Capitol Hill Blue Forums Political Issues The Biden Administration Biden to Cancel $10,000 in Student Loan Debt

I have always thought that it would have been a lot better if gov had taken all the interest they have been collecting and apply that to the debt and then just stop the interest completely. I am not in favor of our government being in, basically, in the bank loan business. There is also some indication that gov was charging more interest than the banks!

The interest is why the private firms are complaining about the FFELP forgiveness. They'll be losing money on the interest. Too bad!

I think I may be confused. I have been under the idea that OUR government was funding, and collecting most of the higher education loans. That, I think, started with Obama.

There is also another little problem. China, right now, is graduating twice as many engineers, etc than we are. Our state higher education has lost a great deal of state money to function and most of the staff was underpaid. Now the staff is no longer in that state but, given the greed of state legislators, or legislators who don't want to tax to help pay the price, and the greed of the private, incredibly rich, universities the United States of America is no longer producing what the nation needs and the national politics has responded by slowing down replacements from foreign sources.

Now add in that the government of America decided that, rather than supporting our higher education they would put entire generations of educated into lifelong debt (except for the lucky few). I know, I have simplified this but the problem(s) are very real and get worse annually. We are the only nation in the developed world that makes it almost impossible for anybody to actually get educated without going bankrupt along the way. A more interesting thing is that those debts are not, I am told, not dealt with in bankruptcy court so the 18/20 year old dummy who signed up for the debt is well and truly screwed.

Student Loans used to be able to be discharged in bankruptcy - until bankruptcy was "reformed." Called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, student loans were no longer able to be included in bankruptcy. See the word "abuse" in the title?

Why? Because baby boomers discharged their student loans so much and so often, baby boomer politicos in 2005 made student loans so that they are THE ONLY DEBT that is not dischargeable.

Now these same baby boomers are screaming bloody murder that ol' Joe wants to forgive some debt. Most loans average $35K. Joe wants $10K to go away.

Boomers: Discharge for me; not for thee.

I consider student loans to be a shining example of complete failure of both state and national taxing districts. Education is necessary and that includes university level students. If the nation fails in that we will not win and the nation that does will. China, right now, is producing a lot more university trained than we are by a large degree. Virtually every other industrialized nation in the world understands this. If a student qualifies for university, and wants to go, the state takes care of that. The United States, however, has a plan which involves loaning enough money for the student to graduate and then keeps that student in debt for the rest of their lives. (except for the luck and the rich).

That means that we are going to have a lot of university graduates who are REALLY pissed off, and unhappy and, I suspect, easy pickings for folks looking for such (which tends to make me a bit nervous about the future). I know several and they are not happy campers. Then some goto work where they have also hired Indians, etc. to help and they find out that the Indians were put through university by their country. We keep being told we are the greatest, richest nation every to be and we are behaving like that and that is not good on any number of levels.

I personally know of several doctors who just said "to hell with it" and moved to Canada and plan to never return. I know of one heart specialist who, with her husband, saved 100,000.00 to pay on the debt and it didn't even cover the interest debt. She moved to Canada with her husband who was also a doctor but taught in Canada, graduated, spent 4 years working for the Canadian government who then forgave all debt. I think we actually had something like that but, obviously no more although I am not sure about that.

I am actually on two tracks to have my student loan forgiven.

Track One: The age of the loan...28 years old

...if track one fails, i will have track two as back-up.

Track Two: I did public service working for a school district

Two developments yesterday:

(1) SCOTUS denies request to block Biden's student loan forgiveness plan

- and -

(2) Appeals court temporarily blocks Biden's student debt relief plan. For the record, the 5th Circuit Court is made up of all Republican, but one Democrat appointee.

Yesterday's two ruling seems to be confusing a lot of folks. Here is an explainer in a nutshell:

The reauthorized 2005 Patriot Act gave the POTUS to unilaterally cancel debt in times of crisis. We are still in a global COVID 19 pandemic. This is why SCOTUS Amy gave the go-ahead for DIRECT student loans.

The six state AG suit is about FFELP student loans. Many states like Missouri are in the student loan business because of the money they make from the interest of the loan. The issue regarding FFELPs is that many borrowers have applied to convert the FFELP to Direct so that the loan can be discharged. States are crying they'll lose money from the interest. THAT is what the 8th circuit hold is about.

I would suspect that this means that the states are taxing a specific group of people that aren't exactly rich. Not sure that's legal.

Some states like Missouri consider the cancellation as "income" and taxes the individual tax on that "income."

Other states like Washington have no personal income tax, so folks in those states will have no personal tax to pay.