Ummmmm.....yeah, that'd be a hard no from me. How about universities give back the money they made instead of taxpayers?

http://www.msn.com/en-us/money/mark...t-loan-forgiveness/ar-AAJh2w9?ocid=ientp

Quite the opposite, that's a hard "yes" from me. Although I think his plan, which mimic's Warren's to an extent, doesn't go far enough. If we don't do something soon, the $1.8 Trillion in debt currently is going to force us into our next big economic collapse. The debt needs to be dischargeable at the very minimum, forgiven at the maximum. Imagine the boost in our economy the second that entire weight is lifted off the shoulders of millions of people. All of that money goes into business, housing, shopping, etc. The likes of which we haven't seen in a long time.

I admit, I am partially biased in this manner however. 10 years removed from undergrad, I have never missed a payment, yet my balance has increased from $200k to $285. The interest rate is currently over 9% on my private loans as well. Income based repayment, makes it impossible to catch up to these loans. Not being on a payment plan would have me shell out $3k a month just to stay ahead of my loans at this point. That is impossible with after tax income. My interest calculations make it clear, that WITHOUT missing a payment for the next 15 years, my debt will increase to around $450k which will be forgiven that year. Can you afford taxes on $450k of forgiveness income in one year? I sure can't.

The system is broken. We need a fix. The people need a bailout, or at least the option to bailout. I'm tired of hearing, "well I paid my loans" do I get a refund? I like this guy's idea to appeal to a broader base by giving a tax credit to those whom have paid off their loans already.

We all know that the cost of schooling far outpaced the rise in wages for the past few decades. It all started with the repeal of bankruptcy protections for student loans. When that happened, schools could charge whatever they wanted while lenders keep funding it. The slush funds these universities have is absurd right now. I do agree that universities should play their part. Have you seen the size of some of those endowments due to tuition costs?

Wait ... you spent 200k on college?

praBSA, but, I *did* pay back my loans at 8%. Maybe a reduction in interest rate? And based on current rates in general, I could see that. But in the end, why does the taxpayer need to bail out people who overpaid universities for a degree?

Maybe the universities should give rebates on the tuition that people paid? They should be on the hook for higher tuitions more than taxpayers.

Honestly, it's the most unfair thing I've heard introduced in a long, long time.

i've always wanted a Lamborghini Aventedor and a Mercedes KubelWagen...i can't afford either, and probably will never be able to ...but i think i should go buy one of each, then demand the government waive the debt for me because of my bad choices...after all, i should not be responsible for my own actions...or, maybe i should continue to purchase vehicles i can afford, well below the price of what i qualify for from a credit standpoint, and pay them off early and then drive them for many years with no payments, saving for larger down payments on subsequent vehicles...

my biggest issue with these proposed loan bailouts is that people willingly and knowingly signed these loans, at high rates, frequently at private schools that cost way more than state schools, often at out of state rates which increased the cost of schooling, with zero thought process of what or how they would do to pay them back when, or if, school was finished. We won't even talk about the unique degrees that have no real world value, that is for another time.

i worked full time, went to school full time, and had 2 part time jobs as well in order to afford school, while getting married and having a kid at a stupidly young age. I also took out loans at the start of each semester, because back in the old days one had to pay up front for school, and each loan was paid back by semester end. so when i finished, i had no student loan debt. certainly wasn't easy, but it worked for me. i also attended a state run public university, because it was affordable. the 2 local private universities also offered me entrance, but paying $2,300 for full time per semester at public, versus $8,500 and $19,000 for full time at private, was a no-brainer as far as i was concerned.

plenty of people make poor financial decisions in life, is it really the general public's role to bail them all out?

I hate HATE when people use this false equivalency. Why is it false Happy? Because you can get out of that debt any day you want, just declare bankruptcy and poof its gone.



Yes, 50k a year for undergrad



We bailed out the big banks, why not actual hardworking Americans that need it.

I have many comments on this, but will keep it at this; I have my masters degree and I don't believe I spent 50k on the entire college experience including AA, BA and MA ... and CRCM for that matter.

Graduated with the MA in mid 2000's btw. I acknowledge costs have "changed" over the years.

not a false equivalency at all...going in to debt is a choice, not a requirement. going in to debt with your eyes closed is a worse choice, but still a choice. and if i was silly enough to get that car and then declare bankruptcy, that car also is gone, so i lose something of value when i choose to no longer pay that debt. your college degree stays if your debt is wiped free, so i'd say it is a fair comparison. you retain something of value with now no responsibility to pay for that value.

Big banks paid it back with interest


Funds got paying this mess would come from taxes why should fellow taxpayers pay for an over priced education system. If it was to be forgiven how about a clawback from the overpriced colleges to pay for it.

Typing on an iPhone with auto fill make a mess of a post

Yacht, it surf domes.

Yes, 50k a year for undergrad
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There's a tried and true formula for student loan debt. Total debt should be no higher than your first year's salary. Not a lot of undergrad degrees command 200k...

I can agree that the expense of college education has gotten out of control and needs to be corrected. But I don't believe wiping the slate clean is the correct course. Drastically cut interest rates? I can get on board with that. Forgive accrued interest so that all you're repaying is the amount of principle? Sure. Require the universities to absorb some of the cost of the loan? Absolutely. Maybe a combination of all of the above? Other alternatives?....But the one (non)fix that I cannot agree with is total debt forgiveness.

Would you support a plan that if bankruptcy were returned to SL, they would forfeit their degree, in the same manner one would forfeit their car or home?

How do you forfeit a degree? You've got the knowledge and that's what counts, isn't it? The fact that you paid for a certain college's name on your degree is YOUR choice and not something I want to have to pay for.

However, I do agree with your economic impact statement. My granddaughter was in much the same position as Happy but just five years ago. Due to current costs, she wasn't able to 'pay as you go' like Happy but she did work hard to graduate in three years, thereby reducing the debt which she's now paying off as fast as she can. That means she drives a second hand car and lives in a smaller apartment and doesn't visit as often as she'd like. I think burkemi's idea is closer to the solution than loan forgiveness would be.

The degree has no collateral value to the lender, so forfeiting the degree would be pointless. If the gov't didn't give the explicit backstop and prevent discharge through BK, then interest rates would be equivalent to credit cards. No collateral, most borrowers have little to no credit history. And they complain about 5% interest rates...

Interest rates on student loans are over 9% for some borrowers right now. It's criminal.

But credit card rates at 15 to 20odd % aren't? A lot more people have credit card debt than student loans. Should we be forgiving those loans too? And filing bankruptcy to wipe out debt and start all over again should be harder to do too. Used to be people would rather die than declare bankruptcy. Now it's a tax and financial move that all too many opt for as the easy way out.

What does your bank charge for a low dollar short term unsecured loan to someone that currently has a job? Wouldn't it be more for a high dollar long term loan to someone that currently is in school rather than in a job or career?

I recall having a mortgage at a rate of 8.25%, in the early 2000s. 9% for unsecured credit is far from criminal.

While I agree that college costs have gotten exorbitant over the years, even 10 years ago 50k a year for an undergrad doesn't seem like the most prudent choice to begin with especially when you do not have the cash in pocket or resources (non-borrowing) to fund it.

I mean, it is none of our business, but I am going to ask the questions we are dying to ask: what kind of school did you go to any why? Was no one counseling you on the cost of school, the return of your intended degree and possibly redirect you to more affordable schools?

Average Personal Loan Rates by Credit Rating
CREDIT RATING SCORE RANGE AVERAGE PERSONAL LOAN INTEREST RATE
Excellent 720 to 850 13.9%
Good 690 to 719 18.0%
Average 630 to 689 21.8%
Bad 300 to 629 27.2%
Rates as of 10/16/2019

https://www.bankrate.com/loans/personal-loans/rates/#rates

What would be a "fair" interest rate to you?

I recall my government issued student loans were around 8.5% when I graduated just shy of 20 years ago, and was able to refi to about 6%. Both of those figures are pretty consistent with the ongoing and refi rates today. They seemed reasonable then, and still today, IMO.

Interesting - thanks for the info. It appears our unsecured rates are below the average. We have a 2 tier structure, A and B. A is 8.99% and B is 13.99%.

Also a scenario to consider: Student goes to overprices university to obtain a degree in a field where there is no way they will ever earn sufficient to cover the expense. Student does the absolute minimal amount of work and class load which keeps them in college 2 years longer. Meanwhile they live in a very nice place and live high on the hog with the funds from their student loans. They finally graduate, get a menial job and have a large amount of debt. Politician comes along and proposes that the hard working folks shell out the funds to bail out said student.

Um... hard no from me. I busted my hump during college and graduated with as minimal amount of debt as possible. I lived in an apartment with 5 other guys and had a food budget of roughly $100 month. That includes date money. As mentioned, there are a bunch of viable options that don't include debt forgiveness.