Another Month of Student Loan Relief!

[owlegrad]

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[JustFillIt]

I know right? Can you imagine giving the poors a break? What is this, Europe? Make America great again, again.

I also love the idea of new grads refusing to work over 30 hours. Yeah I am sure there are sooo many new grads out there just refusing to work full time hours. Not the opposite of that with new grads looking for work, nope, no way.

Owle - your sarcasm reached such a critical level that it caused me to have seizure like symptoms trying to detect was, and was not, sarcasm in that post.

I suppose I’m a simple mind…

 

[owlegrad]

Owle - your sarcasm reached such a critical level that it caused me to have seizure like symptoms trying to detect was, and was not, sarcasm in that post.

I suppose I’m a simple mind…

Even I am not sure where the sarcasm began and ended.

 

[PharmtoCS]

More free money for students to spend on luxury apartments, cars, fancy dinners and vacations!

Sponsored by you and me.

 

[mentos]

I see this like the stimulus checks. Most people will use the windfall on stupid stuff like gambling on meme stocks and crypto.

And yeah tradesmen who had no college debt must be pissed. They'll probably assume all of us are 10k richer and jack up prices even more for home repairs and maintenance.

 

[confettiflyer]

Probably won’t do much more for inflation, I think like > 98% of borrowers have paid $0 toward their loans since March 2020. What you see today with inflation already reflects functional forgiveness/zero payments.

$300B supposed “total cost,” but when you consider most of it was practically uncollectable anyway, the government will probably save a ton on servicing and collections (admin costs to garnish). We pay like, $2.85 per borrower per month for servicing?

This will be off the news cycle by Friday, anyway.

 

[Sparda29]

An oldie but goodie.

Idk, about a trip to Hawaii, but I definitely used student loan funds to pay for my trips to ASHP, APhA, tolls, gas, food.

 

[WVUPharm2007]

View attachment 358784

I complain about the wealth classes getting away with paying almost no income tax all the time. Two wrongs don't make a right. What a very stupid argument from a likely very stupid person. All the "progressive" left has to argue against this incredibly selective and arbitrary giveaway is very poorly argued whataboutism that only a complete ***** thinks is clever, like this Tweet.

The fact is that the working poor need this money considerably more, but people that make $250k in household income will be getting $10,000 of debt cleared from their balances.

 

[allantois]

I’m actually more excited by the 5% 10 year repayment plan. The debtor is the federal government. They can stop fighting wars abroad to save money

 

[mentos]

Idk, about a trip to Hawaii, but I definitely used student loan funds to pay for my trips to ASHP, APhA, tolls, gas, food.

Yep I had classmates paying $2,000/mo for a luxury apt (I was paying $333), driving new cars during school, eating fancy dinners, going on vacations during school. They kept touting to max out student loans cause "that's the best kind of debt" even though the interest rate was 6.8-7.9%.

 

[DagS132]

You really don't know much about money if you think you can live 2 years in luxury on 20k of student loans.

 

[WVUPharm2007]

I got this friend. Graduated high school with me in 2001.

In 2002, the WV government started this program called the Promise Scholarship. You basically get about $5k a year if you go to a state college. So he missed out on $20,000 because he graduated a year too early.
So he goes to college, graduates in 2006. Just as his career starts, boom, here comes the Great Recession. He's basically set back 2-3 years from this.

But he gets his **** together. Finally gets a good job in 2012. He's been saving money, paying off debt, trying to get a house. Well, here comes the pandemic. Housing prices shot up. Can't get a house now.

My man literally paid his student loans off in December 2021. Now he's born one year too early to benefit from this at all.

Poor dude just can't win.

 

[mentos]

I got this friend. Graduated high school with me in 2001.

In 2002, the WV government started this program called the Promise Scholarship. You basically get about $5k a year if you go to a state college. So he missed out on $20,000 because he graduated a year too early.
So he goes to college, graduates in 2006. Just as his career starts, boom, here comes the Great Recession. He's basically set back 2-3 years from this.

But he gets his **** together. Finally gets a good job in 2012. He's been saving money, paying off debt, trying to get a house. Well, here comes the pandemic. Housing prices shot up. Can't get a house now.

My man literally paid his student loans off in December 2021. Now he's born one year too early to benefit from this at all.

Poor dude just can't win.

And for some reason everyone is against giving this man 10k too cause he already paid his loans.

 

[JustFillIt]

And for some reason everyone is against giving this man 10k too cause he already paid his loans.

You know what - I’ve just decided that life isn’t fair. For me, you, or most anyone else.

Unless you were born into royalty/money - it’s just not fair.

 

[JustFillIt]

Just because life is unfair doesn’t mean it is the right thing to do.

Regardless - it does not change what is in motion.

Regardless of if you feel it’s right, wrong, fair, or unfair - you just can’t fight city hall…

Should we just complain about the people who want this to happen?

The best thing to do is to vote for those that align with your point of view…

 

[NITRAS]

Regardless - it does not change what is in motion.

Regardless of if you feel it’s right, wrong, fair, or unfair - you just can’t fight city hall…

Should we just complain about the people who want this to happen?

The best thing to do is to vote for those that align with your point of view…

Most days the voting between R’s and D’s seems like picking between Dumb and Dumber.

 

[JustFillIt]

Most days the voting between R’s and D’s seems like picking between Dumb and Dumber.

Vote for yourself.

I’ve done that before in previous years where I was slightly more delusional..

 

[DagS132]

Sure you can if you live with roommates or at home. Some people even receive parents’ help while they maxed out their student loans.

I dare you to take out a 20k loan, quit your job, and ask your parents for money. Sounds real luxurious

 

[owlegrad]

Sure you can if you live with roommates or at home. Some people even receive parents’ help while they maxed out their student loans.

How is that “luxury”?

 

[Chrish]

While I am not necessarily against the idea, this is a wrong time to do it when we are trying to get inflation under control..

 

[DagS132]

Do college kids have a mortgage? Family? Kids? 401 k? Car payment? Health bills?

If you give a college kid $20 k, I bet you he can go on way more vacations than you can and have more fun. He has the time to drive and split the gas cost with friends. He can room with 5 friends. He can party until 3 am and get up at 8 am. This is a pretty luxurious lifestyle for a kid without any financial obligations.

What is the argument here? Are you saying people can indefinitely live a luxurious life as college students or are you saying kids have it easy? If its the latter, why are you comparing your life with dependents that are accruing loans? You do realize you can't get loans forever, right?

 

[DagS132]

Obviously I am talking about college students.

Hint, hint: “college kids”

Why are you comparing your life to kids? Im not sure what the argument here is anymore. I thought we were talking about ADULTS that receive some benefit due to their income status

 

[PharmtoCS]

View attachment 358784

You can be against the government handing out PPP loans to business with no oversight, and you can be against government handing out $10k to debtors who could afford to pay off their debt but chose not to.

Those who receive nothing from the handouts do pay for it in higher taxes and inflation.

 

[PharmtoCS]

And yeah tradesmen who had no college debt must be pissed. They'll probably assume all of us are 10k richer and jack up prices even more for home repairs and maintenance.

Some person on Reddit bragged about making just under $125k and plans to spend the forgiven $10k on a kitchen remodel on their new home.

Student loans seems to be a new way to become a welfare queen.

 

[mentos]

View attachment 358784

The tax cut for the rich has nothing to do with it. But you can be against both.

 

[PharmtoCS]

The tax cut for the rich has nothing to do with it. But you can be against both.

It’s a whatsboutism argument. When you argue against student loan forgiveness you get attacked with “what about the PPP loans and Trump tax cuts” without recognizing that both do nothing to help the most vulnerable of society and only encourage irresponsible spending.

 

[confettiflyer]

Some person on Reddit bragged about making just under $125k and plans to spend the forgiven $10k on a kitchen remodel on their new home.

Student loans seems to be a new way to become a welfare queen.

I think I’ve spent and invested/saved like $40-50k on various things on the de facto loan forgiveness the 2.5+ year payment pause has done.

Kitchen remodel for that $10k? That’s some responsible use right there!

 

[mentos]

Some person on Reddit bragged about making just under $125k and plans to spend the forgiven $10k on a kitchen remodel on their new home.

Student loans seems to be a new way to become a welfare queen.

Okay where can you get a kitchen remodel for just 10k? A bathroom remodel is 20k minimum around here. I don't even want to know how much kitchen remodels cost, I wouldn't be surprised if 100k or more.

 

[confettiflyer]

Okay where can you get a kitchen remodel for just 10k? A bathroom remodel is 20k minimum around here. I don't even want to know how much kitchen remodels cost, I wouldn't be surprised if 100k or more.

It’s probably small ball, like replacing a countertop, or switching to induction. Not exactly a remodel.

 

[Sparda29]

Some person on Reddit bragged about making just under $125k and plans to spend the forgiven $10k on a kitchen remodel on their new home.

Student loans seems to be a new way to become a welfare queen.

The money is reinjected into the economy instead of just going to the Fed.

I don't get why people bitch about this but have no problem on the government wasting money on military operations in Iraq, Syria, Afghanistan, Libya.

What people should be upset about is US troops still being deployed overseas, Biden ordering drone strikes on Iranian militias operating in Syria, Biden ordering drone strikes in Afghanistan on an AQ leader.

 

[mentos]

The money is reinjected into the economy instead of just going to the Fed.

I don't get why people bitch about this but have no problem on the government wasting money on military operations in Iraq, Syria, Afghanistan, Libya.

What people should be upset about is US troops still being deployed overseas, Biden ordering drone strikes on Iranian militias operating in Syria, Biden ordering drone strikes in Afghanistan on an AQ leader.

This is a thread about student loans, so that's why it is being discussed instead of troops overseas. It's okay to be against those things too.

 

[PharmtoCS]

The money is reinjected into the economy instead of just going to the Fed.

I don't get why people bitch about this but have no problem on the government wasting money on military operations in Iraq, Syria, Afghanistan, Libya.

What people should be upset about is US troops still being deployed overseas, Biden ordering drone strikes on Iranian militias operating in Syria, Biden ordering drone strikes in Afghanistan on an AQ leader.

What we are against ultimately is the government choosing winners and losers in a rather arbitrary manner, and fiscal inflationary stimulus being handed out at a time when inflation is already over 9%.

Again, this is what I mean when the argument devolves into whatabouisms, i.e. overseas wars, PPP loans, etc. as an argument for student loan forgiveness. Two wrongs don't make a right. In this case, two wrongs make it doubly wrong since we realisitically cannot afford any of these.

 

[Dred Pirate]

anyone know how the refund process will work? Paid my loans off in 2021 (probably paind ~20 k from march 2020 through when they were paid off) - were through Iowa Student Loan / Aspire- and those were not deferred even thou they were stafford federal laons, which still doesn't make sense to me. I have tried calling them, but of course their lines are ringing off the hook - so couldn't get trough, and you cannot email account specific questions - which they claim is due to security.

 

[confettiflyer]

anyone know how the refund process will work? Paid my loans off in 2021 (probably paind ~20 k from march 2020 through when they were paid off) - were through Iowa Student Loan / Aspire- and those were not deferred even thou they were stafford federal laons, which still doesn't make sense to me. I have tried calling them, but of course their lines are ringing off the hook - so couldn't get trough, and you cannot email account specific questions - which they claim is due to security.

Call right when they open and request the refund. Stafford loans are weird so consult someone more learned than me on refund availability and forgiveness (my caveat).

 

[mentos]

The way the system is set up…it incentives politicians to take care of their voter base and donor class. What benefits does a politician get for saying no to loan forgiveness, no to military spending, no to tax cuts?

As a result, there is now massive inflation which is a tax on everyone. To control inflation, the Fed needs to increase interest rate which increases borrowing cost from a car loan to a mortgage and puts downward pressure on stocks, real estate, crypto, etc.

Did I mention inflation also leads to crimes and violence? The demand for stolen goods goes up. People start to blame others for their troubles.

When will they start forgiving credit card bills, mortgages, auto loans? I'm sure they'd get plenty of votes for those things too.

 

[mentos]

anyone know how the refund process will work? Paid my loans off in 2021 (probably paind ~20 k from march 2020 through when they were paid off) - were through Iowa Student Loan / Aspire- and those were not deferred even thou they were stafford federal laons, which still doesn't make sense to me. I have tried calling them, but of course their lines are ringing off the hook - so couldn't get trough, and you cannot email account specific questions - which they claim is due to security.

They are giving refunds?

 

[Elephant101]

They are giving refunds?

From what I read if you made any payments on your student loans from March 2020 (start of pandemic) to now you can have it refunded back to you. This option has always been open but people may be more likely to avail it now.

 

[confettiflyer]

When will they start forgiving credit card bills, mortgages, auto loans? I'm sure they'd get plenty of votes for those things too.

Those are forgiven in bankruptcy. I’d actually rather have student loans be dischargeable in bankruptcy than outright student loan, adds a layer of accountability in federal court.

 

[confettiflyer]

They are giving refunds?

Yes, and it was confirmed by the Dept of Education (some WSJ article I don’t have the link to). So if you paid down your loans but qualify for forgiveness, they’ll give you a refund before applying forgiveness.

 

[mentos]

Can't wait to hear the complaints about increased tax liability.

These 13 states may hit borrowers with up to $1,100 in state tax liability on forgiven student loans. How to know if your debt cancellation will trigger a bill

While Biden's student loan forgiveness plan is tax-free on federal returns, it may trigger liability at the state level. Here's what borrowers need to know.

www.cnbc.com

 

[allantois]

The waived interest on new repayment plan is good news, however further incentive for colleges to ignore the issue of sky rocketing costs

 

[Dred Pirate]

The waived interest on new repayment plan is good news, however further incentive for colleges to ignore the issue of sky rocketing costs

agreed - you need to fix the underlying issue or we will be right back here in a decade or two

 

[mentos]

Most people seem to be using their extra 10k windfall on consumer stuff they don't need (kitchen renovation) or to gamble on stocks. What a debacle this will be.

 

[Flavia28]

Can someone please explain this to me like a 5 year old? So if I’ve been working for a non-profit for the last two years (this is my 3rd year) and will continue to and have PSLF, my loans will be forgiven in 7 years, correct? Is it at 5% or 10% of IBR?

 

[confettiflyer]

Most likely this will be contested in the courts. This way Biden can say, “I tried to forgive your debt but the Republicans didn’t let me”.

If Biden then suspends student loan payments again “until these legal challenges are settled” then I will gladly accept a long, drawn out legal process

 

[confettiflyer]

Can someone please explain this to me like a 5 year old? So if I’ve been working for a non-profit for the last two years (this is my 3rd year) and will continue to and have PSLF, my loans will be forgiven in 7 years, correct? Is it at 5% or 10% of IBR?

10% IBR when payments restart, the 5% plan will likely go through abbreviated neg reg with an effective date of 12/2022 if you follow the previous pattern of implementation.

But note that 5% is for undergrad loans only, you’ll get a weighted average if you have both undergrad + grad.

And yeah, your loans will be forgiven in 7 years. Did you submit a PSLF form to FedLoan (or MOHELA if you changed over) already)?

 

[confettiflyer]

Most people seem to be using their extra 10k windfall on consumer stuff they don't need (kitchen renovation) or to gamble on stocks. What a debacle this will be.

That doesn’t even make sense. If your balance is wiped out completely ($10k) that frees up $100/mo (5% on a 10yr plan), not exactly kitchen renovation stuff. If you were low income on IDR because that $10k was a failed college attempt, you were paying $0 to begin with.

If your original balance was $20k-$50k, you’re still making payments come January (more than the $0 you were paying now), even if you recast the loan somehow and are on a 10yr plan, the reduction is modest.

If you had an original $50k+ loan and are on IDR, it’s essentially irrelevant, your payments start January.

I’d argue the payment pause now has resulted in more kitchen renovations (I’ve done some stuff, personally, and the higher balance/higher income folks disproportionately benefit, AND are probably the homeowners with kitchens to remodel), and the payment restart will put a lid on that.

The $10k forgiveness, if it truly impacts someone, will probably result in higher savings, or more likely more money spent on essential goods, since it’s such a small amount month-to-month.

 

[owlegrad]

Most people seem to be using their extra 10k windfall on consumer stuff they don't need (kitchen renovation) or to gamble on stocks. What a debacle this will be.

That you could possibly know what “most” of the millions of Americans are doing with their forgiveness is astonishing to me. I am in awe of your ability to know what people do with their money. Truly you should be a market wizard.

I am curious though, what *should* the people who got the forgiveness do with it, if not “remodel” their kitchen (which cannot possibly be meaningfully done for 10k anyway unless maybe they are the contractor)?

 

[owlegrad]

Biden knows he is not going to win re-election if inflation is still high.

Is he running for re-election?

 

[BenJammin]

Hopefully mortgage forgiveness is next. I'm spending money like a fool every month when I could be helping the local economy. Forget that I can afford to make these payments that I agreed to make. My vote in November is up for sale to the highest bidder!