Deadbeats Rejoice: Biden 'forgives' 563,000 student loans ... middle class will pay more taxes

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
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This just generally pisses me off as a tax payer.

We know from real data that upper middle class kids are the ones who take out a lot of student debt.

We know that middle and lower class kids typically don't go to college.

So logically the pay-check to paycheck living, hard working, middle classes will end up paying off the student debt incurred by the 'entitled' and 'self-important' upper middle class kids so they can sip their $6 lattes and complain about capitalism while tapping on the keyboard of a $1200 laptop connected to a cafe's wifi. Meanwhile the working classes are AT WORK to pay for the bills incurred by latte sippers.


Education Department will cancel student debt for 115,000 borrowers

Education Secretary nominee Miguel Cardona testifies before the Senate Health, Education, Labor and Pensions committee during his confirmation hearing on Capitol Hill Washington, DC., February 3, 2021.
Education Secretary nominee Miguel Cardona testifies before the Senate Health, Education, Labor and Pensions committee during his confirmation hearing on Capitol Hill Washington, DC., February 3, 2021.
Susan Walsh | Pool | Reuters
The U.S. Department of Education announced Thursday it will cancel $1.1 billion in student debt for 115,000 borrowers.
The relief will go to those who attended ITT Technical Institute, a for-profit school that is now defunct. The school is accused of misrepresenting itself and steering students into pricey private loans. These borrowers didn’t finish their degrees and left the school after March 31, 2008.
“Today’s action continues the Department’s efforts to improve and use its targeted loan relief authorities to deliver meaningful help to student borrowers,” U.S. Secretary of Education Miguel Cardona, in a statement.
The Education Department under the Biden administration has now canceled student debt for 563,000 borrowers, totaling $9.5 billion.
Still, President Joe Biden remains under pressure from Democrats, advocates and borrowers to go further and cancel $50,000 per borrower in student debt for all.
Biden has asked the Education Department and the U.S. Department of Justice to review his legal authority to forgive student debt through executive action. The findings of those reports are not yet public.
“You don’t need Congress,” Sen. Majority Leader Chuck Schumer, D-N.Y., has said. “All you need is the flick of a pen.”
How would student loan forgiveness impact you? If you’re willing to share your story, please email me at annie.nova@nbcuni.com
 

FrancSevin

Proudly Deplorable
GOLD Site Supporter
It pisses me off because I paid off my son's student loan.
Now i have to pay off the debt of someone else??????

WTF?

BTW is this even legal? I understand the students were 'defrauded" but most got some education. All have redress in Bankruptcy courts just like the rest of us.

This may be justified by the default of ITT Technical Institute. But it opens the door for all student loans.
 

Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
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Franc, I agree. When my daughter was born we started saving for college. Weekly automatic deposit into a special savings account for her. Paid cash for her college tuition and most of her law school. We didn't qualify for student financial aid because we were responsible adults who accepted the fact that we had to prepare for the future.

Seems to me the gubmint owes me a refund now???
 

waybomb

Well-known member
GOLD Site Supporter
See how great socialism is!
These kids are doomed. I have maybe 20 years left. This kids have an entire life ahead of them paying for all off this crap.
 

300 H and H

Bronze Member
GOLD Site Supporter
Franc, I agree. When my daughter was born we started saving for college. Weekly automatic deposit into a special savings account for her. Paid cash for her college tuition and most of her law school. We didn't qualify for student financial aid because we were responsible adults who accepted the fact that we had to prepare for the future.

Seems to me the gubmint owes me a refund now???
Much like you my daughters qualified for absolutely no financial aid, zippo....
At an orientation for my youngest daughter we were divided into groups. I soon realize out of the 400 kids and families there that day only about 12 were in our group, and we were the cash payers of tuition. Out of 400, 12 families who were prepared, and were paying cash. Now I understand how much our Government must be putting towards the education of those who can not pay.
I feel so fortunate to be in the situation I am in, but the reality it is not an accident. It was careful planning and saving that made it possible. We live on less than we earn, and save/invest the rest. Easy to do, but so many fail to launch the program.

Debt forgiveness is a real kick in the ass for those who did without some things to be prepared to pay our own way. Yet another blow to those who spend less than they make and budget for the future. This is more bad juju for our nation...
 
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Melensdad

Jerk in a Hawaiian Shirt & SNOWCAT Moderator
Staff member
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... but the reality it is not an accident. It was careful planning and saving that made it possible. We live on less than we earn, and save/invest the rest. ...

Debt forgiveness is a real kick in the ass for those who did without some things to be prepared to pay our own way. Yet another blow to those who spend less than they make and budget for the future.
...
Exactly.

And very well said.

Penalize those who do the right thing. Give incentives for doing the wrong things.
 

jpr62902

Jeanclaude Spam Banhammer
SUPER Site Supporter
Keep in mind, student loans are generally not dischargeable in bankruptcy. I have mixed feelings about the ITT loans. People who were bilked should have a means of recourse for their damages. Is loan forgiveness the best option? Dunno. Why not track down the a-holes who exploited those folks with their worthless promise of education? Make those thieves pay the money back.

As for other student loan forgiveness, it sends a horrible message to young adults like my daughter who paid for college with savings, scholarships and a very small student loan. She was very careful in her borrowing and worked very hard so that she would graduate without any unmanageable debt. She also chose a degree that would be useful in the adult world. What message are we sending to folks like her? "Your hard work and good judgement don't matter. The gubmint will bail you out anyway."

Thankfully, she doesn't think that way. She's on a great career path at a Fortune 500 company.

I think our colleges and universities should also bear some responsibility for these bad loans. Set up a delayed tuition payment plan if they're getting paid via student loans. If the graduate isn't able to obtain gainful employment following graduation within a year or so, the school eats 50% of the loan. That might steer them toward taking a greater interest in giving their graduates the necessary tools to be productive.
 

300 H and H

Bronze Member
GOLD Site Supporter
.

I think our colleges and universities should also bear some responsibility for these bad loans. Set up a delayed tuition payment plan if they're getting paid via student loans. If the graduate isn't able to obtain gainful employment following graduation within a year or so, the school eats 50% of the loan. That might steer them toward taking a greater interest in giving their graduates the necessary tools to be productive.
Excellent point for sure that needs discussion. Like you I believe our kids are paying for a way overinflated tuition for a degree that will take decades to repay the loans.
I think the cost structure of universities has out stripped many of opportunities afforded by the education they offer. They need to seriously put themselves on a budget to lower tuition costs. But of course since most educational institutions are controlled by lefty liberals, a budget is some thing that goes right over their collectively blind heads.
 

Melensdad

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Staff member
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If the universities would be partially liable for the student loans then it is likely that far fewer schools would offer majors in areas where there are no jobs. Wimin's Studies, Gender Equality and Underwater Basketweaving would all be lost programs because there are simply no jobs available for those areas of study.

But also the universities would also, very likely, cut back on some of the amenities are offered on campus like the Lazy River water parks, sculpture gardens, the tempurpedic mattresses and suite style dorms that are typically nicer living accommodations than most students homes as those are many of the driving up the costs of college education without actually contributing to the actual educations of the students.
 

FrancSevin

Proudly Deplorable
GOLD Site Supporter
Tuition and dorm costs all went up faster than inflation rates because of cheap money available with student loans. Actual education wasn't even part of the plan or the program one way or the other.

Every time the Student loan programs were improved to facilitate more loans and more availability, these costs rose exponentially. The actual education and process remained the same.

A tenured Professor can teach one class yet make over $200K with several assistants to do the hard work. The actual education of students did not improve a twit. The product quality suffered from the effects of mass production.

Student loans became a commodity like cheap furniture at Wal-Mart. Worthless to the original purpose. And, at the end of the cycle, a burden as worthless as the trash heap created by the throwaway products.

The students, like the furniture, disposable. No matter, the profits were made.

Mission accomplished.

The debt for worthless degrees,,,,? on the taxpayers.
 
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