# Thousands of dollars in student debt cancelled. Good news, right? **URL:** \ **Category:** Politics & Elections\ **Created:** [August 24, 2022, 7:55pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242 "2022-08-24T19:55:31Z")\ **Posts on this page:** 20\ **Page:** 4
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [August 24, 2022, 11:10pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/61 "2022-08-24T23:10:24Z")
That’s what I have been saying all along, especially when people talk about total loan forgiveness, which has also been discussed. ---
**Author:** ![Two\_Many\_Cats2](https://avatars.discourse-cdn.com/v4/letter/t/779978/32.png) [@Two\_Many\_Cats2](https://boards.straightdope.com/u/Two_Many_Cats2)\ **Post date:** [August 24, 2022, 11:13pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/62 "2022-08-24T23:13:32Z")
I’m sitting on five figure student loan debt for signing up for online classes just to get a Bachelor’s Degree because that’s what all the job ads said was required back when I was laid off during the Great Recession. There’s no way you can convince me that those piddling little courses were worth over forty grand. But I was convinced that without a Bachelor’s Degree on my resume, I wouldn’t even score an interview. And I was desperate, jobless with a sick mom and no responses in three months of searching. So if you resent me for getting this break which only lessens my burden, and doesn’t eliminate it, allow me to invite you to kiss my ass. ---
**Author:** ![Tabco](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tabco/32/7644_2.png) [@Tabco](https://boards.straightdope.com/u/Tabco)\ **Post date:** [August 24, 2022, 11:23pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/63 "2022-08-24T23:23:09Z")
I like to think I earned my degree as cheaply as was feasibly. I took every course I could at the local community college (paid out of pocket) and finished off the rest at an in-state public university, one of only a few in the state offering my degree. I applied for several scholarships and grants and worked part-time throughout (full-time during the summer). I still ended up with five-figure debt. Given the field I landed in (civil engineering), I suspect I would’ve had no problem paying off the loans eventually, but having $20k wiped out (I did get a Pell grant) is very welcome news to me. ---
**Author:** ![Lance\_Turbo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lance_turbo/32/6156_2.png) [@Lance\_Turbo](https://boards.straightdope.com/u/Lance_Turbo)\ **Post date:** [August 24, 2022, 11:46pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/64 "2022-08-24T23:46:20Z")
> [@mbh](#): > > 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? Great news! You’re not going to pay higher taxes as a result of this program. I assume you’re on board now. ---
**Author:** ![D\_Anconia](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@D\_Anconia](https://boards.straightdope.com/u/D_Anconia)\ **Post date:** [August 24, 2022, 11:47pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/65 "2022-08-24T23:47:59Z")
It’s not paid for, by a reduction in other government expenses. Which means all taxpayers are going to pay. ---
**Author:** ![snowthx](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/snowthx/32/10660_2.png) [@snowthx](https://boards.straightdope.com/u/snowthx)\ **Post date:** [August 24, 2022, 11:50pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/66 "2022-08-24T23:50:40Z")
> [@RitterSport](#): > > For what it’s worth, it’s all basically direct lending now, from the feds to the student. Banks do make loans as well, but they’re no longer backed by the government and aren’t part of this program. Agree. I always wondered why the colleges themselves do not lend directly, thereby entering the equation (and sharing some of the risk) with the student. I would think colleges would have more flexibility in terms of forgiveness, or having students work-off debt as they go, and the college would also have some skin in the game. As it is now, colleges have a free ride regarding the risk - if the graduate can’t get a job, no worry - the college still got paid. ---
**Author:** ![Lance\_Turbo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lance_turbo/32/6156_2.png) [@Lance\_Turbo](https://boards.straightdope.com/u/Lance_Turbo)\ **Post date:** [August 24, 2022, 11:54pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/67 "2022-08-24T23:54:30Z")
> [@D\_Anconia](#): > > It’s not paid for, by a reduction in other government expenses. Which means all taxpayers are going to pay. Whip dee friggin ding dong. That’s not what @mbh was concerned about. ---
**Author:** ![snowthx](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/snowthx/32/10660_2.png) [@snowthx](https://boards.straightdope.com/u/snowthx)\ **Post date:** [August 24, 2022, 11:55pm UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/68 "2022-08-24T23:55:11Z")
> [@D\_Anconia](#): > > It’s not paid for, by a reduction in other government expenses. Which means all taxpayers are going to pay. How does that work? The government (the lender) is going to reduce someone’s college debt by $10K/$20K, so they are not going to collect that amount, but will collect on the rest. How does that translate to higher taxes, or even dipping into taxpayer funds? If anything, ISTM it just lowers revenue, by a tiny amount, and seems like something we can afford, given the good it will do. ---
**Author:** ![D\_Anconia](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@D\_Anconia](https://boards.straightdope.com/u/D_Anconia)\ **Post date:** [August 25, 2022, 12:01am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/69 "2022-08-25T00:01:37Z")
The government is going to spend some $300,000,000,000 in paying off those loans. Where does the money come from? ---
**Author:** ![Broomstick](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/broomstick/32/246_2.png) [@Broomstick](https://boards.straightdope.com/u/Broomstick)\ **Post date:** [August 25, 2022, 12:03am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/70 "2022-08-25T00:03:20Z")
> [@Dr.Strangelove](#): > > They also limit the total repayment period to 20-25 years. I’m not entirely sure what advantages the forgiveness plan has over the current system–i.e., who is overly burdened with the existing programs? Some of my coworkers earning less than $30,000 a year but having a loan payment of $500/month or more. Not everyone qualifies for the programs already in place. ---
**Author:** ![RitterSport](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rittersport/32/6326_2.png) [@RitterSport](https://boards.straightdope.com/u/RitterSport)\ **Post date:** [August 25, 2022, 12:04am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/71 "2022-08-25T00:04:19Z")
The government paid the schools and was expecting to get the money back from the student. If the student doesn’t pay back the loan then the money has to come from some other source, likely taxes. I mean, this is a drop in the bucket compared to the Trump tax cuts and the Bush tax cuts, but it will increase the deficit, holding all else equal. And, that increase will (eventually) have to get paid back. One may be able to make the case that a less indebted graduate could be more productive and so this will return more than it costs (that’s what all the tax cut lovers say, even though there’s no real evidence to that effect). I don’t have any studies that say that a $10k reduction in debt for some borrowers will have that multiplier effect, though. ---
**Author:** ![Dr.Strangelove](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dr.strangelove/32/6613_2.png) [@Dr.Strangelove](https://boards.straightdope.com/u/Dr.Strangelove)\ **Post date:** [August 25, 2022, 12:07am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/72 "2022-08-25T00:07:15Z")
> [@Broomstick](#): > > Some of my coworkers earning less than $30,000 a year but having a loan payment of $500/month or more. Not everyone qualifies for the programs already in place That’s unfortunate. Still, it seems like expanding the existing programs to catch the edge cases might have been the better approach. Any idea why they didn’t qualify? ---
**Author:** ![RitterSport](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rittersport/32/6326_2.png) [@RitterSport](https://boards.straightdope.com/u/RitterSport)\ **Post date:** [August 25, 2022, 12:09am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/73 "2022-08-25T00:09:05Z")
My understanding is that Biden did what he could do without needing congress’s help. There are definitely better ways to handle education in this country, costs, debts, overall burdens, but the Executive Branch can only do so much with a useless congress. This was something he could do. He couldn’t get rid of the interest payments or do other interesting things. ---
**Author:** ![D\_Anconia](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@D\_Anconia](https://boards.straightdope.com/u/D_Anconia)\ **Post date:** [August 25, 2022, 12:16am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/74 "2022-08-25T00:16:52Z")
Just one year ago, Speaker Pelosi said that the President couldn’t do that without Congress. What’s changed? [Pelosi: President Biden Does Not Have Power To Cancel Student Loan Debt — What It Means For Borrowers (forbes.com)](https://www.forbes.com/sites/adamminsky/2021/07/28/pelosi-president-biden-does-not-have-power-to-cancel-student-loan-debt/?sh=248a8b8d5504) ---
**Author:** ![flurb](https://avatars.discourse-cdn.com/v4/letter/f/51bf81/32.png) [@flurb](https://boards.straightdope.com/u/flurb)\ **Post date:** [August 25, 2022, 12:24am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/75 "2022-08-25T00:24:27Z")
> [@doreen](#): > > In context , it seems that anyone who received a Pell Grant at any time is eligible for the $20K. It seems that the idea is to provide more relief to those from lower income families \*. In practice, there are few, if any, students who received a Pell Grant for only a semester or two. It seems they are trying to limit the relief offered to people whose families were well-off enough that they weren’t eligible for Pell Grants I saw some more information, and apparently the distinction is that only a Pell Grant recipient’s _undergraduate_ loans would be eligible for the full $20,000. Graduate loans are capped at $10,000 regardless. So if a Pell Grant recipient got their bachelor’s degree debt-free but took out loans for their graduate studies, they can only get the $10,000. ---
**Author:** ![Crafter\_Man](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/crafter_man/32/458_2.png) [@Crafter\_Man](https://boards.straightdope.com/u/Crafter_Man)\ **Post date:** [August 25, 2022, 12:25am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/76 "2022-08-25T00:25:20Z")
If you take out a loan, you should pay it back. ---
**Author:** ![RitterSport](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rittersport/32/6326_2.png) [@RitterSport](https://boards.straightdope.com/u/RitterSport)\ **Post date:** [August 25, 2022, 12:28am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/77 "2022-08-25T00:28:39Z")
I guess she was wrong? I’m not sure what to tell you. I imagine there will be lawsuits that will claim the same things and the judiciary will be the judge of whether he has that power. ---
**Author:** ![Lance\_Turbo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lance_turbo/32/6156_2.png) [@Lance\_Turbo](https://boards.straightdope.com/u/Lance_Turbo)\ **Post date:** [August 25, 2022, 12:29am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/78 "2022-08-25T00:29:25Z")
> [@Crafter\_Man](#): > > If you take out a loan, you should pay it back. What if the loan is forgiven? Should you pay it back then? Seems like a bad move in that case. ---
**Author:** ![D\_Anconia](https://avatars.discourse-cdn.com/v4/letter/d/67e7ee/32.png) [@D\_Anconia](https://boards.straightdope.com/u/D_Anconia)\ **Post date:** [August 25, 2022, 12:32am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/79 "2022-08-25T00:32:47Z")
This sounds very familiar. President Obama said he couldn’t do DACA by executive order, then he did anyway. ---
**Author:** ![Pleonast](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pleonast/32/1183_2.png) [@Pleonast](https://boards.straightdope.com/u/Pleonast)\ **Post date:** [August 25, 2022, 12:32am UTC](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242/80 "2022-08-25T00:32:55Z")
> [@Crafter\_Man](#): > > If you take out a loan, you should pay it back. Should, yes. But our society has bankruptcy courts to relieve overly burdensome debt. Who are not allowed to discharge student loans. Until that loophole is closed, I see little reason for the holder of the student debts to not forgive them in some cases. [Previous page](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242.md?page=3) [Next page](https://boards.straightdope.com/t/thousands-of-dollars-in-student-debt-cancelled-good-news-right/970242.md?page=5)