Sigh....

I don't understand your picture, not sure if it is a joke or what.

You do realize it's the same way with houses right?

Free houses for everyone!

The spelling errors/typos for starters. Bowerers and ranifications.

It is not my place to educate other people's children, nor grown adults about finances, borrowing, and interests schemes.

And the balance "not forgiven" still hits the same economy.
Money, like water takes various paths, but the cycle is the same. It's a closed system.

You pay interest back, it gets spent. You don't pay the interest back, it gets spent.

The economy gets the same bump somewhere.

All you get for the "forgiveness" is the "forgetfulness" of the life lesson and someone more likely to continue to make poor choices, expect no negative consequences for their actions and the mindset that they are entitled and owed something by people for whom they have no concern.

Fuck 'em. Let them eat baloney and soup a few times a month, forgo a few non-essentials and pay their debt.

Edited to add...

I was typing and posted before your reply. My post was to the OP and without context of the reason (types) in the image, FWIW. But it does not change my bitch.

Well, the author of that likely learned about writing and spelling from the same institution that taught him/her/it about personal finance and economics.

All debt is paid off by someone. If not by the borrower, then by the lender. There is no such thing as "forgiveness", though a lender could choose to take 5he loss, e.g. a parent vacating a loan to a child, with no adverse impact to the outside world.

I have had exactly that conversation with people, and what is clear is that they truly do not understand money, debt, the economy, or government finance.

Coming out of college with a mountain of debt you can’t pay off is a symptom of the true issue: you shouldn’t have gone to college in the first place. It’s no different than too much car of too much house except you can’t turn over the keys on an education.

There’s ways to pay for college that don’t require debt:

One of my son’s high school buddies signed up with the Navy to be a nuclear something or another on submarines. That’s a $50k signing bonus, plus the GI Bill, sub pay, plus another $50k+ bonus if he stays in for a few extra years. Like my son, the kid earned his AA degree in high school, so he only needs 2 more years for a bachelors. I don’t know, but I strongly suspect with a resume like that he will have a choice of great universities to earn his bachelors from.

Another of my son’s high school friends didn’t complete his AA degree in high school. Instead, he applied to a university 30 miles away, made sure the 50 or so college credits he earned would transfer, graduated high school early, and got a job to save money to help pay for college. He’ll be commuting to school and working.

At my son’s university, we sat next to another freshman who earned a scholarship that covers tuition. He’s going to stay with his mom who lives 3 blocks from the campus and work while earning a degree.

Then there was the girl we sat with a lunch that day who got a full ride scholarship because she was a National Merit Scholar Finalist. That means she had a score on the PSAT, taken junior year of high school, in the top 1%.

These kids are putting in the work to make it work. They made and are making solid life choices.

My own son wants to study volcanoes, so he’s pursuing a BS in Geology. He surprised me this summer by telling me he was going to take 5 extra classes so he’d have school all the med school prerequisites. Then, it’s only 1 more chem class for a chem minor.

The point being there are 17 and 18 year olds capable of making solid life choices. Of the let’s say 100 kids I’ve met through my own kids, there’s only been 2 or 3 that I’ve thought in for a rough time.

quote:

All debt is paid off by someone. If not by the borrower, then by the lender. There is no such thing as "forgiveness",...

It's not a complicated concept. Your explanation is simple and straightforward.

Yet, half the people in this country don't comprehend that.

quote:

Well, the author of that likely learned about writing and spelling from the same institution that taught him/her/it about personal finance and economics.

It's intentional. We underperform the world. On purpose.

We won't turn this country around without ending "public" education. Turning our children over to government schools is what got us into this mess.

quote:

Originally posted by trapper189:
Coming out of college with a mountain of debt you can’t pay off is a symptom of the true issue: you shouldn’t have gone to college in the first place. It’s no different than too much car of too much house except you can’t turn over the keys on an education.

Good point.

In 2011 I bought a truck for $1,200. I still drive it everyday to work and for road trips. I did not get a new one.

Will the .gov please send me a check for $54,000?

quote:

And 18 yr old borrowers are ill prepared to understand the long term ramifications of these high interest loans.

Well how are we supposed to pay for Obamacare if these federal loans go away? Duh!

Every year, the government increases the amount of student loans available via FAFSA. Every year, colleges raise tuition by, hmm, a very similar percentage.

Additionally, where is it written that the government has the authority to "forgive" loans?

My favorite is the people who say 17/18/19 year olds are not capable of reading and understanding loan documents for the debt they take. Yet they are the same ones saying a 7 year old is capable to make a decision to have their genitals mutilated/removed. GTFOH with that.

As noted above I know several motivated high school kids taking junior college classes ( ag next to free cost) while in high school and graduating basically as a sophomore or junior in college.

What is wrong with the hood old fashioned bust your ass working 2-3 part time jobs and go to school and live at home. I did that and yes my social life was severely hampered Vs my brother who lived in a fraternity house, didn’t work and graduated 5 years earlier than me with a pile of debt. Same state U that was a reasonable driving distance to our parents house. And his lack of planning has saddled both his sons with having to take out similar levels of student debt. At least 1 kid is getting a Legit degree in a STEM field. The other son has a social science degree so we’ll see how that works out for him.

While I’m on this rant I heard audio recently of Kamala saying college should be cheap and just have your parents take equity out their house. Wtf ? So your 50+ year old parents looking towards retirement should blow that up by leveraging the house at a higher rate than they are paying now. Ugh. So annoying. Make colleges lend money from their own endowments. At the same time on the same page as the loan signature have a page that shows avg wage for any given major. Your lesbian dance study degree will not likely give you the same income as computer science degree. We need both dance teachers and computer programmers just don’t expect the market to pay the same. The .gov should not be in the loan biz

Don't forget, while in the Military, you will have opportunities to attend college. When I was in it was 75%. You paid 25% of the tuition and books. Lots of Colleges and Universities had programs on bases: Chaminade in Hawaii, Webster University had both Undergrad and Grad degrees at Scott AFB. And this was while before On-Line courses were available.

Also CLEP Tests were available in the Military for a very minimal fee (it was so inexpensive, it was almost free). I got 9 credit hours that way just reading some course books and taking the tests.

I'm very opposed to the buying votes with freebies of any kind. That said - if there were predatory loans which broke consumer laws I'd be fine with investigating that and then penalizing the loan sharks. Make them pay fines which resemble some of those loan balances.

Other than that, why don't the college endowments fund their own loans. That would be fine with me

I struggled financially, especially from 2008-2014. Same years that kid was in school. Sent to private school anyway. Got some assistance along the way. No public schooling at all. Unfortunately, internet influence caused some swaying of values.

Then off to local community college for general studies, paying along the way. Followed by two years at a State level accreditted college for dual major BS. One for the ideal career path, another more practical, being General business degrees. Got to have a backup plan.


With great grades, able to secure grants for almost all of the costs. During summers, living at home, working to save money for the following year. Very small loans needed.

Graduating soon with very little debt!

It took a while, a lot of work along the way, but it can be done!

There are two separate issues that seem to be confounded by the OP.

There are two separate student loan issues, one is public service student loan forgiveness 10 year program that started in 2009 and was a bipartisan legislation. the 2nd is Biden's 20k forgiveness which is still tied up in courts.

So the first, The Public Service Loan Forgiveness program. Link Link

It is first and foremost a merit based forgiveness not hardship. IF you consolidate all of your loans to a government consolidated loans, and IF you work for a non profit or service industry (teacher, nurse, EMT, Police, Fire, et al.) for 10 years with no breaks in employment (you can change jobs but they must also be not for profit or service), AND make 120 payments. THEN after that the remainder is forgiven by the government. So you must meet all three criteria to get loan forgiveness and this has been in the book for a long time.

in summary:

• must be government consolidated loans
  
• work in the service or non-profit industry for 10 years
  
• make 120 payments
  

The other is the biden administration 20k loan forgiveness which is horribly written, or understood. Anyway, I hope that helps. Many seem to keep confusing these two issues.

There’s another student loan forgiveness program: IDR income driven debt repayment. Pay a certain percentage of your income towards your student loans for 20 years and the rest is forgiven. A guy I knew from college went that route. He’s the poster child for graduating with a mountain of debt he couldn’t pay off. From a private school he couldn’t afford, but one that admitted him, he got an MBA and a JD with his $145k of student loans. Didn’t get the grades, didn’t get the jobs, put the loans into deferment several times where the accrued interest and became $240k owed.

quote:

We won't turn this country around without ending "public" education. Turning our children over to government schools is what got us into this mess.

Couldn't agree more, and that's why all four of my kids are homeschooled. Our oldest is going into his junior year and has no interest in college. He already has a part-time (full-time over the summer) job and is looking into trades...welding, machining, and manufacturing. I couldn't be happier about his choices.

I guarantee you if the schools had to back their loans to students, these would happen:

-tuition rates would drop
-students would be employed at a higher rate at higher paying jobs (alumni network can be powerful)
-drop in bullshit degrees offered by the schools
-less requirements for bullshit classes that just fill the schedule

The system has cheated young people out of their lives. This is why you don't have grandchildren.