a student loan and you're in trouble for the rest of your life, unlike other loans.

Thanks to jack-ass lawyers declaring bankruptcy right out of law school.

Huh?




From Obama's SOTU:

To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. (Applause.) Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. (Applause.) And let's tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years -- and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college. (Applause.)

[danefan]

Thanks to jack-ass lawyers declaring bankruptcy right out of law school.

Huh?




From Obama's SOTU:

To make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go to banks for student loans. (Applause.) Instead, let's take that money and give families a $10,000 tax credit for four years of college and increase Pell Grants. (Applause.) And let's tell another one million students that when they graduate, they will be required to pay only 10 percent of their income on student loans, and all of their debt will be forgiven after 20 years -- and forgiven after 10 years if they choose a career in public service, because in the United States of America, no one should go broke because they chose to go to college. (Applause.)

Some "smart" lawyers figured out that they could rack up student loans and file bankruptcy right after graduation and voila - all student loans and credit card debt was dissolved and their credit was ruined for 3 years.

Most didn't have any credit worth saving anyway (students their whole lives).

Anyway, the Bankruptcy laws have since changed in addition to not allowing student debt forgiveness.

Joltin Joe could shed more light on that if need be.

[ASUMountaineer]

Huh?




From Obama's SOTU:

Some "smart" lawyers figured out that they could rack up student loans and file bankruptcy right after graduation and voila - all student loans and credit card debt was dissolved and their credit was ruined for 3 years.

Most didn't have any credit worth saving anyway (students their whole lives).

Anyway, the Bankruptcy laws have since changed in addition to not allowing student debt forgiveness.

Joltin Joe could shed more light on that if need be.

Damn, I just went to a private law school and then quit...so, I got the loan for one year ($30k) and have no degree to show for it.

Now, I'm getting my MBA (much cheaper). Left ASU with only $10k in student loan debt...I made a bad choice of going to law school, but I don't feel someone else should pay for it. My wife's a teacher though, so in 6 more years, (so I hear, we need to look into it) her loans can be wiped clean.

[GannonFan]

Gee, my wife's a teacher but since she graduated earlier ('95) she's already paid off all of her debt, and heck, she went the expensive route and went to villanova.

I also don't get it with people paying for things like MBA's all by themselves. I got my MBA a few years after graduating college (chem eng major) and my employer at the time paid for 100% of it - I still had to front the money and got reimbursed based on my grades, but I didn't end up paying for anything other than parking. Certainly was a great way to do it!