Unfortunately, I fear the effects will not be what you hope. Most of those that cannot afford their loans will have their bad behavior/decisions reinforced and will continue to rack up debt (that they can’t afford) in other ways. Students just going into college will be enticed to borrow more with the belief that their loans will eventually be forgiven. And the icing on the cake? Colleges will raise prices to quickly eat up that “free money.”
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Yeah well, it’s welfare, income redistribution, vote purchasing… Whatever you want to call it. If you are for those things then it is your happy day.
Just know, many people are deeply resentful therefore it does not pass the smell test of the “common good”.
It runs in direct conflict with self reliance which is a basic conservative characteristic.
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Or, you could have paid your loan and not purchased a car you obviously could not afford.
Btw, I paid for my school which put me behind on building wealth. I didn’t have a car payment until I was thirty, I couldn’t afford it.
Enjoy the windfall, you’re welcome.
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Here we go again, another freebe.
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Exactly Robert.
I worked hard construction all my life, put two kids through college, paid two mortgages and never got help from the guberment. Paying someone’s mortgage through taxes is outrageous.
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So let me ask this, for those that will benefit from this action, who supposedly cannot afford their payments, what would you tell them to do with their “windfall” and how does that advice affect them and how does it affect the economy?
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Bullcrap. It’s the government just printing more money which got us here in the first place.
Your just in a cycle of mass rationalization thinking that this will somehow benefit America. It won’t.
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We are not in need of boosting the economy at this time. We are actually trying to cool the economy right now. The objective is to do it without causing a massive recession. The fed is raising interest rates to slow investment and spending, thereby hopefully slowing inflation.
It will not and cannot fall by government feeding it more money. What will make it fall/stabilize is reduced demand for it due to high cost. That, in a nutshell, is how the economy works. As it is now, colleges are charging high prices that consumers are not comfortable with. But government is going to subsidize it.
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Energy equals work i.e. labor. Cheap energy lowers production costs, lowers consumer costs, reduces inflation.
Government infused cash into an economy has the opposite effect. Government infused cash reduces the value of a dollar and causes inflation. (Trillions pumped into the economy during COVID)
So Biden is doing to three things that are economical suicide. Increasing energy cost, infusing cash into the economy (loan forgiveness) and raising tax revenue.
It’s bad policy. Not only that, they don’t know how much it will cost because they don’t have firm numbers of who qualifies.
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You too, thanks for the counter points. Good stuff.
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Cheese and rice, I just saw a graphic on my local news that said the debt forgiveness program will not directly affect taxpayers but will be rolled into the federal deficit instead. LO fucking L. 
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Good morning.
Very true, and I have a good example of why.
My son’s fiance’ is 52 years old and earns well over $100,000 a year working for a liberal arts college and still owes approximately $45k.
Why, well raising 2 kids, it was put on the back burner and she only paid the minimum, while she bought a new house, bought a new car and all kinds of misc. items.
My son moved in with her and guess what received priority?
Pay off that loan. He earns about $90k also. But he know how to budget and how to pay money he owes. He doesn’t owe anything on college loans.
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This is the cost for the local Liberal Arts college here in central Maine.
And I’ve always said, a liberal arts college is for someone that doesn’t know what he wants to be yet, so you might need another 2 years after graduation. It’s insane.
This fee is comprised of $56,930 for tuition , $15,295 room and board, $850 for books and supplies and $2,500 for other fees
$75,575 per year x 4 = $302,300
I don’t think too many people in the state of Maine can afford to pay that much for college. It’s insane.
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No, you were right the first time. It is an economic stimulus. If I am budgeting $200 per month to make a loan payment, and now that loan is erased, I have $200 per month for new spending.
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The free market was already starting to work. Since 2010, overall college enrollment has dropped nearly 10% (College Enrollment Statistics [2024]: Total + by Demographic).
Part of the reason for high college costs is the easy access to federal loans students enjoy. This allows colleges to increase costs substantially, while limiting the associated drop in demand that normally comes with increased prices.
But that’s not what’s happening. Most are not budgeting to make a loan payment. The loans are in default. When the Government relieves the loan they pay it off. That means everybody pays in the form of taxes and that individual whose burden was lifted has no more to spend than he did before. Brandon is hoping the college debt free individual will vote Democratic, which of course will start a whole new cycle of vote buying. None of this is cynicism, it is what is actually occurring. If you want MORE taxes keep electing Democrats.
Now consider the way it is supposed to happen. The college indebted individual gets a good paying job (from a useful degree - not a diversity major), contributes to society by a meaningful product or service, Pays his/her debts and suffers LESS taxation. In the words of Ronald Reagan, the worst lie to hear is: “I’m from the government, I’m here to help.”
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Most student loans are backed by the government but loaned by banks.
So if they are “forgiven” the government will take more money that they don’t have and give it to the banks.
If they are paid or forgiven the money stays in the economy the primary difference is who’s pocket it comes out of. The borrower or the public at large.
Yes. These damn youngsters today need to learn that you don’t deserve free government money until AFTER you start your company or corporation. That’s when you put your hand out, and collect on some of that $900B rescue money that was tossed out like paper towel rolls. Of which - 90% (over $800B) has been forgiven - never to be paid back.
In perspective - the money pissed away to corporate beggars was enough to pay for 100M community college or trade school educations.
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The idea that education is reserved for those who can pay is simply fu@king absurd and will insure that you’ll always grovel for work from the educated elite. lol
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Yes, they were direct payments using taxpayer dollars. “Printed money,” as it pertains to the stimulus payments, is taxpayer debt (future taxpayer dollars), created by the US Treasury issuing new bonds for purchase on the open market.
I know you don’t want to see loan forgiveness as “creating new spending,” or “creating new taxpayer debt,” but think of it this way using $10k tuition as a number for simplicity…
- A new student has $20k in savings.
- The student uses $10k to pay tuition.
- The student is then given $10k from the government to put back in their savings.
- The student has spent $10k on tuition but still has $20k in savings.
See how the $10k can be spent twice by the student? The 2nd time it is spent is “new spending” or new taxpayer debt, as we will need to sell new bonds in order to give the student the $10k from the government.
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