The Biden administration on Wednesday announced an extension of the pause on federal student loan payments through May 1 amid a surge of COVID-19 cases nationwide due to the omicron variant.
Just forgive all student loans to this date. Then figure out a better way. Kids need a break when starting out in life. There are plenty of obstacles awaiting them; life lessons. We older folk had it easier.
Edit: I guess I could have said old while folk.
I had student loans to re-pay after my college was done.
I suppose I could say I lucked out, because my grandparents died, leaving me just enough to pay off my loans and get my first car (this was in 1978 when neither cost a small fortune). I think the entire inheritance was about 20 grand?
The real killers are private student loans. While the federal loans need some reforms (the interest rates, mainly), you can at least work with them to lower or pause your payments if needed. The private loans offer no such relief.
Me, waiting for President Biden to get public credit and thanks from progressive Dems who pilloried him for not doing this:
And let me also add the ultimate issue is the crazy cost of college these days. Even state schools are running 100K+ for a BA.
At the very least student loans should be interest free and there should be no private student loans at all. Private lenders are just blood sucking leeches. Students should get all their loans from the government. In my view it is an investment in the future of the nation that the government is making by loaning young people money for their education. We all benefit from a better educated society.
Advanced education is an investment in our country. I can’t believe people have to pay for it out of their own pocket.
Missed it by that much.
Can’t we just go back to the good’ol days of the 50’s when the highest marginal tax rate was 91% and higher education was paid for? Why is this never part of the RW nostalgia fever dream?
We continue to call on President Biden to take executive action to cancel $50,000 in student debt, which will help close the racial wealth gap for borrowers and accelerate our economic recovery.”
OT
It’s turning.
Congress right?
Right?
There are limits to e.o.'s and while one of em are lawsuits, the second is elections.
Though it would be keen to cancel debt of this amount or higher, it’s equally important to make Manchin, Sinema and to an extent, Pelosi irrelevant.
Friendly fire incidents are accidental mistakes in combat that end up killing people on your side. What Manchin and the GOP are engaged in is intentional, but not like trying to prevent retreat of your own soldiers. This is like where the holders of the $1.7 trillion in student loans have gone to war on the debtors, people who have never known debt-free adulthood.
More interestingly, like the old mortgage-backed security that blew up the global financial system in 2008, it is not clear who the ultimate creditors would be if not the taxpayer. In any case, the US probably should move to a more transparent system that doesn’t crush its young adults at their peak of productivity.
Most lenders are huge institutions, such as international banks or the government. After a loan is originated, however, it represents an asset that can be bought and sold on the market. Banks are often incentivized to move loans off the books and sell them to another intermediary because doing so instantly improves their capital ratio and allows them to make even more loans.
Since almost all loans are fully guaranteed by the government, banks can sell them for a higher price, because default risk is not transferred with the asset.
Easy for him to say.
https://www.myrtlebeachonline.com/news/politics-government/article255095627.html
And this is why private student loan lenders should be abolished. The government/tax payers assume all the risk and the private lenders get to skim profit off of a system they have no skin in.
My question is which senator is most invested is such a stupid, dangerous arrangement. John Thune?
These private student loan lenders are able to privatize their profit for shareholders and socialize their losses on the backs of the government and the tax payer. Big business in bed with big government. Smells like fascism.
Mussolini called it “corporatism”. Such “market-friendly” policies generally have failed in the advanced economies, and are more typical of rigid middle-income countries with military governments. For modern advanced economies, students already face a very stressful period of matriculation exams and department-specific testing to get into university. But then the state intervenes so that the presumed best and brightest get some or all of their education financed, at least to the point that when they leave university with a masters they are not tens or even hundreds of thousands of dollars (or equivalent) in debt and don’t have to become cryptobros dependent on their Ethereum and NFT portfolios to bail them out.
While they are at it, they need to make the loans dischargable by bankruptcy. That is business plan B for large corporations, but it is a necessary evil of last resort for individuals with their backs against the wall. An animal in a trap can chew its leg off to escape, but the analogous option is not available to people with student loans.