What is wrong with expecting people who knowingly and willingly borrowed money to be expected to pay back that money? Absolutely nothing. The former student’s who borrowed the money were aware of the size of the loans they were taking out. If they had done any research at all, they’d be aware of the typical earnings of the professions their degrees would lead too. They made a choice on whether they could afford the loan or not. Now, they want to be rescued because they chose expensive degrees with mediocre prospects, either because their degrees were unlikely to lead to well-paying jobs, or because they were mediocre students who were unattractive to future prospective employers. But of course it’s easier to blame the system and demand the government fix a problem you’ve created for yourself, rather than taking self-responsibility.
I may have stated this before, but you basically have three categories: People who chose universities/degree programs they could afford and pay back their loans, people who chose a different path to university because they felt it was unaffordable, and people who chose to borrow money for universities/degree programs they couldn’t afford. Now, the third category wants to have their student debts forgiven. The group that made the bad choice is seeking to be rewarded for their bad choice. That’s what’s wrong with student loan forgiveness. What’s wrong with you all for not understanding that?
I get that they’re made up numbers, but why does someone with $25k student debt need their debt forgiven? “The average student loan interest rate is 5.8%”.
If the former student can manage $500/month in payments, they can pay that debt back in 58 months. That’s hardly crippling. A $50,000 debt, your proposed limit, would take 11 1/2 years. That’s a long time, but the increased earnings from the university degree will make up for it in the great majority of cases. A Bureau of Labour Statistics chart shows that the median weekly earnings for a bachelors degree holder is $500/week higher than the median weekly earnings for someone with only a high school diploma.
If you’re actually trying to solve a problem for people with unmanageable student debt, put in hiatus periods for debtors who are unemployed, managed payout schedules for people with lower incomes, and bankruptcy provisions for the few ex-students who truly have overwhelming debt. But a blanket forgiveness program? That’s a sentiment based idea that hasn’t looked at the numbers and amounts to a feel-good giveaway instead of a safety net for the few who are actually in a “crippling” situation.
My impression is that the unfairness that at least some are complaining about is not between Joe Milennial and Jane Boomer, but between Joe Milennial and Jane Milennial, where one of them has been living frugally and making sacrifices to avoid and/or pay off student loan debt and the other has not.
Yes, but instead of forgive, discharge in bankruptcy.
They decided student loans should not be dischargeable- that was wrong. Look, if you really can not repay, file the paperwork, get in front a a judge, and let him decide. Usually he allows it. There is no need for forgiveness or payouts or anything.
Just did a calculation. If I had not had to pay of the student load debt and had invested it instead, it would be worth nearly $300,000 today. So, I will adjust my previous statement. If student loans are forgiven, I not only want back $50K (which is the amount I borrowed plus the interest I paid in paying it back), I want the $300,000 it would be worth today if I had been able to invest it instead.