Heres what happens if student debt is cancelled

Otherground
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keithws2 - Students have the ability to enroll at junior colleges for free or very low costs. There is no reason to borrow money your first two years if you are poor or middle class. This alone can decrease a student's debt by half. Basic common sense!

I worked and took the JC route. Then a state college. No debt since I was able to pay off school while I worked.

Even though I would now consider me and my wife upper middle class, I made it very clear that my sons would be taking the JC route if they did not get scholarships.

We will be spending in the area of $2000 per year books at my boy’s JC. The tuition is free. Basically, JC will cost me around 4-5 grand total for two kids (twins).

 

Why would you value shop for your kid’s education?

I cosigned my friend’s daughter’s loans so she could get into the best school that she got accepted too.

Three things you don’t value shop for: Sushi, hookers, and education.

 

22

You can't "cancel" student loan debt while continuing to have the government give out student loans.

It is unsustainable and nonsensical.

 

Secondly, taxing WaLL StReRT SpEcULaTiOn doesn't add up either. Independent tax assessments from think-tanks which exist to analyze tax policy have said it would fall short even under the best of circumstances, and Bernie has yet to provide any accounting to back up this method.

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VTCO - 

You can't "cancel" student loan debt while continuing to have the government give out student loans.

 

It is unsustainable and nonsensical.

Warren has no intention of doing it, she is just yelling shit out for attention and last ditch efforts.

Bernie plans on dismantling the higher education system, and everyone would "go for free".

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Zned -
VTCO - 

You can't "cancel" student loan debt while continuing to have the government give out student loans.

 

It is unsustainable and nonsensical.

Warren has no intention of doing it, she is just yelling shit out for attention and last ditch efforts.

Bernie plans on dismantling the higher education system, and everyone would "go for free".

True, but "free" college is only public education.

You can’t force private schools to be free, and a decent chunk of FAFSA went to paying for private schools.

Not to mention, making public schools free would likely result in schools being overwhelmed with applications. You’ll have situations like a Rutgers satellite campus receiving 10x more applications than ever before.

But that’s a whole different issue.

 

LOL these plans are so fucking dumb.

 

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VTCO - 
Zned -
VTCO - 

You can't "cancel" student loan debt while continuing to have the government give out student loans.

 

It is unsustainable and nonsensical.

Warren has no intention of doing it, she is just yelling shit out for attention and last ditch efforts.

Bernie plans on dismantling the higher education system, and everyone would "go for free".

True, but "free" college is only public education.

You can’t force private schools to be free, and a decent chunk of FAFSA went to paying for private schools.

Not to mention, making public schools free would likely result in schools being overwhelmed with applications. You’ll have situations like a Rutgers satellite campus receiving 10x more applications than ever before.

But that’s a whole different issue.

 

LOL these plans are so fucking dumb.

 

Oh, I agree.

They will end up killing access to education.

The wealthy will get better educations, and everyone else will have to go to a public option that will likely be awful.

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Instead of me pay off my student loans in the 5 years it will take me, instead I get a new tax for the rest of my life?  That seems fair!!  

Fuck that!

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27

I worked 2 jobs and went to school part time to avoid taking a student loan. I will be so pissed if I also have to pay for my classmates that spent their time partying and being irresponsible while I hussled my ass off to stay ahead.

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28

College isn't for everyone. Let's start with that truth moving forward.

Boom.

29
Zned -
VTCO - 
Zned -
VTCO - 

You can't "cancel" student loan debt while continuing to have the government give out student loans.

 

It is unsustainable and nonsensical.

Warren has no intention of doing it, she is just yelling shit out for attention and last ditch efforts.

Bernie plans on dismantling the higher education system, and everyone would "go for free".

True, but "free" college is only public education.

You can’t force private schools to be free, and a decent chunk of FAFSA went to paying for private schools.

Not to mention, making public schools free would likely result in schools being overwhelmed with applications. You’ll have situations like a Rutgers satellite campus receiving 10x more applications than ever before.

But that’s a whole different issue.

 

LOL these plans are so fucking dumb.

 

Oh, I agree.

They will end up killing access to education.

The wealthy will get better educations, and everyone else will have to go to a public option that will likely be awful.

Yeah, if the govt. got out of lending, imagine how private loans would look for those who need help financing a Yale education, for instance.

 

So you'd have public schools overwhelmed with applicants, private colleges only being enrolled by wealthy students, rich international students, and upper-middle class students who's parents can co-sign the private loan for them.

 

Spot-on that it destroys access to education, and also creates an even bigger class and socioeconomic divide.

 

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I'll immediately register for another MS and refuse to pay and cry for it after I graduate..FREE..everything if FREE.....yay!

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Zned - 
keithws2 - Students have the ability to enroll at junior colleges for free or very low costs. There is no reason to borrow money your first two years if you are poor or middle class. This alone can decrease a student's debt by half. Basic common sense!

I worked and took the JC route. Then a state college. No debt since I was able to pay off school while I worked.

Even though I would now consider me and my wife upper middle class, I made it very clear that my sons would be taking the JC route if they did not get scholarships.

We will be spending in the area of $2000 per year books at my boy’s JC. The tuition is free. Basically, JC will cost me around 4-5 grand total for two kids (twins).

 

Why would you value shop for your kid’s education?

I cosigned my friend’s daughter’s loans so she could get into the best school that she got accepted too.

Three things you don’t value shop for: Sushi, hookers, and education.

 

Gonna disagree with you.

JC’s can get you into any 4 year in the country provided you have the grades. Ultimately, your 4 year diploma does not say Junior college on it.

Of course, you can waste money on some expensive 4 year college from the start that doesn’t get you a higher paying job. Even better, you get the 100,000-200,000 mortgage payment as a bonus.

32
keithws2 - 
Zned - 
keithws2 - Students have the ability to enroll at junior colleges for free or very low costs. There is no reason to borrow money your first two years if you are poor or middle class. This alone can decrease a student's debt by half. Basic common sense!

I worked and took the JC route. Then a state college. No debt since I was able to pay off school while I worked.

Even though I would now consider me and my wife upper middle class, I made it very clear that my sons would be taking the JC route if they did not get scholarships.

We will be spending in the area of $2000 per year books at my boy’s JC. The tuition is free. Basically, JC will cost me around 4-5 grand total for two kids (twins).

 

Why would you value shop for your kid’s education?

I cosigned my friend’s daughter’s loans so she could get into the best school that she got accepted too.

Three things you don’t value shop for: Sushi, hookers, and education.

 

Gonna disagree with you.

JC’s can get you into any 4 year in the country provided you have the grades. Ultimately, your 4 year diploma does not say Junior college on it.

Of course, you can waste money on some expensive 4 year college from the start that doesn’t get you a higher paying job. Even better, you get the 100,000-200,000 mortgage payment as a bonus.

 

This isn’t true.

 

You can get yourself into an affiliated state school (which isn’t guarunteed, and can become very unlikely depeneding on student headcount), but you aren’t transferring into any private universities. Before making any permanent decisions, take a little time and talk to advisors at one or two schools they may wan tto transfer into. I think you will be shocked to find out that less than 1% of the student idy are transfer students from unaffiliated schools.

 

Also, the nominal amout of the loan is meanlingless. IT all depends on their earnings afterwards. It is about ROI, not dollar values.

33

My question is what if my company made loans to students. I want it paid back. So the president just comes in and says my outstanding loans are wiped out? And I don't have any legal recourse?

This isn’t going to end well.

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TheDorkKnight -

From Forbes

 

Imagine this scenario: All $1.6 trillion of your student loan debt is forgiven. Now, what happens next?

Here's what you need to know.

Student Loan Forgiveness

Sen. Bernie Sanders (I-VT) and Sen. Elizabeth Warren (D-MA), who are both 2020 presidential candidates, have different student loan forgiveness plans. Sanders wants to forgive all $1.6 trillion of outstanding student loans, including both federal and private student loan debt. Sanders' student loan forgiveness plan has no eligibility requirements; all 45 million student loan borrowers are eligible for student loan discharge. Sanders will fund his student loan forgiveness plan through a new tax on financial transactions, which he expects could raise more than $2 trillion over the next 10 years.

Warren wants to cancel student loan debt for more than 95% of borrowers, and would entirely cancel student loan debt for more than 75% of Americans with student loan debt. Warren's plan cancels $50,000 in student loan debt for every person with household income under $100,000 and cancel substantial debt for every person with household income between $100,000 and $250,000. Like Sanders, Warren would fund student loan forgiveness through new taxes. Both Sanders and Warren say borrowers would not pay income taxes on the amount of student loans forgiven.

So, what would happen if all - or even most - of the $1.6 trillion of student loan debt is cancelled?

Cancel Student Loans: Here's A Potential Scenario

Sanders and Warren believe that among other benefits, student loan forgiveness would help: borrowers buy a home, save for retirement, launch new businesses, and start a family; and reduce the wealth gap and provide economic stimulus to the middle class.

However, Moody's found a much different result. According to Moody's, the economic impact would be relatively minimal, similar to a "tax-cut-like stimulus to economic activity" in the near-term. While Moody's believes student loan cancellation will improve small business and household formation, as well as increased home ownership in the long term, Moody's also found the potential for:

Moral hazard: Future student borrowers could borrow more student loan debt because the expect their student loan debt will be forgiven.

Higher student loan debt: If future borrowers don’t receive student loan forgiveness, these borrowers potentially will have more student loan debt.

Lower Revenue: The federal government would lose $85 billion in loss principal, interest and fees if federal student loans are forgiven.

Wealthy Borrowers Benefit: If every borrower receives student loan forgiveness (the Sanders plan), then borrowers who otherwise could pay off their student loan debt (without forgiveness) won’t, which could limit the economic benefit.

No one can predict the full economic benefit, which will be driven by several factors, including: how much student loan debt is forgiven, who ultimately pays for student loan forgiveness, whether there are offsets to recoup lost student loan revenue, how borrowers spend their money after receiving student loan forgiveness, and other factors. Would forgiving all mortgage debt, credit card debt or auto loan debt have a different economic impact? Would borrowers who already paid off their student loans get paid back? Do future borrowers get student loan forgiveness too? Are there alternative approaches to raising taxes?

Your Next Action Steps

As politicians debate the future of student loans, make sure to understand all your options for student loan repayment.

Start with these four pillars:

Student loan refinancing

Student loan consolidation

Income-driven repayment plans

Student loan forgiveness

This student loan quiz takes less than one minute to complete and provides you with a free, customized student loan repayment plan

Can someone help me out here 

sanders plan will discharge $1.6T

but the taxes to cover it won’t be fully collected in 10 years.

even if I’m buying that these new taxes will pay for the $1.6T discharged loans.

what about the costs going forward?

is bernie just planning on discharging the outstanding loans? But starting to issue new loans now 

if not who is paying for the loans that will be incurred now 

35

Appreciate the advice. I really never considered private schools without a ride as an option, so I never looked into it. My boys are currently in their second semester at JC.

Ultimately, I was never impressed with private schools. I’ve looked at various statistics, debt etc. I’m under the impression that a private school does not make a graduate any more money than a state when you look at overall statistics. I think the outlier students at the top of the food chain skew some of the big numbers.

I also think one of my boys is interested in HVAC/ electrician which earns around $30-35 as an apprentice. $55-65 as a journey man. Not including bennies… He’d be looking at journey man status age 26 or 27. He’ll be able to retire at 55 if he takes this route.

Again, I think there are plenty of jobs with high earning potential that don’t require a $100-200 thousand price tag before you even start. I’m very confident that I am setting them up for success, either way.

BTW: I’m glad you survived the hood. I used to live in one for a year. I was concerned about a male white driving a Volvo while wearing a tucked in polo shirt escaping with his money :slight_smile:

36

If you can't afford college, DONT GO!!!! Go to a local Adult School and learn a fucken trade for a fraction of the cost and have little problems finding a decent paying job.

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keithws2 - Appreciate the advice. I really never considered private schools without a ride as an option, so I never looked into it. My boys are currently in their second semester at JC.

Ultimately, I was never impressed with private schools. I’ve looked at various statistics, debt etc. I’m under the impression that a private school does not make a graduate any more money than a state when you look at overall statistics. I think the outlier students at the top of the food chain skew some of the big numbers.

I also think one of my boys is interested in HVAC/ electrician which earns around $30-35 as an apprentice. $55-65 as a journey man. Not including bennies… He’d be looking at journey man status age 26 or 27. He’ll be able to retire at 55 if he takes this route.

Again, I think there are plenty of jobs with high earning potential that don’t require a $100-200 thousand price tag before you even start. I’m very confident that I am setting them up for success, either way.

BTW: I’m glad you survived the hood. I used to live in one for a year. I was concerned about a male white driving a Volvo while wearing a tucked in polo shirt escaping with his money :slight_smile:

I agree, not everyone would get a beneficial ROI, I just advocate looking at it from an ROI perspective rather than straight dollar values.

Cheers to your kids, that is a solid route. I think a lot of people when they talk about skilled trades talk about it like it is easy, but the reality is in the end, you go through as much schooling as someone with an advanced degree.

My dad was a tin knocker. Spent most of his early years going through all kinds of welding programs. I don't know exactly hwo it works, but I think he wa s a"master welder"? He had gotten called in in the late seventies with all the other welders to fix the chevrons in the citibank building, at night, in secret. Pretty cool story if you are into architecture and construction stuff. Then he spent most of the early to mnid 80s going to all kinds of drafting night schooling and getting whatever certs he needed there. Then came computers, and he was learning leanring learning again. He made a great living to say the least, but holy shit, he went to more school than his brother who was a high powered attorney who graduated top of his class from Fordham. My dad barely got out of high school.

As far as private and state schools, it is program dependent, but when you go into a professional field, school really matters, and it is really hard to go back and change that. Better programs offer better faculties and stronger student bodies, and in the end, coming out of one of those top programs makes a huge difference in your overall outcome. There are other factors of cours,e but school is a huge one.

38

I really hope this doesn't happen. Democrats have lost their collective mind. I get pissed off every month paying taxes as it is. I run my own business and send those fucks about 20 - 25% of what I earn already.

I payed my own way through college. I changed majors because of work. There is no god dam way I will accept the idea of paying off some irresponsible assholes loan for their Sociology degree from Smith College.

39

However, all things aren't equal and you would have to be a complete dope to drop 6 figures on an education degree that starts you at $40k/year.

If you are going to work in the public school system in many states, there are loan forgiveness programs which lessen the cost. There are a lot of variables to consider other than dollar values. Students at NYU (one of th emost expensive schools in the country), generally enter into the New York State public sector, where they receive benefits such as debt forgiveness and capped monthly payments. They leverage their high level degree into graduate work and move into the upper echelons of academia.

I think that this exact attitude is why we are in the current situation where people cannot afford their debt. 

People who can not afford their debt and are defaulting are not the students who spent six figures attaining a four year degree from a traditional not for profit public or private school.

In fact, the default rate son those degrees are very healthy.

As was shown in the Brookings study, the incredible increase in student debt and default rates was fueld by community colleges, for profit schools, and two year vocational programs like those offered at DeVry (googld eDeVry to read baout their practices).

A lot of what is said about four year begrees is not true.

Community colleges have huge default rates and high debt numebrs because the completion rate is so low. Students walk away wiht a couple thousand in debt, never make a payment, and within a few years have tens of thousands. Same with DeVry, and schools like Corinthian.

It is those institutions that drove the debt numebrs higher. Not four year degrees, including liberal arts.

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Zned -

However, all things aren't equal and you would have to be a complete dope to drop 6 figures on an education degree that starts you at $40k/year.

If you are going to work in the public school system in many states, there are loan forgiveness programs which lessen the cost. There are a lot of variables to consider other than dollar values. Students at NYU (one of th emost expensive schools in the country), generally enter into the New York State public sector, where they receive benefits such as debt forgiveness and capped monthly payments. They leverage their high level degree into graduate work and move into the upper echelons of academia.

I think that this exact attitude is why we are in the current situation where people cannot afford their debt. 

People who can not afford their debt and are defaulting are not the students who spent six figures attaining a four year degree from a traditional not for profit public or private school.

In fact, the default rate son those degrees are very healthy.

As was shown in the Brookings study, the incredible increase in student debt and default rates was fueld by community colleges, for profit schools, and two year vocational programs like those offered at DeVry (googld eDeVry to read baout their practices).

A lot of what is said about four year begrees is not true.

Community colleges have huge default rates and high debt numebrs because the completion rate is so low. Students walk away wiht a couple thousand in debt, never make a payment, and within a few years have tens of thousands. Same with DeVry, and schools like Corinthian.

It is those institutions that drove the debt numebrs higher. Not four year degrees, including liberal arts.

Yup, my wife got her masters in psychology. She got 17k knocked off her loan for staying in an inner city school for 5 years.