Debt forgiveness options Biden/Harris could consider?

[OneGrassRoot]

I fear the blowback from people who already paid off college loans or never went to college and are struggling to make ends meet will be huge if the Biden/Harris Administration proceeds with the student loan debt forgiveness. While it bugs me that so many people won't view it as an action to help the common good and would be more focused on it being unfair to them, even if they're not actually living paycheck to paycheck, it's real and could create even more anger.

The student loan debt forgiveness could help millions of people and stimulate the economy as a whole, but it's not a small number of people -- including people on the left -- who will resent this move forever if something isn't done for them too.

Do you think it's feasible to instead roll out some sort of more general debt forgiveness, not only of student loans? Instead of up to $54k student loan forgiveness, maybe $20k to everyone now struggling paycheck to paycheck? But how to identify that with means testing? Just because someone may have made $100k in 2019 doesn't mean they aren't now living paycheck to paycheck in the age of COVID.

Alternately, maybe returning to the idea of regular stimulus payments (with hope for an eventual UBI) is better?

UBI and an overall debt jubilee could save the world but that still feels like a fantasy.

[jimfields33]

1. Last I heard, Biden Administration is talking 10K

What I’d really like to see is zero or maybe one percent interest rate. That alone would save students thousands or more over time.

[Rorey]

8. I like that idea.

0 or 1%

[Luciferous]

9. I think eliminating the interest would be a huge help to people. I had a significant amount of

student loan debt and even changing the interest rates could have saved me a lot of money. And if you are on an income driven repayment plan? Basically you are just paying interest every month and not paying down the principal. I think it's a good compromise that would provide some relief.

[drray23]

2. they could start making government owned student loans 0 %

the government should not be in the business to make money off struggling students. Once the loan is big, most people end up only being able to pay interest only and hence never manage to pay it off

[Eyeball_Kid]

3. NOTHING PASSES WITHOUT A DEMOCRATIC SENATE. n/t

[OneGrassRoot]

5. An EO for this purpose does seem to be in question, legally...

though even people like Elizabeth Warren feel it's legal via EO, but you're right -- we need the Senate.

[Johnny2X2X]

7. They don't need a new law to change student loan debt significantly

Not even an executive order is needed. Just a rule change out of the Department of Education on pay back options.

They're going to do income based repayment at 5% of a borrower's disposable income.

[OneGrassRoot]

4. But those measures don't provide immediate relief...

and that's what is needed. Elizabeth Warren's plan for this should be implemented for sure for longer term relief.

[BusyBeingBest]

6. I don't agree with debt forgiveness, I think it's better

to offer lower or zero interest and repayment tied to income, that sort of thing. People who borrow for school (as I and my husband have, as my son has) need to understand that no white knight is coming to save you from your responsibilities. And yes, it's inherently unfair to anyone who actually paid tuition out of pocket. It's a non-starter.

[Turin_C3PO]

10. I don't really think debt forgiveness is an unfair idea.

I already paid off my debt. But college was much more affordable in the early 2000s. Too many young people are saddled with mountains of debt that they struggle paying off just because they decided to get a degree. I’m not saying full forgiveness but maybe slash each account in half and get rid of interest. Just because you, I, and others had to pay large sums doesn’t make it right to allow this bullshit to continue. It’s like people getting mad when workers below them get a raise and they don’t. Instead of being mad at the workers, how about insisting the company give everyone a raise. It’s the same concept here.

[BusyBeingBest]

13. Of course it's unfair. College is an investment and also a product you purchase.

Some people take out massive debt and buy themselves the best schools (product) they can get accepted into--these are the winners under this proposal--they invested with borrowed money into a better school and may receive a lifetime dividend from this gamble, both in the more prestigious degree and the $$ giveaway.

Some families and individuals spent their own money, worked extra hours, poured possibly-scarce resources NOT into mortgages and retirement savings and other investments, but into education for themselves or their kids: these are the losers. Should have kept your hard-earned money and simply taken out more in loans, you chumps. You'll never get those savings or that time spent working back, PLUS your tax dollars are paying borrowers' tuitions under this lottery-winner system.

Some people can get into better schools but can't see taking on that much debt and make the decision to go to local, cheaper but less-prestigious commuter schools and community colleges--they limit themselves to what they could afford, being responsible, although their degrees may not open as many doors. These are the biggest losers and chumps of all. This is my family--my son could not continue beyond his freshman year at a better (far away) state university because tuition, room and board combined was proving to be more than we were able to pay for and more than we felt comfortable borrowing. He moved back home, took some community college classes and graduated from an OK but less-impressive commuter school. He still has about 10,000 in debt. Debt forgiveness would make his life easier, of course, but I'm still against it.

There are better and more equitable ways to assist with the college debt burden than waving a magic wand that creates an instant class of obvious winners and losers (and does nothing about making college affordable in the future).

[durablend]

11. Meanwhile companies flush debt by the billions

But it's "unfair" that someone be absolved of tuition debt. Got it.

[tulipsandroses]

12. Expand the programs that already exist and make them available to other fields and make the Dept ED

actually live up to those programs. Teachers, medical personnel, are eligible for loan forgiveness when they work in underserved areas for a certain # of years. Expand that to other fields. Those underserved clinics need IT personnel, I work in such a clinic. The software system is horrific, which makes our jobs harder. Those clinics need office managers, accountants, payroll, marketing, everything else other businesses need. No reason those loan forgiveness programs can't be offered to other professions. And dammit, make the Dept of Ed live up to their end of the deal and get people staffed in these underserved areas otherwise they will always be underserved and the people continue to suffer because staff will not stay.