Biden touted as creating yet more inflation with debt forgiveness.

[Alien826]

I have an issue with subsidizing failure rather than fixing it.

Just as a matter of interest, how would you fix failure? Remember, if someone is stuck in a deep hole, you aren't allowed to lower food to him, or pull him out as that would be subsidizing failure. You can't just leave him there, 'cos you are going to fix the situation. So how?

This is a serious question. While I imagine there are lots of ways to stop him falling into the hole, I'm talking about those who are already in it.

 

[Alien826]

Your Damm right they are.

Why stay in a five figure bracket, when you can go all out for six figures.

It's a better gamble than the lottery. Provided you don't lose.

May someday Biden will slip a blue chip in my pocket . Eh? Give me a shot at playing the tables.

I don't know where to start with this. College degrees are good for starting careers. Their benefit becomes less important as time goes by. Outside specific skill related qualifications (example, an RN makes more than an LPN (that's nursing) and requires an additional formal qualification) I cannot see how it would benefit (financially) someone on an established career path to leave that and go back to school. You think that the company would just say to the returning ex-employee "Great to see you! Phd, now, eh? Here's a promotion and lots more $$$"? Oh and don't forget to factor in the lost earnings while back in college. And you can only spend $10,000.

Incidentally, it would certainly help someone who wanted to change careers, and was prepared to accept the loss of earnings while studying and initial, maybe permanent, lower salary in the new career. I don't have a problem with that. there are too many people stuck in jobs they hate.

 

[Colt]

Just as a matter of interest, how would you fix failure? Remember, if someone is stuck in a deep hole, you aren't allowed to lower food to him, or pull him out as that would be subsidizing failure. You can't just leave him there, 'cos you are going to fix the situation. So how?

This is a serious question. While I imagine there are lots of ways to stop him falling into the hole, I'm talking about those who are already in it.

Let them pay off the loans that they signed up for! Thats how I get out of debt! But you are volunteering others to pay off their debts! You are what is known as an enabler!

BTW, when you work with debt holders, they will often close the account and allow you to pay back principle only. What if the Fed-gov stopped the interest but asked for the principle to be repaid?

 

[Twilight Hue]

I don't know where to start with this. College degrees are good for starting careers. Their benefit becomes less important as time goes by. Outside specific skill related qualifications (example, an RN makes more than an LPN (that's nursing) and requires an additional formal qualification) I cannot see how it would benefit (financially) someone on an established career path to leave that and go back to school. You think that the company would just say to the returning ex-employee "Great to see you! Phd, now, eh? Here's a promotion and lots more $$$"? Oh and don't forget to factor in the lost earnings while back in college. And you can only spend $10,000.

Incidentally, it would certainly help someone who wanted to change careers, and was prepared to accept the loss of earnings while studying and initial, maybe permanent, lower salary in the new career. I don't have a problem with that. there are too many people stuck in jobs they hate.

Think.. from CNN

$125,000 yearly and married couples or heads of households who make less than $250,000 yearly will have up $10,000 of their federal student loan debt forgiven

Does making 125,000 to 250, 000 per year sound like your in the hole to you?

Is be more privy to people under the poverty level have 10000 forgiven. So since it isn't..

Just why do you think the bar to qualify is intentionally set that high?

 

[Yerda]

I have an issue with subsidizing failure rather than fixing it.

So no debt relief for anyone ever?

I also have an issue with buying votes!

So no policy that ever helps anyone ever?

 

[Alien826]

Think.. from CNN

$125,000 yearly and married couples or heads of households who make less than $250,000 yearly will have up $10,000 of their federal student loan debt forgiven

Does making 125,000 to 250, 000 per year sound like your in the hole to you?

You seemed to have skipped my point about people dropping their careers to do further education. I'll take that as agreement.

Is be more privy to people under the poverty level have 10000 forgiven. So since it isn't..

"Up to" does include all incomes below the maximum too!

You would prefer a lower bar it seems. Fair enough, so long as those in need get it. The poverty line is a pretty low level though.

Just why do you think the bar to qualify is intentionally set that high?

I don't know. No doubt you will enlighten me.

 

[Alien826]

Let them pay off the loans that they signed up for! Thats how I get out of debt! But you are volunteering others to pay off their debts! You are what is known as an enabler!

No fix then? If they can't pay off the loans now, telling them to do so isn't going to help.

I volunteer to help them, you don't. I guess it will come down to politics, as always.

BTW, when you work with debt holders, they will often close the account and allow you to pay back principle only. What if the Fed-gov stopped the interest but asked for the principle to be repaid?

I've heard of allowing "interest only" but never "principle only". Doesn't sound like our banker friends! You could be right, I've just never seen it.

On the other hand, the Gov could certainly do that, and it could be a good idea. The only thing is the repayments would still be required and need to be set to an affordable level. What happens if people don't pay that either? It could be set at a percentage of earnings and deducted at source. What about the unemployed? Do they get to pay nothing until employed again?

 

[Alien826]

So no debt relief for anyone ever?

How about bankruptcy? Works for the rich.

So no policy that ever helps anyone ever?

Ayn Rand would agree.

 

[Colt]

No fix then? If they can't pay off the loans now, telling them to do so isn't going to help.

I volunteer to help them, you don't. I guess it will come down to politics, as always.



I've heard of allowing "interest only" but never "principle only". Doesn't sound like our banker friends! You could be right, I've just never seen it.

On the other hand, the Gov could certainly do that, and it could be a good idea. The only thing is the repayments would still be required and need to be set to an affordable level. What happens if people don't pay that either? It could be set at a percentage of earnings and deducted at source. What about the unemployed? Do they get to pay nothing until employed again?

We are in an economy that is so hot the Fed reserve bank is trying to slow it down! That’s what the huge interest rate hikes are for. There are more job openings then Jobs.

Before taking out loans the borrowers needed to think about all of this.

History of human nature shows that when people with debt problems get bailed out they will repeat the problem. Don’t mortgage your future!

 

[Colt]

So no debt relief for anyone ever?

So no policy that ever helps anyone ever?

Enabling isn’t helping. Robbing Peter to pay Paul isn’t “helping”.

 

[Yerda]

Enabling isn’t helping. Robbing Peter to pay Paul isn’t “helping”.

No one is being robbed, though. And I'm sure 10k less debt will be of great help to a lot of people.

 

[Colt]

 

[Heyo]

View attachment 65825

As "my body, my choice" is not a thing in the US, "your student loans, your payments" doesn't have to be either.

 

[metis]

So no debt relief for anyone ever?

So no policy that ever helps anyone ever?

And you have very much hit on the right cord as all too many elevate "my hard-earned money" over even America's youth, and proof of this was that most Pubs approved of Trump's tax break that overwhelming went to those wealthier and also ramped up the deficit big time.

 

[Alien826]

We are in an economy that is so hot the Fed reserve bank is trying to slow it down! That’s what the huge interest rate hikes are for. There are more job openings then Jobs.

A job is not a job. Wages vary. Lots of people now have jobs and are still struggling to pay off student loans and meet living expenses.

Before taking out loans the borrowers needed to think about all of this.

OK, let's rewind the story. She's just finished high school. She's told that to get a good job she will need a a college degree. But to get the degree she will need to borrow money. She thinks, well it's going to be OK because I'll soon have it paid it off once I start the good job, and then I'll have a higher income for the rest of my life. Not bad reasoning? She goes ahead with the loan. Then life intervenes ...

History of human nature shows that when people with debt problems get bailed out they will repeat the problem. Don’t mortgage your future!

No doubt, but this is a non-recurring need (or want). I can see how someone who overspends on, say vacations might not change their habits when the debt is paid off, but does someone whose student debt is repaid immediately dash out to purchase more education? Why would they?

 

[Colt]

A job is not a job. Wages vary. Lots of people now have jobs and are still struggling to pay off student loans and meet living expenses.



OK, let's rewind the story. She's just finished high school. She's told that to get a good job she will need a a college degree. But to get the degree she will need to borrow money. She thinks, well it's going to be OK because I'll soon have it paid it off once I start the good job, and then I'll have a higher income for the rest of my life. Not bad reasoning? She goes ahead with the loan. Then life intervenes ...



No doubt, but this is a non-recurring need (or want). I can see how someone who overspends on, say vacations might not change their habits when the debt is paid off, but does someone whose student debt is repaid immediately dash out to purchase more education? Why would they?

First, I would not have advised her to borrow money to get a degree that wouldn't pay enough to service the debt.

There are plenty of affordable trade schools and community colleges that train people with a marketable skill. Those loans would be much more reasonable.

 

[Alien826]

First, I would not have advised her to borrow money to get a degree that wouldn't pay enough to service the debt.

20-20 hindsight is so accurate.

There are plenty of affordable trade schools and community colleges that train people with a marketable skill. Those loans would be much more reasonable.

I agree. Back in (my) day, only a small number went on from "High School" (in the UK, different system but comparable) to University. These were those who wanted to pursue academic careers or hard science (just examples). Others left school and often learned the new skills "on the job" or by part time training. My brother in law became a skilled bricklayer that way, and did very well financially. Also, remember apprenticeship? All this doesn't help those in debt now though.