I currently have zero debt at all. Not one penny of credit card, card payments, or even a mortgage. Furthermore, I’ve never had one cent of student loan debt.
I fully support cancelling this debt for people to give essentially a tax break to the regular people instead of just to the super wealthy. I feel like very few people question how we’ll pay for corporate or mega-wealthy tax cuts and I am glad this one is going to people who need it.
I think it’s a good thing. Student loan debt is a huge drag on middle and lower income folks. I would have loved to have some amount of my student loan debt canceled, but I’m not going to begrudge people who get that now.
If someone here says it will stoke inflation, it’s a tiny amount of money compared our economy. It just won’t.
" Borrowers who hold loans with the Department of Education and make less than $125,000 a year are eligible for up to $20,000 in student loan forgiveness if they obtained Pell Grants for college. Individuals who make less than $125,000 a year but did not receive Pell Grants are eligible for $10,000 in loan forgiveness."
$125,000 a year? This is crazy. Those people are very well off.
It’s not clear to me what “forgiveness” means. Sure, the student borrower doesn’t have to pay the forgiven amount. But a loan is a two-way agreement. What happens to the lender? Does the bank that made the loan get paid off by the Feds? Or do they take a loss?
The lender is the Feds or is guaranteed by the Feds (for older loans). So, either the Fed make an accounting entry lowering the size of the loan or they pay the bank that wrote the Federally-guaranteed loan.
I may have gone to a cow college in flyover country, but I finished a degree without any debt. Why should people who made good choices pay higher taxes, to bail out a bunch of people whose fancy Ivy League educations didn’t include basic arithmetic?
Why should plumbers and carpenters pay higher taxes, to pay off the student loans of doctors and lawyers?
There are all kinds of transfers. Why should plumbers and carpenters pay for a giant corporate tax reduction just so some CEO can get another yacht? Why should Ps and Cs pay for Pell Grants or Medicaid or Medicare or Social Security or farm subsidies or military pork or energy subsidies or etc., etc.
Another college graduate here who paid off every dime of my own student debt myself, and heartily approve of this loan forgiveness program for easing the financial crunch on people with heavier loan burdens than mine ever were.
The right-wing commentariat bleating about how people with student debt just don’t understand “basic arithmetic”, and how the forgiveness program will be primarily poor working-class people shouldering the debt burdens of “doctors and lawyers”, are just making up grievances to inflame and misinform their base. As usual.